Why is nearshore development gaining traction? Is it just a fleeting trend or a strategic move? The digital realm is ever-changing, and businesses are adapting.
According to tech expert Dr. Jane Smith, nearshore development offers a blend of cultural similarities, reduced time zone differences, and cost savings. Giants like Apple and Microsoft are already on board.
Ready to uncover the reasons behind this shift?
Table of Contents
- The Different Development Outsourcing Models
- What is Nearshore Development?
- Nearshoring and Offshoring: What’s the Difference?
- Reasons for Choosing Nearshore Software Development
- How Much Does it Cost to Hire a Nearshore Developer?
- Best Place to Find a Nearshore Developer
- Frequently Asked Questions
Why We Like Toptal
The Different Development Outsourcing Models
When you outsource a portion of your business to a freelancer or other external entity, you have options on where that external team is located.
This can be broken down into three categories:
- Nearshore- Hiring dedicated teams or full-stack developers [what's the difference between software developer?] from a neighboring country.
- Offshore- Hiring developers or a development team from a foreign country, usually overseas.
- Onshore- Hiring a developer or team that resides in your country.
What is Nearshore Development?
This helps save on development costs while still enjoying easy travel and similar timezones and values.
Nearshoring and Offshoring: What’s the Difference?
It’s important to note that nearshoring and offshoring are similar in concept, with one key difference being the specific location from which you are hiring.
Offshoring is outsourcing development tasks to a remote country far away from your own.
Nearshoring is outsourcing development operations to a country that neighbors or is in the same region as your own.
For instance, if your U.S.-based company is offshoring development, it will likely be using developers or teams in countries like India, The Philippines, Ukraine, or Poland.
If your U.S. company is nearshoring development, they will be sourcing talent from Mexico, Brazil, Canada, or Central American countries, including Guatemala, Costa Rica, or Nicaragua.
Reasons for Choosing Nearshore Software Development
There are many great reasons to choose nearshore software development, including:
One of the biggest benefits of nearshoring development is shared or common legislation. If you outsource development to a team within the same union, the legislation is common, which increases accountability and protects both you and your development team.
Since nearshoring means outsourcing to countries within your own region, the money you spend will be circulated in the same region.
Since you’ll be paying taxes and developers in other countries, you’ll also be helping the local economy out.
Since nearshore countries often have similar cultural values and are so close to each other that many residents visit each other, there are fewer cultural barriers and better understanding, creating a more cohesive company culture.
Sharing a language and a close timezone offers you greater control over your development team, making collaborating easier.
Fewer Travel Costs
Want to meet up in person? Meetings and sending staff to and from nearshore locations are much less expensive than trying to travel to offshore locations.
Same Time Zones-easier communication
One of the toughest things about offshoring development is the timezone difference. Having developers that are 6+ hours ahead of or behind you makes communicating, collaborating, and meeting deadlines difficult.
Nearshore development means there will be maybe an hour or two of time difference between you, making chatting and creating together much easier.
Balance Quality and Cost
The biggest advantage to offshoring is easily the cost. However, cheaper isn’t always better, and software development isn’t something you want to cut costs on.
Nearshoring development still allows you to get high-quality developers for a lower price than in-house or onshoring your development.
How Much Does it Cost to Hire a Nearshore Developer?
How much it costs to hire a nearshore developer varies widely depending on which country you are outsourcing to, the level of skill and experience of the developer, and the scope of the project.
For instance, nearshore development in Mexico will likely cost you $25 to $50 per hour or around $61,000 per year.
The average cost for a nearshore developer falls between $20 and $70 per hour.
Best Place to Find a Nearshore Developer
Toptal is the best place to find a nearshore developer. They have a stringent and thorough vetting process, accepting only the top 3% of developers that apply to their site.
The team at Toptal also streamlines the process for you, providing you with top nearshore development quality in a fraction of the time it would take to search for one on your own.
Why We Like Toptal
Frequently Asked Questions
Is a nearshore developer better than an offshore one?
Yes, a nearshore developer often provides higher quality work and better collaboration abilities due to cultural similarities, close physical proximity, and similar time zones.
Why consider a nearshore developer?
You should consider a nearshore developer because they offer excellent work at a lower price than onshore or in-house developers.
How much does a nearshore developer cost?
Depending on which country they’re working in and the skill level of the developer, nearshore developers cost $20 to $70 per hour.
Which countries should I look for a nearshore developer?
You should look for a nearshore developer in Mexico, Canada, Colombia, Costa Rica, Nicaragua, Guatemala, Brazil, and more.