Reduce costs with nearshore outsourcing

Reduce costs with nearshore outsourcing

In today's ever-evolving business landscape, achieving operational excellence while minimizing costs is a top priority for companies across the globe. Nearshore outsourcing emerges as a pivotal strategy, particularly within the realms of IT and software development, promising not only substantial cost savings but also enhanced operational efficiency. This in-depth exploration delves into how nearshore can serve as a key to significant cost optimisation, offering competitive rates and streamlining the approach to managing business costs effectively.

What is nearshore outsourcing?

Nearshore vs offshore vs nearshore outsourcing

Nearshore outsourcing refers to the strategic delegation of business operations, especially IT services, to organizations in geographically proximate countries. This model skillfully balances between onshore outsourcing (within the same country) and offshore outsourcing (to distant countries), aiming to harvest the benefits of both - cost-effectiveness and enhanced operational efficiency.

Advantages of nearshore outsourcing

Advantages of nearshore outsourcing

Elevated efficiency

Nearshore providers, operating within similar time zones, ensure better alignment and substantially improved efficiency in communication and project execution. This alignment facilitates real-time collaboration, allowing for swift problem-solving and maintaining project momentum.

Competitive rates and cost savings

A standout benefit of nearshore is access to competitive rates for IT services. Labour costs in nearshore countries are often significantly lower than those in the home countries, without compromising the quality of talent. This leads to considerable cost savings, ensuring quality services at reduced prices.

Diminished operational costs

Adopting nearshore outsourcing can lead to a marked reduction in overall operational costs. Businesses can achieve savings on labour costs and other associated expenses of maintaining a large in-house IT team, including infrastructure, training, and benefits, thus effectively reducing their business costs.

Scalability and flexibility

Nearshore outsourcing affords the flexibility to scale IT services according to the fluctuating needs of the business without necessitating significant capital investment. This scalability ensures that companies can swiftly adapt to market demands, maintaining their competitive advantage.

Focus on core business activities

With IT functions managed by nearshore partners, businesses can reallocate focus and resources toward core activities and strategic growth initiatives. This shift not only optimises operational costs but also opens avenues for innovation and expansion.

Cost optimisation through nearshore

Nearshore outsourcing cost across Europe and North America

Strategically integrating nearshore outsourcing into business operations can lead to notable cost optimisation. Companies leveraging nearshore services can expect to realize savings of 20%-40% on their IT and software development operating costs, primarily due to reduced labour costs, lowered overheads, and the efficiency gains that nearshore collaborations bring about.

Nearshore outsourcing stands as a testament to how strategic planning and implementation can transform cost savings into operational efficiencies, enabling businesses to remain agile and competitive in a fast-paced market. The combination of competitive rates, cultural and time zone congruence, and access to a pool of skilled talent renders nearshore an attractive proposition for businesses aiming to streamline their IT operations.

How we help you reduce costs

Strategic global locations for optimal collaboration

The cornerstone of our nearshore approach lies in our strategic global setup, encompassing key locations that are not only geographically proximate to our clients but also culturally aligned. This proximity ensures minimal time zone differences, facilitating real-time collaboration, swift communication, and seamless integration of our teams with client operations. The advantage of such a setup is twofold: it enhances the efficiency of project execution and significantly reduces the communication barriers and operational delays often encountered with offshore models.

Tailored nearshore solutions

At Share IT, we understand that each organization has unique needs and challenges. Our nearshore solutions are designed to be flexible and adaptable, ensuring that we can provide targeted support where it's needed most. By offering services such as Team Extension, Dedicated Team and Employer of Record, we enable businesses to scale their software development capabilities in line with project demands and market fluctuations.

Team Extension: This model allows businesses to extend their existing team with our skilled software developers on an as-needed basis. It's an effective way to manage project peaks and fill specific skill gaps without the long-term commitment and costs associated with permanent hires. This flexibility leads to direct cost savings on labour while maintaining high productivity and project continuity.

Dedicated Teams: For more integrated collaboration, our Dedicated Teams service provides businesses with a bespoke team of IT specialists who work exclusively on their projects. This model combines the efficiency and cost-effectiveness of outsourcing with the cohesive collaboration and deep project understanding typical of an in-house team. Clients benefit from reduced operational costs and enhanced project outcomes due to the dedicated focus and tailored expertise of their outsourced team.

Employer of Record: This model offers businesses a streamlined solution for hiring and managing remote talent without the complexities and legalities involved in international employment. Our Employer of Record service allows companies to onboard skilled software developers in different countries efficiently, as we handle all employment-related responsibilities, including payroll, taxes, benefits, and compliance with local labour laws. This model not only reduces administrative burdens and mitigates legal risks but also provides flexibility in scaling your workforce. By leveraging our EOR service, businesses can focus on core operations while enjoying the benefits of a global talent pool, all with significant cost savings and operational ease.

Why nearshore with us

Choosing Share IT as your nearshore partner means opting for a relationship that extends beyond mere cost savings to include strategic value addition. Here are the key advantages of partnering with us:

Access to a broad talent pool: Our presence in strategic nearshore locations grants access to a wide talent pool of software development talent, ensuring that we can match the right skills with your project requirements efficiently.

Cultural and operational alignment: Our teams are not only technically proficient but also culturally aligned with our clients, fostering a smooth collaboration environment that is often challenging to achieve with distant offshore providers.

Scalability and flexibility: With our Team Extension and Dedicated Team services, we offer unparalleled flexibility, allowing you to scale your software development operations agilely in response to business needs.

Cost-effective quality: Our nearshore model is designed to deliver the optimal balance between cost and quality, ensuring that you don't have to compromise on the standard of work to achieve significant savings.

In summary, we empower businesses to leverage the full potential of nearshore outsourcing, offering a strategic partnership that extends beyond mere cost reduction. By aligning our nearshore solutions with your specific business needs and leveraging our strategic locations and flexible service models, we help you achieve not only cost efficiency but also operational excellence and competitive advantage in your industry.


In conclusion, nearshore outsourcing presents a strategic opportunity for businesses to significantly reduce operational costs while enhancing efficiency and maintaining high-quality standards. By leveraging the strategic advantages of nearshore—such as competitive rates, cultural and operational alignment, and access to a broad talent pool—companies can achieve substantial cost savings of 20%-40% on their software development operations. Our tailored nearshore solutions, including Team Extension, Dedicated Team and Employer or Record, coupled with our strategic locations, ensure that we can meet the unique needs of each organization, enabling them to stay agile and competitive in the fast-paced global market. Embracing nearshore outsourcing with us not only promises cost efficiency but also operational excellence and a competitive edge, positioning businesses for sustained growth and success.

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