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

Sep 7, 2023 | Blog Post

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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CodeStringers is an uncommon custom software development company that brings innovation, craftsmanship, and integrity to the development of best-in-class cloud, web and mobile software products. Our model of engagement is unique. We have senior executives with decades of experience lead each client engagement to provide product and technology wisdom and expertise. We complete product planning at no cost, so we can arrive at accurate budget and release date estimates. And we contractually commit to our estimates. We apply our values of integrity, craftsmanship and innovation to all that we do. We call that “upsourcing“.