Nearshore Is the New Offshore

In Blogfest-en by Baufest

According to a study by, the average salary for a tech worker just breached $104,000. For companies that need to run lean operations, $104,000 a year — or more in many cases — may not fit the bill. It’s no surprise, then, that many organizations are looking for offshore solutions.

Friday 10 - November - 2023

But offshoring talent comes with several issues that can make decision-makers reconsider hiring people outside the U.S. As a result, nearshore options have been rising to the top as the go-to solution for many leading companies.

Here are some of the challenges offshore presents — and why nearshore has become the new offshore.

The Problem With Offshore

Offshore solutions present several obstacles that have sent winning companies looking for a better option. For example, with offshore talent:

  • You have to fight against time zone issues that make it difficult to align the schedules of your talent with those of customers and others in the organization.
  • Many offshore options don’t maintain a local team in the U.S., which can result in problematic communication gaps.
  • Some offshore solutions only provide people with entry– or low-level skillsets, which results in a shallow talent pool.

Nearshore has proven to beat back these and other challenges.

What Is Nearshore?

Nearshore refers to finding the talent you need for your company in a country close to where you are. For example, a nearshore solution when it comes to the United States would include countries in the Americas, such as Mexico, Belize, Argentina, Chile, Peru, Costa Rica, Honduras, and others that are close to the U.S. and tend to share U.S. time zones.

Time zones aren’t the only shared quality of nearshore partnerships. Knowledge and understanding of language and cultures also improve when the geographical distance is reduced. For example, an English-speaking team in Argentina or Mexico can support an English-speaking company in the U.S.

What Are Some Benefits of Nearshore Partnerships?

There are companies that have teams located in the U.S. but act as a liaison to a nearshore team. This takes the oversight of the nearshore group offsite. The responsibilities of an in-house management group are effectively replaced. Here are some more advantages to nearshoring.

Close Time Zones

Another benefit to nearshoring is that the support team is in a close time zone. For example, if your business is based in California and you have an offshore team, you may have to wait up to 12 hours to get a response to an issue. However, when dealing with a nearshore partnership, you’ll get answers a lot quicker. Having a faster turn-around time for inquiries and approvals means your business can operate more effectively.

A Dedicated Team

Having a dedicated nearshoring team with a local team means that communication will be a lot clearer because the local team acts as a go-between or liaison and can ensure your message is communicated in the best way for all stakeholders to understand. If there’s any misunderstanding, the team communicates with the liaison, who then determines if they can handle the matter or if it needs to go back to you.

A Cost-Effective Solution

Having a local management team take care of the needs of a nearshore team reduces or eliminates different types of costs. For example, not having to pay for medical and dental insurance for full-time employees is a saving. If that isn’t so much of a concern because you typically work with contract employees, the process of hiring, training, and firing still takes up time. So, not having to be hands-on with those decisions saves you both time and money.

Diverse Abilities and Experience

A nearshore team comes with a workforce that has a variety of experiences. This helps make the development process well-rounded. Senior-level programmers may have a storehouse of projects, workarounds, and shortcuts that a newer developer hasn’t acquired yet, while a newer developer could bring a fresher outlook and excitement to the team.

You Can Get a Long-Term, Vested Partner

Instead of simply being a group of people working on projects, a nearshore team can be a driving force helping push your company forward — not just simply completing tasks but contributing to enhancements.

Why Choose Nearshore Instead of Offshore?

Two of the biggest drawbacks to offshoring are cultural and time zone differences. These can have a negative impact on the productivity of an offshore team.

Bridges Cultural Gaps

A country, state, city, town, or village’s culture can influence the way the inhabitants view work. For example, say a deadline is approaching, and the work needs to be completed right away. Your instructions might say, “Complete this right now.” In most American cultures, that phrase means to drop what you are doing and do what I want immediately. While in some other cultures, that same term, “right now,” is interpreted as go ahead and finish what you are doing and then do what I’ve asked. These types of small differences in culture can have a significant impact on a company’s performance.

Having a local team can help bridge the gap between cultures. The local team understands the local culture and can communicate with the nearshore team, so they understand the instructions as well.

Utilizes Similar Time Zones

Typically, when countries share time zones, it’s easier to engage in business communication throughout the day because everyone is awake at around the same time. Problems arise when essential conversations and meetings can’t happen because a team or team member isn’t awake. This can hinder collaborative communication. For example, suppose someone sends an email, and the directions aren’t clear. The next best option is to call, but if you can’t do that, you could be stuck sending an email or chat message and having to wait several hours — or longer — for a response.

When these lapses in time happen, they can drag down productivity. But with a nearshore partner, you can get professionals in the same time zone or one that’s very close. At Baufest, we care about being your partner as you begin implementing your nearshoring plan. We are present in many countries and are an award-winning software development company with the sole mission of improving lives through technology.

What can we achieve together? Book a discovery session with our solution experts to get started.