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    What Does Nearshore Software Development Mean, and How Does It Apply To Your Business?

    By Christian Schraga
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    What is “NearShore Software Development”?

    Nearshore software developers work closely with companies in neighboring countries or those in similar time zones. An outsourcer in Santiago, Chile, qualifies as a “nearshore” vendor due to a one-hour time zone difference from New York.

    This approach is often chosen to leverage the benefits of outsourcing while minimizing some of the challenges associated with offshoring.

    Nearshore software developers perform the same tasks that all outsourcers do, including:

    • Software Development
    • Collaboration
    • Project Management
    • Quality Assurance
    • Technical Support and Maintenance
    • Technology Stack Expertise
    • … and much more

    How Does It Compare to “Offshore” Development?

    Offshore and nearshore software development are both strategies for accessing software development talent outside of a company’s own location. Each approach has its own advantages and disadvantages.

    Proximity and Time Zone Alignment

    Nearshore development teams are located in neighboring or nearby countries. This means they share similar time zones with the client. This proximity facilitates real-time communication, making coordinating and collaborating on projects easier without significant delays or scheduling conflicts. In contrast, offshore teams in distant time zones may lead to communication challenges and longer response times.

    Cultural Affinity

    Nearshore teams sometimes share cultural similarities with their client companies. Which can lead to better understanding and alignment with business practices, work ethics, and communication styles. This can reduce misunderstandings and improve teamwork compared to offshore teams in culturally distinct regions.

    Language Proficiency

    Nearshore developers often have a higher level of English proficiency or proficiency in the client’s language than offshore teams. This reduces language barriers, enhances communication, and ensures that project requirements and feedback are clearly understood. However, this is not always the case.

    Travel Convenience

    Traveling to meet nearshore teams is often more convenient and cost-effective for clients. It allows for occasional in-person meetings, which can be valuable for building trust, discussing complex topics, and strengthening the client-provider relationship.

    Overlapping Work Hours

    Nearshore teams can work during overlapping hours with the client’s team, which facilitates real-time collaboration, daily stand-up meetings, and quick issue resolution. Offshore teams may require substantial overlap in work hours to achieve the same level of collaboration.

    It’s important to note that the choice between nearshore and offshore development depends on various factors, including project requirements, budget constraints, the availability of specific skills, and the client’s preferences.

    Another big factor is… who is the company and the country that you’re outsourcing to? At CodeStringers we’ve found that Vietnam has successfully mitigated most of the alleged “cons” to offshore outsourcing listed above. Vietnam boasts skilled technologists with strong English skills and a deep understanding of US culture and business practices. Furthermore, time zone differences can create a 24-hour workflow advantage. The US team defines, and the Vietnam team delivers.


    While nearshore software development offers several advantages, offshore development can also be a viable and cost-effective option for many companies, especially for projects with less need for real-time communication and collaboration. The choice ultimately depends on the specific needs and goals of the client organization.

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    SVP of Product

    About the author...

    Christian Schraga has more than 20 years experience working in various functions within the software industry. He has been the SVP of Product of CodeStringers since January of 2020. Prior to that he was a customer of CodeStringers, having founded Ella Learning, which we are now proud to say is a CodeStringers product. Additionally, Christian spent 10 years in the music industry as the VP of Digital for Columbia Records where he oversaw the development of several successful mobile apps, including the Webby Award winning Bob Dylan Bootlegs app and the blockbuster AC/DC Rocks app. Christian also spent 4 years in data science, working on several predictive and AI applications for the auto, music, and retail industries. He also has 4 years of finance experience having worked for the prestigious GE Corporate Finance Staff. Christian has an MBA from the Wharton School of Business and a BA from UCLA. In his spare time, Christian is an avid language learning enthusiast, who has a reasonable amount of fluency in 6 languages. He is also a fitness fanatic-- having run 10 marathons.

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