Nearshore Software Development Services

The advantages of Nearshore Software Development Outsourcing today are undeniable

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In the past decade or so, the number of viable options for outsourcing software development has exploded. Most outsourcing models fall into one of three categories: onshoring, offshoring, or nearshoring.

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While offshoring to Asia or Eastern Europe has long been appealing to businesses for its low-cost labor, nearshore services have emerged as a superior alternative, allowing for smoother collaboration and the use of Agile development methodologies. As most development models have moved away from the linear Waterfall methodology to Agile’s flexible, iterative approach, the rewards of nearshoring have come into full focus.

Agile, done right, requires constant communication and collaboration between in-house and outsourced teams. In other words, proximity matters. In these next few sections, we’ll look at some of the advantages of working with a nearshore software development company. Then, we’ll dig into the evaluation criteria for choosing the best partner for the job.

Four Essential Qualities of a Good Nearshore Services Company

A graphic featuring 4 circles to explain the 4 essential qualities of a neashore partner

1. Experience

Nearshore services companies must use a mature, disciplined approach to software development for their total cost-of-engagement (TCE) to compete with low-cost offshoring models. Nearshore rates are generally higher than offshore rates, which means service providers must provide more value to the client than low-cost, offshore vendors to keep earning their business.

For example, the ability to work in the same time zone as your nearshore partner allows for greater operational efficiency than offshoring. Efficiency also increases as a provider gains more experience with long-term engagements in the form of service level agreements (SLAs).

On the client-side, transitioning to nearshoring means that they can measure their efforts in terms of results instead of the time and resources spent on a project. Look for nearshore service providers with experience working collaboratively, and a focus on developing long-term relationships that are mutually beneficial to the provider and client.

The traditional method of developing software is commonly known as “waterfall” development, since the project progresses steadily through sequential stages, including conception, initiation, analysis, design, development, testing, and maintenance.

Waterfall is fine for handling short, straightforward projects, but when you’re working on a project where requirements change rapidly, this process can cause delays and quality issues.

2. Communication

The geographical proximity between the client and service provider allows for greater collaboration during the development process. This advantage is a major reason for the recent success of nearshoring as compared to offshoring.

Ventoro Institute, a global sourcing research organization, reports that clients often avoid face-to-face meetings with their offshoring partners because of the time and expense required for an international trip.

However, live communication is essential for the success of an IT project. It allows customers and vendors to share knowledge in a sophisticated manner, and identify the best solution for a particular problem.

Some of the newest nearshoring companies provide interactive IT teams that work directly with their clients’ employees, thus freeing them from the rigid hierarchy and complex procedures that characterize traditional project management.

When you work with a nearshore partner and can communicate more frequently and at greater length, your nearshore partner becomes intimately involved and invested in your success and your business.

Tiempo Software Development Teams speak English well and are intimately familiar with the expectations of the modern American workplace. English proficiency and cultural alignment accelerate relationship building and integration with your in-house team.

Two Tiempo Dev devlopers working on a project

3. Quality and Productivity

Time zone incompatibility has long made it difficult to develop quality software within a reasonable timeframe. When you’re working with a team that operates on the other side of the globe, developers often end up working at night, putting them at risk of burnout, which in turn, undermines the quality of the end product.

Software errors are typically the result of stress, and many programmers working for offshore vendors will burn out before the project is complete.

A nearshore service provider works on the same schedule as your in-house team, allowing them to fix bugs faster, hop on a quick call, and, ultimately, shorten the time-to-market schedule for both new and established clients, simply by being in closer proximity.

Employee turnover is a problem for the software development industry.

According to the 7th Annual Conference on Information Science, Technology & Management noted that the annual turnover for Indian software developers is typically in the range of 30-40%, much higher than the average turnover in Mexico.


This difference in turnover means that a nearshore services company may have an advantage when it comes to developing a talent pool without fear of losing staff members in the process.

Mexico’s proximity to the United States means that the two countries share many cultural similarities. Mexico and the US also share time zones, making daily standups, and ad-hoc communication seamless.

Additionally, short travel distances allow for face-to-face meetings during critical stages of projects. As such, it’s not unusual for our teams and our client’s teams to co-locate for portions of a project.

The ability to work directly with clients allows developers to be more responsible for their actions and more responsive to changes in the client’s requirements.

It also helps developers understand that their pay and other benefits are directly dependent on the client’s level of satisfaction. In the case of traditional outsourcing, developer incentives are more likely to depend on employees of the service provider, such as IT directors, project managers, and team leaders.

This difference in fiduciary responsibility improves the productivity and efficiency in the workplace of a nearshore partner.

