How to Benefit from Nearshore Software Development in 2020

Over the last two decades, nearshore software development companies have been providing sustained, end-to-end value for countless U.S. organizations, resulting in strong partnerships that support innovation and technological excellence.

Now, with the 2010s in the rear-view mirror and a global pandemic on our hands, the opportunity to benefit from nearshore partnerships is greater than ever, presenting the best chance to capitalize on the solid foundations the industry has been building for years.


What is Nearshore Software Development?

The term ‘software development outsourcing’ has long been associated with large-scale offshore markets like India and China, which traditionally offer low-cost development services at scale. Still, these destinations are not without their drawbacks.

Countries on that side of the world lack a vital cultural alignment with the U.S. market, leading to misunderstandings, communication difficulties, and delays — the disparate time zones are not ideal either, especially when projects demand an agile, collaborative approach.

For organizations in the United States, nearshore software development is about avoiding those drawbacks by working with partners in Latin America and the Caribbean. The region boasts convenient geographical proximity to the U.S. and has deep cultural ties with North America, while also offering cost-effective services in comparison to domestic providers.

So that explains what nearshoring is, but what makes 2020 the right time for organizations to work with nearshore partners?


The Changing Landscape in 2020

In North America, software developers are expensive to hire and difficult to retain, often jumping between tech companies in pursuit of higher salaries and attractive perks. Simultaneously, organizations are under increasing pressure to deliver on customer demands, which include better experiences, better software, and instantaneous results.

Nearshore partnerships are a viable answer, both to this sense of urgency and the challenges associated with domestic talent. Nearshore companies hire and train the best graduates from top regional universities, which provide world-class computer science and software development programs — Colombia alone graduates over 13,000 IT specialists every year.

With the right provider, nearshore software outsourcing can help mitigate risks associated with compliance, security, and cost overruns. Long-established companies are always up-to-date with global regulatory standards and build risk management considerations into their contracts, protecting their partners’ projects in the event of a crisis.

In short, as businesses deal with increasing uncertainty, nearshore software development providers are there to support, enhance, and grow an organization’s technology ambitions and help them reach business objectives.


Choosing the Right Nearshore Partner

Today’s nearshore software developers are champions of innovation and bring a wealth of knowledge, experience, and cultural perspective to the table. When exploring nearshore for these benefits, organizations should seek partners that can align with their business objectives and collaborate seamlessly with internal teams.

While many nearshore partners have the capacity to oversee entire software development projects, others simply provide qualified engineers to augment and support existing teams, so it’s best to understand those needs upfront to prevent choosing the wrong provider. Additionally, look for companies with the right balance of long-term market presence, experience in several industries, sufficient human talent, and existing nearshore clients.

Nothing beats getting to know your potential partner face-to-face, so, if possible, take a visit to their premises, tour their facilities, and meet the engineers. At the very least, schedule some video meetings and video tours so you can visualize how the company operates (with the current pandemic crisis sweeping the planet, this is perhaps the only approach right now). When you find a prospective partner, go deep and ask technical questions. Find out what they learned from past projects and how they can apply that knowledge to yours.

Don’t go for price alone when selecting a partner. The long-term value associated with high-quality software should be a higher priority than the asking price. If price is important, factor in the company’s technical capabilities along with its ability to overcome roadblocks, which will result in savings later down the line.

Finally, ask to speak with the company’s existing nearshore clients to learn about their experiences. You can ask third parties about the results and issues they’ve experienced so far, along with the partner’s ability to overcome challenges. It’s also a chance to learn from their decision-making process and why they ultimately settled on the partner in question.


Final Thoughts

As the year 2020 brings new challenges to the business world, U.S. organizations should not overlook the skills, talent, and experience available in the nearshore software outsourcing industry. With its cost-competitive, high-value, and culturally aligned benefits, the market has been steadily emerging as the first choice for hundreds of North American companies looking to accelerate their digital innovation and technology initiatives. What’s stopping your business from joining their ranks?

About the Author

PSL Corp, a nearshore software development organization, operates at the intersection of drive, quality and innovation. Our goal is to help you achieve your technology vision by embodying a delivery-focused mindset supported by over 30 years of proven experience and nearshore proximity. Contact us at