Nearshore software development: a guide to choosing an outsourcing partner

Serhiy Lavrynenko
Serhiy Lavrynenko
November 7, 2022 7 min read 2291 views
November 7, 2022 7 min read 2291 views

What is Nearshore software outsourcing?

There are three types of development outsourcing solutions: onshore, Nearshore, and offshore. Onshore software development means delegating the services to a nearby agency, usually in the same area. By offshore development, they mean partnering up with a team, working from a distant location, like a different continent and time zone. Then what is Nearshore software development? It’s trusting your idea in the hands of specialists from a nearby country or region. For example, for US companies, Nearshore outsourcing could be in Canada, Mexico, or South America. For a business in German, Sweden, or Denmark, a Nearshore partnership typically means hiring experts in Ukraine, Poland, or other European countries. onshore vs nearshore vs offshore outsourcing

Why partner up with a Nearshore outsourcing company?

The outsourcing option opens up various opportunities for entrepreneurs to find cost-effective, time-resourceful, optimized solutions and more for software development. Trusting a software project development to an outsourcing company  not only means you will have a ready-made solution developed in the company’s development center but also gives you an opportunity to focus on the business side.

Access to developers’ talents pool

With Nearshore software development outsourcing, businesses can gain cutting-edge technology and innovative tech specialist with experience and skill to benefit their projects. Reports on Statista reveal that 45% of IT companies state the reason for IT outsourcing is the lack of specific skills in the in-house teams.

Covering staff shortage with project-based solutions

When experiencing an IT specialist shortage in the house team, consider outsourcing the development to a Nearshore company. With a dedicated team working on the project, you’ll get outstanding results faster without sacrificing quality. 

Close geographical proximity 

The game-changing benefit of a Nearshore team is easy accessibility for real-time meetings. By avoiding time zone differences, the partnering firms can organize efficient workflow to keep the clients in the loop of the development process. There would be no need to check in at late hours for intercontinental zoom meetings, like with offshore teams.

Boosting company efficiency

With a dedicated Nearshore software development team, entrepreneurs have more resources to focus on crucial business processes without spreading their attention on various channels.

Aligned cultural values and language 

Without a language barrier and a deeper understanding of cultural aspects, partnering companies can avoid communication issues and reach optimized solutions faster. Cultural similarities allow outsourced firms to build better connections with clients and execute their vision with 100% satisfactory results.

Pros and Cons of Nearshore outsourcing 

Compared to offshore software development, the Nearshore solution is the ultimate choice for successful product development. Yet,  let’s discover the list of pros and cons of Nearshore software development outsourcing. 

Nearshore outsourcing benefits

The advantages of Nearshore software development outsourcing are: 

  • Compliance with similar laws and regulations
  • Minimal time-zone difference or none ( for most European countries)
  • Trusting the development process to experienced specialists
  • Cooperating with neighbors for convenient business trips
  • Budget-friendly development costs

Nearshore outsourcing disadvantages

However, there are some flaws in delegating Nearshore software development:

  • High competitive market with offshore outsourcing companies due to cheaper cost 
  • Lack of Nearshore firms, depending on your location
  • Need monitoring developers ( a common disadvantage for any outsourcing)

Steps to outsource Nearshore development team

how to outsource a project - step by step guige

  1. Research the skill and expertise of the in-house team to build expectations and requirements for a future service provider. 
  2. Verify the expertise of your top-selected companies. For example, if you need Nearshore software development for healthcare, research projects they’ve done for the industry.
  3. Organize smooth workflow with the Nearshore software development firm to stay on top of the production process. 

How to choose a reliable partner for Nearshore software development

  • Be clear on your requirements and applied technology expectations
  • Look for transparency with no hidden cost or abnormal hourly rate
  • Cooperate with firms with a proven track record
  • Choose Nearshore software development companies based on staff expertise
  • Don’t hesitate to contact previous customers for feedback
  • Find a team who understands your business model

Nearshore software development services from OTAKOYI

As a Nearshore software development company, we serve Eastern, Central, and Western Europe, offering top quality, timely delivery, out-of-this-world solutions, and competitive prices.

Why choose Ukraine as your Development Partner

What is Nearshore software development from the OTAKOYI agency? It’s a:

  • High-quality software tailored for your business
  • Access to cutting-edge technology and leading tools
  • Innovative minds generating custom digital solutions for business cross-industry
  • Professional support and maintenance from our developers
  • Fast production of software development projects
  • A progressive team speaking fluently in English


What is Nearshore development?

Basically, Nearshore software development outsourcing means delegating the product design process to a professional company that is in close geographical proximity to the home headquarters of your business. Usually, the difference between partner firms should be no more than 3 hours.

How do I hire a Nearshore development agency?

Explore companies providing Nearshore software development services close to your place of origin, research their portfolios and work experience,  select the best-suited option to help execute your idea and reach out to a representative to begin the cooperation.

How is Nearshore outsourcing different from Offshore?

Offshore development means delegating IT services to an agency geographically distant and located on another continent. While a Nearshore software development company usually works from a neighboring country or a nearby region.

Is Nearshore development good for my business?

Known as a cost-effective option, Nearshore custom software development is a low-risk solution for start-ups, medium businesses, and large enterprises. It gives entrepreneurs various benefits and helps them reach professional goals faster.

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