Why Nearshore Software Development is the Best Choice for Your Business

Mireya Herrera
August 25, 2020

Nearshore software development is quickly becoming the preferred choice for businesses seeking to build quality applications without sacrificing timeline and budget. This blog post will weigh the pros and cons of the three major development models and explain why nearshoring may be the best choice for your business.

What is nearshore software development?

Nearshore software development (nearshoring) is the practice of outsourcing software development projects to teams of developers close to the company needing the services. It is a popular alternative to the traditional offshore software development model, which involves hiring developers located far from your company's home country. 

The most apparent benefit of nearshoring is proximity to your business, usually in a neighboring country or region. As a result, a nearshore model allows for more frequent face-to-face meetings, better communication, and improved collaboration between you and the development team. You can expect fewer time zone issues and higher levels of trust between your in-house team and your development team, resulting in a higher quality of work.

For US-based companies, popular nearshore locations include Central and Latin America, where cultural similarities can make it easier for you to manage the team and collaborate effectively. Plus, nearshore teams tend to cost less than an onsite or in-house team while providing access to skilled workers with experience working in agile and other popular development frameworks. 

The significant benefits of nearshore development include: 

  • Shorter lead times
  • Ease of communication and faster response times
  • More accountability and transparency
  • Easier access to technical support
  • Higher quality results
  • Cost effective solution

What is offshore software development?

Offshore software development (offshoring) is the practice of outsourcing development work to another country, typically far from the company needing the services. As a result, offshoring can provide significant cost savings over traditional in-house development and increased scalability and access to skilled professionals. Offshore developers may be located anywhere globally, although many companies prefer to hire developers from countries with lower labor costs or specialized expertise.

While offshoring can result in significant cost savings, considerable drawbacks exist. For example, language barriers, time differences, and cultural nuances can all lead to miscommunication between the developers and the project team, resulting in missed deadlines, lower-quality work, and expensive project rescues. 

What is onshore software development?

Onshore software development (onshoring) is having software developed and maintained within the same country or region. This approach has some distinct benefits compared to nearshore and offshore development. By working with a local team, you can communicate directly with your development team and have more control over what the team is doing day-to-day. Working with an onshore team also allows for faster collaboration and problem-solving and more transparency in the process. 

However, one of the main drawbacks of this approach is the cost associated with hiring onshore developers, which can be significantly higher than nearshore or offshore development. 

Comparing nearshore vs. offshore vs. onshore

When deciding which option is best for your company, there are a few things to consider. Onshore development, while convenient and often the most expensive option, is still beneficial in many scenarios. The ability to meet face-to-face with developers and to be closer to the project can be extremely valuable. However, hiring an onshore team (or building an in-house team) is only sometimes feasible due to budget constraints or the project's scope.

Offshore development is an attractive option for some business owners due to the cost savings. While this route can result in significant cost savings, considerable drawbacks exist. Language barriers, time differences, and cultural nuances can all lead to miscommunication between the developers and the project team.

Nearshore software development offers the best of all worlds, offering cost savings, quality, and convenience. By hiring nearshore developers, businesses benefit from access to highly skilled professionals without worrying about language barriers, time differences, or cultural misunderstandings. Plus, having an onshore project manager assures the project is on track and meeting expectations.

Our blended onshore and nearshore model

At AppIt Ventures, we understand how important it is to have control over your product. That's why we have established nearshore teams and onshore project managers. Our project managers oversee our Latin American teams in Costa Rica, Mexico, and Colombia allowing us to provide you with the highest quality developers and peace of mind. Our blended model is designed for companies looking for cost-effective development, an improved client experience, full accountability, and increased ROI. 

Interested in hearing how we can help you accelerate your product development and reach your organizational goals? Schedule a project call with one of our experts or check out how we helped Starlight Software Solutions accelerate their product development through effective nearshore development and staff augmentation.

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