Did you know that nearshoring is projected to increase by 5% in 2020?
This practice is becoming increasingly popular among businesses that seek software development services and its advantages go beyond time-zone compatibility.
In this article we outline:
- The top nearshore software development outsourcing companies
- The benefits of considering nearshore software services
- The steps to selecting the best partner for your business
Table of Contents
- The Top 5 Nearshore Software Development Outsourcing Companies
- What Is Nearshore Software Development?
- How Much Do Nearshore Software Development Companies Charge For Their Services?
- Why Hire A Nearshore Software Development Outsourcing Company?
- How To Choose The Best Nearshore Software Development Outsourcing Firm For Your Business?
- 10 Questions To Ask Nearshore Development Companies Before You Hire One
- Takeaways On Nearshore Software Development Companies
The Top 5 Nearshore Software Development Outsourcing Companies
The top five nearshore development companies are:
- Number of employees: 1000 & Up
- Average hourly rate: $50/hr
- Types of projects: Technology, healthcare, analytics and more
- Notable Clients: Google, Rolls-Royce, Pinterest, Motorola, EY
- Founded: 2009
- Website: https://www.designrush.com/agency/profile/bairesdev
BairesDev is a software development company that provides end to end services to both startups and global brands.
They specialize in software testing, UI/UX design, video games development, Cloud management, business intelligence and Big Data consulting, enterprise software implementation and more.
- Number of employees: 100 - 249
- Average hourly rate: $25/hr
- Types of projects: Retail, banking, sports, gaming and more
- Notable Clients: Turkcell, PLUGGD, Hackspace, AnatomyNext, Sport.com
- Founded: 2004
- Website: https://vironit.com/
VironIT is an award-winning outsourcing software development company that partners with enterprises, startups and individuals from Western Europe and North America.
They offer a full range of nearshore software services including mobile applications, software integration, web development, business solutions and game development.
The company serves clients across various industries and has completed over 600 projects successfully.
- Number of employees: 50 - 99
- Average hourly rate: $50/hr
- Types of projects: Banking, security, entertainment, healthcare, energy
- Notable Clients: Caixa Bank, Global Shares, EDP Group, Mastercard
- Founded: 2009
- Website: https://www.blissapplications.com/
Bliss Applications is a Portugal-based nearshore development company that creates digital solutions to improve the businesses’ processes and people’s lives.
They specialize in UX & UI design, IoT, eCommerce, application development, web-based tools and QA.
The agency has experience in creating end-to-end solutions for various sectors and has delivered more than 200 projects effectively.
- Number of employees: 1000+
- Average hourly rate: $35/hr
- Types of projects: Retail, education, food & beverage, automotive, real estate
- Notable Clients: Etouches, Barchart, CareDox, Freshly, BuildingLink
- Founded: 2002
- Website: https://www.itechart.com/
iTechArt Group is an award-winning custom software development company headquartered in New York City that helps startups and fast-growing tech organizations build successful and scalable products.
The agency is skilled at web and app development, QA testing, cloud development, UX/UI design, blockchain development, AI and AR/VR.
iTechArt Group has served over 250 clients and has helped them raise $2 billion collectively.
- Number of employees: Under 49
- Average hourly rate: $50/hr
- Types of projects: Education, healthcare, sports, finance, architecture
- Notable Clients: Project Firefly, Saut, NuYu, CEIBS, Credit Suisse
- Founded: 2007
- Website: https://www.icon-worldwide.com/
ICON Worldwide is a leading, full-service design and technology company that partners with both startups and well-established brands across all industries.
They specialize in website design, app development, AI, IoT, custom software development, Blockchain development and more.
The agency has carried out more than 2,000 projects and 500 applications successfully.
What Is Nearshore Software Development?
Interesting fact: 57% of international organizations with more than 2500 full-time employees outsource projects to nearshore development companies.
Nearshore software development is the process of outsourcing software development projects to neighboring countries or locations that are in close proximity.
The United States, on the other hand, would be a great choice of nearshore software country for Mexico-based organizations.
How Much Do Nearshore Software Development Companies Charge For Their Services?
