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4 Top ROI Benefits of Nearshore Software Programming

Tuesday 23 of January, 2018.
Reading Time: 2 minutes.
By Avantica


30% Savings Compared To Onshore Programming.

For those who haven’t heard of the term Nearshore before, here’s a quick definition. Nearshoring is contracting a company in a country, outside your borders, but in your same, or similar time, zone, for staffing, or to develop a specific project. Onshore would consist of contracting a company in your own country.

In our experience, companies can save up to 30%, or more, by nearshoring for their programming and software development. There are several factors that go into this great savings. We’ll take a look at each over the next two articles

Savings on Workforce.

The most obvious savings from nearshore come from the cost of the workforce in nearshore companies. And we’re not talking about things like the cheap labor pool in India. We are talking about a skilled, professional workforce. How can we have such a qualified workforce and save so much? There are two main reasons:

The dollar goes farther.
Most countries in Central and South America, like Costa Rica, have a stronger dollar than their local currency. That means the dollar goes a lot further in these countries than in the United States. You literally get more bang for your buck.


The cost of living / labor wage is lower.

Because the cost of living is lower in most, if not all, countries in South and Central America, that means the standard labor wages are lower too. That means that the staff you hire through a nearshore company are still earning good salaries in their own countries, even if the per-hour total cost is less than in your country.

Savings on Overhead.

If you hire a nearshore company like Avantica, you will save big on overhead costs because you won’t have so much of your production in your own office. This is a huge benefit, especially if your nearshore workforce is part of a staffing arrangement where they essentially are part of your business. You get a dedicated, skilled group of people working for you, but you don’t have to cover all of the overhead expenses involved with their production yourself.

Savings on Training.

If you want a workforce that is continually improving and updating, then you have to invest a lot in training, whether it’s training in new technologies or new methodologies. A tech-related staff that isn’t continually learning about emerging and evolving technologies is virtually unheard of. With nearshore staffing, your business will get exactly what they need. If they need someone who is already an expert in the latest release of a language, you don’t have to invest in training your own people to get to that level, you can request someone already skilled in this from your nearshore partner.

The Saving Possibilities Continue.

These are just three of the ways you can save with nearshore programming. Stay tuned for our next article where we’ll dive into this topic with some more possibilities for nearshore savings.

About Avantica.

Avantica saves our clients and partners money by providing qualified, skilled talent with many ROI benefits. Save on your budget, without skimping on your software quality. If you are looking for a software partner who will work towards your own business goals and success, then Avantica is your solution. We offer dedicated teams, team augmentation, and individual projects to our clients, and are constantly looking for the best methodologies in order to give you the best results.

Let’s start a project together!

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