Software Outsourcing

Nearshore Agile Software Development: Best Practices, Tools & Tips

Nearshore agile software development can be a great option for companies looking to outsource their software development projects. Dive in to understand the benefits and tips that increase the chances of your project being a success!

Azumo Research
December 7, 2022
illustration for outsourcing

Nearshore Agile Software Development is a methodology used to develop software applications quickly and efficiently. This approach is different from traditional on-premise software development in several ways.

Nearshore Agile Software Development relies on a team of developers who work together in close proximity, often in the same country or region. This allows for better communication and collaboration between team members.

In addition, Nearshore Agile Software Development uses a "test-driven" or iterative development approach, meaning that new features are constantly being tested and feedback is used to improve the software.

As a result, an agile approach to nearshore software development can produce high-quality software applications more quickly and efficiently than traditional on-premise methods. Nearshore Agile Software Development is a powerful tool that can be used to create high-quality software applications quickly and efficiently.

Summary: Nearshore Agile Software Development

Nearshore Agile Software Development is a new approach to software development that is gaining popularity among businesses of all sizes. Nearshore Agile Software Development combines the best aspects of both on-shore and offshore software development, while minimizing the drawbacks of each. Nearshore Agile Software Development is a more efficient and cost-effective way to develop software, while still maintaining a high level of quality.

Here are four reasons why your business should consider Nearshore Agile Software Development:

  • More efficient than traditional on-premise software development.
  • More cost-effective than traditional on-premise software development.
  • Flexible and adaptable to changing business needs.
  • Tools enable best practices that boost your team's performance gets everyone pointed in the right direction
Nearshore Software Development Rates

Cost Savings

Perhaps the most significant advantage of nearshore software development is the cost savings it can offer over traditional on-premise development models. When you develop software on-premise, you are responsible for all of the costs associated with development, including infrastructure, licensing, and staff. With Nearshore Agile Software Development, many of these costs are shared with or borne by the nearshore provider, resulting in significant savings for the client. Those reduced costs can drop to the bottomline or be re-invested.

There are two main ways that nearshore agile software development saves businesses money. First, because nearshore developers are based in countries with a lower cost of living, they are able to charge less for their services. While these developers may be charging less for their services they are relatively highly compensated knowledge workers in their home countries.

Local Markets Determine Rates for Nearshore Software Development

For instance at Azumo, we target compensation to place our developers in the top 10-20% income range for their home country. We also compensate our team in the currency of their choice which in many cases is US dollars. We find that many developers are happy to be paid in this way and allows us to attract great development talent, especially when recruiting at scale like we do.

Second, nearshore agile software development teams are often more efficient than traditional on-premise teams, which means they can get the job done in less time and for less money. The nearshore software development teams are very skilled and produce high quality software.

Forrester Study finds Nearshore is better than Offshore Outsourcing

The advent of agile nearshore software development means that CFOs can see significant cost savings coupled with productivity gains. In fact, a recent study by Forrester Consulting on behalf of Nearshore Americas found that nearshore agile software development can offer significant cost savings over traditional on-premises software development.

The study, which was commissioned by Nearshore Americas and conducted in August 2018, looked at the development costs of three different enterprise resource planning (ERP) applications. The study found that the total cost of ownership (TCO) for the nearshore option was 20% lower than the on-premises option and 30% lower than the offshoring option.

Agile Project Management

Agile Methodology

Another key benefit of nearshore agile software development is the shorter turnaround time it offers. Because nearshore providers are often in the same time zone as their clients, there is no need to account for the minimal time difference when coordinating projects. This can lead to a significant reduction in project timeframe, as well as improved communication and collaboration between client and provider.

In traditional software development, the project follows a linear path from start to finish. The process goes something like this: first, the requirements for the project are gathered; then, the design phase begins; next, coding takes place; finally, testing and debugging are performed before the project is ready to be launched. We view this as a poor approach for software outsourcing since it degrades the benefits of having agile teams building continuously.

Agile Nearshore Software Development

With agile software development, however, the process is much different. Rather than following a linear path, agile software development focuses on delivering working prototypes to the client as quickly as possible so that they can provide feedback that can be incorporated into future iterations of the product. As a result, agile software development projects tend to have shorter turnaround times than traditional software development projects.

Why Shorter Turnaround Times Matter

Shorten development cycles are critical—since they allow businesses to get their products to market faster and respond to changes in market conditions more quickly. And when it comes to agile software development, nearshore teams are often able to deliver even shorter turnaround times than teams located offshore.

This is because nearshore teams are located in time zones that are closer to the client's time zone, which makes communication and collaboration easier. Furthermore, nearshore teams often have a better understanding of the client's culture and business environment, which helps them hit the ground running from day one. Nearshore agile development works better.

