Here’s an overview of the average rates by role and region:
Average hourly development rates by role and region
Region
Software engineer
Solution Architect
UX/UI designer
Project manager
Western Europe
$120-150
$150-200
$90-130
$110-160
Central Europe
$40-55
$60-80
$35-50
$45-65
Eastern Europe
$30-50
$45-65
$25-40
$30-55
Asia
$20-50
$30-70
$18-40
$25-50
North America
$100-150
$120-200
$80-120
$90-140
Latin America
$25-50
$40-70
$20-40
$30-55
Africa
$20-50
$30-70
$20-40
$25-55
But, that’s not the whole story. The true cost of development goes beyond just hourly wages.
Hiring cheap offshore developers often comes with hidden costs, like:
More rework due to lower code quality
Delays caused by communication barriers
Time zone delays
These costs quickly add up.
And by the time you solve these issues, you’ll end up spending more than if you hired a high-caliber nearshore team.
Nearshore development gives you a better balance between cost and value because it offers:
A better fit with your business practices
Real-time collaboration
Better cultural and communication fit
Fewer revisions and higher quality output
All of this translates to lower long-term-costs, even if you have to pay higher hourly rates upfront.
If you look at the total cost of ownership, including productivity, efficiency, and product quality, nearshore outsourcing is often the better choice.
And that’s why you should go for it, too.
Nearshore teams are harder to manage than in-house teams
Another common myth is that nearshore teams are harder to manage than in-house teams.
The assumption is that if a team isn’t physically in the office, it’s more difficult to ensure high-quality output.
Some other common concerns companies have are:
Lack of visibility – You might worry about not knowing what the team is working on.
Different work culture – You may assume they won’t align with your way of working and company culture
Slow response times – You might fear they won’t be as responsive as your in-house team.
However, if you’re working with an experienced nearshore partner, management isn’t harder – it’s just different.
A well-structured nearshore team from a reliable partner can easily adjust to your processes and give you the same level of collaboration and control as an in-house team.
So, it’s understandable why you might worry about security when outsourcing.
But, the risk level mostly depends on the nearshore partner you choose – outsourcing isn’t inherently riskier.
Top nearshore development companies often follow very strict security standards, especially if they work for clients in highly regulated industries like finance or healthcare.
And, since they’re geographically and culturally close to you, chances are they have similar business laws and data protection standards.
GDPR in the European Union is a great example. Here’s what it covers:
If you’re EU-based and hire a nearshore team from another EU country, like Croatia or Poland, you won’t have to worry about GDPR compliance, since they follow the same regulations.
Still, when it comes to security, it’s always a good idea to play it safe.
Here’s what you should do to ensure security when outsourcing development:
Work with certified partners – Make sure your nearshore partners have globally recognized security certifications, like ISO/IEC 27001
Sign strict NDAs and contracts – Set clear legal protections and confidentiality obligations to keep your data safe.
Run regular security audits – Schedule routine security audits to check for vulnerabilities and ensure compliance.
Control access levels – Limit data access with role-based permissions, especially around sensitive user data.
In short, security isn’t about geography – it’s about processes, policies, and accountability.
And if you hire the right team, you’ll minimize any security risks.
Time zone differences create communication issues
One of the biggest myths about nearshore software development is that you still have to deal with time zone differences and communication issues.
In fact, the opposite is true.
Nearshore means a time zone difference of 3 hours or less between you and the team you hire.
Let’s take Europe as an example.
If you’re based in Europe and hire a nearshore team from another European country, they’ll be a maximum of 2 hours ahead of you.
You’ll have plenty of overlapping work hours, which makes collaboration easy and efficient.
You won’t have to worry about:
Long response times
Finding meeting slots
No real-time collaboration
Minimal time zone differences mean less waiting and better collaboration.
And that translates to faster project delivery, which is why nearshore development is a great option.
Nearshore development is only suitable for small and non-critical projects
Many assume nearshore development, and outsourcing in general, is only for simple, non-critical projects.
Investopedia notes that “outsourcing is also used by companies to focus on the core aspects of the business, spinning off the less critical operations to outside organizations.”
