Reasons Why Most Organizations Are Embracing Nearshore Software Development

The way businesses run is evolving as the world is becoming increasingly interconnected. Today, most companies embrace the concept of hiring outsourced development teams as opposed to in-house teams. It is increasingly becoming a preferred choice of most organizations since it saves costs and time while enhancing productivity.

However, outsourcing has its disadvantages, which is why for an organization to remain productive and competitive, it has to consider various factors that this article will touch on. But before that, it is important to understand the benefits of nearshore software development.

1. Cultural Similarities

Countries in the same region tend to be the same, considering the things the two have in common. That means the employer and the contractor are more likely to have the same thinking, values, work ethics, among other things. Nearshore software development makes work easier because the two organizations can collaborate effectively and solve issues efficiently.

Nearshore software development means that a company is delegating software development to a foreign talent or company in a country with time zone parity or a time zone overlap. Basically, the time zone difference between the hiring company and nearshore contractor should be 0-5 hour’s maximum; more than five hours is considered offshore. So, nearshoring means outsourcing services from a contractor in a nearby country with similar cultures.

2. Geographical Proximity

The fact that the contractor is located in the nearby country means that the company hiring the services can have easy and convenient access to the experts working on the software development project. Many companies embrace nearshore outsourcing with open arms due to the qualities that make it vital for competitiveness. Therefore, the geographical aspect is important to explore before deciding to utilize the model. That basically means working with a company with a significant time difference (6 hours and above) from that of the hiring company. Given that the company has hired a nearby team of developers, it is necessary to get in touch with the team now and then. And that will not be exhausting, especially when there is an immediate issue to be corrected which is clearly strength.

3. Ease of Communication

As stated earlier, communication is key to running a business effectively. Given that the contractor is in close geographical proximity with the hiring company, the team members from the two companies can have face to face frictionless communication and meetings more often. More so, software development projects involve a lot of and require effective communication between involved parties. Another important thing about nearshore software development is that it solidifies collaboration between teams, hence enhancing productivity. Given that nearshore contractors are not far away, it presents an advantage of making communication easier, which is a very important factor in business. Hiring the services of a company in a neighboring country costs more than offshoring.

4. Alignment in Time Zones

Working in similar or slightly different time zones is without a doubt one of the major advantages of nearshore outsourcing. It ensures collaboration within working hours in both countries.

5. Availability of Local Talent

The question that most people can ask is why not just hiring the right talent within the country? In business, time is money and nearshoring is the shortest way to save time and hire experts with the right technical expertise simultaneously. Just as mentioned above, it is important because it allows the company to cut costs and save time simultaneously. At the same time, the company gets access to appropriate technical expertise. If the country is oriented with IT, then the hiring company will reduce the difficulties in finding the right talent, which are experienced, technical service providers. Even though every country has its software development services, the thing that matters more is the quality of service.


There are many considerations when choosing nearshore software development. Clearly, the pros must outweigh the cons; however the predominant challenge here will entail getting the right company. The market fortunately has nearshore providers with the right talent, and so considers a team that guarantee an effective way to stay competitive. Of course, that must come at a lower cost compared to having your in-house employees.