What is Nearshore Software Development Outsourcing? – 2023’s Ultimate Guide

• 2023-11-07 09:26:24
• Saeed Ur Rasheed
• 1

Some companies are considering it for its cost efficiency while others think it is helping them in keeping up with changing operating model shifts and accessing new capabilities.

In software development outsourcing, there are three types of location-based outsourcing models, nearshore software outsourcing, offshore outsourcing, and onshore outsourcing. Software development companies prefer nearshore software development more often over the other types for several reasons.

Like the outsourced teams are in the same region, there is no or less cultural difference, less time-zone difference, easy access to the teams, and so on.

This article highlights about what is nearshore software development outsourcing model in detail and what is nearshoring and how it can supercharge your software development outsourcing.
Let’s start off with the introduction of the topic. 

What is Nearshore Software Development?

Nearshore software development model is a location-based outsourcing engagement model. As per nearshore development model, the client can hire a nearshore development team that lies in the same geographical region with no or less time difference (2-4 hours).

For instance, if you are a company based in Canada, your nearshore development team can be from the US, Mexico, Costa Rica, or Argentina.

How Does Nearshore Outsourcing Model Work?

The nearshore software development is a type of outsourcing model that lets you leverage the advantage of geographical proximity and working in the same time zone ensuring smooth communication and collaboration while staying on budget.

Here’s how does nearshore development outsourcing model works:

• You identify and define your project requirements
• Then start looking for nearshore outsourcing partners
• After a thorough background check, you select a company and negotiate terms and contract
• Then comes the team integration step
• After this development process, continuous collaboration starts till the end of the project.

When you are working with the nearshore software development outsourcing services company make sure they provide proper risk management systems as insurance.

Nearshore software development outsourcing can be executed mainly through two types of collaboration models:

Nearshore IT Staff Augmentation:

As per IT staff augmentation model, the nearshore outsourcing company provides a team that works with your in-house team. Integrated teams are hired to support existing teams and fill the skill gap. These teams work remotely but are under the client’s control and work as per their instruction.

Nearshore Development Teams:

Hiring dedicated development teams means you hire an entire team of nearshore developers for a project. Such teams work independently, or the client has control over them to some extent. The reason for hiring dedicated nearshore development teams for a project is to spare the in-house teams for other work or share their workload.

Reasons To Consider Nearshore Software Development Company?

Why do you need to hire a nearshore software development firm? This is the question that most of us consider before diving into the details of the nearshoring model. Here are some of the reasons that can back your decision to hire a nearshore software development company:

• Similar legal framework:

One of the main reasons companies go for nearshoring software development is similar legal regulations and IP protection. When working with offshore software development companies, you have to deal with specific legal requirements of the given countries that might not protect your interests sometimes.

But in the case of nearshore development, you get the leverage of similar legal frameworks. Hence no extra expenditure on hiring a legal counsel.

• Convenience of location:

Proximity makes communication and collaboration seamless. Most of business leaders prefer nearshoring because it’s convenient to reach the other team and maintain optimal control.

• Find Affordable providers in the region:

If you can find affordable providers in the nearby region, then there is no need to hire developers from countries far away that have considerable time zones and cultural differences.

• Better project oversight:

Travel convenience to the nearby region provides better project oversight opportunities. Be that in-person meetings, project kickoffs, or other on-site activities, nearshore software development makes it easier for it.

• The flexibility of Risk Mitigation:

In case of unforeseen circumstances, it is easier to manage nearshore teams and projects. You can reach the teams without worrying about distance or time difference.