But, in truth, huge enterprises and companies in tightly regulated industries all rely on outsourcing to build mission-critical software.
The myth that nearshore teams can’t handle large-scale projects comes from outdated views on outsourcing, where some believe they:
Lack the experience and expertise to build enterprise-grade software
Can’t scale quickly enough to meet demand
Aren’t suited for highly regulated industries like finance and healthcare
But the truth is, nearshore teams successfully build and maintain thousands of high-impact solutions across a wide range of industries.
One great example is our work with Metaswitch, where we helped them build some of the best unified communications (UC) applications on the market.
So, it’s definitely a mistake to think nearshore teams can only handle small projects – in reality, they often build the software that powers global giants.
But, we understand your hesitation, especially if you’re a huge enterprise.
If you want to make sure your nearshore team can handle a critical project, you need to:
Work with industry experts – Check if they’ve got previous experience in your industry.
Make sure they can scale – Your nearshore team should be able to grow as your product does and your needs evolve.
Look for cloud and DevOps expertise – A strong infrastructure is key to mission-critical apps.
Start small, then scale – Run a pilot project and test their capabilities before you commit long-term.
In short, nearshore development isn’t just for small projects.
It’s a great fit for any project, no matter the size.
Nearshore outsourcing delivers lower quality than in-house teams
Another huge myth is that outsourcing means sacrificing quality.
Some companies don’t want to outsource development because they worry about:
Skill levels
Quality control
Lower development standards
And the reality?
Nearshore teams are just as good, and sometimes even better, than in-house teams.
Software quality isn’t about location. It’s about having the right expertise, processes, and high quality standards.
You just need to choose the right company to partner with. Here’s how you do it:
Review their portfolio and case studies – Check if they’ve done enterprise-grade projects and have experience building complex products.
Evaluate their tech stack – Make sure they’ve got experience with the technologies you’re looking for.
Check their reviews – Read unbiased, third-party reviews on sites like G2 and Clutch to find any red flags.
Nearshore development provides the expertise and flexibility that growing companies need, without massive overhead.
It’s a great choice if you want high-quality software without breaking the bank.
Nearshore software development myths: FAQs
Your costs will primarily depend on the hourly rates in the target country, project complexity, and the pricing model you agree on.
But, your costs will generally be lower than with onshoring and higher than offshoring.
Your project timeline will depend on a number of different factors, like:
Project scope
Project complexity
Team size
Timelines can range from 2-4 months for simple apps while complex, enterprise-grade projects can take 9 months to over a year to build.
Discuss a realistic timeline upfront and include buffer time for unforeseen delays.
The answer to this questions will depend on your specific needs.
Large companies often have a broader range of expertise, access to more resources, and the ability to scale quickly if your project grows in scope.
However, working with a large company often means you don’t get personalized attention, since they often have a huge number of clients simultaneously.
Smaller firms are often more flexible and can provide highly personalized service. They may specialize in a specific technology or industry, making them a great choice if you need niche expertise.
But, they might have limited resources, which could affect scalability if project demands increase significantly.
Want a reliable nearshore development partner?
Are you interested in outsourcing development but can’t seem to find a company that’s the right fit?
Well, you’re in the right place.
We’re a high-caliber, EU-based software development company with 12+ years of experience building complex software solutions for a wide range of industries.
And we’re always on the lookout for new and challenging projects – you name it, we can build it.
If you want to learn more, feel free to reach out and our team will be happy to answer all of your questions.
Damir knows how to build partnerships that last. With 20+ years of experience in sales leadership, business development, and tech consulting, he’s helped companies grow, scale, and adapt - whether by leading teams, building businesses from scratch, or driving digital transformation. He started with a degree in history and archaeology before adding an MBA and training in negotiation, web development, and more. That mix of curiosity and drive is what makes him great at what he does.
Outside of work, you’ll find him on the trails, pushing his endurance limits, or at home keeping up with his three kids. And when he's not on the move, he's diving into the latest and greatest history books and documentaries.