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Building and scaling a high-performing software team is challenging, especially when balancing timelines, budgets, and access to top talent. This challenge drives a broader shift across the industry. According to Deloitte’s 2024 survey, 80% of executives plan to keep or increase their investment in external outsourcing. As part of this trend, many companies are turning specifically to nearshore development as a more flexible and cost-effective solution.
Nearshore development teams enable businesses to work with skilled professionals in nearby countries. This setup ensures easy communication, overlapping work hours, and technical expertise.
“In 2024, a study by Deloitte found that companies can save up to 60% on development costs by choosing nearshore outsourcing over hiring locally. These savings come from paying competitive rates in countries with lower living costs, avoiding the expense of maintaining large in-house teams, and achieving faster time to market.”
With the nearshore software development sector projected to grow at a CAGR of 14.21% from 2024 to 2031, many organizations are adopting nearshore partnerships to increase efficiency and drive innovation.
In this article, we’ll explore how nearshore development works, the benefits it offers, and why more companies are choosing this approach to scale. We’ll also compare nearshore with offshore development, identify which projects are best suited for nearshoring, and guide you on how to select the right partner, like DevsData LLC, to help grow your business.
Nearshore software development involves working with a development team based in a nearby country, usually within one to three time zones of your company’s location. This model sits between onshore (hiring locally) and offshore (hiring from distant countries, often across multiple time zones), offering a strategic middle ground that balances cost-efficiency, talent access, and operational alignment.
“Unlike traditional outsourcing, nearshoring emphasizes geographic proximity, cultural compatibility, and real-time collaboration.”
These factors significantly enhance project visibility, reduce delays, and improve outcomes, especially for fast-moving or agile projects that require ongoing interaction and iterative progress.
For example:
This proximity not only enables smoother communication but also simplifies travel if in-person visits are needed. It’s a win-win for companies looking for both technical excellence and operational ease.
Nearshore development teams are not just outsourced vendors, as they are structured to behave as a natural extension of your internal engineering team. The goal is seamless collaboration, both technically and culturally, to make the integration feel smooth, productive, and transparent. This collaborative model helps companies maintain agility, reduce communication barriers, and deliver high-quality software faster. Here’s how nearshore teams typically operate in real-world engagements:
Nearshore teams are usually well-versed in agile methodologies such as Scrum or Kanban. These frameworks help teams stay organized, deliver work in manageable increments, and adapt quickly to changes. Scrum, for example, emphasizes short development cycles (sprints), daily stand-up meetings, and bi-weekly sprint planning and retrospectives – practices that encourage collaboration, fast feedback, and continuous improvement.
On the other hand, Kanban focuses on visualizing workflows and limiting work in progress to improve efficiency and reduce bottlenecks. DevsData LLC’s team tailors Scrum and Kanban practices to each client’s processes, providing certified Scrum Masters and experienced Agile coaches to support a smooth adoption and consistent project delivery.
Nearshore teams also use industry-standard platforms like Jira for issue tracking, Confluence or Notion for documentation, GitHub or GitLab for code repositories, and CI/CD pipelines for automated testing and deployments. By adopting the same workflows as your in-house teams, nearshore developers can ramp up their productivity quickly and contribute from day one.
One of the biggest advantages of nearshoring is the significant overlap in working hours. Whether you’re in San Francisco, Toronto, or Berlin, a nearshore team in Latin America or Eastern Europe will generally have 4–6 hours of shared work time each day. This overlap makes it possible to live-test features, deploy on the same day, and fix bugs immediately, which can significantly shorten the development cycle.
This allows for:
In short, nearshore developers are available when your team is, allowing for true day-to-day collaboration.
To minimize friction, nearshore teams work within the same development environment as your local teams. DevsData LLC teams are onboarded to the client’s existing development stack from day one. By working in the same code repositories, project management tools, design systems, and cloud infrastructure already in use, the transition is seamless, with no learning curve or workflow disruption.
This approach eliminates duplicate effort, keeps all teams aligned, and enables immediate productivity from the start of the engagement. The result is a team fully synchronized with your internal processes from day one.
