Why Nearshore Software Development is the Right Choice for Your Business

Nearshore software development lets you expand your tech capacity without the expenses associated with in-house staff. This model creates a strong connection between your home-based and nearshore squad, making the external unit feel like a true extension of your company. 

As a tech leader, you know how critical this synergy is to a project’s success – but the perks of nearshore development go even further. In this post, we’ll break down the definition of this model and its 5 key benefits. We’ll also share what to look for in an ideal nearshore development company. Dive in to know more.

What is nearshore software development?  

Nearshore software development is a strategy where companies from the EU or North America build tech teams in countries with similar or adjacent time zones to tackle local skill shortages. In this model, you can contract software developers tailored to your project specifications and tightly interweave them into your operations. Working closely with your local staff, they will feel as if they were an offshoot of your primary team. The key advantage? You engage the talent you need while retaining full control over the development process. It’s no surprise that 39% of companies are ready to fall back on nearshore talent like a crutch during times of talent deficit. 

As an alternative to nearshore software development, you might explore onshoring and offshoring, each with its unique nuances.

• Offshoring: This assumes hiring an IT team in an overseas location. Depending on your market, it can be Asia or Central & Eastern Europe (CEE). Offshoring lets you access vast pools of technologists and significant savings – although real-time collaboration won’t be on the table. If you’re willing to cut costs radically and ready to navigate the time zone challenges – this approach is for you.
•  Onshoring: This involves hiring specialists within your own country or region. It offers access to the skills you need while ensuring collaboration within the same legal, cultural, and language environment. However, the major challenge is the high costs of local software developers.

Nearshore software development offers a balanced approach, filling the gaps of other models. It gives you access to the talent you need, cost advantage, and professionals with an aligned background – all while enabling collaboration during similar business hours. 

Benefits of nearshore software development 

Now let’s look at the perks of nearshore development in more detail to see why it turns heads of companies like yours. 

Time zone alignment. Time zone difference is a major barrier in an offshore setup, often causing project delays. Nearshore software development, on the other hand, lets you establish an offshoot of your organization in a similar or close time zone. 

For instance, regions like CEE (Poland, Romania, Czech Republic, Ukraine, etc) or Latin America (Mexico, Colombia, Argentina, Brazil, etc.) mirror the EU and US business hours – with zero to no time difference. Thanks to this, your teams will work in real time, enhancing productivity, communication, and collaboration. Time zone alignment, crucial for solid face time between your parties, is an obstacle when setting up teams in dramatically different time zones.

Cultural compatibility. The world is a tapestry of cultures, and nearshore software development enables you to benefit from this diversity, while building a team with shared cultural touchpoints. These common values help your nearshore development team understand unspoken nuances, reducing the risk of miscommunication, delays, or rework. For example, nearshore experts might immediately grasp informal feedback like “make it snappier” or “ensure it’s intuitive for first-time users” – unlike their offshore counterparts. 

Locations like CEE and LATAM share strong cultural ties to the Western world, sharing a robust approach to work, focus on individual contribution, and respect for hierarchy. Nearshore development ensures your team members have a common ground, which contributes to creating a more integrated working environment where everyone feels aligned and understood.

Cost efficiency. Nearshore software development typically takes place in countries with lower cost of living compared to Western Europe or North America. While it may not be as affordable as offshoring, nearshoring can deliver operational savings within the range of 40% – 70%. 

Besides lower rates of local IT experts, you can also trim extra costs associated with full-time employees, such as payroll, bonuses, insurance, vacations, sick leaves, and more – all of which are typically covered by the vendor of nearshore software development teams.

Access to skilled talent. Nearshore software development lets you add skilled software developers with expertise that may be unavailable within your company walls. Such hives of tech talent as CEE and LATAM combined offer more than 2 million technologists, spanning in-demand expertise (like Data, AI/ML, and Cloud) and common tech stacks for mobile, web, and full-stack development. 

Furthermore, education systems in CEE and LATAM are inclined towards Western standards – an important factor in the emergence of a pool of experts with modern tech skills. Thus, with nearshore software development, you can count on a well-educated workforce with solid STEM education, particularly in Computer Science and Engineering. 

Reduced travel and easier collaboration. The geographic proximity to your nearshore branch makes team visits far more convenient compared to offshoring. Software development nearshore minimizes travel time and costs, facilitating frequent face-to-face meetings, audits, and in-person collaboration. This streamlined access to your team can play a key role in the quality of your project and the rapid resolution of any issues.

We at nCube can help with nearshore software outsourcing

We are a trusted provider of nearshore software outsourcing with over 16 years of experience connecting businesses with skilled IT talent in CEE, Latin America, and other nearshore hubs. Our portfolio of 120+ clients features well-known brands such as AstraZeneca, doTerra, and Life360, alongside a wide range of SMEs and enterprises across diverse business verticals – from Fintech and Healthcare to SaaS, Education, and E-commerce. 

nCube is an experienced partner for building a team of skilled software engineers as well as managing your nearshore development center. We’ll help you assemble a team with the tech expertise you need – be it AI/ML, Data, web, mobile, backend, frontend, or full-stack competence. Additionally, we’ll handle the integration of the team members into your operations when it comes to communication and real-time collaboration. Such expenses as office space, payroll, insurance, bonuses, personal vacations, HR, and legal support will also rest on our shoulders – so you can focus on what matters to your business. 

