When Is Nearshore Outsourcing A Suitable Option?

Nowadays everyone in the IT industry understands what nearshore software outsourcing is. Mostly, it is a trustworthy and consistent outsourcing software arrangement which can be easily managed and allows for the creation of an excellent relationship with the additional talent provided.

Nearshore software is an interesting alternative which provides the needed technical skills and expertise, cultural similarities, language proficiency and time zone coincidence to establish a fruitful partnership for your development projects.

When to use nearshore outsourcing

When is Nearshore Software Outsourcing a Better Option?

American companies can highly benefit from working with Latin American technology solutions companies. From a macroeconomic perception, most businesses have a positive impression of these software development companies. Nevertheless, it is important to remember to research the level of staff training in the countries of interest, their laws and the level of intellectual property safety.

1. Shared Time Zones

One of the main reasons why nearshore outsourcing is a suitable option is shared time zones. Most of the nearshore outsourcing experts work with time zones which are similar to those of your company’s headquarters. The overlap of working hours allows for a high level of fluent cooperation that is essential for software development projects.

Short distances also make it easier to organize face to face meetings, and this is why most American managers do not hesitate to travel to Latin America to check up on their ongoing activities.

2. Improved Communication Levels

Having a high English language proficiency level and sharing cultural similarities are other reasons which make nearshore outsourcing a suitable option. These aspects contribute to more transparent, aligned and clear communication. Nearshore outsourcing thus allows businesses to improve their productivity distributing their workload and tasks to experienced, top talented software engineers.

Save money on operational costs

3. Cost Reduction

Offshore outsourcing is said to reduce companies’ costs.  However, nearshore outsourcing can reduce your costs even more.  One of the reason is that because the differences between currency exchange rates in neighboring countries are minimal.

4. Better Management

Despite the fact that the Internet offers so much upsides when it comes to cross-border business management, distance still matter when it comes to effectiveness and efficiency.  For instance, traveling for business meetings, negotiations, or consulting is more convenient when it’s done in neighboring countries.  Not only that, but visit frequency is more cost-effective due to the shorter visit distance.


To sum up, nearshore outsourcing is a valuable option for businesses looking into boosting their next software project. Companies that are located in Canada and the United States can work with Latin American technologies businesses and benefit from shared time zones, cultural similarities, and fluent communication processes.