Nearshore vs. Offshore Development Companies: All You Need to Know


As your company grows, you will realize that there are certain processes that your staff can no longer handle. Not because they are not prepared but because they do not have the resources, experience, or time to do the job. Software development is one such job that requires technical knowledge and expertise and which most companies outsource.

That’s when  ​​hiring a third party to handle all your software development makes sense, and outsourcing comes into play. However, this raises a question: Nearshore or Offshore? Which to choose? What is the best option for you?

We’ll answer all your questions here.

The Need for Outsourcing Software Development–Nearshore vs. Offshore Development Companies

The demand for skilled software engineers is increasing worldwide but finding the right people for a job can be tricky today. Companies are taking a variety of approaches to meet their individual staffing needs. Since the people with the technical skills and the organizations that need them don’t always overlap geographically, companies are being creative in hiring talented personnel. While some outsource their software development job abroad, others prefer local talent.

Learning more about your options is good to start with whichever strategy you choose so you can make better staffing decisions moving forward.

Nearshore Development Company

Probably the most popular software development outsourcing option, nearshore software development combines the best of two worlds. This approach to hiring Software development Services is a good compromise between having on-site staff and outsourcing staff on the other half of the world. With the nearshore model, the technical staff you have hired is in a time zone close to your company’s, with a time difference of no more than three hours.

With Nearshore software development, you can work with a company close to your own country. This type of outsourcing is different from offshore in that you’ll be working with a  nearby company, which significantly reduces some of the drawbacks the latter option might have.


Pros of Nearshore Software Development Company

  • Since you’re still working with someone from the outside, it means that software outsourcing is still extremely accessible, especially when compared to onshore development.
  • No drastically different time zones. By working with a software outsourcing company that is located in a nearby country, you won’t have to worry about living in dramatically different time zones, which means it’s easier to keep your workflow on track.
  • No language barrier Chances are the company or team you’ll end up working with speaks the same language as you or is prepared to communicate efficiently with you in your native language. This is the biggest advantage because communicationdelays between teams working across separate time zones are the most common.
  • Hiring a company based in the same country gives your intellectual property the same protection you get at home. Intellectual property protection is critical to your business.

Cons of Nearshore Software Development Company

  • It’s affordable, not cheaper. When looking at prices and comparing them, offshore outsourcing is still cheaper than this particular option. However, nearshore is still an affordable avenue for companies to outsource their software development.

Offshore Development Company

When looking for a software outsourcing company, the other option is hiring an offshore software development company, an international Software Development company.

Offshore software development is based on  ​hiring a team or software outsourcing company located in another country, which means working with someone who lives abroad.

When you choose offshore development as your software outsourcing method, you agree to work with someone remotely, and everything is to be done virtually.

For example, a software company in Arizona might outsource part of its workload to a team in Eastern Europe or Russia.

Pros of Offshore Software Development Company

  • It’s cheaper than onshore software development. People outsource their software to someone outside because the services tend to be much more affordable. You can hire a qualified team for a much lower price than you would if you chose to work with someone from your own country.
  • Since the team or company you will be working with is located in another country, you won’t have to worry about accommodating them at your company’s facilities. All work is done remotely.
  • More engineering talent is available abroad in places like India and China, so this broadens your options when hiring for a specific skill set. This is especially beneficial if you need a talented engineer or engineer to work on a specific project.

Cons of Offshore Software Development Company

  • The language barrier. You and the software outsourcing company or team most likely speak different languages, so communication between the two of you can be tricky.
  • Time zones. Working with someone from the outside usually means dealing with different time zones, which, in addition to being frustrating, can slow down the progress of projects.

Ultimately, the choice is yours. Regardless of what you choose, be it nearshore software development or offshore software development, it will undoubtedly help your company grow and significantly improve its software development process, that’s for sure.

Looking for a Nearshore Software Development Services Company? Contact Vates


As you grow your business and develop products, Vates is here to help you with custom software development services. Our team is comprised of trained product engineers who can help if you need agile software development services. Whether you need product implementation support or back-end product testing, validation, and verification, Vates’ talented engineers can guide your business through these processes.

Contact us to talk about your software engineering needs!

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