Development Team Communication

Improved Communication: As we mentioned before, one of the benefits of working with a nearshore provider in the same time zone is improved communication. When you're working with someone in a different time zone, there is often a need to schedule calls during working hours in both time zones, which can lead to missed calls and frustration on both sides. With nearshore software development, this is no longer an issue, as you can easily arrange calls during normal business hours.

There are many benefits that come from improved communication, including but not limited to:

Avoiding missed calls: If you're trying to communicate with someone in a distant time zone, it can often be difficult to schedule calls during working hours in both time zones. Or worse communication done exclusively by email and voicemail (so 1990s)! This can lead to missed calls and frustration on both sides. However, when you're working with someone in the same time zone, there's no need to worry about this issue.

Increased collaboration

Improved communication can also lead to increased collaboration between you and your team. When everyone is on the same page and able to communicate effectively, it can make working together much easier and more productive.

Resolving issues quicker: If there are any issues that need to be addressed, they can be resolved much quicker when everyone is able to communicate freely. This is especially beneficial if any deadlines are looming.

Improved communication is just one of the many benefits that come from working with a nearshore software development provider. When you're able to avoid issues like missed calls and miscommunication, it can make working together much smoother and more enjoyable.

Great Task Management Software

For instance, we are power users of Jira. It is a great tool for agile development teams because it helps to keep track of tasks and ensures that remote teams are on the same page. Jira enables highly productive agile methodologies to be implemented and tracked.  It allows team members to communicate with each other easily so that everyone is aware of what needs to be done and when it needs to be done by. This can help to avoid any miscommunication or confusion within the team. Jira can also help to track the progress of a project so that everyone is aware of how things are going and whether or not deadlines are being met.

Inevitably there will be communication gaps, as is the case in all business settings that require more than one person. When you outsource your software development needs to a provider in a different time zone, it can often lead to frustration and miscommunication. However, if you work with a nearshore software development provider in the same time zone or similar, you can avoid many of the known issues.

Nearshore Agile Software Development Illustration

Remote Teams Increase Flexibility

Another advantage of nearshore software outsourcing is increased flexibility when it comes to resource allocation. On-premise development models often require a large upfront investment in terms of licenses, infrastructure, and staff. With nearshore software development, you can scale up or down as needed, paying only for the resources you use when you need them.

We think flexibility is often overlooked but increasingly growing in importance as business face more difficult economic environments and calls for the project manager to deliver more scope with less budget.  

Defease Inherent Challenges To Software Development

Flexibility when it comes to resource allocation has become key. Project managers are always looking for ways to get the most out of their team while still meeting deadlines and delivering a high-quality product.

The traditional waterfall methodology of software development can often be inflexible, with resources being allocated at the beginning of the project and not reassessed until the end. This can lead to missed opportunities and wasted time as the needs of the project change.

Agile Nearshore Development

However, with nearshore software outsourcing, projects are broken down into smaller sprints. This means that resources can be reallocated as necessary, based on the needs of the project at any given time.

This flexibility is a major advantage of nearshore software development services and something that should be taken into consideration when choosing a software development partner.

When choosing a software development partner, there are a lot of factors to consider. The team size, their location, their area of expertise, and their development methodology are just a few of the things that need to be taken into account. With so many options available, it can be tough to decide which partner is right for your project.

Improved Project Management

One thing that is often overlooked is the importance of flexibility when it comes to resource allocation. And as we all know the traditional waterfall model of software development can often be inflexible, with resources being allocated at the beginning of the project and not reassessed until the end. This can lead to missed opportunities and wasted time as the needs of the project change.

However, with nearshore agile software development, projects are broken down into smaller sprints. This means that resources can be reallocated as necessary, based on the needs of the project at any given time. This flexibility is a major advantage of nearshore software development and something that should be taken into consideration when choosing a nearshore software development company.

Getting Started with Nearshore Agile Software Development

As we have discussed, there has been a growing trend of companies outsourcing their software development needs to nearshore development firms. There are many benefits to this approach, including cost savings, access to a larger pool of talent, and increased efficiency. However, it is important to understand how the nearshore agile software development process works in order to fully reap the benefits of this type of arrangement.

Nearshore Agile Software Development Process

It is important to remember that nearshore software development is a collaborative process between a company and a nearshore development team. The goal of this type of arrangement is to create high-quality software quickly and efficiently. In order to achieve this, both the company and the nearshore team need to be fully committed to the agile process. We view this as why it so important to focus on building agile teams and not trying to use nearshore developers as just a staff augmentation resource.

