As technology evolves at an unprecedented pace and business requirements change to keep up, many companies need cost-effective software development. This is where nearshore teams come in. Many of today’s advanced technologies require custom software and connectors to work with existing systems, and nearshore software development teams provide a modern approach to resolving that challenge.
Employing an in-house software engineer can be expensive, and good tech talent — especially with a skill set covering new technologies — is hard to find. Meanwhile, offshore teams can be easy on the budget but lack collaboration with your existing team. They often work in a different geographic region, and many do not speak the same language as your team or share the same cultural views. As a result, communicating about custom software can be challenging.
A nearshore team creates custom software solutions while avoiding the high expense of in-house software engineers and the impracticality of working with distant companies. Unlike an offshore software development team on the other side of the globe, nearshore delivery teams are geographically close to your business, so there’s no delay due to time differences. Additionally, nearshore teams often share your in-house team’s cultural values and speak the same language. The result is quality IT services close to home with fewer communication barriers.
What is nearshoring?
Developing software is not a common business skill, and most companies need help. Nearshoring allows companies in countries with high software development costs to get a development team from a technology partner in a nearby country with lower rates. Ideally, nearshore technology companies are in the same time zone as the client. Nearshoring functions differently from onshoring or offshoring:
- Offshore development typically refers to hiring a software developer anywhere in the world without consideration for geographic location. While offshoring can be an effective outsourcing model, it has downsides. Developers might speak another language, have different work styles or have lower quality standards. Time zones also might interfere with the workflow.
- With onshore development, companies hire a candidate in the same country. While this option often eliminates concerns about quality control, culture and communication, it usually is the most expensive. Also, limited talent can make it difficult to find a software developer that is a good fit.
According to Deloitte, finding technology talent in the US to expand cloud operations has been challenging in recent years: 90% or more of IT leaders plan to expand their systems with modern software engineering and cloud environments, yet 80% say inadequate employee skills are holding them back.
Benefits of nearshoring
A nearshore development team gives you access to talented software engineers who fit your company’s culture at a budget-friendly price. Businesses also choose nearshore delivery teams for ongoing collaboration on-site and faster software delivery times. Moving to nearby countries may improve project outcomes. Compared to offshoring, nearshoring development simplifies oversight and reduces travel times, making nearshoring an appealing option for a company wanting to enhance efficiency while maintaining control.
Percentage of US companies by industrial category that observed increased demand for products/services or foreign direct investment from nearshoring
Source: Deloitte — Nearshoring in Mexico
Benefits of nearshoring include:
- Minimal time differences: One advantage of hiring nearshore software development companies is the minimal (or even non-existent) time difference. Your team and your nearshore developers will enjoy real-time communication and prompt responses. This can lead to improved productivity, on-time project completion and a clear understanding of your needs, which is especially beneficial for remote teamwork.
- Communication improvements: The structure of nearshoring ensures better communication. Nearshoring software developers frequently speak the same language, which reduces misunderstandings between the nearshoring team and its customer.
- Language and cultural alignment: A nearshore software developer will likely share business practices with your team and speak the same language. By contrast, team members in faraway countries may have substantially different cultural expectations and communication styles. These differences can prevent effective communication and collaboration.
- Cost savings: Nearshore software development offers access to skilled software engineers at reduced rates compared with keeping them on staff, leading to substantial cost savings. Also, by partnering with a nearshore software team, you can defer expenses such as payroll, bonuses, insurance, vacations and sick leave.
- Niche skills: Through staff augmentation, nearshoring can strengthen your existing team. A nearshore software development team often has technical expertise that many businesses lack. Meanwhile, development companies often have engineers in different countries and regions. Intellias has engineering teams in Europe (Poland, Bulgaria, Portugal, Spain) and Latin America (Colombia). These professional teams create innovative data and analytics, machine learning (ML), artificial intelligence (AI), blockchain and cloud technologies. They also offer web application development, mobile application development, software testing and other services.
- Scalability and flexibility: Some businesses turn to nearshore teams to achieve greater flexibility and foster growth. This is especially beneficial for managing large-scale technology projects. Regardless of how your business needs to scale, nearshore teams can boost operations and improve time to market.
- Risk management: Nearshoring also helps reduce security risks while improving quality. By selecting a nearshore location with robust legal protections, you can safeguard sensitive data and intellectual property. Also, closer geographical proximity allows for more frequent in-person collaboration and on-site experiences.
