As globalization accelerates, cultures become more diverse, and borders become increasingly formalities, outsourcing to a nearby country (nearshoring) is becoming a more popular and cost-efficient solution.
Many companies have spent years investing significant time in recruiting local talent. However, the shortages in the local labor market are substantial, making it difficult to find specialized expertise. As of now, 46% of software engineering vacancies in the Netherlands remain largely unanswered. IT job openings in 2021 stayed open twice as long as the previous year, and the influx of new IT professionals remains low. As a result, many companies are searching for alternative solutions.
IT staffing (secondment) is one option, but in today’s competitive, fast-growing software market, more and more companies are choosing to establish a dedicated nearshore development team. This model involves a long-term collaboration in which a company builds a team of developers in a nearby country. These remote employees work exclusively for the organization and do not take on tasks for other companies.
The nearshore specialists are recruited based on the client’s requirements regarding experience, skills, and personality, ensuring a strong cultural and technical fit. The client retains full control over the development process without the need for internal recruitment efforts.
What is a dedicated nearshore team?
A dedicated nearshore team is a remote software development team hired through an external partner but fully integrated into the client’s development activities.
The reason these teams are called “dedicated” is that they work exclusively for one client and do not take on projects for other organizations. This eliminates the distinction between in-house employees and nearshore developers.
Nearshore developers are typically hired for various phases of the Software Development Life Cycle (SDLC), including:
- Front-end and back-end development
- DevOps
- Quality assurance (QA) testing
- User experience (UX) design
Nearshoring is now one of the leading outsourcing models, as more companies choose to outsource to nearby countries. This model offers lower costs, cultural compatibility, and minimal travel time compared to offshoring. A dedicated nearshore team functions as an extension of your company, operating with the same processes and corporate culture.
What are the benefits of a dedicated nearshore development team?
Nearshore teams are ideal for companies that need continuous software development. These organizations often have a clear product roadmap but struggle with hiring local talent to support their growth.
By setting up a dedicated nearshore team, companies can overcome capacity issues in a cost-effective and scalable way. That’s why many enterprise and mid-sized companies are adopting nearshoring as a strategic approach. But beyond cost savings, what other advantages does nearshoring offer?
Access to Specialized Skills & Expertise
The overheated job market makes it difficult to find highly skilled IT professionals. A dedicated nearshore team offers a viable alternative by leveraging the recruitment expertise of experienced nearshore providers.
These providers have:
- Specialized recruitment teams that identify top talent, even in challenging hiring conditions.
- A broad talent network, ensuring access to professionals with niche skills.
- Long-term employee retention, meaning developers stay with the same organization for years, preserving valuable internal knowledge.
Outsourcing Recruitment
Hiring IT professionals is a complex and time-consuming process. By partnering with a nearshore provider, companies outsource the majority of the hiring process.
The client’s internal team is usually only involved in the final interview stage, saving significant time and resources. Additionally, established nearshore providers have a large talent pool and can guarantee the reliability of the developers.
Long-Term Collaboration & Team Stability
Long-term collaboration is key to the success of nearshoring projects, as well as the foundation of Agile software development.
Nearshoring partnerships are typically long-term, allowing the nearshore provider to:
- Develop a deep understanding of the client’s hiring needs.
- Foster team integration, as developers become fully embedded in the client’s company culture.
- Ensure knowledge retention, improving efficiency over time.
By building a dedicated nearshore team, companies gain stability and reliability in their outsourcing strategy.
Shorter Travel Distances for On-Site Visits
While digital collaboration is easier than ever—especially with the rise of hybrid work—face-to-face meetings remain valuable.
A major advantage of nearshoring is that teams are located within a short flight distance (often within 2.5 hours). This makes it easy to:
- Organize in-person hackathons
- Plan team-building activities
- Host annual company retreats
The proximity of nearshore teams allows for a more seamless working relationship compared to offshore solutions.
How do you build a nearshore development team?
First, you define the key objectives, required technologies, and skill sets, as well as the desired team size.
The nearshoring partner conducts a thorough analysis of the request, maps out the available options, and begins the recruitment process for the required candidates. Typically, within a few weeks, you receive the first candidate profiles that have successfully passed a comprehensive screening based on hard and soft skills. After this, your internal technical team conducts interviews to determine whether the candidate is a good fit for the position.
Once the interviews have taken place and all HR-related matters have been finalized, the dedicated nearshore development team is fully set up and ready to begin. In many cases, companies start with an MVP team, which is then gradually expanded over time based on the organization’s needs.
How do you choose the right nearshore partner?
Selecting the right nearshoring partner can be a challenge, as many different countries offer their own unique advantages. If you are considering a nearshoring provider, make sure to evaluate the following aspects:
Identify the key factors that are important to you in a nearshore partner.
- Analyze and define your organization’s goals to ensure a strategic match.
- Check the provider’s experience in building teams for similar organizations, including:
- Number and types of projects completed.
- Client portfolio.
- Industry expertise and technology stack.
- Assess the quality of communication during initial discussions. Transparent communication—or a lack thereof—can make or break an outsourcing partnership.
- Consider the time zone, working language, and communication channels to ensure smooth collaboration.
