Step-by-Step Guide to Setting Up a Nearshore Software Development Center

Curious how companies like yours manage to keep up with the pace of the market, launch products quickly, and staff projects with the best software developers? The answer might be closer than you think – right “near” your country.

Imagine a skilled software development team, fully dedicated to your project but working in an office located 1-3 hours away from your headquarters. That’s how a nearshore software development center works. Many businesses nowadays leverage this model to access skilled IT talent, assemble a tech team fast, focus on internal operations, save costs and more. 

In this post, we’ll walk you through the 7 steps to set up your own nearshore development center and address the key questions surrounding this model. 

Step 1: Define your goals and requirements 

Start by outlining your project requirements, goals and your expectations. What’s behind your decision to set up a nearshore development center in another country instead of hiring locally? What are the specific outcomes you want to achieve with this strategy? Getting clear on these questions will lay a foundation for your nearshore strategy.

Next, what roles and skill sets do you need to achieve your goals? Look at your current tech squad and define competencies that your nearshore software development center will cover.

Finally, set clear requirements for your remote center. Map out the key performance indicators for each role. Having this information on hand will let a provider of nearshore development centers (like nCube) take a more targeted approach to meet your expectations.

Step 2: Choose the right location for your nearshore development center 

When it comes to finding top tech talent, it’s best to be where the action is. For instance, nearshoring in Ukraine will give you access to over 300,00 skilled software developers.

Choosing the right location is essential when setting up your nearshore development center. To make it easier, we’ve put together a list of proven nearshoring hotspots – countries in Central and Eastern Europe (CEE) and Latin America (LATAM) known for their vibrant tech scenes.

If you’re located in the EU or UK, your ideal solution will be nearshore in Poland, Ukraine, Romania, Czech Republic, Bulgaria, Moldova or any other CEE country.

For US-based businesses, LATAM (Mexico, Argentina, Brazil, Colombia) will be the best choice to set up a nearshore development center. These regions align closely with your headquarters in terms of proximity and overlapping time zones – both essential for real-time collaboration, which lies at the heart of nearshoring.

Step 3: Select a suitable partner

Your next step is to look for a nearshore development company that specializes in building centers in the region of your choice. For instance, we at nCube, have regional presence in both CEE and LATAM. We help our clients access technological expertise as well as achieve fast team launch and cost reduction.  We have a tech team, HR experts, and established processes in place to help you launch a skilled nearshore software development center based on your needs.

When partnering with a skilled provider like us, you’ll get the following benefits:

An internal candidate screening process. With our expertise in staffing nearshore software development centers, we tailor each team to meet our clients’ unique needs. Our knowledgeable tech team and HR experts will ensure you have the best people to deliver a high quality of work, whether you choose CEE or LATAM. Through our multi-step candidate screening process, we ensure your center is driven by experts with the right experience, educational background, tech skills, communication skills, and high English proficiency.

Your dedicated nearshore facility. We’ll carefully select an office space for your nearshore software development center​ and furnish it will all the needed IT infrastructure. Whether you build your branch in São Paulo, Kraków, Mexico City, or Bucharest, we’ll take care of its branding, office maintenance, catering, delivery, equipment procurement, and more – all for your nearshore development team to work without impediments and feel comfortable.

Rapid launch. Launching a nearshore software development center is probably just one job-to-do on your list. The bigger task resting on your shoulders is to dive into development as soon as possible and launch the product. We share your sense of urgency – our team has the capacity to launch your center within weeks, not months compared to in-house staffing.

Talent retention. We don’t just launch a nearshore development center and hand you the keys to the castle. We are dedicated to keeping your team members firmly within its walls for as long as you need. In 2023, we achieved a 98% unforced retention due to our care of the engineers we provide.

Cultural fit and domain expertise. The world is a tapestry of cultures, and we’ll help you find talent who will be compatible with your company’s unique culture. Your team a similar will have similar ethics as well as a deep understanding of the domain – the staples that contribute to successful nearshore endeavors.

Tips to select a relevant provider of a nearshore development center

For sure, a trusted company with relevant experience like nCube will bring you a lot of benefits. But how to spot one? Well, it’s a good practice to consider the following:

• Transparent pricing;
• Expertise in nearshore staff augmentation;
• A rich portfolio of success stories;
• A long history of building nearshore software development center​s;
• Experience in your business vertical;
• Testimonials and positive reviews on firm aggregators like Clutch;
• A presence of internal processes that ensure to onboard the best talent with the right skills;
• Clear communication, capacity to assign a dedicated personal manager;
• Capability to meet your scalability needs in case you need to increase the branch.

Step 4: Set up infrastructure and tools 

Your nearshore software development center should operate like a well-oiled machine, and solid IT infrastructure is the foundation to make that happen. This includes both physical equipment (PCs, laptops) and software (communication and project management tools), along with essential security measures and data storage policies.

Here’s what your IT infrastructure needs to cover:

• Hardware: Laptops, PCs, smartphones, tablets;
• Project Management tools, visualization tools, CRMs, ERPs, etc;
• Servers: On-premise, virtual, or cloud servers;
• Data storage: Cloud-based tools for storage, analytics, backups like AWS, MS Azure;
• Communication tools: Messaging and video-conferencing tools. For example, Slack, Zoom, MS Teams;
• Data security tools: (IAM) systems, encryption protocols, firewalls, multi-factor authentication, VPNs;
• Development tools: Code version tools, automated testing platforms, CI tools, for example Jenkins;
• AI tools: Areas where AI and automation can be applied;

Our list is far from being exhaustive, but it can give you an overview of an infrastructure you may need for your nearshore software development center. At nCube, we handle every aspect – from configuring and supporting your IT setup to managing network and server maintenance, implementing robust security protocols, and ensuring quick resolution of any IT-related issues.