- Product innovation: About 10% of companies pursue nearshoring to enhance product innovation. They seek fresh ideas, specialized skills and advanced technologies. A nearshore development team can strengthen your product and provide greater opportunities for success.
- Quality assurance: Nearshore software development is like a team extension that helps you address problems quickly. This close working relationship helps you maintain consistent quality throughout the development lifecycle, reduces defects and ensures your final product meets expectations.
Building a nearshore team
In Europe
European countries such as Poland, Spain and Bulgaria are known for their strong technical education systems, which produce a steady pipeline of skilled professionals. Businesses and universities in Europe partner to establish tech companies in nearshore centers and find and recruit top talent.
Among European countries, proximity simplifies cross-border operations. It also enables in-person meetings and training sessions to strengthen team cohesion and increase productivity. Meanwhile, cultural alignment and standardized regulations lead to smooth collaboration, and an emphasis on structured workflows and clear communication minimizes challenges.
In Latin America
Colombia has become a leading choice as a nearshore development center because of its unique blend of talent, innovation and accessibility. Thanks to alignment with North American time zones, nearshore software developers in Colombia can communicate and collaborate in real time with clients in the US and Canada. This makes Colombia particularly advantageous for American and Canadian companies needing immediate responses and close project oversight. Unlike Europe’s long-established tech hubs, Colombia’s tech ecosystem is characterized by rapid growth and an innovative mindset.
Why use LATAM nearshore software development?
Professionals in Colombia prioritize relationship-building and teamwork, aligning closely with North American business practices while bringing a creative approach to problem-solving. These traits make Colombian teams an asset for organizations seeking a fresh perspective while maintaining alignment with their operational goals.
Nearshoring best practices
A nearshore software development team uses industry best practices to ensure success. These include:
- Clear communication: Open communication channels and regular check-ins are important for maintaining alignment between nearshore and in-house teams. Programs like Slack, Jira and Microsoft Teams can help.
- Defined processes: Staying agile ensures teams operate efficiently and respond quickly to changing needs. Clear roles and deliverables help everyone stay on track.
- Cultural alignment: This ensures that teammates share the same values, systems and beliefs. Activities to boost inclusivity can lead to a more cohesive and motivated workforce.
- Continuous feedback: Establishing a feedback culture allows teams to identify areas for improvement and maintain high levels of productivity and satisfaction.
Overcoming nearshoring challenges
One of the primary challenges in nearshore development teams is managing time zone differences. Even minimal differences can affect the ability to meet schedules and deadlines. Overcoming this requires clear communication strategies and tools. A shared project management platform and overlapping working hours ensure everyone takes responsibility for their domains while staying on the same page — and prevent unexpected delays and misunderstandings.
Nearshore teams also come with diverse work cultures and technical practices, which can create inconsistencies. Companies working with nearshore teams should set standards and outline processes up front. Providing detailed project guidelines and implementing automated testing frameworks are ways to achieve high quality. A dedicated team member to oversee quality assurance can also help align efforts and minimize discrepancies.
Despite being geographically closer than an offshore developer, a nearshore developer may feel disconnected from the core team. This lack of cohesion can affect overall productivity. Creating an inclusive environment through frequent team-building activities and occasional in-person visits will help teammates feel more connected. Encouraging open feedback and recognizing contributions helps to strengthen relationships and results in an efficient development process.
Getting started with Intellias nearshore teams
Working with Intellias’ nearshore software development teams is easy. We begin with an initial consultation to understand your project goals and challenges. Whether you need to extend your existing team or assemble a dedicated group of developers, we will work closely with you to design a solution that fits your needs.
With 14 delivery locations and 3,000 skilled professionals worldwide, Intellias offers an extensive talent pool in the nearshoring market. We carefully select developers that match your project requirements and have the knowledge to make your project a success. Your Intellias nearshore team will join your existing team and integrate into your existing processes. Throughout the partnership, we will continually support your business and remain flexible to changing needs.
Benefit from nearshore development
Building skilled nearshore software development teams that align with your business needs gives you access to top talent and keeps you in control — without the expense of in-house teams. Nearshoring gives you flexibility and expertise to make your modernization efforts a success.
The success of your nearshore team is as important to us as it is to you, so contact us; we’ll get started.
