Key facts why Nearshore Software Development is growing

March 21, 2025
General

The nearshore software development industry is experiencing significant growth, particularly among companies in North America seeking efficient and cost-effective solutions. Key trends shaping this landscape include:

1. Increasing Adoption of Nearshore Services

  • High Adoption Rates: Approximately 80% of North American companies are actively considering nearshore software development to enhance efficiency and reduce costs.

  • Preference Among Small Businesses: The percentage of small businesses opting for nearshore services has risen from 15% to 21%, indicating growing confidence in nearshore partnerships.

2. Expansion of the Talent Pool

  • Global Developer Workforce: The number of software developers worldwide is projected to increase from 26.9 million to 28.7 million by 2024, reflecting a growing talent pool.
  • Latin America's Emerging Role: Countries like Uruguay, Argentina, and Colombia are becoming preferred nearshore destinations for U.S. businesses due to their skilled developer communities.

3. Cost Efficiency

  • Significant Cost Savings: Nearshore software development can offer cost reductions of up to 60% compared to onshore options, making it an attractive choice for budget-conscious companies.

4. Technological Advancements

  • Integration of AI and Machine Learning: Nearshore teams are increasingly incorporating AI and machine learning into their workflows, enhancing efficiency and the quality of software solutions.
  • Emphasis on Cloud Computing: The adoption of cloud services is on the rise, with nearshore teams playing a pivotal role in facilitating seamless transitions to cloud-based infrastructures.

5. Cultural and Time Zone Alignment

  • Enhanced Collaboration: Nearshore teams offer cultural compatibility and time zone alignment, leading to improved communication and project outcomes.

6. Project Performance and Quality

  • High Satisfaction Rates: Businesses report high levels of satisfaction with nearshore outsourcing, citing improved project outcomes and overall efficiency.

7. Market Growth Projections

  • Significant Market Expansion: The global nearshore software development market is expected to reach $14.06 billion by 2027, growing at a compound annual growth rate (CAGR) of 12.5% from 2022 to 2027.

These trends highlight the increasing importance of nearshore software development as a strategic approach for companies aiming to leverage skilled talent, achieve cost savings, and maintain high-quality standards in their software development projects.

Related Content

Let's Connect

Have a project in mind or just want to chat about how we can help?
We'd love to hear from you! Fill out the form, and we'll get back to you soon. Let's create something amazing together!

Alejandro Rama

Co-Founder & CEO
Schedule a call

Pamela Nogués

CBO
Schedule a call
Thank you!
Your submission has been received!
Oops! Something went wrong while submitting the form.