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Hackernoon logoNearshore Development Services Overview: How it Helps to Succeed for SMEs and Startups by@mobilunity

Nearshore Development Services Overview: How it Helps to Succeed for SMEs and Startups

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@mobilunityAnastasia Stefanuk

Anastasia Stefanuk is an Information Technology enthusiast and a Content Manager at Mobilunity.

Many factors, including a more globalized workforce and improved technology, are influencing IT management in many ways. New trends are quickly being adopted by progressive small to medium-sized enterprises (SMEs) and startups to improve IT development processes. We are seeing a move away from centralized power to a more equal management style and an investment in nearshore development services.

Furthermore, networks are expanding, big data and business analytics are used more often, and technology such as the cloud, mobile applications, and smart hardware are implemented more often. Unfortunately, many businesses are still not investing in these trends which results in less efficient and less effective IT management.

For businesses to scale and progress, these trends need to be adopted as soon as possible. 

Nearshore outsourcing, specifically, is highly beneficial to SMEs and startups’ modern IT management and software development efforts. Let's look at why businesses are investing in nearshore development services: 

Why Businesses Are Investing in Nearshore Development Services  

When smaller businesses want to develop more versatile IT applications and systems, they are often limited to certain resources, talent, and costs. Nearshore services are increasingly making waves in the IT field to solve these problems. 

A nearshore software development services company offers more cost-effective options when it comes to resources and specialized technical know-how. Furthermore, when outsourcing to nearshore companies, a business also has access to a dedicated team. This team is not involved in other core tasks and can focus on the success of the development process. 

But what exactly is nearshoring and what are the benefits for startups and SMEs? 

How Nearshoring Works and the Pros and Cons Involved

When a business transfer work to companies in a different, but close by country, it is referred to as nearshoring. A nearshore software development services company offers a range of operations, development and management solutions. Businesses outsource to these companies to save on management and development costs and to get access to top talent.

There are plenty of nearshore advantages and disadvantages. Let's look at a few:  

Pros of using nearshoring

  1. Improved talent and skills. The right talent may not be available in your own team or even in your area. When investing in nearshore teams you can choose top talent. 
  2. Cost-savings. Nearshore services are often more affordable than hiring in-house teams.
  3. Quicker problem-solving. Nearshoring teams are dedicated to one project, so they are focused on the success of it and can problem-solve faster. 

Cons of nearshoring

  1. Time zones. Sometimes, nearshore teams work in time zones that are slightly different from yours. This can create problems with time management.
  2. Fewer choices. There aren't that many companies offering nearshoring services, so choices may be limited when choosing talent.
  3. Cultural Affinity. While cultural differences may be a good thing for diversity in teams, some cultural aspects such as holidays may become problematic.  

How Can E-commerce and IoT Development Companies Benefit from Nearshoring?

Small businesses and startups in the tech field have to keep up with the latest business trends if they want to successfully scale. Specifically smaller e-commerce and IoT development startup companies have to invest in IT development to grow. These companies compete with major game players in the field, but unfortunately, they don't always have the resources and talent to make ground. Nearshoring has proved to be an effective solution that can greatly assist with successful IT management and IT development projects. Let's look at how it can affect each operating area of such a business: 

Data analytics 

Many nearshoring companies handle data analytics. Data is highly important to e-commerce businesses and IoT development companies. This allows for fast and effective data insights and the implementation thereof. 

Core Operations 

Nearshoring services can take the strain of e-commerce and IoT development businesses' operations in that nearshore companies can develop more effective systems for core processes. 


Nearshoring teams have the skills, experience, and know-how to offer innovative development solutions; they can develop unique and versatile software and application developments to help businesses to progress in the modern world. This is essential for SMEs and startups in the e-commerce and IoT fields. 

Technology and equipment 

When investing in nearshoring e-commerce and IoT development businesses do not have to buy their own technology and equipment, as nearshoring services often provide the latest tech and equipment for development projects and other business processes. 

Human resources 

Nearshoring allows businesses to save on human resources costs, as many businesses do not have to hire in-house teams. Nearshoring teams can manage e-commerce and IoT development companies remotely. 

How to Successfully Use Nearshoring Services as an SME or Startup

Take your time to hire 

Your team will not be with you, so it is essential to choose the right talent. The right team should have the skills, experience, and mindset that matches your development project. 

Focus on training 

Investing in nearshoring services may be highly beneficial, but it is of no use if teams aren't trained correctly. Nearshoring teams need to be trained in business values, processes, and systems. It is also vital to provide a full picture of what is expected throughout the duration of the contract. 

Regular communication 

Since a nearshoring team works remotely, regular communication is of utmost importance. Teams need to be kept up to date at all times. It is useful to use an online communications tool, such as Skype or Slack, that is accessible to everyone at all times. 

Do not micromanage 

Remote workers want to know that you have confidence in them to get the work done, and they work best when there is an atmosphere of trust. Do not micromanage unnecessarily. 

Keep track 

Keeping careful track of a development project and keeping everyone updated about any updates will ensure a smooth experience with your nearshoring team. 

Give feedback 

A software development outsourcing nearshore team wants to know that they are on the right track as the project develops. Make sure that everyone receives regular feedback. 

The Bottom Line 

IT development management is evolving. It is no longer beneficial for businesses to have one in-house team with a centralized power to manage individuals. New trends make it possible to improve IT management processes and development projects.

Specifically, nearshoring can be highly beneficial as core tasks are outsourced and costs are saved on valuable resources and talent.

Specifically, SMEs and startups can no longer afford to stay in old, traditional ways. For growth and scaling, businesses have to consider new trends. 


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