When Should You Consider Nearshore Software Outsourcing?

Oksana Zabolotna
HBD at Qubit Labs

Delegating the processes to outsourced development teams is a new trend among modern tech companies. Now, they don’t need in-house teams to outrun their competitors or gain a competitive advantage. Besides, nearshore software outsourcing saves costs and time while increasing overall productivity and boosting the company’s performance. 

A bunch of globally-recognized companies, including Google, EY, and IBM, have already leveraged this option. The cooperation with developers located in countries with a small-time difference brings an array of benefits. 

Qubit Labs is here to tell you more about the cases when nearshoring might become a go-to solution for your company that will boost its growth. 


What Is Nearshore Software Development?

First, let’s clarify the terms. 

Nearshore software outsourcing implies transferring specific software development tasks to companies located in nearby countries. Usually, the time difference between the company and its nearshoring partner reaches around 1–3 hours. This allows to minimize communication barriers and ensure smooth cooperation

Also, this option enables easy visits to your nearshore software development outsourcing team. For example, let’s say your company is located in London. In this case, you’ll need around 3 hours to get to Kyiv (if you decide to outsource software development to Ukraine). 

You won’t have to dedicate a week or more to travel to the country and discuss the project matters. A day or two is enough to mark all the tasks as “done” and return home. 

Now, as we’ve addressed “what is nearshore software development,” let’s see in what cases you should consider it to reap the benefits. 


When to Opt for Nearshore Software Development Outsourcing?

Since remote is the new fashion, why not leverage its opportunities to the fullest? Nearshoring is favored among businesses of various sizes due to the increased monitoring of the processes, transparent and prompt communication, and lower costs. Although it’s similar to offshoring and onshoring, the main difference of nearshoring is that it has minimal risks and ensures nearly zero cultural differences.

The cooperation with developers located in countries with a small-time difference brings an array of benefits. Here our colleagues from Moqod explain why to prefer nearshoring to recruiting.

The most notable cases that make companies fall back on nearshore software development outsourcing include the following:


The Business is Based in a Rapidly-Developing Region

If your company is located in, say, Western/Northern Europe (Sweden, Norway, Finland, Germany, United Kingdom, Denmark, Netherlands), the US, Canada, Australia, or the Middle East (Israel, UAE) — we bet you pay high developer salaries. And bonuses, office rent, and additional expenses make these numbers even more substantial. 

Such spendings can easily burn a hole in the pocket, so the business owners are always looking for more affordable solutions. Although there are various alternatives to nearshore software development outsourcing, such as outsourcing, the first option usually wins the “competition” because it’s more reliable.   

When leveraging nearshoring, you won’t have to deal with miscommunication, lack of transparency, or high costs. It’s like a golden mean that combines the advantages of other options and will become your silver bullet in winning the market competition. 


The Current Development Costs are Rather High

If you’d like to pay 30–40% less for software development and get services of the equivalent quality — nearshoring is what you need. This is a perfect opportunity to make good use of the international tech talent pool. You won’t have to be limited by the local choice of programmers that charge considerable sums because they have unique tech stacks. 

Nearshoring will allow you to cooperate with vetted software engineers without spending a fortune on their services. 


CEO Favors Face-to-Face Communication 

For some leaders, face-to-face communication is essential but programming outsourcing, for example, eliminates this feature in its initial understanding. However, when opting for nearshore software outsourcing, you could visit your team by taking a 1–3 hour flight. 

That’s convenient, and you get to be aware of all the processes, issues, or challenges the team encounters. You’ll be fully involved in the development and avoid facing unexpected problems at the final stages. 


CEO Prefers Being Personally in Control of the Project’s Implementation

As mentioned above, nearshore software outsourcing makes you fully involved in all the processes, so you can easily make adjustments, get employees’ feedback, and track the progress without missing out on critical details. 

Also, your nearshoring vendor will match you with hand-picked developers, and you’ll be the one to decide who will join your team. That’s a cost- and time-effective solution because you won’t have to deal with unfitting team members and the consequences of their poor quality of delivered services. 


The Company Has a Large Project to Complete

There are projects that require a team of employees that can work on them simultaneously. If you have such, the alternatives to nearshore software development outsourcing won’t work in this case. 

You’ll require employees located in a similar time zone because it will eliminate a ton of issues and ensure effective interaction between your in-house and remote developers. If the communication is hampered, the workers won’t achieve their goals. So, nearshoring is a go-to choice that will boost a project’s success. 


How to Get The Most Out of Working with Nearshore Software Development Teams?

Getting started with nearshore software outsourcing is easier than it might seem. Here’s a step-by-step guide that will help you turn it to a good advantage:

  • Clarify your business needs. Before hiring the developers, understand what product you need, and emphasize the desired programming languages, frameworks, and other technical details. If you’re looking for developers with specific skills —point them out to facilitate the search. 
  • Inform your nearshoring partner about your requirements. An effective hiring process is a key to further success, so remember to provide the vendor with all the details. In this way, the hiring process will take less time and become more transparent. 


Qubit Labs as Your Nearshore Software Development Outsourcing Partner

Having a dedicated software development team located within a 1–3 hour flight gives you plenty of advantages, improving your company’s capabilities and making all the processes flow. Such remote programmers will be more engaged in the project, and you’ll rarely face common issues. 

If you’re a Western European business, you can cooperate with Ukrainian developers. The country has a large pool of software engineers (212,000+) and is a leading Eastern European tech development hub

There are many reasons to hire Ukrainian developers, and we’ll gladly match you with vetted specialists for your project. Feel free to drop us a line and get going.   


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Oksana Zabolotna
HBD at Qubit Labs

HBD and Head of Partnerships at Qubit Labs. Oksana is proficient at Search Engine Optimization; performs as a speaker for international tech conferences; author of webinars and guides on peculiarities of remote recruitment, top markets for hiring IT experts, and latest tech trends. Oksana is one of the partners of Women in Tech Ukraine – large-scale social project created to increase the number of women in IT industry.