Why Nearshore Software Development is better than In-House Development?

Published on: August 08, 2021
Last updated: December 29, 2023 Read in fullscreen view

Recommended for you

07 Jul 2024 Top Fintech Companies in Vietnam Driving Innovation Across Digital Banking & Investment 57/133
03 Dec 2025 Templafy Features Explained: The Ultimate Guide to Streamlined Content Management 33/59
08 Oct 2024 Vietnam: The Rising Star in Global Outsourcing – Trends and Costs for 2025 32/370
01 Sep 2022 Facts Chart: Why Do Software Projects Fail? 29/596
29 Nov 2021 Memorandum of Understanding (MOU) for Partnership Agreements 28/544
12 May 2021 The Real Cost Between Outsourcing IT vs In-House: A Quick Comparison 27/454
21 Aug 2025 Top 30 Oldest IT Outsourcing Companies in Vietnam 26/125
11 Mar 2024 Why You Should Hire Odoo Developers from Vietnam to Customize Your ERP System 25/126
24 Nov 2025 Top Blockchain Companies in Vietnam 24/65
02 Feb 2026 What Is the Total Cost of Web Development for Small & Medium Businesses? 23/39
05 Aug 2025 Why Doesn’t South Korea Outsource Its IT Projects Like Other Developed Countries? 23/111
03 Oct 2020 Outsourcing Your MVP Development - Streamlined Solutions for future 23/440
22 Mar 2022 8 Mistakes Marketing Agencies or Consulting Firms Make When Outsourcing Web Development 20/358
24 Nov 2021 What is the Actual Cost of Hiring Cheap Developers? 19/392
16 Apr 2021 Insightful Business Technology Consulting at TIGO 18/412
04 Apr 2024 Unlock Vietnamese-Japanese outsourcing potential 18/244
03 Dec 2025 IT Outsourcing Solutions Explained: What, How, Why, When 18/40
03 Dec 2025 IT Outsourcing Solutions Explained: What, How, Why, When 18/40
21 Oct 2021 Advantages and Disadvantages of IT Outsourcing 17/357
15 Oct 2022 Project-based team model for one-off and pilot software development projects 16/806
11 Mar 2023 Common Pain Points in Software Development Outsourcing 16/260
28 Oct 2025 The Future of Real Estate: Key Trends and Essential Lessons in Digital Transformation 16/60
31 Oct 2025 The True ROI of Software Development Outsourcing for Tech Startups 16/88
25 Sep 2025 A Practical Guide to Secure Online Work for Outsourced Teams 15/90
05 Jan 2022 What Outsourcing Engagement Model is Right For You? 15/322
15 Aug 2021 TIGO Rate Formula - Things the partners should know 15/491
14 Dec 2021 The Top 10 Problems with Outsourcing Implementation and How to Solve Them 15/406
10 May 2021 Project Audit and Second Opinion Services 15/257
08 Nov 2022 4 tips for meeting tough deadlines when outsourcing projects to software vendor 14/291
20 Dec 2021 What is Hybrid Mobile App Development? 14/378
07 Aug 2022 Things to Consider When Choosing a Technology Partner 14/283
09 Jan 2021 How can outsourcing enable business agility? 14/202
01 Sep 2019 Outsourcing Software To Vietnam: Facts, benefits and limitations 14/453
10 Jul 2025 Building AI-Driven Knowledge Graphs from Unstructured Data 14/163
07 Nov 2024 Outsourcing Crisis Looming: Will Trump's Policies Transform the Global IT Landscape? 14/176
16 Oct 2024 Building a Software Outsourcing Startup: Strategy Through Two Canvases 13/38
12 Jan 2023 Top 10 Trustworthy IT Outsourcing Companies in Vietnam 13/285
19 Mar 2021 Selective Outsourcing of IT Functions - a new trend in business outsourcing 13/541
07 Jul 2021 The 5 Levels of IT Help Desk Support 13/448
16 Dec 2021 Why outsource Python development of your project? 13/474
10 Apr 2021 RFP vs POC: Why the proof of concept is replacing the request for proposal 12/322
02 May 2021 Outsourcing Software Development: Avoid 8 Mistakes 12/111
07 Nov 2022 Why Design Thinking can save the outsourcing industry 12/194
09 Sep 2022 Close Collaboration and Communication Can Overcome the Challenges of Distributed Teams 12/194
01 Mar 2022 Top 5 reasons why outsourcing to Vietnam is a smart move 12/285
06 Oct 2021 Intellectual property issues with outsourcing software development 12/389
01 Jan 2024 Tech Partnerships: Choosing the Right Software Outsourcing Firm in Vietnam 11/181