Unlike traditional outsourcing models, nearshore teams are encouraged to communicate directly with stakeholders, product owners, and other developers, eliminating layers of middle management and ensuring prompt instructions. Developers participate in:
This kind of direct access promotes transparency, trust, and accountability. At DevsData LLC, developers are not shielded by project managers. They join the client’s daily standups and code reviews from the start, fostering transparency and shared ownership. Nearshore engineers are not treated as external contractors, but rather as teammates. This sense of inclusion boosts team morale, strengthens collaboration, and often leads to higher performance and more substantial commitment to project goals.
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Choosing a nearshore development partner offers a range of strategic advantages that can significantly enhance the success of your software development projects. These benefits stem from geographic proximity, cultural similarities, and operational efficiencies that contribute to smoother, faster, and more cost-effective collaboration.
One of the most significant advantages of nearshore development is the ability to collaborate in real time. Unlike offshore teams, where time zone differences often result in long waiting periods for feedback and issue resolution, nearshore teams operate within a similar time zone or have overlapping working hours. This means that when you need to address problems, review progress, or discuss next steps, you can do so without waiting for the next business day. Whether it’s a quick question about a feature or urgent bug fixes that need to be addressed immediately, you can count on nearshore developers to respond quickly, ensuring faster iteration cycles and reducing delays. Real-time collaboration helps keep projects on track, improves decision-making speed, and promotes continuous, active involvement in the development process.
Nearshore teams are often fluent in English and accustomed to Western business practices, making communication smoother and reducing the potential for misunderstandings. Cultural alignment goes beyond just language proficiency, as it also includes shared values, work ethics, and communication styles. At DevsData LLC, a cultural fit assessment and advanced English proficiency are integral parts of the hiring process, guaranteeing effective collaboration from the very first day.
Many nearshore teams are familiar with the norms of agile software development, customer-centric project management, and iterative feedback processes. This common ground helps minimize the friction that can arise from cultural differences, allowing your team to collaborate more effectively.
Whether it’s understanding the nuances of a client’s request or aligning on project priorities, cultural and language alignment is essential for building strong working relationships and ensuring that both teams are on the same page.
One of the main reasons businesses turn to nearshore development is the ability to access highly skilled talent at a more affordable rate than local hires. Nearshore teams often come from countries with strong educational systems and robust tech industries. These teams are composed of professionals who have been trained in the latest technologies and software development practices.
“While the cost of hiring nearshore developers may be lower than that of hiring locally, this does not mean compromising on quality. You can tap into a wide pool of experienced engineers, developers, and specialists who can deliver top-notch results while staying within your budget.”
DevsData LLC maintains this quality by sourcing talent from highly competitive markets and conducting rigorous technical interviews aligned with the standards of leading US tech companies.
Onboarding nearshore teams is often faster compared to other outsourcing models, particularly offshore development. The shared time zone overlap allows your in-house team to provide immediate support and guidance to new nearshore developers, eliminating the delays that come with asynchronous communication. At DevsData LLC, most new developers are fully integrated and contributing within about a week, which is much faster than the typical onboarding period for a local hire.
Additionally, nearshore teams are typically able to get up to speed quickly because they are already familiar with Western tools, software, and project management techniques. This reduces the time spent on training and allows nearshore developers to begin contributing to the project almost immediately. The smoother onboarding process means that development can proceed without long interruptions, leading to faster project delivery times.
As your business grows and development needs become more complex, nearshore teams provide a flexible and scalable solution. Their geographic proximity eliminates many of the logistical hurdles and delays that often come with local hiring. For instance, at DevsData LLC, scalability is supported by access to a vetted network of over 65,000 developers and a proven, streamlined process for quickly assembling nearshore development teams. This allows you to rapidly expand your team, whether adding a few developers or building an entire specialized unit, without the time and expense typically associated with traditional outsourcing.
With this infrastructure in place, your development efforts can scale alongside your company’s growth, helping you stay competitive and agile in a constantly evolving market.
