With increasing pressure to control costs while growing in a highly competitive market, tech businesses are considering innovative, alternative solutions like nearshore outsourcing. Partnerships with nearshore companies offer access to a wider talent pool, offering specialized expertise at a fraction of the cost.
Plus, the geographical proximity of talent ensures you don’t have to deal with any of the traditional outsourcing problems like time zone differences or language barriers. If you’re not sure where to start, don’t worry; we’ve compiled a list of the top nearshore software development companies to help you get started.
TL;DR
Benefit from nearshoring with access to specialized developers with the required expertise willing to work within your budget. US companies can hire top talent at lower rates using nearshore agencies based out of Latin American countries like Colombia. Choose between a stand-alone remote tech unit to manage your project from development to deployment or augment your in-house team with nearshore experts.
Best Nearshore Software Development Companies to Consider
1. Leanware
Location: Colombia
Industry Expertise: SaaS development, Interactive Brokers Integrations, Healthcare Software Development, Education Software Development, MVP App Development
Services: Web & Mobile App Development, Data Engineering Solutions, UX & UI Design, Gen AI Integration & Consulting, AI and Machine Learning
What They Do:
Leanware offers end-to-end software product development for companies of all sizes. With over 16 years of expertise, they design, develop, test, deploy, and maintain applications across industries like healthcare, dental, finance, accounting, and event management.
Engagement Models:
Managed Team: A dedicated team managed by Leanware handles projects with autonomy, allowing you to adjust the project scope as you see fit
Fixed Scope: Predefined project requirements with a set budget, deliverables, and timeline, managed by the Leanware team
Staff Augmentation: Provides skilled professionals to supplement in-house teams, bridging skills gaps and offering niche expertise
White-Labeling Partnerships: Leanware delivers services under the client’s brand, providing scalable solutions that maintain brand consistency
2. ZoolaTech
Location: USA, Mexico, Ukraine, Turkey
Industry Expertise: Software & Technology, Retail, Financial Services, Telecom, Healthcare, Energy, Insurance, Marktech
Services: Custom Software Development, Mobile Development, Legacy Modernization, Cloud Migration, DevOps, Quality Assurance, Data Analytics, AI & Machine Learning
What They Do:
Founded in 2017, Zoolatech is a full-cycle software development company headquartered in Palo Alto, California, with development centers in Kyiv, Ukraine. Zoolatech is committed to building strong, efficient, and loyal tech teams, ensuring engineering excellence and long-lasting value for their clients. They maintain a 98% client retention rate and foster a culture of transparency, diversity, and social responsibility.
Engagement Models:
Offshore Delivery Center: A dedicated development center providing full-cycle software engineering services for scalable product development
Managed Delivery: End-to-end project execution with Zoolatech, overseeing development, quality assurance, and delivery
Team Extension: Provides skilled professionals to boost the client’s in-house team, enhancing capacity and expertise. Ideal for clients who want to maintain complete control over their operations
3. Ideas2IT Technologies
Location: USA, Mexico, India
Industry Expertise: Healthcare, Pharma & Life Sciences, Financial Services
Services: Application Modernization, Enterprise Application Development, Data & Artificial Intelligence, Cloud Transformation
What They Do:
Founded in 2009, Ideas2IT is a technology consulting firm specializing in product engineering and innovation. With a team of over 700 engineers, the company operates development centers across major time zones, delivering high-end solutions to clients worldwide.
Engagement Models:
Dedicated Teams: Ideas2IT provides agile cross-platform software solutions for enterprise organizations. The team works with clients in sprints with predefined goals and milestones. This structured approach ensures complete clarity regarding project scope and offers immense opportunity for collaboration
4. Icalia Labs
Location: USA, Mexico
Industry Expertise: Healthcare, Fintech, Oil & Gas, Wellbeing, Education, Real Estate
Services: Custom Software Development, Mobile App Development, Platform Development, Multi-Tenant Platform, Low Code App, UX & UI Design
What They Do:
Operating since 2010, Icalia Labs specializes in creating tailored software solutions that streamline processes and solve critical business concerns. The team delivers high-quality, scalable applications to a wide client base, ranging from Fortune 500 enterprises and growth startups to SMBs. To date, Icalia Labs has launched over 250 tech projects, leveraging the latest technologies to create positive user experiences.
