Nearshore Vs Offshore Development: Which One Is Best For Software Outsourcing?

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Which One Is Best For Software Outsourcing

These days, software development is such a popular term that what it exactly entails appears to be too simple than it is to ordinary people. The reality is not even close to what many people think – it is far more complicated, mostly because of the various options available for companies to choose from. Companies that are looking for software development services for their project have to decide on several things, including their OS platform of preference and so much more, before they can even begin thinking about getting the project started.

The biggest question remains unanswered – which type of software outsourcing services should they choose? In this post, we will be taking a look at two of the most popular offshore development options – nearshore development and offshore development.

Nearshore Vs Offshore Development

Let’s start with the difference that fundamentally separates nearshore from offshore development. When you choose to outsource your project to a nearshore development company, you agree to work with a company located in a neighboring country that shares the same time zone as yours. On the other hand, offshore development refers to choosing a company that is located in a country that is situated in a completely different time zone than yours.

Both of these development concepts may appear somewhat same as you do in the overview; however, the difference lies in the depths of these concepts. And it is these differences that make a company opt for one of these options over the other. Let us now discuss a few of these differences between nearshore development and offshore development.

1. Cost of development:

This is one of the most significant factors that can make a business choose one of the options and completely neglect the other. How much the entire software development will end up costing a company is going to have a strong bearing on which direction it chooses to take. The decision is mostly based on the total budget a company has allocated the project. Now the cost of the project varies from location or country to the other. If you are located in a country in North America, and you choose to go with nearshore development, the total cost you will be liable to pay would be something in the range of $100-$200. It could go even beyond that figure if you select a company that has a good track record. Now, if you choose offshore development and work with a company in Asia, the cost will decrease significantly. It would be somewhere around $20-$100. So if the price is the main driving factor for you, offshore development is the right option.

2. Availability of expertise:

The biggest reason that most companies outsource their projects is their search for knowledge or expertise that they think is not available in the domestic market. With outsourcing, they have the entire world at their disposal to choose the best talent from. They can run through all the options and select a company that employs developers with the ideal skill set. You will have access to better talent with nearshore development, but offshore development will widen the range even more.

3. Communication is the key:

Software development is a very complicated task that requires regular communication and interaction between the two parties sitting across the table. With nearshore development, you can even hope to have in-person meetings with the people handling your project. On the other hand, in-person meetings aren’t viable for offshore development; however, video conferencing, video calls, and other communication tools are more than makeup for it.


When you are yourself with the knowledge of the different outsourcing options available for you to choose from, you are in a better position to make the right call based on how different the offerings are and how they match with what you are looking for. Your software development project is very close to you, so whoever gets to work on it should be based on facts rather than emotions. Both nearshore and offshore development have their advantages as well as drawbacks. Ultimately, it’s you who is going to decide what works best for you taking into account your budget, timeframe you want the project completed, and other factors.

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