The strong cultural affinity between Latin America and the US, along with the region’s English proficiency, makes collaboration even easier. Citigroup is another global company that prefers outsourcing IT services. In 2012, the company cut down nearly 25% of in-house IT-related positions onshore software development to outsource them. However, we need to balance offshore outsourcing pros and cons to have a full picture. From this perspective, we have nearshore, onshore and offshore outsourcing. But the services outsourced are not the only parameter for determining types or models of outsourcing.

By taking advantage of outsourcing, clients cut expenses and increase their workflow efficiency by allowing their employees to focus on their primary business needs. The main reason why companies opt for app development outsourcing over hiring and managing new in-house developers is to reduce expenses and save time. Nearshore software outsourcing is particularly well-suited to medium and large-scale projects where companies need to have immediate access to developers. Projects that may require the handling of sensitive information, or where security is a priority can be effectively managed by nearshore teams. Nearshore software development is when a company outsources work to a neighboring country that’s geographically close to their own.

Steps to Choose the Best Software Outsourcing Partner for You

Time zone alignment also enables real-time, collaborative Agile development. We believe we’re the right fit for your project with our skills, experience, and portfolio of successful apps. To help you with this process, you can review our primer on how to hire an outsourced team.

With a dedicated team working on the project, you’ll get outstanding results faster without sacrificing quality. You get access to experts who have experience working with various tech stacks and domains. Actually, within a short period of time, you can fulfill the needs of your project with any tech expertise.

Benefits of Outsourcing

The range of activities that belong to this category includes market research, performance management, data analytics, consultancy and training, design, and animation. This sector has shown exponential growth over the recent couple of years. For example, according to, the global IT outsourcing market reached $526.6 billion in 2021. And now, experts expect this figure to increase to $682.3 billion by 2027. Hectic market speed, multi-functioning operations, extremely tough competition, and high requirements for the quality of services and products are roadblocks.

nearshore offshore and onshore software development

IT specialists can develop quality, self-sufficient solutions that can compete with products created in developed countries but at a significantly lower cost. The average hourly rate in Ukraine stays between $25-45, depending on the technologies and expertise you need. Gartner ranked Ukraine number one in Eastern Europe for the price/quality ratio. Offshore outsourcing literally means hiring offshore developers from a country far away from your own locality.


In many cases this is offset by higher levels of productivity and project velocity. In some cases, it can take three to four developers to do the work of one highly skilled developer. Cloud infrastructure has much faster agility and responsiveness compared to more traditional IT solutions. As resources will be considerably more expendable, there will be a greater tolerance for failures.

nearshore offshore and onshore software development

Although nearshore software development doesn’t require in-person communication, the proximity of the provider means that face-to-face meetings can be scheduled if required. Travel costs are generally low and, in some cases, businesses can travel to and from meetings with developers within the working day. The high demand for software development means that talented developers are in short supply. Companies are finding it increasingly difficult to hire developer talent from within their local area. As a result, more businesses are turning to remote teams to bridge their skills gaps and stay ahead of the competition. Nearshore software development companies are basically located in countries with similar time zones or ones with minimal differences.

What is offshoring?

Consider your personnel expenses and the management of remote teams, infrastructure, and services. For example, your in-house staff may become bored traveling or working late at night or early in the morning. Find out how we have successfully overcome these challenges at Codepole. In other words, onshore software development is effortless but expensive… If your business involves software development, web development, application development … basically everything connected with IT development and your company is growing. Technology has grown by leaps and bounds in recent years; a fact that is not alien to companies worldwide.

nearshore offshore and onshore software development

This type can be viewed as a transitional form between offshore and onshore. Hence, nearshore software outsourcing takes the best from the two worlds, offering geographical proximity and affordability of service offerings. Usually, the difference between partner firms should be no more than 3 hours. Learn all about nearshore software development, its importance, benefits, and key metrics. Choose the right nearshore outsourcing organization to develop high-quality products on time and without much hassle… Depending on your stage of development and on the nature of your project, you may need to be aware of the different levels of protection over intellectual property across the globe.

# Limited Access to Tech Candidates

You may find information on forums, for example, that some companies can achieve even a 70% cost reduction. This refers mostly to North America, where the wages of developers are the highest. Because of the cost of living and salaries, software development teams may be able to develop at cheaper hourly rates than in other regions of the world. There are main advantages of hiring an offshore software development team. There are advantages and disadvantages to both offshore outsourcing and nearshore outsourcing.

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