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4 Benefits of Nearshore Software Development

Published on
January 26, 2024

The demand for talented technology professionals remains strong, with salaries continuing to increase as a result. As such, businesses needing an influx of IT talent currently struggle to successfully recruit software engineers and developers. After all, the tech staffing process continues to be risky, sometimes only resulting in wasted time and resources.

Because of this recruiting challenge, many companies turn to offshore outsourcing. This hiring approach provides critical access to talented software developers at a significant cost savings. This is especially the case when compared to American-based technology professionals. However, managing technical project teams with everyone located in disparate time zones ultimately reduces efficiency.

Notably, nearshore development outsourcing provides similar cost savings as offshoring, especially related to salaries. However, your project teams work together more efficiently and effectively with everyone located in close proximity. At the same time, nearshore developers share the same language as your local staff, especially project managers.

So, let’s take a deep dive into nearshore software development and its myriad benefits to businesses. After learning about the concept, expect to develop the desire to hire a nearshore development team for your company!

What Is Nearshore Outsourcing?

As noted earlier, software development nearshoring boasts many of the same benefits of the offshore approach. When hiring foreign software engineering talent, your company enjoys significant cost savings related to salaries compared to US-based developers. In an era where tech salaries continue to increase, saving money on your staffing needs becomes critical.

Once again, managing a team of developers located all across the globe becomes challenging for any technology manager. What happens if a dev located in Asia breaks the build on an important project? It might be hours before they awaken, while the rest of your team simply waits around for the problem to be fixed.

Needless to say, this scenario adds significant inefficiency to any important project. Thankfully, hiring nearshore developers ensures your entire project team resides in the same time zone.

Other benefits of outsourcing nearshore developers abound. Your company works closely with a nearshore staffing partner who understands your company’s tech stack and cultural needs. You also enjoy access to a wider candidate pool, which is especially critical in a challenging market for finding experienced IT pros. Let’s explore some of these benefits of nearshore outsourcing to help your business find the technical talent it needs!

Nearshoring Is More Affordable

We previously highlighted the smaller salaries typically paid to foreign software developers compared to their American counterparts. Simply stated, a lower cost of living directly results in lower pay rates. However, when only hiring offshore development talent, these cost savings likely become reduced by the increased inefficiency of your projects.

The cost savings enjoyed when embracing a nearshore software development staffing strategy also transcend salary considerations. Simply look at the rental costs for office real estate. When employing a nearshore development team, your company ultimately requires a smaller home office. Subsequently, you save by not spending on those costly rentals typically requiring a long-term lease. In addition to reduced expenses, your business also gains more flexibility.

Ultimately, preventing wasteful spending allows your company to use its critical resources to grow the business. Don’t waste your revenue on the expensive tech salaries and commercial real estate rentals typical of the American market. Instead, adopt a software development nearshoring approach and enjoy higher profit margins as a result.

Nearshoring Allows for Closer Proximity

Hiring a nearshore development team means they reside in close proximity to your office and project managers. Having everyone located in the same time zone helps your leadership build true camaraderie among all. The entire team works the same schedule, facilitating both communication and collaboration. Simply stated, your chances of a successful project outcome increase by adopting this approach.

As noted earlier, any business enjoys significant cost savings by adopting a software development nearshoring approach. However, these lower expenses also go beyond the salaries you pay for talented software engineers. Having your nearshore developers located close to your home office greatly reduces travel expenses whenever you need to visit. This proximity makes an even bigger difference if you want to get the entire team together in one office.

Nearshoring Provides Clearer, More Frequent Communication

The modern practice of software development relies on collaboration fostered by seamless communication. It remains the reason for the popularity of today’s development methodologies like Agile, DevOps, and their myriad variants. Project managers (or Scrum masters) must focus on ensuring their teams communicate clearly and effectively.

Once again, when employing a nearshore development team, everyone on a project resides in the same time zone. This close proximity plays a key role in fostering the seamless communication necessary for a successful project. It bears repeating you have the ability to bring everyone together under one roof during a project’s crunch time. As highlighted above, expect to pay lower travel costs with your entire team residing close to each other.

Additionally, your nearshore development team also speaks the same language as the rest of your company. Cultural similarities also contribute to the process of building a sense of camaraderie among your project staff. Expect your managers to easily forge productive software teams with experienced nearshore developers.

Nearshoring Gives You Access to an Extended Talent Pool

At the beginning of this article, we discussed the current strong demand for technology professionals. Companies find it especially difficult to source specific positions related to software development. These include mobile developers, full-stack developers, as well as software engineers with AI and machine learning experience.

In the wake of the COVID-19 pandemic, remote working finally became an accepted part of the modern employment model. In fact, the companies demanding a return to the office ultimately find their employees looking elsewhere for other opportunities. This scenario arguably remains the biggest contributing factor to The Great Resignation.

Notably, one overlooked benefit of remote working for employers involves wider candidate pools for difficult to source IT job roles. Of course, your company now boasts the capability to hire remote software developers located anywhere in the United States. But expect to pay higher salaries when compared to hiring a nearshore development team.

On the other hand, software development nearshoring provides access to a wider candidate pool, but with those crucial nearshore outsourcing benefits. Your company saves money on both its staffing process and the salaries you pay these talented software engineers. Your projects also enjoy the strong teamwork and interaction typical when your remote team resides in the same time zone.

Interested in nearshore outsourcing your development team? Schedule time with Developers.Net!

Forging a partnership with an agency experienced in nearshore outsourcing remains the best way to reap the benefits of this staffing approach. At Developers.Net, we take the time to understand both your technical stack and your current and future hiring needs. Even more critically, we realize that cultural fit plays a crucial role in the effectiveness of any project team. Our developers share a common language with your staff, ensuring a copacetic team focused on a successful outcome.

If you want to explore the benefits of nearshore outsourcing, connect with Developers.Net at your earliest convenience. As one of the top technical staffing agencies focused on nearshoring, we provide exceptional software engineering talent to help your business truly thrive. Schedule a meeting with us at your earliest convenience!

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