Complete Guide to Nearshore Software Development

Nearshore software development has become the go-to solution for businesses that wish to meet the ever-growing needs and expectations of their clients, without compromising on quality. This type of software development outsourcing is perhaps the one that offers the most benefits out of the ...

Nearshore software development has become the go-to solution for businesses that wish to meet the ever-growing needs and expectations of their clients, without compromising on quality. This type of software development outsourcing is perhaps the one that offers the most benefits out of the three, since it combines some of the perks that offshore and onshore provide. From access to a wider pool of talented professionals, to considerably reducing expenses, the advantages that nearshore software development furnishes, are just what companies need to fuel their goals. Sounds too good to be true? We will let you be the judge of that; but in order for you to reach a conclusion, we have put together a complete guide to nearshore software development outsourcing, with the help of which we will be taking you through it all, from how it works, to the pros of the solution and what aspects you need to be careful about when getting started.

To start things off, let’s briefly define and explain the concept of nearshore software development outsourcing, and understand what exactly it entails. Simply put, this outsourcing model represents the practice of delegating tasks or projects to a third party, which is located in a nearby country. Such vendors, that can take the form of either a specialized company or a team of software engineers, must operate within close geographical proximity to their clients, feature that puts the “near” in nearshore. This aspect alone already reveals some of the wonderful benefits that the nearshore software development model offers, but before we get to the pros of nearshore software development outsourcing, let’s see in what cases do businesses choose to adopt this strategy.

When do companies turn to nearshore software development?

The demand for IT specialists has grown significantly in the past few years, and still hasn’t reached its peak; as a result, the local talent pools have begun to find themselves in a position where they can no longer meet businesses’ needs, so overcoming the challenges brought by talent shortage had to become a priority and a matter that must not be ignored. To address this issue, companies were compelled to seek outside help, and luckily, nearshore software development was there to help. The latter is especially sought after when businesses are being faced with talent shortage issues in their country, a situation that we see more and more often in the present day.   

But this isn’t the only time when companies look to acquire outside talent; many businesses, regardless of their size, turn to nearshore software development so that they can stay relevant in the competitive environment in which they carry out their activities, and advance in their digital transformation journey. In this sense, by partnering up with a software development outsourcing company that has quite a bit of experience, hiring businesses gain access to best practices, superior tools, or even new technologies.

What are some of the most noteworthy benefits of nearshore software development?

No concealed expenses.

Transparency is one of the significant advantages of nearshore software development. Collaborating with remote experts in neighboring countries means having overlapping schedules, resulting in responsive communication and better project control. This reduces the likelihood of unexpected overcharges and financial surprises during your partnership. It also enables hiring businesses to proactively plan and efficiently allocate their resources.

Seamless integration with existing employees.

Not all internal staff may initially welcome new collaborators, but even the most hesitant specialists will find it easier to work with experts who share similar mindsets. Your nearshore software development team will already be familiar with your work processes, communication style, and even share the same holidays, creating a closer connection with your internal staff. This facilitates the establishment of a strong working relationship, built on trust and effective communication, in a shorter time compared to offshore collaborations, which often require months of adaptation.

Enhanced efficiency.

Since nearshore software development teams are already acquainted with your company’s operations and working practices, they can hit the ground running, allowing you to start reaping the benefits of your collaboration immediately. Additionally, language barriers are less likely to cause missed deadlines or misinterpretations, as specialists from neighboring countries typically have strong language proficiency. This unified work environment ultimately leads to increased operational efficiency and outstanding end results.

Elevated engagement levels.

Solid foundations in the working relationship between the outsourcing and outsourced teams enable the nearshore software development teams specialists to communicate openly, share risk assessments with colleagues, and even introduce fresh ideas. An external perspective has often proven invaluable, facilitating quicker problem-solving and helping companies overcome seemingly insurmountable obstacles.

Increased likelihood of maintaining a long-term, stable partnership.

Nearshore software development extends beyond individual tasks or projects, potentially evolving into a long-term collaboration. Post-launch support and the ability to address ongoing objectives are just as crucial as achieving initial goals. Nearshore software development partners typically offer comprehensive post-launch support. Moreover, the strong working relationship mentioned earlier forms the basis for a potentially enduring and successful partnership.

Choosing the right nearshore software development partner

Finding the ideal nearshore software development partner requires patience, expertise, and a significant investment of time. In addition to asking pertinent questions and collecting and comparing information and references, let’s now explore the critical steps to selecting the right nearshore software development partner.

Assess Your Needs

Begin by identifying your project’s specific requirements and objectives. Determine whether you need to outsource the entire project or specific tasks. Consider factors like team size and location based on your goals.

Evaluate Expertise, Experience, and References

Research potential nearshore software development partners and request information on their expertise, experience, work samples, and client references. Focus on their track record with projects similar to yours. Verify client satisfaction and ongoing relationships with past clients.

Prioritize Communication

Effective communication is paramount in nearshore software development outsourcing. Ensure that the potential partner has strong communication skills and that their team is proficient in your language. Assess their communication systems and procedures to prevent breakdowns. Seek a partner who understands your requirements and can provide valuable recommendations aligned with your business needs.