When deciding between onshore, nearshore, and offshore development, it’s important to understand the distinctions that can impact your project. While onshore means working with local teams, nearshore and offshore options offer different outsourcing benefits along with unique challenges and advantages affecting communication, cost, project management, and scalability. The following table breaks down key factors such as time zone proximity, cultural alignment, cost-effectiveness, and project control, helping you determine which option is best suited for your needs.
| Aspect | Onshore Development | Nearshore Development | Offshore Development | DevsData LLC’s Nearshore Model |
|---|---|---|---|---|
| Time zone proximity and communication | Same or very close time zones, allowing real-time communication and collaboration. | Similar time zones (1–3 hours difference), enabling real-time communication and faster feedback. | Significant time zone difference, causing delays in communication and slower feedback cycles. | Teams can align with the client’s working hours from day one, joining daily standups, code reviews, and direct calls with stakeholders if preferred. |
| Cultural and language differences | Minimal to no cultural or language barriers. | Cultural similarities and English proficiency reduce risk of misunderstandings. | Potential cultural and language barriers may lead to delays. | Developers are chosen through cultural fit checks and advanced English testing to match the client’s work style. |
| Cost and quality balance | Highest cost due to local rates, but high quality and direct oversight. | Higher cost than offshore, but generally higher quality and better communication. | Lower cost due to cheaper labor markets, but quality and communication may vary. | Competitive rates from strong talent markets, with a multi-stage technical screening process. |
| Project management and control | Full control and easy management with co-located teams. | Works well with in-house teams due to overlapping hours and agile management. | More difficult to manage due to time zone gaps, requiring asynchronous work. | Agile methods adjusted to the client’s workflow, supported by certified Scrum Masters. |
| Scalability and flexibility | Limited by local talent availability and cost. | Easier to scale with fewer logistical issues. | Scaling can be harder due to time zone and logistical challenges. | Access to a vetted network of 65,000+ engineers across multiple regions, allowing quick scaling without loss of quality. |
Not every project is the perfect fit for nearshoring, but many types of development initiatives align exceptionally well with this outsourcing model. Nearshore teams are particularly effective for projects that require close collaboration, iterative development, and quick turnaround times. Here are some of the best types of projects that benefit from nearshore collaboration:
MVPs and prototypes
When building Minimum Viable Products (MVPs) or prototypes, speed and flexibility are essential. Nearshore teams are ideal for these projects because they can deliver rapid iterations based on constant feedback. For example, DevsData LLC helped a German HealthTech startup launch its MVP within just 15 days, enabling quick market testing and early user feedback integration. Their real-time communication and ability to adapt quickly allowed the startup to accelerate development without compromising quality. The cost-effectiveness of nearshoring also helped keep the project within budget. This makes nearshore development an excellent choice for companies testing new ideas in the market.
Enterprise system upgrades
Enterprise system upgrades require significant collaboration, as they often involve large, complex systems. Nearshore teams excel in these projects due to their ability to communicate and collaborate seamlessly with internal teams. They can handle the intricacies of upgrading legacy systems or integrating new software while maintaining alignment with your business goals. Real-time collaboration helps keep operations running smoothly with little interruption. Nearshore teams combine strong technical skills with adaptability, making system upgrades more efficient and hassle-free.
Cloud migrations and DevOps work
As businesses increasingly migrate to the cloud, cloud migrations and DevOps work have become critical. Nearshore teams are skilled at managing these transitions and ensuring infrastructure changes are executed smoothly. They provide consistent support throughout the process, maintaining open communication with internal IT teams. Their expertise with platforms like AWS, Azure, and Google Cloud helps make migrations seamless. Additionally, nearshore developers implement DevOps best practices such as continuous integration and automated testing, leveraging tools like Docker, Kubernetes, and Jenkins to boost efficiency and reliability.
Security and compliance
Security and compliance projects require strict adherence to regulations and robust risk management practices. Nearshore teams can design and implement secure architectures, conduct security audits, and ensure compliance with standards such as GDPR, HIPAA, or SOC 2. DevsData LLC, for example, sources developers with proven experience in regulated industries and verifies their understanding of relevant compliance frameworks. This focus reduces the risk of data breaches and helps organizations meet legal requirements without delays.
Long-term product development
For long-term product development, nearshore teams offer sustained collaboration and scalability. Developing a product over months or years requires continuous communication, regular feedback loops, and iterative progress. Nearshore teams provide the flexibility needed to scale up or down based on your project’s evolving needs. Their ability to integrate seamlessly with your internal teams ensures that the development process remains fluid and aligned with business goals. Whether you’re building a mobile app or a full-scale SaaS platform, nearshore teams can handle the complexities of long-term development.
Staff augmentation
Staff augmentation through nearshoring allows businesses to scale their teams quickly without the overhead of traditional recruitment. If you need specialized talent for a short-term project or additional support during peak development phases, nearshore teams are an excellent solution. They can seamlessly integrate with your in-house developers, providing expertise when and where it’s needed. The time zone overlap ensures smooth communication and quick issue resolution. Nearshore staff augmentation helps businesses maintain agility and meet deadlines while controlling costs.