01 Jan 2023 4 New IT Outsourcing Pricing Models to consider in 2023 11/362
16 Feb 2021 Choose Outsourcing for Your Non Disclosure Agreement (NDA) 11/173
03 Nov 2021 7 phases of Odoo Implementation and Development: Can they be outsourced? 11/406
01 Jan 2024 Software Outsourcing Questions for 2024 11/157
10 May 2021 What are things you should look for in a good IT outsourcing company? 11/431
03 Nov 2022 Top questions and answers you must know before ask for software outsourcing 11/292
03 Nov 2022 Top questions and answers you must know before ask for software outsourcing 11/292
06 Mar 2021 4 things you need to do before getting an accurate quote for your software development 11/679
01 Jan 2024 12 reasons for software development outsourcing 10/175
03 Jan 2023 IT Outsourcing Costs: Is outsourcing really cost-effective? 10/210
06 Feb 2026 How Much Does a CPA Cost for a Small Business? 10/16
01 Jan 2023 Software Development Outsourcing Trends to Watch Out for in 2023 9/321
08 Feb 2022 Software Development: Fixed Cost or Opportunity Cost? 9/468
21 Oct 2022 Outsourcing Billable Rate 9/270
09 Mar 2022 Consultant Implementation Pricing 8/213
04 Jan 2021 VIETNAM AS A BIG ATTRACTIVE DESTINATION IN THE FIELD OF OUTSOURCING 8/311
09 Jan 2022 How to Bridge the Gap Between Business and IT? 8/178
13 Jan 2023 What are the Hourly Rates in Offshore Software Development? 8/242
13 Oct 2021 Why Outsourcing Software Development Services Is Gaining Traction With Non-Technical Leaders? 8/310
16 Mar 2021 Outsource Data Engineering Services - TIGO Streamlined Solutions 8/251
06 Dec 2024 Steps For Integrating Sustainable Practices Into Business Operations 8/142
01 Mar 2023 How do you deal with disputes and conflicts that may arise during a software consulting project? 7/165
16 Feb 2026 Education App Development Cost in 2026: Benchmarks and Key Cost Drivers 7/13
01 Jan 2023 Top 5 IT outsourcing countries in 2023 7/272
02 Mar 2021 Estimate the Cost of Software Development 7/335
21 Aug 2022 Forbes: IT Outsourcing Hotspot: Vietnam, A Small But Mighty Powerhouse 6/257
15 Nov 2023 IT Staff Augmentation Types and the Best Choice for Your Business 6/190
10 Jan 2024 Facts Chart: Reasons for outsourcing 6/152
07 Oct 2022 Digital Transformation: Become a Technology Powerhouse 6/244
10 Mar 2021 The 7 Biggest Mistakes to Avoid Before Outsourcing a Web Development Project 6/237
25 Nov 2021 Low-Cost Software Development: Buy Nice or Buy Twice? 6/338
12 Oct 2021 Vietnam outsourcing path - the silk road connecting ASEAN with the developed countries (EU, US, Japan...) 6/302
17 Oct 2020 How Outsourcing can Improve Time Management for Better Business 6/270
19 Oct 2020 The hidden costs of outsourcing software development 6/449
28 Oct 2022 Expect the unexpected in 2023 - How Outsourcing Can Help? 6/199
01 Jun 2025 10 Sustainable & Unique IT Outsourcing Companies in Vietnam 6/79
01 Jan 2024 Hiring Tech Talents in Asia: An Overview of Skills, Costs, and Potential 5/162
01 May 2023 CTO Interview Questions 5/329
01 Jan 2023 Top Software Development Challenges in 2023 5/298
01 May 2023 Streamline Your Business with Outsourcing 5/193
20 Nov 2022 Software Requirements Are A Communication Problem 5/244
17 Jan 2024 What are the benefits and challenges of using multi-sourcing or single-sourcing strategies? 5/187
09 Feb 2023 The Challenge of Fixed-Bid Software Projects 5/213
30 Oct 2022 How Much Does MVP Development Cost in 2023? 5/240
01 Jan 2023 Why is Vietnam the Top IT Outsourcing Destination of 2023? 5/234
01 Oct 2022 Vietnam is a favorite supply of IT outsourcing services to Japan 5/234
01 Apr 2021 IT Outsourcing to vietnam: Why It Is A Good Choice? 5/292
02 Nov 2023 What are the pros and cons of iIT outsourcing? 4/188
01 Jan 2024 What The World Is Flat Means to IT Outsourcing 4/166
08 Jan 2024 Outsourcing on an As-Needed Basis 4/158
01 Feb 2023 [InfoWorld] Is your outsourcer agile enough? 4/193
17 Mar 2025 IT Consultants in Digital Transformation 3/84
31 Dec 2021 Outsourcing Software Development to mitigate the impact of COVID-19 2/320

