Nearshoring: What It Is and How To Do It

Hire Remote Developers
Fred Monnier
Fred Monnier
Chief Staffing Operations Officer
Nearshoring: What It Is and How To Do It

Table of Contents

Nearshoring is a helpful option for businesses that are looking to fill professional roles by hiring talent from nearby countries remotely. Learn more about this option here!
Published on
March 31, 2023
Updated on
October 10, 2023

The world of technology is rapidly evolving. As demand for software and IT services increases, companies are turning to nearshoring to stay competitive. Before, businesses preferred offshoring, which involves sending work offshore to countries with lower costs. Nearshoring is similar, but its primary focus is proximity. The shortage of technology professionals has made it difficult for CIOs to hire and retain specialized digital teams in their own time zones. Nearshore provides an ideal solution that optimizes the onboarding, cost, and recruitment processes and meets the demand for talented software developers.

So, what is nearshoring? This article will explore the concept of nearshoring and how to make it work for your business. We will also discuss some benefits IT businesses can reap from this model.

What Is Nearshoring?

Generally, nearshoring is a business strategy in which companies employ remote resources that are geographically close to them. It often involves hiring individuals from Latin America or Eastern Europe. This allows companies to access talent from abroad while maintaining short time frames for work completion and communication.

Nearshoring vs. Onshoring vs. Offshoring

Nearshoring is often described as a middle ground between onshoring (hiring staff in the same country) and offshoring (hiring staff from overseas). It is often preferred, as it allows for better control over the project, faster delivery of work, and improved customer service.

What Is Nearshore Software Development?

Nearshoring involves outsourcing software development projects to experts in nearby countries with similar time zones and cultures. It effectively leverages the talent and capabilities of software developers and IT specialists from different countries. Nearshoring allows for the same level of expertise as offshoring but with the added benefits of having a more available and responsive team due to proximity. Nearshore teams are often much more responsive to changing customer needs, can provide faster turnaround times, and are more accessible for collaboration.

Say, for instance, a tech company in the US is looking to develop a software solution but cannot find the right talent due to shortages. Nearshoring allows them to outsource the project’s development to a team of experts in nearby countries, such as Canada or Mexico. This arrangement gives the business access to a pool of skilled and experienced professionals familiar with the same operating system, language, and culture while meeting their need for an efficient solution.

Nearshoring Benefits

With nearshoring, your business gets the advantages of onshore and offshore outsourcing. You get closer cultural alignment and geographic proximity but at a more affordable cost. Some advantages of nearshore software development include the following:

Improved Code Quality

The quality of code is critical for the success of any software project. Nearshoring gives you access to talented developers familiar with the same language, culture, and operating system as you. This helps ensure that your software meets the highest standards in terms of quality and performance.

Reduced Costs

Nearshoring can reduce development costs while providing access to a pool of top-level talent. Nearshore teams are typically more cost-effective than onshore and offshore teams, as they don’t have to factor in the expenses associated with travel and living overseas. This can help to reduce the overall cost of development projects while providing high-quality results.

Flexibility and Scalability

Nearshoring provides the flexibility to scale as needed. Nearshore teams can be quickly scaled up or down as projects require, allowing businesses to avoid the costly process of hiring and training new onsite employees. Nearshore teams also provide access to the latest trends and technologies, which can help your projects remain competitive.

Better Communication

The problem of language barriers can be a significant challenge for offshoring projects. Nearshore teams, however, are typically proficient in the same language as your team and can provide better communication and collaboration. This can ensure that the development process is completed on time, as they can more effectively understand and meet customer requirements.

More Control and Influence

Compared to offshoring, nearshore software development gives businesses more control and influence over the development process. Nearshore teams stay in nearby countries, making them more accessible and responsive to customer needs. Nearshore teams also typically share the same cultural values as your company, which can help to ensure that they complete projects with the same level of quality and efficiency as onshore teams.

Diversity and Innovation

Nearshore teams also bring a lot of diversity and innovation to the table. Nearshore developers often bring new perspectives to a project, which helps to ensure that the final product meets your expectations. This can be particularly helpful for businesses looking to stay ahead of the competition, as nearshore developers can often provide valuable insights into industry trends.

Possibility of Expansion Into New Markets

Accessing a nearshore team in another country can open up new opportunities for your business. Nearshore teams can provide valuable insights into local markets, allowing your business to expand quickly and easily. Moreover, expanding into a new market can save you money and stress, as you don't have to send personnel from your own country to manage the project.

Allows for Frequent Visits

Nearshoring makes it easier for your team to visit the nearshore team regularly. This can provide an in-depth understanding of the nearshore team’s work and ensure that the development process aligns with your objectives. This makes adjustments more manageable, as teams can meet face-to-face and discuss the project in detail.

Similar Time Zones

Unlike offshoring, nearshore software development teams stay in nearby countries with similar time zones. This makes it easier to communicate more effectively and quickly as both teams can be in the same time zone.

Cultural Alignment

Differences in culture can mean difficulties in offshoring projects. Nearshore teams, however, are typically located in countries with similar cultures. This makes it easier to develop a good working relationship and understand customer needs more effectively. Nearshore teams can also provide valuable insights into local markets, giving your business a better understanding of the needs and wants of the target market.

How To Approach Nearshoring for Success

Nearshoring can provide an excellent opportunity for tech businesses to access diverse talent and improve the quality of their services. To reap all the benefits of nearshoring, take the following steps:

Assess Your Needs and Decide Which Projects You Want To Outsource

Before you decide to nearshore, you must take stock of your specific needs and determine what type of projects you want to outsource. Nearshoring can be beneficial for certain types of projects, such as web and mobile development, software testing, and database management. However, if a project requires high confidentiality or involves sensitive information, then it is best to keep it onshore.

Select a Team With Experience in the Industry

When choosing a nearshoring partner, selecting one with a proven track record in the industry is essential. Nearshoring requires a deeper understanding and knowledge of local and global markets, so it is vital to ensure that the partner you choose has experience with similar projects. By understanding how local and global markets work together, your team can gain further insight into customer demands, ensuring that your business stays ahead of the competition.

Create a Timeline and Establish Clear Goals

Before beginning a nearshoring project, creating a timeline and defining goals are essential. In addition, you should outline expectations for communication and collaboration between both parties. With clear expectations, nearshore teams can help you complete the project on time, within budget, and with the highest quality.

Make Nearshoring Work for You

Overall, nearshoring is an excellent way for businesses in the IT industry to stay competitive and access the best talent available. If approached correctly, nearshoring can open up new opportunities for growth and success. To make nearshoring work for you, choose a nearshore partner with a proven track record in the industry.

Revelo can help you leverage the benefits of a nearshore team by connecting you with top-level talent from Latin America. We have a network of pre-vetted software engineers ready to join your team and help you succeed. With our expertise and insight, you can make nearshoring work for your business and stay ahead of the competition. Get in touch with us, and let us help you take advantage of nearshoring today!

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