Is Nearshore Outsourcing A Good Choice For Your Company?

Written by Scott Craig|Posted on August 25, 2023

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As technology evolves and becomes more advanced, it also becomes more demanding in terms of the skills required to craft a truly outstanding tech solution. That’s why many businesses end up outsourcing some element of their IT processes. After all, it makes sense to hire dedicated experts in the field for specialist tasks. This holds true for a startup contracting a web designer or a multinational enterprise outsourcing all of its IT operations.

Outsourcing often saves money compared to sourcing, onboarding, and managing all the relevant in-house talent, and allows companies to upscale or downscale their IT staff as needed. Most people think of outsourcing in offshore terms–a US company contracting a partner in India or China, for example. But there’s a better way.

Nearshore outsourcing refers to contracting a company in a neighboring or nearby country. It is especially popular with software development and other IT projects. As well as lower costs, the advantages of nearshore outsourcing include:

  • Time zone alignment – Outsourcing to distant countries can cause logistical issues, especially if your partner is sleeping while you are working! This isn’t a situation you want when you need urgent IT support or productive meetings. With nearshore outsourcing, you work with a partner in a closeby time zone.
  • Seamless communication – Language and cultural differences can also cause problems in a business relationship. Apart from linguistic misunderstandings, workers in a distant country may not understand what your users want from a product or what references are appropriate. It’s better to go with a nearshore country that has a high level of English fluency and cultural commonalities with the US.

The Latin American region contains countries such as Argentina and Brazil that can offer senior-level developers with high levels of English competency, strong IT skills, and impressive degrees and certifications. These are popular choices for nearshore outsourcing, and some nearshore software development companies also offer US-based management staff for even more convenient collaboration.

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Scott Craig

Scott Craig



Kirkland, WA, USA

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