Six Benefits Nearshore Companies Offer that Offshore Service Providers Don’t


Global IT outsourcing is expected to generate a whopping $395 billion this year. Every year, more businesses opt for outsourcing services to benefit from the cost-effective, agile, and highly productive model with minimal capital investments.

From software development companies to non-tech businesses such as retail, healthcare, and finance, every industry is keen to leverage the expertise of outsourcing companies such as Vates.

But when it comes to choosing between the two types of outsourcing, i.e., nearshore and offshore, businesses have a challenge picking the right model. We offer you guidance in this blog as we shed light on the benefits only nearshore companies offer and offshore companies generally lack.

Lower Costs

Outsourcing is a budget-friendly method to complete any task. From custom software development to data analytics, outsourcing means your business is keen to save money. But what if we tell you that offshore outsourcing is still expensive when compared to nearshore outsourcing? This is because nearshore businesses such as Vates have better pricing packages and margins to work with U.S-based clientele.

Better Communication

Communication is key to success when working on agile software development projects. By hiring a nearshore software development company like Vates, you can greatly benefit from real-time correspondence due to similar time zones. You will also have fewer language barriers when working with a nearshore company located in close proximity to your business.

Faster Integration

Because nearshore companies like Vates have similar technology and skill sets, it’s faster and easier to integrate systems. This is a huge benefit in contrast to offshore service providers that lack the resources, infrastructure, and expertise to carry out systems integration.

Similar Business Culture

Nearshore companies have similar business culture as their clients. This is a great benefit for businesses that seek to hire outsourcing companies matching their business ideologies. It’s easier to communicate a nearshore business’s needs than to convey them to an offshore company.

Higher Compliance

The American IT and software development industry is heavily scrutinized by regulatory compliance authorities. When working with nearshore software development companies or data consultants, compliance is better and as per the standards of the American business.

This is because the employees and stakeholders of nearshore companies have the know-how of the American business culture and have worked firsthand with numerous U.S.-based clients.

Quicker Completions

In contrast to power failures, absence of work ethics, and delays on the back of slow communication, working with nearshore services such as Vates allow businesses to enjoy quicker completions. Software development and non-IT businesses are keen to hire nearshore outsourcing services to ensure that their project timelines are met accurately without any hiccups.

Looking for Outsourcing Experts? Hire Us

With vast expertise and top talent, Vates is a leading South American software development company offering its services to American businesses. We provide IoT consulting, data analytics consulting, and software development solutions for businesses all over the U.S. Get in touch with us today to learn more about our nearshore software development firm.

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