Why do companies nearshore?

Compared to offshore and onshore outsourcing, nearshore outsourcing is a lot less complicated and a lot more beneficial. In addition to having cultural similarities with the person or team you will be working with, geographic proximity means fewer travel costs, minimal time zone difference, and better communication.

Nearshore software development is a favorite solution for expanding your team at a low cost without sacrificing quality or communication.

Benefits	Drawbacks
Geographical Proximity	Language barriers
Cost savings	Usually higher cost than offshoring
Timely decision-making	Smaller talent pool

Nearshoring vs In-house

In-house software development isn’t an outsourcing software development model but it is worth mentioning in this context. If you are developing software, one of your options is to keep it all in-house, using the company’s own employees and resources. Many CTOs will tell you that in-house development teams are the preferred solution for scaling software operations. By building an in-house software development team, you have full control over the vision and product development. There are also much less barriers to communication.

That said, for many companies, building a highly talented in-house simply isn’t possible. Software development projects require multiple individuals with a myriad of different skills and expertise. Hiring specialists isn’t easy or cheap and depending on the location, can be near impossible.

Even if you do hire a full in-house team, you then have to make sure they are supplied with the right resources to get their job done. Again, this can prove incredibly costly, significantly increasing your project budget. And finally, building an in-house team mightn’t be the answer long-term.

Sometimes companies just need to work with a team of developers for a short or medium term project. Nearshoring and other outsourced software development options allow companies to scale down resources when they are no longer needed. It is much more complicated to scale down resources, when you’ve built an in-house team.

Considering Nearshore Software Development With TIGO Solutions

In this article, we have introduced you to the concept of nearshoring and how it compares to other engagement models. If you are considering a nearshore software development model, there are a host of different aspects to consider. At TIGO Solutions we have over a decade’s experience, providing scalable, expert outsourcing solutions to clients worldwide.

When it comes to increasing productivity and saving cost on projects, outsourcing can be an ideal option for any business. Nearshore software development has grown increasingly popular these days and it’s no surprise why.

Technological improvements in the past few years have made it possible for companies of all types–not just tech firms–to take advantage of the lowered cost of both nearshore and offshore development teams. By learning the benefits of nearshore software development, businesses can weigh their options and choose the outsourcing practice best suited to their project.

A A A A

[{"displaySettingInfo":"[{\"isFullLayout\":false,\"layoutWidthRatio\":\"\",\"showBlogMetadata\":true,\"includeSuggestedAndRelatedBlogs\":true,\"enableLazyLoad\":true,\"quoteStyle\":\"1\",\"bigHeadingFontStyle\":\"1\",\"postPictureFrameStyle\":\"1\",\"isFaqLayout\":false,\"isIncludedCaption\":false,\"faqLayoutTheme\":\"1\",\"isSliderLayout\":false}]"},{"articleSourceInfo":"[{\"sourceName\":\"\",\"sourceValue\":\"\"}]"},{"privacyInfo":"[{\"isOutsideVietnam\":false}]"},{"tocInfo":"[{\"isEnabledTOC\":true,\"isAutoNumbering\":false,\"isShowKeyHeadingWithIcon\":false}]"},{"bannerInfo":"[{\"isBannerBrightnessAdjust\":true,\"bannerBrightnessLevel\":\"55\",\"isRandomBannerDisplay\":false}]"}]

Via

{content}