Offshore vs.
Nearshore
Offshore vs.
Nearshore
In the pre-Agile development model, using what was known as the waterfall approach where all requirements were known and defined in advance, the offshore model (predominantly in countries in Eastern Europe and Asia) was effective. But in a world where iteration is the key to gaining and maintaining a competitive advantage and improving efficacy, offshoring can struggle to meet your needs. Waiting until morning for a delivery from a vendor can cause delays when garnering requirement clarifications and addressing blockers.
Nearshore
Reliability
Nearshore
Reliability
Nearshore software development offers engineering talent pools closer to North America and time zones matching those of the United States, which is a key factor for many successful companies.
The proximity of engineers in Costa Rica and other LatAm countries allows for distributed teams to meet via video calls daily and during regular business hours. Political stability, more reliable infrastructure, and a wealthier working class than many offshore options means that nearshoring provides more security and predictability, resulting in fewer business disruptions and a more consistent velocity of work.
Cultural
Similarities
Cultural
Similarities
The cultural similarity between Costa Rica, some other LatAm countries, and the United States is high—far higher than many outsourcing countries. As a result, teams more easily relate to each other, common idioms are automatically understood, and sensibilities around customer behaviors are strong. All of this leads to quicker ramp up times, stronger alignment on expectations and outcomes, and a tighter knit, integrated team.
Nearshore software development does come at a higher price than resources in India or the Philippines, but it is still extremely cost-effective compared to the high cost and scarcity of developers in the US and gives you the flexibility to scale resources up and down based on technology needs or budget.
