Top 12 questions to ask before hiring a nearshore software development company

If you get it right, nearshore software development comes with a lot of benefits.

Cost savings, access to top talent, easier collaboration – you name it.

But, that’s only true if you hire the right people.

And the key here is asking the right questions to spot the true experts and filter out the rest.

Here, we’ll cover the top 12 questions you need to ask every potential nearshore development company before you hire them.

Let’s dive in!

What experience do you have in our industry?

Industry-specific experience is a strong indicator that a potential nearshore development partner can deliver results.

A company familiar with your sector will understand regulatory requirements, market trends, and user needs in your industry.

And this reduces onboarding time, minimizes risks, and improves overall project success.

Here’s a couple of examples:

• Healthcare – A company experienced in healthcare software will understand HIPAA compliance, data security, and the need for interoperability with existing systems.
• Fintech – Teams working in fintech must know PCI DSS regulations, fraud prevention measures, and real-time transaction processing.
• E-commerce – Experts in e-commerce development will know to focus on conversion optimization, secure payment integration, and customer experience.

Here’s how to assess a development company’s expertise in your field:

• Ask for case studies – Look for detailed examples of their past projects in your industry.
• Check client testimonials – Reach out to previous clients for insights on their experience.
• Review their technical stack – Ensure they have experience with the technologies you need.
• Discuss regulatory compliance – Ask how they handle industry regulations and security standards.
• Assess problem-solving skills – Ask them how they approached industry-specific challenges.

Hiring a nearshore development company with relevant industry experience will save you time, reduce risks, and improve the quality of your product.

So, look for a team that understands your business, not just software development.

What tech stack do you use?

Your product’s success depends on choosing the right tools from day one. 

And a solid tech stack is the foundation of every great software product.

The tech stack you use determines your product’s performance, scalability, and maintainability. 

For example, a fintech app needs security and high-speed transactions, while a media platform requires seamless content streaming.

The wrong choice can lead to security issues, performance bottlenecks, and costly rewrites down the line.

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Your nearshore development partner should have expertise in technologies that fit your project’s needs. 

Here’s how to evaluate their tech stack:

• Check if they align with your needs – Ask them why they recommend specific technologies for your project.
• Look at past projects – See which tech stacks they’ve used for similar solutions.
• Ask about third-party integrations – Ensure the tech stack can easily integrate with your existing tools and systems.
• Ensure long-term scalability – Their tech stack should support future growth without requiring a full rewrite.
• Make sure your in-house team can work with it – If your in-house team will take over later, ensure they’re familiar with the chosen stack.

Picking the wrong stack can be costly. 

You shouldn’t just rush into development with trendy technologies without thinking about long-term feasibility first.

You need to choose a partner that understands your business needs, not just the latest tech trends.

And that’s key to building a successful software product.

What collaboration models do you offer?

Choosing the right collaboration model is key to a successful partnership.

The right approach will keep your project on track and ensure smooth teamwork and maximum efficiency.

Nearshore development companies usually offer two options: dedicated teams and team augmentation (extended team).

Here’s a quick overview of the 2 models:

Team augmentation vs. dedicated team: overview

A dedicated team, like the name suggests, will work exclusively on your project. 

This model provides full autonomy and long-term commitment, so it’s a perfect fit for long-term projects or if you need full-cycle development.

Your dedicated team works just like an in-house team, except it’s formed by your nearshore partner.

And if you choose the right partner, they’ll care just as much about your product as an in-house team.

Team augmentation, on the other hand, is when external developers integrate with your existing in-house team.

They work as an extension of your in-house team and follow your workflows and development processes.

It’s a great fit if you need specialized skills or you’re facing tight deadlines and need extra developers, fast.

Ultimately, the choice comes down to your specific needs.

And a great nearshore partner will be able to adapt and help you make the right decision.

Do I have direct access to my team?

If you can’t communicate directly with your team, you risk losing control over your project.

