What Is Nearshore Software Development and When to Choose This Model of Cooperation?

Lyudmila Kucher
Lyudmila Kucher

I specialize in outstaffing and staff augmentation, and I have extensive experti...

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Nearshore software development
Nearshore software development, image Willdom.com

Every day, there are fewer in-house teams as more companies opt for remote specialists, choosing outsourcing vs in-house software development. Indeed, outsourcing is becoming increasingly popular. The reason is simple: it’s fair because you only have to pay for the specific talent and services you need.

According to a Clutch study, more than three-quarters (specifically, 83%) of small businesses plan to increase their spending on outsourced services in 2023. Of course, this will also affect the field of software development. The lion’s share of outsourcing is nearshore application development. What is this and what pros can you get by using this model? How can you benefit from nearshore development? Read the answers to all these questions in our comprehensive guide.

What is Nearshore Software Development? Brief Explanation

Speaking of software development, the two models that come to mind first are onshore and offshore.

The first one implies that you will cooperate with specialists who live in the same country as you.

The second model suggests that you will not be interested in the country of residence of the employee.

Both models have advantages and disadvantages. What about nearshore? Let’s take a look.

In simple terms, the nearshore model assumes that you will be working with a specialist who lives in the same time zone as you. For example, if your company is located in Western Europe, you can order product development from a professional who lives in Ukraine or Poland.


What is nearshore software development
Nearshore and offshore software development, image: N-iX.com

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How Does Nearshore Software Development Model Works

Each company has its own geographical proximity, and through nearshore software development, you can increase it. In fact, this option combines the pros of offshore and onshore types of outsourcing. The work will take place with minimal risks and at the same time you will not be limited to one country. For example, if your organization is located in Latin America and plans to work with a U.S. nearshore company, you can get extra protection (E&O) that your native companies do not provide.

If you opt for the nearshore model, you have two options to consider when it comes to team types. However, both choices come with their own set of pros and cons.

Integrated Teams: Project Continuity and High Efficiency

For those who already have an ongoing project, this option is great. With this approach, you can add qualified nearshore software developers to your existing team. This way you make processes easier and tasks faster. It is important to choose a responsible nearshore company to ensure that the specialists possess the necessary qualifications for your project’s success.

Dedicated Teams: A Resource-Optimized Solution

When considering this option, it’s important to note that you won’t need to allocate any additional resources apart from financial investment. By collaborating with a dedicated nearshore team, like mobile app developers in Poland or Ukraine, you gain access to a team that is fully customized to your specific needs. With a monthly fixed payment structure and result-based interaction, this approach ensures a sleek process without the need to add new members to your existing team. This frictionless operation is vital for any software-focused company striving for flawless efficiency.

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Nearshore Software Development Model: Unique Features


The first and foremost pros of partnering with a nearshore company is its proximity to your location. Unlike the offshore model, you can engage in direct communication with the specialists, utilizing not only online communication tools like Zoom or Skype but also in-person meetings. With just a few hours of travel by car or plane, you can have comprehensive discussions and address any questions with your teams.

The second aspect that favors the nearshore software development outsourcing model is the absence of significant cultural differences. Your specialists are not separated by vast distances, eliminating concerns related to such disparities. Consequently, their collaboration becomes more cohesive and more effective compared to the offshore model. Furthermore, unlike the onshore model, you have the opportunity to engage with specialists from various countries, expanding your talent search without restricting it to a single location.

Learn how we help companies worldwide find great technical talent: Case Studies

Why Choose Nearshore Software Development Outsourcing?

When considering a nearshore company it’s essential to weigh the pros and cons to make an informed decision. Let’s first focus on the strengths of this model and the immediate benefits you can gain.

Economic Efficiency

Finding a specialist in your local area whose skills align with your budget can be challenging. Nearshore software development emerges as an excellent option since you can discover experts whose financial expectations are in line with yours. Furthermore, this model operates based on results, ensuring that you only pay for the desired outcomes, preventing any unnecessary overpayment.

Software development-hourly rates by country
Software development rates for country, image credit: Geniussee.com

The Strong Performance

Imagine constantly working during the night. After a couple of weeks, the burnout process inevitably sets in. Nearshore software development eliminates this concern as your employees will not have to work night shifts every day, thus avoiding burnout.

