The reason is that nearshoring gives you the benefits of onshoring and offshoring while minimizing the drawbacks of each.
Nearshoring gives you access to a wider talent pool. This is a great solution if your home country lacks the needed expertise.
For example, if you want to hire a finance expert for your app but can’t find one, nearshoring gives you a better chance of finding the person you need, but without the common outsourcing obstacles like large time differences or cultural disparities.
This is a boon for companies who need to find talent remotely yet want to retain real-time meetings and collaborations.
In-person meet-ups are also possible as travel costs aren’t as high as they are with offshoring.
In addition, nearshoring opens you up to a wider talent pool. Thus, you have a better chance of finding a low-cost yet quality developer.
For instance, if you run a company in a Western European country, consider that the average hourly rate of developers from North America and Western Europe is around $55-$66.
Contrast this with the median hourly rate of $35 among developers from popular nearshore destinations like Bulgaria or Poland.
For a company from the US, the contrast is even more pronounced.
A developer’s hourly rate there can even go as high as $150 if you hire in top cities like San Francisco or New York, whereas in neighboring Mexico, half of that amount for the same kind of work is considered to be on the high end.
In most cases, you can slash your development costs by up to 50% with nearshoring.
The benefit is that you can have a remote, outsourced team and still have real-time meetings and collaboration.
You can even visit the team since they’re probably just a short train or plane ride away.
You can also expect real-time communication during development, which is useful for time-sensitive tasks like urgent bug fixes or rushed deadlines.
Of course, a minor drawback is that you can’t have a 24/7 development cycle as you can with offshoring, where you can give a task to your outsourced team by the day’s end, and they will work on it while you sleep.
Unlike nearshoring, with offshoring, you can expect it to potentially be completed the next day.
But nearshoring offsets this weakness with tighter and faster communication.
Fewer barriers to collaboration
The great thing with nearshoring is that you have the flexibility to pick developers with the right culture, language, and infrastructure to fit yours. This can help facilitate smooth collaboration.
This is why countries in Eastern Europe are popular nearshore destinations.
Consider one of the points that we’ve previously mentioned—that most developers in the region have very high levels of English mastery, as measured by the EF English Proficiency Index.
In fact, one country, Croatia, ranks tenth among all European nations.
Marko started DECODE with co-founders Peter and Mario, and a decade later, leads the company as CEO. His role is now almost entirely centred around business strategy, though his extensive background in software engineering makes sure he sees the future of the company from every angle.
A graduate of the University of Zagreb’s Faculty of Electrical Engineering and Computing, he’s fascinated by the architecture of mobile apps and reactive programming, and a strong believer in life-long learning. Always ready for action. Or an impromptu skiing trip.