Our nearshore software development services offer you a set of benefits to expedite your business: 

2-4 weeks to launch. Chances are you need a software engineer(s) to fill critical gaps as fast as possible. With the right talent sourcing processes and a network of 125,000+ profiles in place, we can instantly jump into team formation, sending the first candidates your way within a day after our initial meeting. Depending on your project’s complexity, we can get your nearshore branch up and running within just a few weeks. 

Access to niche skills. If AI/ML, Data, Cloud, or complex backend are a part of your game, finding skilled talent is crucial for achieving top results. By partnering with nCube as a provider of nearshore custom software development, you can secure the expertise your local talent repository may lack. 

Top 1% talent. Sleep well at night knowing your project is in capable hands. Our multi-step screening process deliberately highlights the ability to solve complex problems as well as advanced coding skills and cultural fit. Only 1 out of 5 candidates move forward to the client interview stage. Ultimately, the decision to add a candidate to your team is yours. 

Easy testing of your ideas. When you need a quick way to validate your idea, building an in-house team may not be the most practical solution. Alternatively, adding several competent nearshore experts is a more flexible, low-risk option. Starting small will also give you an idea of whether nearshore software development outsourcing sits well with your business – or if you’re better off exploring other models like nearshore staff augmentation.

Up to 50% affordable software developer rates. Admittedly, nearshoring may not be the absolute cheapest option but it does offer competitive market rates in CEE and LATAM, with moderate vendor margins – especially when compared to the costs of hiring locally. With a reliable vendor like nCube, you can be sure to maximize the value of nearshoring without the financial burden of in-house staffing. 

100% team control is on your side. Collaborate directly with the members of your nearshore branch and make all project-related decisions as if it were your internal team. While a provider plays a key role in integrating and supporting your team members, you’ll always be in the driver’s seat when it comes to the workflow, budget, deadline, and results. You’re free to seed your company’s culture – and the engineers will adapt to your style whether you’re an advocate of Waterfall, nearshore Agile development, or any other approach. 

Tips for choosing the right nearshore software development company

Choosing the right nearshore software development company is crucial for success with this model. If you want to achieve great results, look for companies that comprehend the IT sector in your chosen tech hub, understand the specifics of your project, and can provide and retain the talent you need. This is where nCube truly shines.

So, in the sea of nearshore software development companies, how to select the best one? Focus on the following aspects:  

• Company experience: How long has a nearshore development company been in operation? A longer track record often indicates proficiency in team formation, remote management, and employee retention. At nCube, our history of nearshoring started in 2008, having served over 120 companies around the world to this date. 
• Domain expertise. Working with a company with merely a cursory understanding of your business vertical isn’t the safest bet. On the other hand, a partner familiar with your business vertical can better understand your challenges and requirements. For instance, nCube has a diverse portfolio across sectors like Fintech, Healthcare, SaaS, Education, and E-commerce, among others. 
• Speed of team formation. How quickly can a nearshore development company provide you with the required profiles? Ideally, their process of team formation should be down to weeks so you can avoid delays and move forward with your nearshore branch faster. In our experience, it’s possible to set up a nearshore team within 2-4 weeks. 
• Internal screening process. How does the company evaluate the candidates? For instance, our process includes 4 steps – tech competence, soft skills, culture fit, and English proficiency – all based on the client’s requirements. We’ll make sure you only interview the right candidates, wasting no time. This has earned us a strong reputation on Clutch for the speed and quality of provided candidates. 
• Client testimonials. Review feedback from previous clients to gauge satisfaction and reliability. Positive testimonials and willingness to recommend the provider are strong indicators of quality service. nCube boasts a 94% client recommendation rate, as reflected in our success stories and reviews on the Clutch profile. 

Wrapping up

Nearshore software development makes you a stronger market player due to numerous benefits – it enables you to launch development quickly, staff your project with the best talent, and align seamlessly across borders in terms of culture and working hours – all at an attractive cost. 

With vast experience in this model, we at nCube can build your team in Central and Eastern Europe (including nearshoring in Ukraine, Romania, Poland, etc) or Latin America (Mexico, Brazil, Argentina, or Colombia), taking care of sourcing, onboarding, and managing your nearshore offshoot so you can focus on your business. Let’s connect. 

Common questions and answers about nearshoring:

What is the meaning of nearshore development?

Nearshore development is a form of outsourcing where a development team is assembled in a neighboring country, which is close to your headquarters geographically and within a time zone difference of zero to four hours.

What is nearshore in the IT industry? 

It means delegating software development tasks to a team located in a similar or adjacent time zone. This team can either function as an extension of your company, fully synchronized with your internal staff, or operate as an autonomous branch with its own workflows. 

What is the difference between offshore and nearshore software development? 

Offshore software development involves partnering with a development team in a far-off country with a significantly different time zone. On the other hand, nearshore software development means working with a company located in a neighboring country or within the same or adjacent time zone.