Software development isn’t cheap, and finding skilled developers without breaking the bank is becoming harder every year. Hiring in-house developers in the USA can cost up to $150 per hour, making software development a major expense for small to medium-sized businesses.
If you’re looking to cut costs without sacrificing quality, nearshore software development is the smartest way forward.
Nearshoring software development gives you access to top-tier talent in nearby countries at nearly half the cost of hiring locally – without the headaches of massive time zone differences or language barriers.
This guide will break down everything you need to know about nearshore custom software development: what it is, why it works, and how to make it work for your business.
What Is Nearshore Software Development?
Nearshore software development is outsourcing development projects to teams in neighboring or nearby countries.
Unlike offshore outsourcing (hiring from far-away locations like India or the Philippines), nearshore development offers:
✔ Lower costs than hiring locally
✔ Better time zone alignment than offshore teams
✔ Stronger cultural & business similarities
✔ Higher English proficiency & communication
Think of it this way: nearshore IT development is like having an extension of your team just a few time zones away instead of halfway across the world.
Whether you need nearshore web development services or a fully outsourced development team, this approach helps businesses scale faster and cheaper than onshore hiring, and smoother than offshore hiring.
How Nearshore Software Development Saves You 50%
Here’s the part everyone wants to know: how much money can you actually save by nearshoring software development?
For starters, the average annual salary for software developers is approximately $230,000 in the United States, compared to $69,000 in Costa Rica. That means you can save more than 50% by just hiring a software developer from LatAm.
Beyond salary differences, nearshore development reduces overhead costs. With remote teams, you don’t have to worry about office space, expensive equipment, or employee benefits like health insurance.
On top of that, because nearshore teams work in similar time zones, projects are completed faster, with fewer delays due to communication gaps. That means you’re not just saving money – you’re also speeding up your time to market.
We can help you source top-tier software developers from Latin America in 3 weeks or less.
Best Nearshore Development Countries
If you’re considering nearshore outsourcing web development, these Latin American countries stand out as prime destinations for hiring top-tier developers at competitive rates:
- Mexico – A strong tech ecosystem with excellent English proficiency and close time zone alignment with the US.
- Colombia – Rapidly growing IT sector with highly skilled developers and competitive pricing.
- Argentina is known for its strong educational system, which produces top-tier developers in software engineering.
- Brazil – The largest tech hub for hire in Latin America, offering a diverse and highly capable developer pool.
- Costa Rica – A rising hub for nearshore software development, known for its skilled workforce and government support for tech innovation.
Nearshore vs. Offshore: What’s the Better Choice?
Many businesses weighing their options compare nearshore vs offshore outsourcing. While offshore outsourcing to countries like India or the Philippines is often cheaper, it comes with challenges like significant time zone differences, cultural barriers, and potential quality concerns.
Nearshore development, on the other hand, provides better collaboration and real-time communication, ensuring fewer misunderstandings and faster turnaround times. If saving money while keeping collaboration smooth is your priority, nearshore software programming is likely the best choice.
How to Successfully Outsource Nearshore Development
If you’re new to nearshore outsourcing, here are the key steps to ensure success:
Frequently Asked Questions about Nearshore Software Development
Pavago: Your Nearshore Software Development Partner
Finding affordable, high-quality nearshore developers can be overwhelming. Pavago simplifies the process by connecting businesses with pre-vetted nearshore talent in Latin America.
Instead of spending weeks filtering through applications and negotiating contracts, Pavago matches you with top-tier nearshore developers who fit your specific needs.
No hiring stress, no compliance headaches – just expert developers, ready to build.
Want to cut development costs and scale smarter?
