Software development can be a complicated process, but outsourcing is a common solution to get you the product you want while still staying within budget. Outsourcing is working alongside external contractors so you can use them for their specific skills and experience, without having to hire them full-time. 

A growing trend in outsourcing software development is nearshore outsourcing. It brings all of the benefits of offshore labor, while also resolving some of the most common pain points of outsourced business relationships. Here are some of the most frequently asked questions about nearshore software development.

What Is Nearshore Software Development?

Nearshore outsourcing is a specific type of outsourcing. Rather than outsourcing to an offshore software development company that could be on the other side of the world, nearshore outsourcing means working with a team in another country that’s much closer to home. A nearshore contractor may be in the same time zone, allowing your company to quickly develop quality software at a percentage of the cost.

What Are the Benefits of Nearshore Software Development?

Offshore software development outsourcing is a common best practice for world-leading companies for a reason, and nearshore development tends to have the same advantages but without several key downsides. Here are just a few reasons to consider using nearshore options for software development.

Larger Talent Pool

Looking outside of the country gives you access to a broad market of skilled and talented developers. You don’t have to settle for developers who are less experienced or skilled than what you need. 


The most obvious benefit of nearshore software development is the cost. Using a nearshore contractor allows you to tap into an international talent pool of highly qualified developers without having to pay high labor costs. Nearshoring gives you quality product development while staying within your budget. 

Collaborative nearshore software development

Closer Collaboration

Using nearshore contractors means there’s less distance between you and the developers. With most companies shifting to an Agile development model, daily collaboration is more important than ever before. Having development teams in the same time zone is critical for efficient work. 

Working together during normal business hours is more effective and highly valuable. When you want to meet face-to-face, it’s a few hours flight from several US cities. There’s a big difference between flying across the world and flying within the Americas.

Similar Regulations

Neighboring countries often have better diplomatic relationships and have similar legal regulations. Nearby countries like the United States and Costa Rica have long, established diplomatic relations with each other. This history of diplomacy makes it easier to navigate the legal requirements of both countries. 

Minor Time Zone Difference

It’s not uncommon for offshoring to involve conference calls in the middle of the night to reach your team at the very start of their morning. However, nearshore development doesn’t have this problem. Because the nearshore development teams are in similar time zones, it’s much easier to schedule meetings and sync up with your team during regular business hours to ensure that everything is going smoothly. 

Reduced Miscommunication Issues

Language and cultural differences can both lead to major misunderstandings, which only complicate the outsourcing process. Because nearshore software development contractors are international next-door neighbors, there is less of a cultural and language barrier to overcome. 

More Time for Core Activities

When a company works with a nearshore contractor, they gain more time to focus on what matters most. Rather than having to deal with project development, design, and management, they pass those responsibilities to a contractor and get back to work on what they love.

nearshore software development services

What Services Can Nearshore Software Development Provide? 

Nearshore developers are experienced programmers who have the same skills and abilities as local talent. Any software development project you can imagine can be completed by a nearshore software developer. 

A nearshore team like ours at Excel SoftSources can manage or assist with: 

  • Planning
  • Design
  • Implementation
  • Verification
  • Validation
  • Maintenance
  • Scaling

Nearshore contractors are capable programmers and developers who are able to manage continuous integration (CI), course control, and software development life cycle (SDLC) management systems. Contractors are even able to work alongside your organization’s software development team and augment your existing processes without interruption. 

When Should a Company Use Nearshore Software Development?

Choosing a nearshore software developer helps businesses scale better while minimizing costs. If your company has a promising software concept and you want access to quality international talent in its production, it’s a good time for you to use a nearshore contractor. 

Whether you need a small app designed or you’re looking for an extensive build, you can use nearshore contractors.

What Is the Cost of Nearshore Software Development?

The cost of nearshore software development depends on the scope and demand of your project. If you are asking for a quick turnaround on a larger project, the cost is going to be higher than if you need developers on a long-term product team. Our business model is a set rate for each development resource. Rates depend on the years of experience, level of education and English fluency, and technology stack.. 

Use Excel SoftSources as Your Nearshore Partner

Excel SoftSources provides you with competitive and affordable rates that are typically 30% savings on labor costs. All of our nearshore software development services feature agile methods. 

Agile software development is based on adaptive planning and continual improvement, and encourages responses to change. We’ve seen that the agile methodology in development produces a better end quality product while reducing risk and giving you more control. 
Let’s work together! We’ll take the stress out of development for you. Contact us to learn more about how we can augment your software team or help you with nearshore software development.

Step 1

Let us know what you need help with.

Step 2

We’ll have a call to discuss your needs and our expertise.

Step 3

Have us build a team to achieve your goals.