Some vendors will try to act as intermediaries and limit your access to the developers you’ve hired.

This creates unnecessary bottlenecks and slows decision-making.

But, when you have direct access to the team, you:

• Reduce misunderstandings – With no middleman filtering your feedback, you’ll avoid misunderstandings that can derail your project.
• Make decisions faster – No more long waits for updates and endless approval loops. 
• Strengthen collaboration – If the team gets a firsthand idea of your idea and vision, they’ll do a better job.
• Improve accountability – You know who’s responsible for each task and 

So, you need to make sure your potential partners don’t restrict you to a single point of contact.

The best nearshore partners will be fully transparent and let you speak directly with the team you’ve hired at all times.

And that’s key to a successful partnership.

How focused will you be on my project?

A team that’s stretched across multiple projects can’t give yours the attention it needs. 

This leads to delays, lower code quality, and a lack of focus.

Your nearshore team should treat your project as a priority, not just another ticket in the backlog.

But, why is this so important?

When your team is fully dedicated to your project, they will:

• Better understand your product – No constant context switching means they can better understand your vision and build exactly what you need.
• Ship features faster – With full focus, they’ll move quickly, avoid bottlenecks, and hit deadlines.
• Write better code – Fewer distractions means cleaner code, fewer bugs, and a more stable product.
• Make better decisions – A team that’s all-in on your project will spot issues early and suggest improvements to keep development on track.

This is why you need to make sure your potential nearshore partners can build a team that’s fully committed to your project.

The right partner will give you a team that’s fully committed to your project’s success and isn’t juggling several projects at once.

And that’s key to long-term success.

How do you handle project scope changes?

Scope changes are inevitable in software development. 

New features, changing priorities, and market feedback can all change your initial plan. 

The key is how your nearshore partner manages these changes without causing delays, budget overruns, or quality issues.

Scope changes are inherently risky.

If they’re handled poorly, they lead to scope creep. 

And scope creep is one of the biggest project killers out there. 

If you want to learn more, DECODE co-founder and CEO, Marko Strizic, went into detail about scope creep on an episode of our podcast, The Roadmap:

In short, poorly handled scope changes lead to:

• Missed deadlines – Constant scope revisions push timelines back and can cause months of delays.
• Increased costs – Unplanned work can blow your budget and significantly increase costs.
• Technical debt – Quick fixes and shortcuts pile up, which hurts your product’s long-term stability.
• Frustrated teams – If your priorities change too often, your team will lose focus.

What you’re looking for is a company that has a structured approach to scope changes.

They should analyze every new change request in detail before approval and prioritize changes based on value.

Also, you want a partner that’s not afraid to push back if your ideas aren’t feasible.

Remember, scope changes should improve a product, not derail its development.

And a good nearshore partner will know

Do you provide quality assurance (QA)?

Quality assurance (QA) shouldn’t be optional, no matter how small the project.

QA is the difference between a product that works and one that fails.

A single critical bug can destroy user trust, cause security vulnerabilities, or delay your product’s launch. 

And that’s not just idle talk.

Poor software quality costs U.S. companies $2.42 trillion every year.

Plus, the longer you wait to fix bugs, the costlier they are.

A bug that’s caught after deployment can be up to 100x more expensive to fix than right at the start of development:

Your nearshore development partner should have a structured, well-documented QA process that ensures your software meets high standards before release.

Look for a partner who takes QA seriously and integrates it at every stage of development.

It’s the best way to ensure your product will be reliable and secure.

Which development methodologies do you use?

The development methodology a company uses impacts their speed, efficiency, and development quality. 

So, you need to make sure they use the right one.

Agile methodologies like Scrum and Kanban are the industry standard in modern software development.

And there’s a good reason for that.

On average, Agile projects are 28% more successful than projects that use traditional development methodologies.

We recommend finding a partner that uses Scrum – there’s a reason why 87% of Agile teams use it.

