Frequently Asked Question
If you hire a bad software development company, you risk:
- Getting an unfinished/non-functional product;
- Delays and not having the product launched on time;
- Software with a lot of bugs.
Hiring bad software companies can lead to directly losing money because of deficient software, needing to invest more funds to hire other developers to fix/create a new product, and losing potential customers because of delays to the product.
The cost of hiring a software development company largely depends on the company’s quality, technology and reputation. Nevertheless, they tend to range between $40 and $100 USD per hour.
Outsourcing software development has the following primary benefits:
- Lower costs;
- Access to a larger pool of skilled developers;
- Speedy execution of software projects.
Based on the location of the outsourcing partner, there are 3 types of location-based outsourcing models:
- Onshore - when the outsourcing partner is located in the same country as the client company;
- Nearshore - when the outsourcing partner is located in a country with the same or similar time zone(s) as the client company’s time zone(s). For U.S.-based companies, Latin America and the Caribbean are considered nearshore destinations.
- Offshore - when the outsourcing partner is located in a country with a significantly different time zone(s) from the client company’s time zone(s). For U.S.-based companies, Europe and Asia are considered offshore destinations.
Choosing a software development company heavily depends on the needs of your project, the deadlines, and the budget. Here are the basic steps for selecting a company:
- Define the scope and requirements of your project;
- Look at the ratings and reviews of software companies;
- Read their portfolios;
- Look at employees' profiles;
- Define a company’s areas of expertise;
- Learn about their previous clients;
- Find out what project management methodology the company uses;
- Learn about the tech the company utilizes for development;
- Get their location;
- Find out about their rates and payment models.
Based on the relationship the client company and the outsourcing partner will have, there are 3 relationship-based outsourcing models:
- Staff augmentation - when the client company leases developers from the outsourcing partner for in-house projects to fill a skill gap in their internal team.
- Dedicated teams - when a client company hires a dedicated team from the outsourcing partner for a defined scope of work. The dedicated team may or may not work with the in-house team. The dedicated team reports to someone in a managerial position from the client company.
- Project-based - when a client company hires an outsourcing partner to complete an entire project, with the responsibility for the completion of the project resting on the outsourcing partner. The outsourcing partner forms the team(s), does the planning, and is responsible for all project management responsibilities.
What Is Nearshore Software Development?
Simply put, nearshore software development means outsourcing software development projects to companies or teams in countries that are geographically close to the company outsourcing the work. This is in contrast to offshore software development, where projects are outsourced to companies or teams in distant countries, often in different time zones and with different cultures. Common examples of countries used for nearshore software development include Canada, Mexico, and countries in Central and South America.
Top 5 Nearshore Software Development Companies
Founded in 2009, BairesDev has managed to become one of the leading software development companies in LATAM. With clients such as Google, Microsoft, and Apple, its portfolio speaks for itself. The company has offices in Brazil, Colombia, Mexico, the USA, Canada, Argentina, and Uruguay, making it one of the top choices for nearshore software development outsourcing.
If you’re looking for a company that specializes in custom software development, cloud computing, or mobile and web development, BairesDev could be the right fit. They work with both Fortune 500 companies and start-ups, so they could be your partner no matter where you fall on the spectrum.
What do you get when working with BairesDev? These are just a few of the benefits:
With offices in over 70 countries around the world, DXC Technology has established itself as a global IT force. Some of their more prominent clients include Nissan, Dell and Amazon, which tells you a lot about their expertise and experience. All that in the 5 years since the company’s foundation!
DXC specializes in a range of services, such as cloud computing, application modernization, IT infrastructure, cybersecurity, enterprise applications, and outsourcing, making it a great choice for a wide variety of projects. If you’re looking for a company with an impressive track record and formidable results, you should definitely give DXC the time of day.
Thoughtworks was founded in 1993 and has since become a powerhouse with over 10,000 employees and contractors worldwide. They have offices in 10 countries, including Canada, making them one of the top picks for anyone looking to outsource to nearshore software development companies. The company’s goal? Using their expertise to help companies with digital transformation, custom product development, and becoming more agile.
They offer a wide range of software solutions, including product development, UI/UX design, AI, data science, and cloud computing. Their impressive roster of clients includes some of the world’s leading companies and organizations, such as Mercedez-Benz, PayPal, and Mackmyra. If you’re looking for a global technology consultancy and software development company that can handle your projects, Thoughtworks should be on your radar.
When talking about the crème de la crème of nearshore software development firms, we cannot fail to mention CI&T. Founded in 1995, the company has established itself as a global leader in software development, with offices in the US, Canada, Brazil, the UK, Portugal, Japan, China, Australia, and Colombia.
CI&T has a large workforce with over six thousand employees across the world, specializing in multiple fields of software development. Their services include DevOps, big data, machine learning, UI/UX design, and cloud infrastructure. They mainly partner with enterprise and midmarket companies with revenues higher than $10 million. Their reputation precedes them, with clients such as Lenovo, Foot Locker, and Global Fashion Group.
With teams in Canada, India, the UK, and Australia and over 1000 engineers in total, TatvaSoft is truly a top-tier software company. They have experience with clients from a variety of industries, such as fintech, insurance, education, media, etc. Some of their biggest clients include KFC, Fiji Airways, and NSW Health, proving their range and experience in different industries. Their teams specialize in custom software development, mobile app development, web development, and software testing and QA. But they also offer additional services – quality assurance, project management, and software maintenance. Their track record is pristine, and they are among the top choices when it comes to nearshore software development outsourcing
Advantages of Nearshore Software Development Outsourcing
In the sea of off-shore companies that are a popular choice among companies looking to outsource software development, it’s easy to forget that companies near home offer the same services. Not only that, but it’s often better to go for these companies that aren’t located on the other side of the globe. Here are a few of the main advantages of going for a nearshore company.
Access to new skills and technologies: Nearshore development companies often have a diverse workforce with a wide range of skills and experience, enabling clients to access new technologies and innovative solutions.
Tips for Choosing the Best Nearshore Software Development Outsourcing Firm for Your Business
Yes, there are plenty of benefits to working with a nearshore software development company. Still, you need to find the right one. But how? Don’t worry, we’re here to help. These are a few things you should consider before committing to any of the companies on your shortlist.
Ready to Hire Your Ideal Software Partner?
With this list of some of the top nearshore software development companies, you’re ready to find your long-term software partner. We’re sure you’ll find the one for you based on your needs and expectations. If you want to find out about more top-notch software companies you can outsource to, we’ve compiled similar lists of the top 15 software companies in a wide range of countries, so check out our website to get to know additional companies.