Step 5: Build a strong communication strategy 

With nearshore software development center​s, the better processes – the better outcomes.  With that in mind, from the onset of your collaboration, you need to set up clear channels and guidelines of communication for everyone to be connected and on the same page. This not only includes deciding on the tools and platforms your team will use but also schedules and the style of communication. Here are several key tools you may want to include in your toolbox:

• Messaging tools: Slack, MS Teams, or Discord are user-friendly and appropriate for rapid updates and daily communication with team members.
• Video call tools: Zoom, Google Meet, Skype, MS Teams – all work for online meetings and let you jump on a call from anywhere.
• Project management tools: Jira, Confluence, Asana, Trello – these tools excel in tracking progress, establishing workflows, setting goals, and generally keeping all work of your nearshore software development center​ in one place.
•  File-sharing tools: Google Drive, Dropbox Business, MS One Drive will let your team share files and keep documentation at hand.

Once you’ve chosen your set of tools for each purpose, ensure that everyone knows how to put them to good use.

What’s next? Tool selection is just 20% of success. The lion’s share of effort goes into setting up the right communication processes. The best way to build communication in your nearshore development center is to schedule daily or weekly check-in meetings to provide updates or feedback, address issues, and build team spirit.

Regular meetings are also an integral part of progress tracking. They are also helpful for reiterating your company goals, objectives, and values. When it comes to the style, you’re free to choose between formal meetings or opt for a more casual format.

Step 6: Ensure compliance and security 

IP and data protection are a major concern when working with nearshore software development center​. Thus, you want to make sure there are solid protections in place to keep sensitive information secure. Here’s what you can do to implement security compliance in your nearshore branch – or just partner with a reliable provider like nCube, and we’ll take care of everything.

Security policies. These may include everything – from informing team members about regular software updates to using VPN for safe data transmission.

Robust authentication. Implement multi-factor authentication, requiring a second device or biometric check to verify each team member’s identity.  Additionally, implement SSL certificates to keep your data safe.

A “strong password” rule. Encourage employees to use intricate passwords and change them as often as possible.

Secure file-sharing practices. Highlight the importance of using encryption tools to protect shared data and managing permissions to control access.

Access to your center. The best way to do that is by applying Role-Based Access Controls (RBAC). That way, you’ll limit access to sensitive information only for selected employees/roles, reducing the risk of data falling into the wrong hands.

End-to-end encryption. Only use messaging tools that provide end-to-end encryption to protect your data from prying eyes.

Monitor and respond to threats. Schedule regular security audits to find potential vulnerabilities. Create a plan to respond to security breaches instantaneously.

Security training. Be sure the members of your nearshore software development center​ are aware of best security practices. ‍

When it comes to security, it’s best to run a tight ship. Combine tools and technologies with regular training to enhance the security of your nearshore stronghold.  

Step 7: Scale and optimize your nearshore software development center 

At some point, your nearshore software development center may need more team members. The good news? You’ve chosen the right strategy, and it’s paying off. In fact, in our experience, 62 % of our clients scale up within the first 12 months of our cooperation.

The bad news is that expanding a nearshore unit can be tricky. It’s not just about adding new faces to your team – it’s rather about building systems, processes, and culture that supports growth. With a reliable partner like nCube, you’ll meet your scaling goals. Our team of 12 HR experts lets us assign a dedicated recruiter to each role to meet your growing needs. We’ve successfully scaled teams by adding 10-30 software engineers per month. Here are some bits of advice to help at the scaling and optimizing stage:

KPIs are essential. When scaling your nearshore development center, set clear goals, deadlines and quality standards for newcomers. Track KPIs to gain insights into where there’s room for growth.

Regular feedback is second-to-none. Make time for weekly check-ins to discuss any challenges and celebrate wins. Give constructive feedback to team members to promote improvement.

Performance reviews are a must. Regularly review how your nearshore team and individual members are performing. These reviews are a great way to optimize roles, give credit where it’s due, and provide support.

Agile is the best approach. Agile methods like daily stand-ups, sprint planning, and retrospectives are the oxygen of your nearshore software development center. Nearshore Agile development lets you keep the team focused, prioritize tasks, and strengthen collaboration within nearshore software development center.

Wrapping up… 

A nearshore development center helps you add the top-quality talent you need and get your project off the ground faster – all at an attractive budget.

In this article, we showed you the steps you can take to launch your nearshore branch. By following these steps – defining the requirements, choosing the right tech hub and provider, setting up the right infrastructure, securing your nearshore operations, and scaling efficiently – you can build a successful nearshore development center.

With nCube, you have a reliable partner ready to help you build your nearshore unit in Europe or LATAM.  We offer the flexibility and expertise your business needs to expand to new regions without roadblocks.

Common question and answers 

What is a nearshore software development center? 

A nearshore software development center is a legal entity, an office, or a team located in another country that provides software development for your company.

What are nearshore software development center benefits?

The key benefits of a nearshore software development center are:

• Greater access to pools of software developers;
• Close proximity your headquarters;
• Less cultural differences compared to outsourcing;
• Common business hours for real time work;
• Possibility to reduce your software development budget by a significant margin;
• Flexibility to scale up and down depending on your needs.

How to select a vendor to establish a nearshore software development center? Look for these signs:

• Client testimonials and success stories;
• Presence on firm aggregators such as Clutch;
• A newly updated Careers page with recently posted vacancies;
• Recent blog posts;
• Presence in social media;
• Relevant contact information;
• Professional photos of the office, team, and corporate videos.

Use this checklist to select the best vendor – or just contact our team at nCube for a quick call to discuss how we can help you!