Engagement Models:
Icalia Labs offers a range of services that fall under two categories: Innovate and Build. Some of their top nearshore solutions include:
Design Sprint: A five-day intensive workshop that leverages UX design skills to bring MVP concepts closer to real-world application
Product Launchpad: A two-week collaborative process to prototype and test ideas under the guidance of product experts, along with a complete development estimation
Staff Augmentation: Clients can pick between on-demand talent selection to bridge expertise gaps or integrate agile pods (a team of designers, developers, and built-in quality success practices)
Design Services: Offering comprehensive design solutions, including interactive prototyping, UX/UI audits, customer journey mapping, digital product design, design systems, and web and mobile app design
5. MAS Global Consulting
Location: USA, Colombia
Industry Expertise:
Services: Agile Software Development, Web Applications, Nearshore Outsourcing, Legacy Modernization, Functional & Automated Testing, Microservices Architecture, AI & Machine Learning
What They Do:
Established in 2012, MAS Global Consulting offers agile software development and IT consulting services, helping organizations accelerate their digital initiatives. They combine onshore project management with nearshore development to provide cost-effective, high-quality solutions.
Engagement Models:
Nearshore: End-to-end project execution from development to deployment with a team working in your time zone
Hybrid: The MAS Global organized team will include Nearshore and North American-based team members
North American: An entire USA-based team will work on your project, providing onsite assistance
6. Ateliware
Location: Brazil
Industry Expertise: Real Estate, Agriculture, SaaS, Education, Financial Management
Services: Custom Software Development, Team Augmentation, DevOps, Technical Assessment, Service Design, Microsoft Dynamics 365, Product Identity
What They Do: Ateliware has been operating since 2011, partnering with businesses to develop bespoke software solutions that drive innovation. Their multidisciplinary team works from ideation to development, collaborating with clients to understand their unique challenges and deliver tailored digital products.
Engagement Models:
Managed Team: A dedicated team managed by Ateliware that works with you to map out the scope and delivers a fully functional and thoroughly tested product
Squad Allocation: Team augmentation services supplement in-house teams with skilled tech experts based on project requirements, including designers, front-end and back-end developers
Technical Assessment: Ateliware uses a thorough mapping and diagnosis process to diagnose problem areas and provide recommendations
7. nCube
Location: Czech Republic, Poland, Ukraine, Romania, Moldova, Colombia, Brazil, Argentina
Industry Expertise: Healthcare, E-commerce, Financial Services, Retail, Entertainment, Education, Gaming, Transportation
Services: Custom Software Development, Team Augmentation, Remote Team Management
What They Do:
nCube has over 15 years of experience in building scalable tech units for companies of all sizes, ranging from startups to SMBs and global corporations. They emphasize long-term partnerships and have a network with over 125K skilled technologists. The firm’s adaptability and problem-solving mindset ensure clients get the best possible services.
Engagement Models:
Team Extension: nCube helps extend in-house teams with experienced engineers working on an Agile framework
Remote Delivery Team: Clients can build a stand-alone remote tech unit with senior developers, UX/UI designers, and QA experts based in Europe or Latin America to oversee the entire project lifecycle
R&D Center: Expand your global presence with an R&D center in Europe or LATAM, covering every step from office selection and infrastructure setup to talent sourcing and operational management.
8. Future Processing
Location: USA, UK, Poland, Germany, Switzerland, Ukraine
Industry Expertise: Automotive, Construction, Finance, Healthcare, Insurance, Marketing, Media, Nonprofit, Transport, Utilities
Services: Consulting, Digital Product Services, Cloud Solutions, Data Solutions, AI & ML Services, Cybersecurity, Software Development Services, Managed Services
What They Do: With a team of over 800 professionals, Future Processing is an established technology consultancy and software delivery partner. They have been operating since 2000 and provide end-to-end services, including AI adoption, migration and integration of data systems, and cloud solutions.
Engagement Models:
Dedicated Teams: These agile development teams work independently, meeting project deadlines and collaborating with the product owner. Clients can set milestones and adjust the scope of the project while completely outsourcing the software development and team management.
