Nearshore software development is a form of outsourcing where a company contracts out software development tasks to a service provider in a nearby location. The term "nearshore" indicates that the outsourcing partner is based in a neighboring country, usually within the same time zone. Below is a comparison of nearshore, offshore, and onshore software development outsourcing features.
Feature | Nearshore | Offshore | Onshore |
|---|---|---|---|
Geographic Proximity | Neighboring country | Distant country | Same country |
Time Zone | Similar time zone | Significant time-zone differences | Similar time zone |
Cost Considerations | Moderate cost savings | Significant cost savings | Higher labor costs |
Collaboration | Easier collaboration | Collaboration challenges | Easier collaboration |
Risk Management | Lower risk | Higher risk | Lower risk |
Regulatory Compliance | Some compliancechallenges | Significant compliance challenges | Easier campliance |
Many factors can influence a decision to use nearshore, offshore, or onshore outsourcing, including project requirements, budget constraints, communication preferences, and risk tolerance. A nearshore project often strikes a balance between cost savings and proximity.
More recently, increasing numbers of U.S. companies are looking to Latin America for nearshore software development opportunities. According to a study by A.T. Kearney, Mexico, Brazil, and Colombia are the most popular nearshore destinations for U.S. software development projects. The table below compares prices for hiring software developers in those countries as well as Argentina and Chile, two other popular nearshore destinations. The table also includes a ranking of software developer skills in each country, as established by HackerRank.
Country | Junior Developer (0-2 yrs. experience) | Mid-level Developer (2-5 yrs. experience) | Senior Developer (5+ yrs. experience) | Developer Skill Level (out of 100) Hacker Rank |
|---|---|---|---|---|
Mexico | $20 - $40 | $40 - $60 | $60 - $90 | 75.7 |
Brazil | $25 - $45 | $45 - $70 | $70 - $100 | 73.4 |
Colombia | $15 - $30 | $30 - $50 | $50 - $80 | 66.0 |
Argentina | $20 - $35 | $35 - $60 | $60 - $90 | 72.1 |
Chile | $20 - $35 | $35 - $60. | $60 - $90 | N - A |
These rates are only intended to give readers a general overview of outsourcing prices. Because they are approximations, remember that your rates will vary based on specific circumstances, project complexity, and negotiation terms.
Finding the right partner is the key to leveraging the benefits of nearshore software development. Divelement Web Services is a nearshore software development and engineering services firm on a mission to transform and empower businesses through extraordinary digital experiences and modern technology. With locations in Austin, Texas, and Monterrey, Mexico, we are ideally situated to leverage the benefits of nearshore software development pricing for our clients.
We help companies unlock their full digital potential through progressive and comprehensive software development solutions. Our seasoned engineers work with you to deliver the optimal results you need to grow.
We can help you:
Build your digital project from scratch
Define what you need to achieve your business go-to-market
Develop innovative solutions to help you realize digital transformation
Support you with the right operational, technical, and strategic approaches to add value to your project
Nearshore software development outsourcing can be a winning solution for U.S. companies. Obtaining high-quality and cost-effective software development services is easy when you partner with professional nearshore teams like Divelement.
Working with Divelement enables you to take advantage of immediate daily communication with our software engineering team and minimize operational disruptions that might result from outsourcing to offshore teams. In addition, our teams are often more familiar with the culture and customs of U.S. businesses, which makes working with us a seamless experience.
If you are ready to explore the many benefits of nearshore software development pricing in greater detail, contact us to schedule a call.
