Your Complete Guide to Nearshore Software Development
This (shockingly insightful!) article will discuss the basics and benefits of nearshore software development. Knowledge is power—when you understand all of your options, you’ll pick the one that will keep your software dev team riding the big waves. Let’s get started!
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What Is Nearshore Software Development?
Nearshore refers to offshoring software development to a region close to where your company is located. So what nearshoring looks like for you depends on where you are.
If you’re in the US or Canada, your nearshore hubs might be Mexico or Latin America. But if you’re based in London or Milan, your nearshoring options will have you hiring in Eastern Europe. Closer time zones are nearby, hence the term.
Many small and medium-sized businesses choose nearshoring due to the lower cost, yet still have access to top software development talent. In addition, nearshore locations can help cut down on travel expenses for those times where in-person collaboration makes the most sense.
Advantages of Nearshore Software Development
- Easier on the Budget. Nearshore software development saves you a considerable amount of money compared to creating a new arm of your in-house development team. You can save on everything from salaries to taxes to health benefits and more.
- Highly Flexible. If you want to build out your product and company in phases, nearshoring can help. More than anything, it gives you optionality. You can scale the team up or down –adding or subtracting teams – as the business needs evolve over time.
- Minor Time Zone Differences = Better Communication. The nearshore team operates on nearly the same time zone, which gives you the ability to do more all at once (without having to find more office space). Indeed, if your team can't communicate in a timely manner, you’ll spend hours waiting when you all should be working. Since nearshore developers are located close by, reaching them, getting deliverables on time, and having significant overlap in working hours is the norm.
- Close Geographic Proximity. Most of the time, nearshore software development teams are located close to the customer, if you’re in the US, we’re talking Mexico or Latin America. When you’re working, they are, too (for the most part). And when you call, they are there to pick up.
- Less Cultural Differences. Nearshore teams are located abroad (but not far from your country), so this type of software development model eliminates some of the cultural differences that can happen when you’re hiring from a more remote destination.
- Greater Access to Talent. Hiring a remote development team to take on your project is a great way to enhance your in-house development team if they're swamped, lacking the niche specialty skills, or if you need to scale without overloading your in-house team. The globe is full of amazing talent—nearshoring allows you to take advantage of it!
Disadvantages of Nearshore Software Development
Lack of Standardized Quality
There is a wide range of competencies when it comes to nearshore software development firms. Just because they do “everything” doesn’t mean they do it well.
This means you need to do your due diligence—find a reputable firm who can in turn help you find the high-quality talent you need.
There are inherent issues when you have a team that works outside of your in-house location. You don’t have eyes on your team, so you have to make sure they’re keeping their eyes on the prize. Video meetings, scheduled check-ins, and using technology in other ways to your benefit will keep your teams in touch and on point.
Offshoring vs. Onshoring vs. Nearshoring
Need a chart to summarize for your boss (or your noisy uncle at family gatherings)? Here is a cheat sheet on the major differences:
Within your country
4+ time zones away
0 time zones away
1-4 time zones away
Broad variances (depending on the country)
In this article, you can find even more details on the differences.
What Country to Choose For Nearshoring
Your nearshoring partner selection depends on your location. Here are a couple of the most popular destinations that are considered the best for nearshoring.
Latin American countries have become the primary location to find app developers for US-based companies because of their proximity to the United States.
This region has a huge population of developers and a strong secondary education systme to pump out even more. Indeed, Latin America graduates 350,000 developers each year across more than 50 elite technical universities.
For good reason, experts predict that millions of new software development jobs will be targeting Latin American talent by 2025.
Eastern Europe is the nearshoring destination of choice for Western European countries.
Eastern Europe has some of the best software developers in the world. Not only do they have specialty skills and expertise, they (for the most part) have an intermediate English level or higher.
Moreover, Eastern and Western Europe have many shared cultural and economic ties and similar cultures, making collaboration transparent.
Another advantage is that if you’re in Western Europe, you can reach most Eastern European tech hubs in less than two hours.
How to Create the Ideal Nearshore Development Experience: Yourshoring!
The best way to create an amazing nearshore experience is to find a development partner that knows what they’re doing—and knows what you want to accomplish.
The best partner, in our not-so-humble opinion, is us! TurnKey created the unique methodology of Yourshoring to deliver exactly this type of amazing experience. It’s offshoring and nearshoring but in the best way—YOURS.
To create a team that achieves your goals, in your way, and under your guidance, we help you assess the gaps that need to be filled. Then we custom recruit the best specialists we can find in the region you’re looking to hire in. We also implement all the project management processes that will help your new development team shine.
In sum, TurnKey makes your nearshore or offshore experience seamless and successful.
Nearshore software development is a form of offshoring–it’s just closer to wherever your home team lives and works. So Ukraine would be nearshore for a German company, and Mexico would be considered nearshore for a company based in the U.S.
Advantages of this software development approach include lower cost, easier communication thanks to closer time zones, and quicker time to market.
Location, location, location. “Offshoring” is hiring further away from home. “Nearshoring” is hiring closer to home (but not in your same country, which is then called “onshoring”).
Nearshoring allows companies to hire remote software development talent and teams close to home. It eliminates big time zone variances which means the in-house team and the nearshore team have more overlap in working hours and more opportunity for collaboration.
When you live in a country that is in closer proximity to countries that are jam-packed with technical talent, nearshoring becomes a super attractive hiring option. Those benefits along with the lower price tag attached make it a no-brainer for any high growth software company.