January 30, 2023 –

How does my business benefit from nearshoring?

Table of Contents

With nearshoring software development services, you can find experienced talent and specialized services that will be key to your business growth.

With just a few adjustments here and there, you can use the primary outcomes from this blog post to gain a competitive advantage in various businesses.


To understand the nearshoring concept, we have to start by understanding the entire concept of software outsourcing.
The main thing to know is that there are three main models: nearshoring,  onshoring and outsourcing.

While we will look at outsourcing primarily from the software development perspective, their principles are valid across industries.

Nearshoring: you delegate specific tasks or entire projects to a software development team in a nearby country. An example of this would be:

A company based in New York outsourcing to a software development business (like DNAMIC) in Costa Rica or a customer in England delegating work to a design team in Madrid.

The main advantage of this model is the proximity of the nearshoring partner. The time difference, if any, is typically no more than a couple of hours.

Onshoring: this is “domestic” outsourcing. An example would be outsourcing development from your office in Madison Avenue to, say, Albany. However, it will still be more expensive than nearshoring.

Outsourcing is typically located on another continent. The main drawbacks of this model include considerable time differences, cultural and language barriers, and higher travel costs. The result may be a negative impact on your business operations.

Nearshoring often shares a border or time zone, where both parties expect to benefit from proximity: geographic, temporal (time zone), cultural, linguistic, economic, political, or historical linkages.

Choosing nearshoring

Outsourcing can change how a business works and be highly beneficial and profitable. It can solve time restrictions, budget limitations, and lack of efficiency, to name a few. 

After the COVID-19 pandemic, the world adapted to new ways of working. Nearshoring, even though it was popular before, became a top choice for many companies.

Contracting nearshoring development services, you will find a variety and experienced talent that will be key for your business to grow and advance.

The objective of using external providers is to reach international markets, improve the quality of your business, and create a strategy that can focus on expansion and progress. 

Working with global talent can make your business an authority in the market because it stands out.

Read next: Nearshore insights: An essential guide

For any business, the markets need innovation and quick, effective, and creative results. Regarding software development, you need a staff with a wide range of knowledge, fluency in the fundamental and latest web languages, and an initiative to create solutions to unseen problems—trusting your partner when outsourcing is vital to make the transition successfully.

At DNAMIC, we make sure our partners grow together with an experienced team of specialists and the latest technology to bring their projects to the world. 

Advantages of nearshoring in Latin America:

Quality and quantity are necessary to upgrade a business. When you are in a partnership where your culture is understood, there is fluency in feedback, plus you have problem-solving and out-of-the-box creative thinking solutions, choosing to nearshore is the best step for your business. 

Compared to outsourcing, nearshoring in Latin America can save you over 20 hours of flight, miscommunications, or extra effort to express the vision of your project.

For example, nearshoring in Costa Rica offers high-class experienced staff with cutting-edge technologies and software specialists. Besides quick communication and a possible 2-hour flight to a beach destination business meeting. 

The United States heavily relies on China, India, and Europe as outsourcing choices. Yet, the increasing cost of these operations has incentivized them to look elsewhere for work.

The affinities between the US and Latin America are much more beneficial than the popular offshoring location. The large quantity of qualified and available talent in LATAM understands the global market needs, especially the US market, making this region a prominent option for collaboration. 

A successful nearshoring partnership example

An academy of tourism and education, which has taught face-to-face classes for years, wants to innovate and adjust to the changing demands of the education sector and create an online learning platform. This platform will include full accredited degrees through video lessons. The project was going to be developed from scratch.

Our nearshoring services company assembled a team of three engineers who specialized in backend and frontend development with full-stack skills in two weeks.

We created a dedicated team to handle the project three times faster than if they had tried to hire an in-house team. 

The developers offered all their expertise and helped to adapt to the project’s needs, modernizing systems and implementing new technologies, working hand in hand with the client to meet their goals.

Providing the client with the necessary expertise, agility, and faster development was part of the benefits of hiring nearshore development services.


Read next more of our success cases.

Nearshoring in Costa Rica

According to Costarican Investment Promotion Agency CINDE, Costa Rica has essential pillars that make it stand out:

  • The alphabetization rate is 98%.
  • More than 14 free trade agreements (including the US, China, and Europe).
  • An attractive taxing system.
  • Invitation to be part of the Organization for Economic Cooperation and Development (OCDE).



According to Álvaro Goicoechea, Investment Advisory Manager at CINDE: “In the case of the US market, Costa Rica is an ideal option because it has a similar time zone that allows the supplier’s chain to be close, in a way that facilitates the exportation and importation process.”

He also mentioned how the country’s priority is to attract different markets that rely on technology development to Costa Rica. The high-level, well-known companies that have already chosen nearshore due to its effectiveness have seen excellent results, with the commitment to nature conservancy as a plus.


Industries nearshoring in Costa Rica:

  • Customer Support.
  • Financial and Taxes Management.
  • Software Delivery.
  • IT Infrastructure Management.
  • Law Support and Assistance.
  • Marketing and Design.
  • Corporate Training.
  • Human Resources.


Nearshoring Services can include software development, cybersecurity, business intelligence, robotics, analytics, accounting, data, logistics, cloud computing, business intelligence, and human resources. 

Latin American nearshoring context

In a report published in August 2020 by the Economist Intelligence Unit (EIU), the EIU said: “Latin America has the potential to gain considerably from nearshoring in the coming decade, given some comparative advantages, including its long list of free trade agreements, proximity to the US market and increasingly competitive wages.”

Using its business environment rankings to evaluate the potential of countries in the region, the EIU singled out Mexico, Costa Rica, Chile, and Colombia as well-positioned to compete with Asia.

The EIU evaluated various countries’ readiness to compete globally: Chile came in second, just behind Taiwan. Costa Rica, Mexico, and Colombia came in fourth, fifth, and sixth, respectively (behind Malaysia).

This evaluation provides an overview of Latin American countries’ competitiveness globally.

Read next Costa Rica is your sustainability nearshoring choice.

The software factory effect in Costa Rica has proven to bring the best solutions for multiple problems that businesses in distress or with the desire to elevate themselves!

Success tips to nearshore

Maintain clear communication: It is the most vital part of any software development partnership. Nearshoring in Costa Rica, you’ll have a team in real-time when you need them; take that advantage to reduce misunderstandings and mishaps.

Define a clear action plan: Make your decisions based on cost and choose by estimating, evaluating, and contemplating the highest quality with cost proposals.

Find the winning team and hire them! The best talent is in high demand, so hiring a nearshore software development provider will make your hiring process easier for assuring skilled and available senior talent.

Set clear milestones for achieving your goals: You need efficiency in your mind and passion in your heart. High ideals, realistic budgets, and an understanding of the path to go are fundamental when selecting a nearshore partner.

Establish a relationship on trust: Trust results from good communication and well-set goals when dealing with professional development services.

Before you go, remember the following:

Nearshoring services can empower other company areas with the money saved, expand the business, and work with high-tech technologies and valuable strategies.

The improvement of operational efficiency, the cost savings, and the fact that Costa Rica is a nearby country benefit the teams to work together and elevate the results.

A recommendation specialized for you

Check our way of working, services or contact us directly 

to start building the best with DNAMIC!

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