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Advantages of Nearshore Software Development

Updated: Jan 14

Nearshoring is becoming a popular choice for companies today. Many businesses are nearshoring software development to reduce operational costs.

But what exactly is nearshoring? And what are the benefits of nearshore app development? You will learn about the answers to these questions, here in this blog post.


Nearshoring app development
Nearshoring software development

Nearshoring Software Development

The term nearshoring refers to the outsourcing of business processes including app development to another company in a nearby country. It involves outsourcing services to a third-party firm in near geographical proximity, where the labor cost is cheaper.

For US firms, nearshoring involves outsourcing app development to firms in countries like Argentina, Mexico, Brazil, and Costa Rica. From reducing risks to improving operational efficiencies, here are some of the benefits of nearshoring software development activities.


1. Shared-Time Zones

Nearshoring software development is preferable to offshoring since there will be only a few hours of difference in time zones. For instance, the time difference between Argentina and the US is one - two hours.

The geographical proximity of the third party company will result in a smooth workflow and efficient communication.


2. Cultural Similarities

Another benefit of nearshoring is that there will be higher cultural alignment. The firms will not have much difficulty in understanding the requirements of app development.

For instance, North and South American countries share a history that spans over five centuries. There are many cultural similarities between the nations. The firms in these countries will have an easier time collaborating to ensure a smooth process.


3. Improved ROI

Nearshoring will result in reduced costs and project time frames as compared to offshoring. There will be fewer issues, like project delays that increase the costs of software development. While offshore companies may offer better rates, nearshore firms tend to deliver higher investment returns (ROI).

To sum up, nearshoring is a better option for firms than offshoring. Nearshoring software development will be less challenging due to fewer cultural barriers, reduced risks, and a higher quality of work.


Vates offer nearshore software development to a diverse clientele that includes global brands like Intel, Motorola, IBM, Verizon, Bayer, Citi, FCA and HP. We have experience working with Fortune 500, mid-size companies and innovative entrepreneurs offering them Nearshore Software Development with dedicated IT teams and IT staff Augmentation. We select the top 10% of the best developers to ensure quality project delivery in the shortest possible time frame and at a much lower price.

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