4. IP Protection

Another thing you’ll need to think about is how your outsourced service provider handles intellectual property (IP) protections.

IP is a vital part of outsourcing because an organization’s ideas must be protected under law if it is to develop software in another country.

US laws offer strong IP protection, which is one of the major factors for its success in software development. Mexico’s laws also offer IP protection on a level unmatched by many other popular outsourcing locations, especially when it comes to patents and trademarks.

A graphic that explains that Mexico has respect for IP


In addition to its own laws, Mexico is a member of many multinational agreements that protect IP including the USMCA, as well as the following international agreements:

  • Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks
  • Lisbon Agreement for the Protection of Appellations of Origin and Their International Registration
  • Paris Convention for the Protection of Industrial Property
  • World Intellectual Property Organization

Questions to Ask Potential Nearshore Service Providers

A map of Latin America with a green circle around the USA and Mexico

If the nearshore partners you are considering have the four basic qualities in place we just mentioned, you’ll want to start digging deeper to narrow down your list of potential vendors.

When you meet with a potential nearshore services provider, you need to interview them like you would any prospective business partner or employee candidate.

Here’s a look at some questions you should ask to ensure you make the right decision.

[ultimate-faqs include_category=’nearshore’]

A green graphic of a hand with people above it

Get Better Results by Partnering with Tiempo for Nearshore Software Development

Tiempo Development has emerged as a pioneer and leader in the delivery of nearshore software development services. Since 2006, we’ve refined our approach to attracting, retaining, and developing high-performing teams of some of the top software engineers in Mexico.

Working with a nearshore services partner like Tiempo Development provides a long list of benefits, including faster-time-to-market, easy communication, and a team of professionals that fit in seamlessly with your in-house employees.

Finding and hiring great developers is only the tip of the iceberg. Cost, quality, dependability, and process are all critical factors.

Our clients turn to Tiempo Development for:

  • Cost-Effective Software Development Resources
  • Dedicated High-Performing Agile Teams
  • Commitment to Ultimate Client Outcomes
  • Fast Ramp Up and Seamless Integration
  • Expert Resources Available in Almost Every Technology; Java, Python, .NET, React, Angular, PHP, etc.
  • Headquartered in the United States

Contact us today to learn more about our nearshore software development services.

Software Development Centers Designed for Tight Collaboration

Tiempo operates four world-class development centers in Mexico.  Each modern center is built out to improve the communication and collaboration of our top talent with our US clients.  Workspaces and workflows are designed to instill and optimize the attributes of team building, motivation, accountability, problem solving and integrity.


Tempe Nearshore Software Development Center

US Headquarters


Tiempo Development LLC
1050 W. Washington Street, Suite 115 Tempe, AZ 85281 USA(602) 910-4646

Monterrey Nearshore Software Development Center



Development Center
Val Paraiso 49 Col. AltaVista Monterrey, Nuevo Leon, México+52 (811) 088-9827

Guadalajara Nearshore Software Development Center



Development Center
Justo Sierra # 2464 Ladrón de Guevara Guadalajara , Jalisco 44600, México+52 (333) 615-00-97

Development Center



Development Center
San Dionisio 25-B Jardines de San Ignacio Zapopan, Jalisco 45040, México+52 (333) 647-26-71

Hermosillo Development Center



Development Center
Blvd. Antonio Quiroga No. 547 Local 23 Corner of Blvd. García Morales. Col. El Llano Hermosillo, Sonora 83210, México+52 (662) 260-96-75


At Tiempo, we are making the business of software development easier and more affordable with a unique combination of a nearshore business model, agile methodology, and advanced talent management. Our Development teams engineer powerful technologies that align with the goals and strategies of our customers for both their internal and public-facing development initiatives. Tiempo supports companies in launching software releases sooner without draining important resources.

Learn how we can fast track your projects and increase your ROI within weeks. If we’re not 100% certain we can fundamentally improve your performance, we’ll help you find someone who can.
Tripwire II Case Study

"Tiempo continues to get better with every challenge we present to them, and they excel when it comes to the mastery of agile methodology and Microsoft technology especially. I look forward to the results of our continuing collaboration."

- Robert McEwin, Director of Engineering, Tripwire
ATA Retail Services Case Study

"Tiempo offers a highly experienced group of technologists with a wealth of diverse skills and insights. This increases the value of Tiempo for us."

- Mike Fujikawa, IT Director, ATA Retail Services
CBT Nuggets Case Study

“Clearly, Tiempo has a very mature practice of identifying the right resources to participate in high-performance teams and managing them to achieve the outcomes clients seek.”

Sean Sullivan, CTO ,CBT Nuggets

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