They also offer multiple collaboration models for managed services that fall under the nearshoring model, including:
Augmented Plan: Clients get a dedicated service for a specialized IT service while retaining full responsibility
Co-Managed Plan: Future Processing shares responsibility with the client, handling tech needs that fall outside the expertise of the in-house team
Fully Managed Plan: Future Processing takes full end-to-end responsibility for the entire IT service lifecycle
9. evozon
Location: Romania
Industry Expertise: Retail, Financial, Healthcare, Smart Cities, AI & Machine Learning, Transport
Services: Consulting, UI/UX Design, Web Development, Testing, ERP, Data Science, Cloud Solutions
What They Do:
With over 19 years of experience, Evozon offers access to nearshore teams that specialize in delivering custom software solutions across various industries. Their team of over 500 experts includes consultants, analysts, software developers, UX designers, and testers who provide tailored solutions to meet clients’ unique needs.
Engagement Models:
Independent Project Execution: Evozon independently manages and completes entire projects in-house, with the client involved primarily in key milestones and reviews
Augmentation: Clients can extend their in-house capabilities by integrating Evozon's dedicated teams for long-term engagements on specific projects
Incubation: Evozon assembles and trains a dedicated team, which is then transitioned to the client's control after a set period, providing the client with full ownership and oversight
Cost Plus: This model offers clients full control over team selection and costs. Each team member's compensation is directly handled by the client, and Evozon receives a fixed fee to cover expenses and profit
Custom-Flexible: Evozon provides flexibility for clients to scale teams up or down based on changing project requirements, allowing clients to adapt resources as needed
10. number8
Location: USA, Costa Rica, Honduras, Argentina, Spain, Germany, UK, Sweden, Poland, Moldova, Romania
Industry Expertise: Financial Services, Telecom, Biotech, Media, Sports Betting, Manufacturing, Real Estate
Services: Software Development, Consulting & Management, Staff Augmentation, Cloud Integration, New Product Development
What They Do:
Number8 (now known as Software Mind) is an IT staffing and consulting firm that can stack your development team with top-tier talent based out of Latin America and Europe. Their cost-effective solutions help clients fast-track software development processes and bridge skills gaps within in-house teams.
Engagement Models:
IT Staff Augmentation: Provides highly skilled software development experts, including backend and frontend engineers, project managers, UI/UX designers, and quality assurance engineers seamlessly integrated with clients' in-house teams
Complete Squad: Sets up a self-driven team of expert developers guided by a remote manager exclusively committed to your success across all stages of the software delivery life cycle
Nearshore Software Development Regions to Consider
When it comes to nearshoring, location is everything! Selecting a team that operates out of a nearby location ensures there’s no time difference or language barrier, making communication easier. Plus, cultural similarities in work style make a huge difference.
Top IT Nearshoring Destinations in Latin America
Nearshore software development companies based out of Latin America present an ideal solution for companies in the US searching for top talent. Popular locations include Brazil, Argentina, Mexico, and Colombia. Cities like Sao Paolo and Guadalajara are growing tech hubs with a focus on innovation.
If you’re looking for experienced developers who can handle complex development projects with ease, top options include Leanware, Zoolatech, Ideas2IT, Icalia Labs, MAS Global, Ateliware, nCube, and Software Mind.
Best IT Nearshoring Locations in Eastern Europe
For clients based out of the UK or other countries in the EU, there are many Eastern European countries that can serve as good nearshoring destinations. Countries like Poland, Ukraine, Romania, and Estonia are often home to skilled developers with budget-friendly rates.
If you’re looking for a fully managed remote team or even team augmentation, there are many solid options to consider. These include companies like Zoolatech, nCube, Future Processing, Evozon, and Software Mind.
Growing Nearshore Hubs in Asia
Asia is a fast-growing market for tech resources, including nearshore software development teams. You can access a young, dynamic workforce while working with companies based out of India, Vietnam, and the Philippines. Ideas2IT Technologies is a top choice for expert talent at affordable prices.
How much do offshore developers cost?
The hourly rates for offshore developers depend on several factors, such as the scope of your project, the expertise of the developer, and the geographical location of the nearshoring company.
In general, offshore developers charge anywhere between $25 to $80 per hour. However, the typical rate for Argentine workers is over $50, while the rates in Ukraine range from $30 to $55. Similarly, Asian countries like India and Vietnam charge anywhere between $20 to $40.
What is Nearshore Software Development?
Before you can choose a nearshoring partner, you first need to understand how to choose between top nearshore software development companies.