While nearshore development is generally less risky than offshore in many respects, it still comes with its own set of challenges. Addressing these challenges proactively can help guarantee the success of your collaboration with a nearshore team. Below are some of the most common hurdles you may face and strategies for overcoming them:
Finding the right partner
Selecting the right nearshore development partner plays a key role in your project’s success. That’s why it’s important to carefully evaluate and assess each firm before making a decision. Look for companies that have proven experience in your industry or project type, along with strong client reviews and a track record of delivering quality results on time. Investigate their hiring process to ensure they select highly skilled developers who align with your team’s needs. A solid partner should also be transparent about their project management practices and provide you with references or case studies that showcase their capabilities. Taking the time to evaluate multiple options and asking the right questions will help you find a reliable partner that meets your technical and cultural expectations.
Onboarding and integration
One of the key success factors in nearshore development is smooth onboarding and integration. Rushing through this process can lead to confusion, misalignment, and slow project progress. Treat your nearshore team like an extension of your internal staff and provide them with thorough onboarding. This includes sharing relevant documentation, access to tools and platforms, and a clear understanding of your business goals. Set up proper communication channels such as Slack, email, and video calls, and introduce them to the project’s key stakeholders.
Additionally, provide them with the context they need to grasp your company’s culture and internal processes, just as you would with a new hire. At DevsData LLC, onboarding is structured to align with the client’s workflow from the first day so that developers can contribute meaningfully within their first week. The better integrated the nearshore team is, the more effectively they will contribute to the success of your project.
Misaligned expectations
Setting clear expectations from the outset is crucial to avoid confusion down the line. Clearly define key performance indicators (KPIs), timelines, and deliverables that both parties agree upon. Additionally, establish regular check-ins, such as weekly status updates or sprint reviews, to monitor progress and address any issues that arise. Using a shared KPI dashboard or project management tools like Jira, Trello, or Asana can help keep transparency high and ensure everyone stays aligned in real time.
DevsData LLC maintains transparency by giving clients open access to task boards, progress reports, and direct communication with developers, allowing them to track work and results at any stage. These practices create a productive working relationship and keep the project progressing efficiently.
Legal and IP matters
When working with a nearshore development team, it’s vital to protect your intellectual property (IP) and establish clear legal frameworks from the beginning. Use contracts that outline the terms of IP ownership, including who retains rights to the code and the final product. Additionally, ensure that the contract includes non-disclosure agreements (NDAs) to safeguard sensitive business information. Work with legal experts who understand the legal nuances of cross-border nearshore partnerships, including international laws and jurisdictional challenges. For instance, DevsData LLC incorporates robust legal safeguards and IP protection clauses in all contracts to secure clients’ rights and confidential information throughout the project lifecycle. All contracts are reviewed by legal experts in both US and European law, with IP clauses that guarantee complete transfer of ownership to the client.
Choosing the right partner allows you to navigate these challenges effectively, setting the stage for successful project execution and strong collaboration. Partnering with a reliable team like DevsData LLC can make all the difference.
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Company size: ~60 employees
Founding year: 2016
Website: www.devsdata.com
Headquarters: Brooklyn, NY, and Warsaw, Poland
DevsData LLC provides expert nearshore development teams to companies across North America, Latin America, and Europe, combining global reach with localized service. With over 8 years of experience in IT outsourcing, DevsData LLC has become a trusted partner for businesses looking for high-quality software development and IT services. Their team, which includes Google-level specialists with 10 years of experience from both the US and Europe, brings deep technical expertise and a commitment to delivering customized solutions tailored to the unique needs of each client.
The company offers a wide range of services, including web development, mobile app development, product development, cloud infrastructure, UI/UX design, Big Data, machine learning (ML), and complex backend systems. With a focus on transparent communication, collaborative problem-solving, and delivering high-quality results, DevsData LLC has successfully completed over 100 projects for more than 80 clients, including multinational corporations and high-growth startups from the US, Israel, and beyond.