Most nearshore development companies price their projects on hourly rates. The cost varies from agency to agency and usually, it depends on:
- The company’s location
- Its seniority
- The project's complexity
For nearshore services, you can approximately pay between $25 - $50 to companies based in Eastern Europe.
Indian nearshore software developers may seek rates starting as low as $15 per hour whereas the cost of US-based agencies ranges between $50 and $100.
Why Hire A Nearshore Software Development Outsourcing Company?
Nearshoring has become a popular trend among businesses that need software development services for a reason.
These are the key advantages of partnering with nearshore development company:
1. Easier Communication
Research shows that one-third of American companies that outsourced projects to India consider time difference as a major obstacle.
While successful software development partnerships are primarily based on effective communication, a huge difference in time can cause various problems.
Unlike offshore teams, nearshore teams operate in the same or similar time zone which permits seamless interaction between internal and external teams.
This allows companies to be more frequently available for their clients, enables face-to-face meetings and solving issues in a timely manner.
Countries located on a shorter distance may also understand the language of their neighbors.
For instance, there are many bilingual software developers in the US that speak Spanish fluently. This allows them to serve clients from Mexico successfully.
2. Lower Cost
On the one hand, working with a nearshore development company requires traveling on a shorter distance which allows the business to reduce travel costs.
On the other hand, similarly to offshoring, nearshoring can be often more cost-effective than hiring an in-house team or outsourcing a project to a home-based company.
However, the lower cost is not a result of decreased quality of products, but rather the lower cost of living that lets nearshore software companies seek cheaper prices.
3. Higher Cultural Similarities
Countries located in the same region often share different similarities in organizational culture, work ethics and values.
As a result, businesses can collaborate with a nearshore software development outsourcing partner more easily.
Fewer cultural differences empower internal and external teams to bond, develop emotional partnership and facilitate better interaction.
For example, nearshore software firms operating in North America have a deep understanding of the culture, the politics and laws of South America which allows them to simplify and speed up the software development process.
How To Choose The Best Nearshore Software Development Outsourcing Firm For Your Business?
To make sure you are investing your time and money in a partnership that works, consider the following factors:
- Define your requirements: Think about your business needs and how the nearshore services you consider can be of help. Work with your team closely and identify your requirements clearly. This will allow you to select a partner that has the ability to meet your objectives.
- Consider industry experience: Ask whether the potential agencies on our list have experience in working on similar projects to yours. Those developers that are familiar with your industry, target market and competition can better understand your needs and accelerate project delivery.
- Ask about their core area of expertise: See which of the best nearshore software development outsourcing companies has relevant expertise to meet your goals. Demand to see their portfolio as proof of past work.
- Read their reviews: Find out what past clients say about these software companies so that you understand how easy it is to collaborate with them, what is their company culture, how they deliver their projects and how reliable they are.
- Look for developers in stable countries: Make sure you consider the political, economic and judicial stability of the countries you examine. These factors can play a key role in delivering a successful project.
- Set a budget: Think about how much money you can allocate for nearshore services. Then ask the potential nearshore development companies for a cost estimate to see which of them can fit you.
10 Questions To Ask Nearshore Development Companies Before You Hire One
- What services do you offer?
- What technologies do you specialize in?
- Have you worked on similar projects to ours?
- Where can I see your portfolio and reviews?
- What is your approach to development? Can you explain the process briefly?
- Will I be involved in the project and how?
- How often will we communicate?
- What development methodologies do you use?
- How do you price your services and how much will my project cost?
- Are there any additional fees that I should know about?
Takeaways On Nearshore Software Development Companies
Nearshore software development outsourcing is becoming increasingly popular among businesses and organizations because of:
- The easy communication
- The lower cost of services
- The cultural similarities
Most of these companies charge per hour starting at $25 and going as high as $100, depending on the agency’s location, seniority and project complexity.
The suggested steps to selecting the best partner for your business are:
- Define your requirements
- Consider industry experience
- Ask about their core area of expertise
- Read their reviews
- Look for developers in stable countries
- Think about how much money you can invest