Nearshore or offshore setup?

If you are reading this article, the chances are that you are probably considering outsourcing your software development. Should you go with a nearshore or offshore setup? The correct answer will vary according to your needs, requirements, and what you expect from an outsourcing development team.

With this article, we expect to clarify some questions you may have. So, here are the main differences to keep in mind:


Nearshore development

  • Geographically close (1 to 3 hours difference)
  • The software development team is in a nearby country
  • It´s cost-effective when compared with your local market
  • Direct flights available (with a flight duration of 2 to 3 hours)
  • Easier to manage due to the short time zone difference
  • Similar cultural background


Offshore development

  • Geographically far away (6 to 12 hours difference)
  • The software development team is usually on a different continent
  • Often more cost-effective than the nearshore option
  • More difficult to manage due to the time zone difference
  • Possibly with significant cultural background differences


So, before choosing a setup, there are a couple of aspects to consider.


Time zones

Would you prefer to manage developers or a development team that is available during your regular business hours? Or are you willing to manage your development team by email and during non-regular business hours?



Would you want to meet with the outsourcing development team face to face regularly? Do you prefer short-distance flights or are you considering long-distance trips? In some cases, you might want to have some of the outsourcing team members to visit you, your team, or even your clients.


Cultural background

Another essential aspect to consider is the cultural background. No matter how skilled a developer is, the cultural difference may play a role in your decision. Depending on the type of project you will outsource, you would require developers that can understand the requirements of the projects, their features, functionality, and so on. It may not look to be relevant, but social background differences may play a role in how your outsourcing team will perceive your projects.


Communication skills

When talking about perception, it’s also essential to understand how you will communicate with your development team. In what language will you speak? Probably English, right? Is your outsourcing team efficient in that language?


Rates vs. Quality

For sure, there are plenty of more aspects to consider, but we believe these are probably the most important. Except for one last detail: hourly rates vs. quality!

Typically, offshore rates are lower, but sometimes this also means lower quality, depending on the country where you will outsource your projects. There are several reasons for this to happen. The offshore team is usually located in a different continent, meaning it will be harder to track the development progress. Also, development standards could be different.

We hope this article helped you understand the main differences between nearshore and offshore outsourcing.

About Us

We have offices both in North America (in Toronto, Canada) and Europe (Lisbon, Portugal). In Canada, we have project managers to support our North American clients. In Portugal, we have all the development team as well as project managers that support our European clients. By having teams in both continents, we can provide nearshore, offshore, and what we call hybrid nearshore. See the details below.

Our Setup

  • Nearshore setup

    If you operate in Europe, and you wish to benefit from a flexible, cost-effective, and scalable development team based in Lisbon, Portugal.

  • Nearshore hybrid setup

    If you operate in North America, and you wish to benefit from a flexible, cost-effective, and scalable development team, with local project managers, based in Toronto, Canada.

  • Offshore setup

    If you are considering having outsourcing developers or a development team, do contact us. We can help you to become cost-effective and reduce your current development costs.

We can help you become more cost-effective and reduce your current development costs.