Understanding the Nearshore Outsourcing Model
Step 1: Selecting A Nearshore Partner
Finding a nearshoring company that meets your needs is the first step. Start by considering where they’re based and what they offer. There are two main types of engagement models: a dedicated team that works on your project independently or team augmentation with specialists that act as an extension of your in-house team.
Step 2: Defining The Scope
The official contract will clarify the scope, timelines, budget, and deliverables for the project. This is the best time to set clear expectations and avoid confusion later on.
Step 3: Project Management
Devise a method for collaboration that works best for the team. You can use project management tools like Asana, Monday, or Jira to track progress, share updates, and communicate in real time. Since nearshore teams operate in similar time zones, nearshore team members can attend strategy meetings and scrums.
Nearshore vs. Offshore vs. Onshore Development
Nearshore outsourcing involves hiring development teams in neighboring or nearby countries, typically within a few time zones of the client’s location. It is the most cost-effective option and offers access to a wide variety of specialists with minimum communication barriers.
Offshore outsourcing means working with teams in distant countries, often across different continents, where labor costs are significantly lower. While it is the cheapest option, it comes with time zone challenges and potential language barriers.
Onshore outsourcing involves hiring developers within the same country as the business, either remotely or in-office. It offers real-time, in-person collaboration and strong regulatory compliance but limits your access to a small, local talent pool and is often the most expensive option.
Benefits of Nearshore Software Development
Nearshore software development is incredibly beneficial for teams who want to see quick results, develop products, and conduct thorough testing without the expense and hassle of an in-house team. Nearshoring takes care of all the hiring and management concerns so business leaders can focus on ideation and product branding.
Key Benefits of Hiring a Nearshore Software Development Company
Cost-Effectiveness Without Quality Compromise
With a nearshore team, you get access to top talent at a fraction of the cost, because these experts are often operating out of countries with lower living costs. Additionally, you can reduce expenses associated with maintaining an in-house team like office rent, benefits, and equipment.
Access to Skilled Talent and Tech Expertise
Nearshore locations often have strong educational institutions and thriving tech industries, producing highly skilled developers. Expanding your hiring pool through a nearshoring company gives you access to a wider range of talent that brings expertise in areas like AI, cloud computing, and cybersecurity.
Time Zone Proximity for Seamless Collaboration
The biggest issue with offshore outsourcing is the delays caused by time differences between in-house and remote teams. However, nearshore teams operate in overlapping time zones, which ensures real-time communication and faster issue resolution.
Cultural and Language Alignment
Working with professionals who are based in nearby locations ensures that team members share similar cultural values and business practices. Often, nearshoring companies prioritize strong English proficiency along with technical skills to ensure language alignment across the team.
Flexible and Scalable Development Teams
A nearshoring model offers companies the flexibility to scale up teams for any project based on the product requirements. This prevents lags in performance due to workload increases and ensures any skills gaps are immediately overcome.
How to Choose the Right Nearshore Software Development Partner?
The best nearshoring company is the one that fits your needs the most. However, there are a few key concerns you should account for.
Assess Technical Expertise and Experience
Consider the technical expertise of the nearshore developer, including the programming languages on their resume, expertise in a particular industry, and domain experience. Evaluate whether their past experiences and skills match your company’s needs.
Evaluate Their Project Management Approach
Work styles are a huge consideration when it comes to project efficiency. Many nearshoring companies follow an Agile project management approach that sets clear milestones and deliverables.
Check Communication & Cultural Fit
One of the biggest pros of a nearshoring model is that geographic proximity ensures ease of communication and cultural alignment. Workers are often fluent in English and operate in a similar time zone.
Compare Cost and Engagement Models
Engagement models highlight the various plans offered by the nearshore development company. These often include Managed Team and Staff Augmentation plans so clients can decide whether to outsource their entire project to a remote team or boost their existing teams with nearshore talent.
Look for Case Studies & Client Testimonials
Case studies and testimonials are the best way to find out what customers are actually saying about a nearshoring agency. You can find out their pros and cons before you decide to start a long-term project.
FAQs
What is the best offshore software development service?
Leanware is the best offshore service based out of Latin America, while Zoolatech is a good option based out of Eastern Europe. These top nearshore software development companies offer a range of engagement plans that cater to diverse client needs.