Assess Development Processes and Tools

Inquire about the nearshore software development partner’s processes, technologies, and tools. Verify their proficiency in the technologies your project demands. Discuss quality assurance measures, such as peer code review and automated tests. Ensure they provide technical documentation and adhere to best practices. Gain insights into their project management tools and access to project profiles.

Clarify Pricing and Terms

Establish a clear understanding of the project’s pricing model and terms upfront. Request a breakdown of costs and inquire about hourly rates or man-day rates if applicable. If your team comprises various roles (e.g., developers, QA, project managers), seek transparency regarding their individual rates to prevent misunderstandings.

Discuss Support

Inquire about post-development support and any warranty periods offered by the nearshore software development outsourcing partner. Clarify the terms and conditions of ongoing support to ensure it aligns with your needs.

Prioritize Security Measures

Address security concerns by specifying security checks and measures in the contract. Ensure that the nearshore software development partner takes responsibility for rectifying any security flaws discovered during or after the development phase.

How do I get started with nearshore software development?

In order to get the most out of the implementation of the nearshore software development model, you need to inform yourself about the country you are thinking about choosing to outsource to. Do your homework and take the necessary time to learn about the country’s economic situation, business environment, talent pool, and pricing structure.

Once you’ve gathered enough knowledge and information, and managed to decide upon a country that is the home of your future nearshore software development outsourcing partner, it’s time you search for the right vendor. The latter should have experience working on similar projects to yours, should have positive reviews, and use up-to-date tools and technologies.

Going forward, it’s essential that you describe and thoroughly explain your goals and needs to your newly hired supplier, who must have a clear image of what is expected of them. Stay in contact with your remote team, establish communication channels, set realistic deadlines and project milestones, and you should be good to go.

Nearshore Software Development to Romania

Romania is one of the most popular nearshoring destinations, placing itself in the top 5 software development countries in Europe. The country also holds 20% of the total IT&C employees from Central and Eastern Europe; and not just any employees, as Romanian IT specialists are well known for their various skills. They specialize in a wide range of programming languages, from C# and Java to PHP and Python, and also master soft skills, of which adaptability, teamwork, and communication skills, are the ones that stand out the most. What’s more, the majority of Romanian software developers speak English fluently, while also excelling in languages such as French, German, Italian or Spanish.

When it comes to Romania’s economic situation, the country has registered a significant economic growth over the last few years, thus attracting important foreign investors, given its favorable economic and business environment. The latter is regulated by European Union laws, making the country friendly from the legal point of view as well.

On top of this, Romanian software companies have a lot of experience in working with global companies, so your project will be in safe hands. This means that there are very few issues that such specialized companies have not dealt with before, therefore they will be ready to face any obstacles that are thrown in their way.

Romania boasts a leading position in Europe and ranks 6th worldwide in terms of per capita technology workers, with more than 200,000 highly skilled ITC professionals who possess exceptional technical and soft skills.

Bucharest, where our headquarters are situated, is the home of prominent IT companies, including Google, Microsoft, IBM, and Oracle, among others.

As a Latin country, Romania shares cultural values with Western European nations, and the majority of its people are fluent in English or French.

Because it is an EU member state, no visa is necessary for European travel, and it is easily accessible from any European country, being located in the GMT+2 time zone.

The country has implemented local laws to promote IT industry growth, such as a 100% income tax exemption for IT employees and a 50% tax deduction for R&D-related operational expenses.

Bucharest is one of the EU’s top 10 largest cities and was designated “the 2nd coolest city in Europe” by the French online magazine

Romania boasts a top-ranked network infrastructure, ranking 4th globally in high-speed broadband Internet connection and download speed over 5G.

Each year, more than 30,000 engineers graduate from Romanian universities and colleges, providing a vast pool of highly talented individuals.


Having to face the harsh competitive environment in which they operate, as well as the rising expectations of consumers, businesses have turned to nearshore software development for the numerous benefits that it has to offer. Cost-effectiveness, similar time-zone, ease of travel, a wider talent pool, and similar culture, are some of the perks that the aforementioned outsourcing model provides, and that have made this solution a preferred strategy among companies of all shapes and sizes. Romania is one of the hottest nearshore outsourcing destinations, offering the complete package – high quality services, affordable rates, and experienced software developers.

Nearshore software development with Arnia

We have successfully completed several projects for clients ranging from Fortune 500 to Forbes 50, and our excellent software development capabilities, along with our innovative approach and our team of experienced software engineers, recommend us as the preferred software development company in Romania. Our services cover web and mobile applications, web design, big data solutions, database management systems, e-commerce solutions, cloud-enabled solutions, content management solutions, business intelligence and R&D.

Arnia Software has consolidated its position as a preferred IT outsourcing company in Romania and Eastern Europe, due to its excellent timely delivery and amazing development team.

Our services include:

Nearshore with Arnia Software
Software development outsourcing
Offshore Software Development
Engagement models
Bespoke Software Development
Staff Augmentation
Digital Transformation
Mobile App Development
Banking Software Solutions
Quality Assurance
Project Management
Open Source
Nearshore Development Centre
Offshore Development Centre (ODC)
Unity Development