In addition to their technical capabilities, DevsData LLC proactively addresses common nearshore development challenges through a structured and transparent approach at every stage of collaboration. To avoid misaligned expectations, the company establishes clear KPIs and communication routines from the outset, using tools like Jira and Slack to ensure ongoing alignment and visibility. Their legal framework includes carefully drafted contracts with robust IP protection and confidentiality clauses, specifically designed for cross-border partnerships. This proactive, client-focused model helps reduce risk, fosters trust, and supports long-term, successful cooperation.
DevsData LLC has successfully delivered outsourcing projects for clients across a wide range of industries. Examples include:
The company also boasts a perfect rating on platforms like Clutch and GoodFirms, receiving excellent feedback from clients, which makes it a trusted and dependable partner for businesses worldwide.
DevsData LLC stands out not only as a provider of nearshore development teams but also as a prominent player in IT recruitment. The company utilizes a rigorous hiring process to build a team of highly skilled professionals capable of handling a wide range of IT challenges.
With a government-approved recruitment license, DevsData LLC conducts in-depth 90-minute technical interviews and problem-solving tasks to assess candidates’ expertise and suitability for various technical needs, as well as their cultural fit and communication skills. Senior Software Engineers lead these interviews and include live coding exercises, architectural discussions, and behavioral questions. This gives clients confidence that shortlisted candidates can perform to a high standard and integrate smoothly into their teams.
DevsData LLC has access to an extensive network of over 65,000 pre-vetted developers and offers tailored recruitment solutions to meet each client’s specific requirements, whether for short-term projects or long-term engagements. Operating on a success fee model, DevsData LLC only charges clients once they are completely satisfied with the results. This approach removes the financial risk of upfront payments, aligns incentives between both parties, and gives businesses confidence that hiring goals will be met before any costs are incurred.
To learn how DevsData LLC can elevate your business with customized nearshore development team solutions, visit www.devsdata.com. or contact them at general@devsdata.com.
Partnering with a nearshore development team is a smart strategy for companies that want to scale efficiently while keeping communication smooth and project timelines on track. It provides the ideal balance between cost, quality, and collaboration, especially when working with teams located in nearby time zones and familiar with similar business cultures. From launching MVPs to supporting long-term product development, nearshoring offers the agility and technical expertise needed to bring ideas to life faster.
With over 8 years of experience, DevsData LLC has become a trusted name in the nearshore development space. Their seasoned team has successfully delivered over 100 projects for startups and global brands alike, providing end-to-end tech solutions tailored to each client’s goals. Beyond software development, DevsData LLC also helps companies expand internationally through their Employer of Record (EoR) services, taking care of legal, tax, and compliance responsibilities when hiring abroad. Their Business Process Outsourcing (BPO) offerings further support operational efficiency by allowing clients to delegate back-office tasks and focus on what matters most.
If you’re looking for a reliable, experienced nearshore development partner, DevsData LLC is ready to help you scale with confidence.
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general@devsdata.com
“I interviewed about a dozen different firms. DevsData LLC is truly exceptional – their backend developers are some of the best I’ve ever worked with. I’ve worked with a lot of very well-qualified developers, locally in San Francisco, and remotely, so that is not a compliment I offer lightly. I appreciate their depth of knowledge and their ability to get things done quickly.”
Nicholas Johnson
CEO of Orange Charger LLC,
Ex-Tesla Engineer,
Mentor at YCombinator
“DevsData reached out to us, as we’ve been looking to grow our engineering team in Europe and Poland. Communicating efficiently and professionally, DevsData made a strong impression with their understanding of the recruitment challenges we were facing. They designed a tailored recruitment process for our needs. I was impressed with the technical depth of their approach.”
Karim Butt
Co-Founder & CTO at GlossGenius, Inc.
“Out of all the vendors we work with, DevsData clearly stands out. The quality of developers they deliver is beyond what we've received from any other vendor, and they've been able to send profile recommendations very quickly. I'm happy to be their reference for other companies from Israel and talk about their recruitment abilities and what they delivered for us.”
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Senior Manager at
ZIM Integrated
Shipping Services Ltd.
“DevsData demonstrated a strong degree of proactivity, taking time to thoroughly understand the problem and business perspective, and continuously suggesting performance and usability enhancements. Their app exceeded my expectations. I've worked with DevsData on numerous projects over the last 3 years and I'm very happy. Being both responsive and honest in communication.”
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Partner & Executive VP of Verus,
Financial LLC, Investor,
& Serial Entrepreneur
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