Nearshore Development Center: Unlock Cost Savings and Efficiency

Explore the advantages, key factors to consider, and best practices for choosing a nearshore development center.


June 7, 2023

9 minutes read

nearshore development center

Nearshore development centers are dedicated technological facilities to where companies can outsource their IT services to specialized teams designed for their specific projects, aligned with their values and objectives.

Nearshore development centers merge the best part of onshore and offshore development center, giving companies access to talented IT professionals, who are culturally aligned with your values, while still allowing cost reduction.

In today’s highly competitive business landscape, organizations are constantly seeking ways to optimize their operations, reduce costs, and enhance efficiency. One approach that has gained significant traction is nearshore software development. By leveraging neighboring countries’ resources and talent, businesses can unlock a range of benefits while maintaining proximity and cost advantages.

If you’re looking to optimize your development processes, tap into top talent, and achieve cost savings without compromising on quality, nearshore services might be the best option for you. This article will serve as your comprehensive guide to understanding and implementing nearshore development strategies.

What is a nearshore development center?

Nearshore development centers are dedicated technological facilities to where companies can outsource their IT services to specialized teams designed for their specific projects, aligned with their values and objectives.

Nearshore development teams are usually located in close proximity to a company’s headquarters, for example, for a company located in the United Kingdom nearshore in Portugal is usually a good strategy, as they have similar time zones, are culturally aligned, can have good communication, and are in close proximity, if travel is necessary.

What are the benefits of nearshore software development centers?

Nearshore services pose as an advantage for a multitude of reasons, either for companies who are trying to focus on their core business and who need specialized teams designed to help them thrive in their IT needs, and for companies who need to increase their technical teams. Some of the benefits of nearshore development centers are:

Cost reduction: Nearshore development can help businesses save on expenses without sacrificing efficiency.

Extended talent pool: Nearshore software development allows businesses to widen their talent pool by finding a more capable workforce for their projects.

Better access and control: When it comes to nearshore vs offshore services, nearshore partners allow businesses have a better grasp of the project alignment and to have a more tailored experience, as communication is more easily guaranteed.

Better communication: Nearshore development can help avoid cultural and time-zone differences, thus allowing for better communication and collaboration.

Expansion into new markets: Nearshore development can help businesses expand into new markets, by establishing a connection in new business landscapes.

Return on investment (ROI): Nearshore IT services can help businesses achieve a higher return on investment, given the quality of the professionals and the reduced budgetary costs.

How to choose a nearshore development center?

Define Your Requirements

Before starting the search for a nearshore development center, consider which factors are most important to you in a nearshore partner. For example, you might value cost and expertise over location and communication, which will limit your choice of development partners.

Research and Shortlist

After defining your requirements it might be easier to narrow down your choice of nearshore partner by location, for example. This is when you might want to start researching valued nearshore development  teams in the locations you are considering and with the expertise you need for your project.

Evaluate Technical Skills

Before deciding on your final nearshore provider, assess the necessary technical skills of the technical team. At Prime Group we use tools such as Codility to test and evaluate the knowledge and application of out IT professionals.

Assess Communication and Cultural Compatibility

Like in any other business relation, is important to communicate effectively with your nearshore development team. Assessing your compatibility and communication skills before settling is good strategy to ensure smooth sailing during the project’s course.

Consider Past Performance and Client Reviews

Many nearshore development centers might be comfortable with sharing case studies and success stories. Asking for client feedback and concrete examples of previous work might help you determine if you are the right fit.

What are the challenges of nearshore services and how to overcome them:

Any business relation comes with its challenges, but the purpose of a nearshore services provider is to facilitate your workflow. As such, here are some of the best practices in selecting a nearshore partner and in maintaining a healthy work relationship:

Establish clear communication channels: Communication channels such as email, chat, video conferencing, and project management tools ensure smooth, regular communication and collaboration. Establish a plan on how frequently you will assess the project and how t communicate effectively.

Schedule regular meetings: Regular meetings with the nearshore team are essential to discuss project progress, goals, and expectations.

Provide detailed project requirements: The more detailed you can be with your project requirements and specifications, the better. This way it is easier to ensure that the nearshore team understands the project goals and expectations.

Be responsive: Communication is a two-way street, be responsive to the nearshore team’s questions and concerns to ensure that issues are addressed in a timely manner, and if you have any concerns, expose them so that they can be delt with in a timely manner.

Establish a project management framework: Establish a project management framework that includes clear goals, milestones, and deadlines to ensure that the development process stays on track.

Why should you choose Prime Group’s nearshore development centers?

Bruno Sousa, Prime Nearshore’s Chief Quality Officer, talks about nearshore as a holistic business approach, stating that:

“Our added value business proposal lies in providing a standardized and consistent service, despite the location of our teams and clients. To achieve these goals, we created a unique methodology established upon four principles: technology, processes, KPIs, and people.

To ensure the excellency of our services, we developed a platform from the ground up, totally customized and tailor-made. Our platform makes it possible for the consultant and the client stay up to date, due to specific modules such as evaluation, onboarding, and training independently of the location.”

At Prime Group we value your experience, and we want your nearshore experience to be as tailored to your company and project as you wish. As such, we provide a detailed process outline, so that you can have a sense of what our partnership will be like before we even begin the process.


Nearshore development centers combine the advantages of onshore and offshore development, offering access to talented IT professionals who are culturally aligned with your values while still allowing cost reduction.

Nearshore software development provides several benefits, including cost reduction, access to an extended talent pool, better access and control over projects, improved communication, expansion into new markets, and a higher return on investment (ROI).

When choosing a nearshore development center, it is important to define your requirements, conduct thorough research and shortlist potential partners, evaluate technical skills, assess communication and cultural compatibility, and consider past performance and client reviews.

Challenges in nearshore services can be overcome by establishing clear communication channels, scheduling regular meetings, providing detailed project requirements, being responsive, and establishing a project management framework.

Prime Group’s nearshore development centers offer a holistic business approach, focused on technology, processes, KPIs, and people. Their customized platform ensures a tailored and consistent service, regardless of the location, and they prioritize providing a detailed process outline to ensure a seamless partnership experience.

nearshore development center

Insights from the team