Nearshore Software Company

How to Pick A Nearshore Software Development Company

  • Krunal Mendapara
  • |
  • 17 Oct, 2022

Whether a company needs to validate and realize its product vision, scale its operations efficiently, or close a talent or skills gap, outsourcing can offer a solution!

Quick Summary: Nearshoring is a software development outsourcing technique that allows businesses to outsource software development projects to third-party teams or partners in neighboring nations as it has several benefits, such as reduced cost, saving time, etc. But how should an organization choose a company?


With the advancements and accessibility of new technology, IT outsourcing has become a much more realistic and advantageous alternative for many firms dealing with business procedures, particularly those in the technology industry. Every company wishes to provide services at a reasonable price. The problem is that these services aren't always available in a company's home country; the only way to obtain the necessary assistance is to engage expert personnel from outside. However, factors including time zone issues, disparate management styles, cultural discrepancies, and others can hinder productivity and hurt a company's bottom line.

Many organizations are choosing a nearshore software development team and have begun hiring software professionals in countries with a slight time zone difference. Numerous companies, including Google, Tesla, EY, IBM, and others, choose nearshore software development teams as a successful solution for their project requirements. Read ahead to know what a new shore software company is and how to choose it!

What is a Nearshore Software Company?

In the nearshore software development paradigm, businesses assign their software development tasks to companies in close-by nations with reduced labor costs. It enables businesses to sign contracts with business entities in different time zones. This allows greater adaptability and improved communication, which are crucial for project success.

The organization can have quicker turnaround times and more control over the quality of their project by choosing nearshoring over other outsourcing models without investing a lot of money. Additionally, nearshoring enables companies to stay in constant contact with their outsourced employees. Additionally, this kind of working arrangement allows for a more seamless transfer of information and ideas between two teams collaborating frequently, thus improving productivity across the board.

What factors should be considered when selecting a Nearshore Software Company?

Nearshoring is handy if organizations want to supplement their in-house teams with another agile team. But the question is how an organization should choose a nearshore software development company. Keep the following things in mind!

1. Security of Data

Many organizations have implemented GDPR policies, and nations have enacted GDPR-inspired legislation. LATAM nations are also taking initiatives to improve cybersecurity and pass anti-cybercrime legislation. The nearshore business selected by an organization must comply with all the security standards in place. Personal information loss, data breaches, and other security vulnerabilities are unacceptable at any stage of the project cycle.

Check that the nearshore company follows data protection standards such as the GDPR and ISO 27001 as security certification. In addition, inquire whether the company signs NDAs with its personnel and designs a project-specific agreement.

2. Select the appropriate country for Nearshore Development

Nearshoring is becoming more popular in the software development business. This means that companies are outsourcing work to foreign countries and the market leader in their country. When selecting a hosting country for nearshore development service, organizations must consider numerous factors such as developer rates, expertise, availability of talent, etc. Nearshore software development services save companies money and give them access to a more diversified talent pool than they could have locally.

Countries with hundreds of thousands of engineers can provide you with a broader range of options and even better development opportunities since competition leads to higher proficiency levels. Another essential factor to consider when choosing a nearshore software development partner is industry/tech knowledge. Many engineers get experience working with ambitious organizations and startups, strengthening their abilities and domain expertise and allowing them to provide high-quality nearshore development services.

3. Communication Procedure

When outsourcing, organizations should be able to communicate effortlessly with the project team. The organization must have a channel to speak directly with the nearshore team when required. A company with experience and technology that lacks a communication channel is not ideal. Therefore, the organization should be free to talk to the working team.

If there is no proper channel of communication, then the development process may hinder. Moreover, communication is further hampered by the disparity in working hours. Thus, organizations should choose a nearshore company that is always available.

4. Culture of the organization

The culture of a nearshore organization is crucial since it significantly influences the employees and the type of service they provide. It is finding an organization with a strong sense of culture and the ability to differentiate itself from other IT businesses.

Moreover, A nearshore company should have strong organizational values so that the company and client can have a strong bond. This will help organizations in saving time and stress during the process. Organizations must pay attention to how the company communicates and its ethics while discussing the project's deliverables, goals, and requirements.

5. Expertise in the field

The portfolio of a company speaks everything for it. A portfolio is sufficient to depict the organization's expertise as it highlights the type of client the company has worked with. Moreover, it shows the skill set and the innovation capacity of the employee working on that project. A team's work experience is an excellent opportunity to exhibit their problem-solving and technological abilities.

Many businesses even share their e-books, success stories, case studies, or films to demonstrate their prior work on a similar project. Organizations must do thorough due diligence before hiring a new shore software development company. The team must have a solid base of clients to depict their capabilities.

6. Available Workforce

Depending on the duration of the project or its technicality, the organization might have to hire a smaller or larger workforce. Organizations must confirm with the nearshore companies if they can review the application of the professional to understand their expertise and skill set.

Moreover, organizations must check the hiring process as well. The number of available workers also helps organizations to become acquainted with the workforce and their skills in managing the job. Evaluating the professional's knowledge, commitment, and soft and hard skills is critical before hiring them.

7. Cost Effective

When an organization outsources, it must try to get the best service at the best price. Many nearshore companies may charge excessive daily charges without providing full value. tAn ideal nearshore company will charge you a lesser fee along with the expertise, structure, and knowledge they possess. Once the development cost is reduced, the organization can spend the remaining money on other necessary technology.

How can Sattrix Software help your company?

Nearly every industry requires IT support, from doughnut shops to manufacturing, from medical to discount retailers. More software, servers, and personnel are needed to construct and oversee all the current procedures. Thus, outsourcing is the right option. There are several considerations to keep in mind while outsourcing software development, and there is always a risk of data breaches.

Maintaining a strategic vision, a concise plan of action, sufficient research, and open lines of communication is crucial when organizations entrust their project to a nearshore organization. Many large organizations today opt to use nearshore services to generate sustainable business growth due to the expanding global nearshore market's size and value.

With a focus on specialized markets, Sattrix Software offers businesses, startups, and interdisciplinary corporations modern software development services and solutions. The company uses agile software approaches and solutions for developing and delivering best-in-class software product development services that can help businesses become more innovative and successful.

Sattrix distinguishes itself from competing businesses by offering several features such as:

  1. Full-service software product development services help businesses run their operations smoothly, accurately, and efficiently.
  2. Our company provides organizations with comprehensive specification lists, built-in interfaces, and static mockups while considering future scalability.
  3. Our company's global delivery approach employs tried-and-true methods and agile development methodologies to ensure quick time to market.
  4. We collaborate with established companies and new ventures to turn innovative ideas into commercial solutions. For the creation of products, we offer full-cycle software development services.

So, if you want to hire a nearshore software company, contact Sattrix now!

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