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What is nearshore software development?

nearshore development

What is Nearshore Software Development, and How Does It Work in 2022?

Companies worldwide are partnering with third-party development teams and freelancers to quickly grow their teams and increase velocity. They can increase productivity while saving money and time by looking to an outside vendor for nearshore development services.

What is Nearshoring?

Nearshoring is the process of hiring a third-party contractor to perform software-related work that may otherwise be done in-house. Nearshore software development allows organizations to add senior-level talent to their teams without having to invest excessive time and money in hiring and training inexperienced team members or searching for experienced software engineers in increasingly competitive labor markets.

nearshore software outsourcing

nearshore software outsourcing


Nearshore outsourcing is the practice of assigning software development duties to [individuals and] teams in adjacent or nearby countries to reduce operational costs. Nearshoring has several well-known advantages, including using the same language, cultural proximity, and business processes without a significant time zone difference.

Nearshoring is beneficial to your company for a variety of reasons. Here are several examples:

A large and expanding talent pool

Exposure to a large talent pool is one of the key reasons why firms are choosing nearshore software development. Nearshoring has this advantage because subject matter expertise in each niche can be challenging to locate locally.

You gain access to a professional workforce in close geographic proximity to your team when you outsource, broadening your horizons and technological capabilities. It also gives you peace of mind knowing that a professional team handles each step of the development process without the need for further training or direction.

Reduced operating costs

When it comes to offshore outsourcing, there is a significant wage disparity between industrialized and lesser-developed countries. When you outsource, you save a considerable amount of money on staff salaries and benefits without sacrificing quality or experience. Furthermore, you will not be required to recruit these developers or lease and equip new space for these developers to work.

As a result, software outsourcing to developing countries results in larger economies of scale, making software development and operations cheaper to outsource than to carry out in-house.

The team can grow as needed

There will be times in any business cycle when demand is at its peak. As a result, available in-house resources are typically redistributed to processes and operations in which they are not subject matter experts. It may also necessitate the hiring of more personnel to help with the workload. Unfortunately, both approaches typically result in lower efficiency and higher expenses.

Nearshoring allows you to recruit a scalable staff for a set length of time without acquiring full-time employees on a long-term basis. You can save a substantial amount of money and increase production once the workload is balanced and team processes are normalized.

Operational Speed

There’s no need to rely solely on in-house resources to launch a product with nearshoring. You can hire experienced developers and set deadlines according to your preferences because dedicated developers can deliver IT services on your schedule. Because time zone differences are minimal, your stakeholders and scrum leaders are always just a phone call away from your nearshore developers.

Concentrate on your core business

To stay relevant in today’s cutthroat digital economy, businesses must find new methods to innovate and expand. Nearshore software development outsourcing emphasizes core operations while also preventing your in-house team from being overburdened. This allows them to prioritize strategic goals that are in line with the company’s objectives.

Your business procedures will be streamlined as a result, and resources will be deployed to the most vital areas.

The next step in the process is to choose a dependable service provider for your business. When selecting a nearshore software development team for your business needs, keep the following points in mind.

Security commitment

Many corporations are turning to third-party contractors to protect their products against hackers and other vulnerabilities. As a result, you must understand how a service provider intends to include security into your software project.

A strong nearshore partner should be able to demonstrate their commitment to cybersecurity by providing you with a thorough overview of their approach. They must also show how they handle sensitive information, backups, and storage. A good security plan should start with the planning step and continue through the testing stage.

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Communication that is both open and clear

Communication is at the top of the priority list for a reputable nearshore company. A company’s commitment to straightforward communication with clients is demonstrated by the use of project management tools (e.g., Slack, Jira, etc.). Communication tools make it easier for remote and in-house employees to work together more effectively. These channels also allow teams to communicate directly with clients and give you a competitive edge.

You’ll have a better understanding of how the project is progressing at each step if you have open communication channels in place. You can see who is in charge of which tasks and when they are expected to be done.

Expertise to Fill up the Gaps

When you outsource software development to a neighboring country, you have a larger pool of highly skilled experts to choose from. After assessing the capabilities of your internal team, you can seek to outsource the expertise that it lacks.

Your internal staff, for example, are brilliant at UX design but lack the JavaScript skills required to make your product viable. When looking for a nearshore partner, seek someone who can complement your existing IT infrastructure and help you achieve more significant results.



Software development, like any other undertaking, comes with its own set of challenges. However, with access to the appropriate resources, these challenges can be overcome. You’ll have a more efficient and cost-effective development process if non-functional requirements like scalability, data migration, performance, and security are taken into account from the start.

Is your nearshore software development partner flexible and agile enough to adapt to the times? Do they have a knack for picking up new techniques? Are they skilled in the application of particular software development methodologies? These are some of the questions you should ask before hiring a software development service provider.

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number8 has a proven track record

It’s critical to conduct due diligence and research on an outsourcing partner and their reputation in the sector before making a final decision. number8’s official website is an excellent place to start. Read confirmed testimonials from previous clients attesting to the work quality we provide. Also, take a look at our reviews on Google and Clutch.


The advantages of nearshoring, such as lower travel and operating costs, are evident, but is this rationale enough to move to this outsourcing model?

Your organization may take on additional work and assign wholly different projects to people in places where payroll costs are lower with [n]umber8. You can also delegate the most time-consuming activities while leaving the most critical initiatives of your software development project to your in-house experts.

You still have increased responsiveness and control, as well as the opportunity to choose a nearshore firm with a team that clearly understands your market, even as your costs are significantly reduced.

number8 is dedicated to helping you streamline your business activities while avoiding time zone disparities. Because outsourced workers do not have to modify their schedules to the employer’s business hours, this results in increased engagement and higher quality work.

Number8 is a name you can trust if you want to enhance production and decrease expenses while keeping high industry standards. Contact our team for more information on how we can help you achieve your business goals more efficiently through outsourcing.

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