Access to Qualified Experts

Nearshore development companies typically have well-formed teams, saving you time and effort in searching for individual specialists like software architects or so. It is with no doubt a better option as compared to hiring freelance developers as you may estimate from Toptal review. This optimized process also facilitates effective communication among team members. It is essential to prioritize adherence to appropriate procedures when selecting qualified experts.

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Minimum Time Zone Difference

One prominent strength is the minimal time zone difference between you and the service provider. By partnering with a nearshore software development company, you not only have the convenience of conducting online discussions with all the specialists being present but also ensure your own comfort if you need to travel to your partner’s location.

Limitations of Nearshore Software Engineering


Like any cooperation model, nearshore software engineering has its drawbacks. It’s important to be aware of these limitations to determine if this model is the right fit for your needs.

Limited Talent Choices

Here is one weakness of nearshore compared to offshore: the available pool of specialists may not be as extensive. While there are ample selections for software development, the selection is limited to neighboring areas, especially when trying to find a coder. This means you may not have as extensive a range of specialists to choose from compared to offshore outsourcing.

Higher Cost of Nearshore versus Offshore

Every business owner seeks good quality at a competitive price. Opting for offshore software development specialists increases the chances of finding cost-effective solutions. It is worth noting that rates within your region and neighboring areas tend to be similar, making it challenging to find significantly lower-priced options.

Why do companies outsource
Why do companies outsource? Image: Novalinkmx.com

IP Risks

Even if you manage to find a nearshore specialist in a neighboring country, it is important to consider legal differences. Shifting offshore to a country with weaker intellectual property (IP) protection or enforcement may expose your IP to higher risks. Additionally, you will need to ensure secure communication channels, and data transmission, and implement proper NDAs (Non-Disclosure Agreements).

Difficulties in Setting Deadlines

While nearshore cooperation in the software development field takes place between companies located in the same time zone, this aspect can still present challenges. It is important to exercise caution when scheduling meetings and setting deadlines to ensure effective coordination. However, you can minimize all the risks by making use of the strongest outsourcing and nearshoring companies on the market, for example, explore some Bairesdev benefits.

Looking for a dedicated nearshore development team? We’re up for any challenge. Contact us for a free consultation call.

Talmatic: Your Trusted Nearshore Software Development Partner

When it comes to choosing a company for software development that operates on a nearshore basis, Talmatic is the right choice. You don’t need to waste time comparing offers from multiple companies. Simply contact Talmatic, and within 48 hours, you’ll have a team ready to start working. This ensures that your processes won’t be interrupted. If you’re looking for highly skilled software development specialists, Talmatic has a pool of professionals in 52 cutting-edge fields from Ukraine and Eastern Europe. If you require exceptional developers, we offer a concierge service.

At Talmatic, we have strict criteria for selecting professionals who can effectively complete client tasks. Here’s how our selection process works:

  • Resume verification. We carefully evaluate the specified skills and experience in software development. Candidates who don’t meet the requirements are filtered out at this stage.
  • English language proficiency assessment. English is the primary communication language, and specialists with poor English skills won’t be able to effectively communicate with clients.
  • Portfolio analysis. We assess the specialist’s portfolio, which showcases their successful cases. This allows us to objectively evaluate their professionalism and skills.
  • Skill evaluations. We thoroughly analyze the skills of developers who have passed the previous stages, ensuring the best possible results for you.

By choosing Talmatic, you can be confident that you’re partnering with a reliable company that provides access to top developers who meet your project’s specific requirements. Let us assist you with your project’s development and enjoy the benefits of working with an experienced nearshore company.

Frequently Asked Questions

Looking to hire remote software developers but have a few questions unanswered? We are sharing our list of frequently asked questions by our clients when hiring software developers.

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This implies outsourcing projects to nearby countries or regions that are geographically close to the client’s location. This proximity facilitates easier communication and collaboration between the client and the nearshore team.

This process refers to the practice of outsourcing projects to teams located in a remote location, typically in another country. This allows you to access a wider talent pool and potentially reduce costs, but it can create obstacles such as time zone differences and cultural nuances.

Firstly, you don’t have to worry as much about time zone differences. This facilitates real-time communication and polished collaboration. Cultural differences and language misunderstandings are typically minimized, resulting in better understanding and alignment between the client and the development team.

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