By admin

October 28, 2020

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Nearshore development is a type of outsourcing that focuses on nearby countries. It covers delegating software development tasks to other providers that are usually geographically close and share the same or similar time zone. Nearshoring has become one of the prominent ways to enhance a business and keep up with technological innovation at a reasonable price. It helps companies to introduce new products, boost the existing ones, and optimize their workflow while concentrating on the core part of the business.

Usually, the companies that look for a nearshore development center want to put their effort into an essential part of the business while custom software development is taken care of by professionals from other countries.


Benefits of Nearshore Software Development

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There are several significant advantages of this particular model of outsourcing, such as:

  • Cost reduction. It is one of the main advantages of delegating software development to separate providers in other regions. The prices and salaries of developers fluctuate a lot depending on the country. The average salary of a US programmer is much higher than the one in Brazil or Ukraine. This can save a lot of budgets, that’s why many startups of middle-size businesses are also interested in such a model. Also, because of that, the global market size for outsourcing has reached $92.5 billion.
  • Access to highly-qualified professionals. It is not always easy to find suitable professionals in the same city or even country, especially when it comes to such technologies as AI, Big Data, or Machine Learning. But expanding the search to the nearest countries allows finding highly-experienced teams that can offer top-notch services.  It is also quite beneficial for the industries that do not have technology as its core, such as Healthcare, Banking, or eCommerce.
  • Easier communication and management. In comparison to outsourcing to distant locations, nearshoring is much more convenient in terms of synchronized workflow. Little to no time difference gives the opportunity to manage offshore team directly and without any delays. It ensures easy travel and more efficient cooperation.
  • No cultural or language barriers. Another great advantage of working with the developers in close proximity is that there is often no language barrier. There is also a much lesser chance of any cultural differences or barriers. Companies usually share the same business values and ethics and management models. It is overall much more comfortable for a huge amount of businesses.
  • It allows companies to focus on the core of their business model. For example, an eCommerce company is more concerned about its products and marketing than creating an outstanding website. That’s why they can delegate this task to qualified providers and concentrate on what they are good at. It ensures that everyone is occupied with what they are experts in. And it gives more opportunities to a company to grow as the processes happen simultaneously.

Industries that Use Nearshore Software Development

Overall, any enterprise that needs software development can choose to outsource. Whether they choose nearshore, offshore, or onshore models – it depends on their goals and purposes. But nearshoring is particularly useful for several industries.

1.     eCommerce and Digital Marketing

These companies are always preoccupied with their products or services they sell and better user experience. They have to deal with huge amounts of data and responses and be on the top of technology when it comes to UI and the best solutions for platforms and websites. Naturally, they choose to delegate software development to the best professional programmers that can create the most efficient websites, apps, or other solutions to enhance their business. And a good UI can make or break a deal, many customers will not buy a product if they have to wait too long for a website response or the site is generally confusing.

2.     Healthcare and BioTech

This is another industry that is revolutionized by technology now. The newest tools and machines are used in Healthcare and they all need a high-quality code to operate. Often, Healthcare companies choose to nearshore software development as it is easy, fast, and cheap. And they can focus on their core activity of the company. It also ensures that they use the most advanced and safe technologies in their work. The pharmaceutical industry also uses nearshoring to make sure that their services and products are of the best quality and perform safely.

3.     Finance and Banking

Banking and financial enterprises also face a technological challenge. They need to make their services more accessible, fast, and comfortable for users. They use nearshore development to create custom applications and websites that offer the best UI. Another important feature they are interested in is advanced cybersecurity measures and the newest encryption mechanisms. For example, there are a lot of discussions on how Blockchain technology can be used in Banking, and for that, such businesses need help from top IT specialists.

4.     Telecom

Telecom stands for the telecommunication industry that covers all ways of distant information transition. They need help from nearshore developers constantly as the technology evolves at a rapid speed. They need specific solutions to be programmed or they are interested in the implementation of the most advanced tools. For example, if they want to use 5G they need the help of professionals to integrate it smoothly in their current working model.

5.     Entertainment

Entertainment is one of the main investors when it comes to nearshoring. It includes all types of entertainment, starting from game development and up to graphic design for movies. All of these things require help from high-quality employees that can tackle complex tasks and provide the best results. A lot of gaming companies delegate graphic design or programming of particular parts of the game to other countries because it allows releasing a product faster.


Nearshoring is a very beneficial model of outsourcing for many industries, such as BioTech, Finance, Entertainment, eCommerce, and Healthcare. It helps to achieve new business goals and boost user satisfaction for a reasonable price and at great speed. It is also very convenient when it comes to communication and management of the team.

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