So, how does it work?

Scrum breaks down development into 2-4 week iterations called sprints, with each sprint acting like a mini development cycle.

It’s structured enough to keep development on track but flexible enough that you can easily shift priorities mid-development, if needed.

Of course, the right partner will be able to adjust their approach based on your project’s specific needs.

But, as a general rule, Scrum (and Agile more broadly) is the way to go.

How do you handle security?

Security shouldn’t be an afterthought in software development.

A single vulnerability that’s left unchecked can lead to data breaches, huge financial losses, and reputational damage. 

And the numbers prove it, too.

According to IBM’s Cost of a Data Breach 2024 report, the average cost of a data breach reached its highest total ever – $4.88 million.

And with cybercrime exploding in recent years and expected to cost businesses $10.29 trillion in 2025 alone, you can’t afford poor security.

source: Statista

So, when you’re looking for a nearshore development partner, you need to make sure they follow strict security standards.

Check if they follow globally recognized security standards like ISO/IEC 27001. And don’t settle for anything less.

Security isn’t optional, it’s a necessity.

And you need a development partner that takes it seriously.

Can you provide references or case studies?

A nearshore company’s track record speaks louder than their sales pitch. 

Case studies and client references provide proof of their past successes, reliability, and expertise.

Without them, you’re gambling on unverified claims.

Let’s say you want to build an IoT app.

A company that’s built IoT companion apps before and understands IoT hardware and embedded software will be a natural fit for your project.

But, not all case studies are created equal.

Good case studies are in-depth and they cover:

• The problem they’ve solved for their client
• How they solved the problem
• The impact their solution had
• The team and tech stack they used

A trustworthy nearshore partner will be proud to showcase their work.

Their case studies should prove they can deliver results, solve real problems, and help you meet your business goals.

And that’s exactly what you should be looking for. If they can’t provide proof, walk away.

Do you offer post-launch support?

Software development doesn’t end at launch. Bugs happen, users request new features, and security threats evolve..

Strong post-launch support will keep your product competitive and reliable. 

A reliable nearshore partner should be able to provide ongoing maintenance, updates, and technical support.

Without it, you’ll face unresolved bugs, security vulnerabilities, poor performance, and ultimately, lose revenue.

Look for a partner that can handle:

• Bug fixes
• Security updates
• Performance optimization
• Feature improvements
• Technical support and troubleshooting

Keep in mind that launching your product is just the beginning. 

Finding a long-term partner you can trust to build on your product is key to its success.

And that can only happen if your partners offer strong post-launch support.

What is your pricing model?

Cost is the most important factor when you’re choosing a nearshore development partner.

And the pricing model plays a huge role in determining the total cost development.

Most nearshore development companies offer 2 pricing models – fixed price and time and materials.

Here’s an overview of their main differences:

Fixed price vs. time and materials: overview

The fixed price model is a great fit for (relatively) simple projects with well-defined requirements.

But, there’s a catch. Any and all changes to the project scope have to be negotiated separately, which can seriously drive costs up.

If you go for a fixed price model it means you’d spend a lot of time and energy on making sure the contract is respected. You’d be in a constant tug of war with the agency instead of doing more important things.

Marko Strizic, DECODE co-founder and CEO

That’s why the time and materials model is the better choice.

You pay for the actual resources used, so it’s the fairest model for everyone involved.

But, regardless of the pricing model, what you really should be looking for is transparency.

A good partner will clearly outline the costs involved at the start and help you choose a model that best fits your project.

Looking for a reliable nearshore development partner?

Do you want to find a nearshore development partner you can rely on but can’t find the right fit?

Well, you’re in the right place.

We’re an EU-based full-service software product development company with 12+ years of experience building complex software products for everything from healthcare to rail.

So, we can handle anything you can throw at us – and we love a good challenge.

If you want to learn more, feel free to reach out and our team will be more than happy to set up a meeting to discuss your needs in more detail.