A dedicated software team can provide a number of advantages for agile nearshore software development. Nearshore teams can be more flexible and responsive to change than onshore teams, making them ideal for agile development. They can also be more cost-effective, as they often have access to lower-cost labor markets.

Remote Team that Complements Your In-House Teams' Capabilities

Additionally, nearshore teams can bring a different perspective to the development process, which can lead to more innovative solutions. Depending on your development partner. They can offer an immense amount of experience in a particular development area.

For instance at Azumo, we have a deep background in building AI-based technology solutions for our customers. In many instances, our clients hired us to perform and build features and through our interactions and consultation, we were able to create new machine learning based web, mobile and data applications for our customer. This is how a nearshoring partner should work.

Get Good Agile Development Process Tools

There are a variety of tools and technologies that are used in the nearshore software development process. These include project management tools such as JIRA and Confluence, version control tools such as Git, and collaboration tools such as Slack.

Project Management Tools: JIRA and Confluence

One of the most important aspects of any software development project is effective project management. There are a variety of project management tools that can be used in nearshore agile software development, such as JIRA and Confluence. These tools help to ensure that all project deadlines are met and that quality standards are maintained.

JIRA is a project management tool that is used to plan, track, and release software products. It is also used to track bugs and issues. JIRA is a popular tool among nearshore agile software developers because it is easy to use and has a wide range of features.

Confluence is a collaboration tool that is used to create and share documentation. It is also used to track tasks and ideas. Confluence is a popular tool among nearshore agile software developers because it helps team members stay organized and on the same page.

Version Control Tools: Git

Another important aspect of nearshore agile software development is version control. Version control tools such as Git help developers to keep track of all the changes made to the codebase over time. This is essential for ensuring that bugs can be fixed and new features can be added in a controlled and consistent manner.

Git is a version control tool that is used to manage changes to files. It helps developers keep track of their code changes and allows them to revert back to previous versions if necessary. Git is a popular tool among nearshore agile software developers because it makes it easy to collaborate on code changes with other team members.

Collaboration Tools: Slack

In any software development project—but especially in agile software development—it is important for team members to be able to easily communicate with each other. This is where collaboration tools come in. In nearshore agile software development, one of the most commonly used collaboration tools is Slack.

Slack is a collaboration tool that is used for communication between team members. It helps team members stay in touch with each other and facilitates communication about tasks, ideas, or problems. Slack is a popular tool among nearshore agile software developers because it makes it easy for team members to stay connected.  Slack like many communication tools allows for constant communication and video conferences.

We have preference for the best of breed solutions. But understand that a project manager or scrum master can use a host of solutions. However to implement the best agile practices we think it is important that an agile team have access to a the mentioned tools or their competitors as a starting point to success.

Nearshore Agile Software Development Project Management

Project management is an important part of any nearshore agile software development project. The project manager is responsible for ensuring that the project stays on track and that all deadlines are met. They will also be responsible for communicating with both the company and the nearshore team throughout the project.

Set Clear Expectations

From the start, it is important that the project manager sets clear expectations with both the company and the nearshore team. All parties should know what is expected of them and what the deliverables will be. This will help keep everyone on track and prevent any misunderstandings down the road.

Have a Detailed Project Plan

A detailed project plan is essential for any software outsourcing project. The project plan should include all milestones, deadlines, and tasks that need to be completed. This will ensure that everyone is aware of their responsibilities and knows when things are due. Having a detailed project plan will also help the project manager stay organized and on track.

Stay in Close Communication

Throughout the project, it is important for the project manager to stay in close communication with both the company and the nearshore team. Clear communication ensures that everyone is on the same page and that there are no surprises. If there are any changes or problems, everyone can be made aware of them as soon as possible.

Agile nearshore outsourcing offers a tremendous amount of benefits. Having the tools in place and the proper mindset will yield significant rewards.

At Azumo, we would also suggest that you include in your software projects plan a counterpart at your nearshoring partner who is able to track progress and make suggestions on quality and process improvements. Typically a good outsourcing partner will understand the capabilities of its software engineers and come up with ways to boost performance.

Nearshore Agile Software Development Best Practices

There are a number of best practices that should be followed in order to ensure a successful outcome for a nearshore agile software development project. These include establishing clear objectives from the outset, maintaining close communication between all parties involved, and ensuring that everyone is working towards the same goal.

We would also recommend adding a retrospective to each sprint. Doing so forces you to understand what went right in the sprint and what did not. Make sure to work on correcting things that did not garner the expected results. This will encourage continuous improvement and show benefits overtime.

By following these best practices, you can maximize the chances of your project being a success.

No items found.

We are Azumo
and we get it

We understand the struggle of finding the right software development team to build your service or solution.

Since our founding in 2016 we have heard countless horror stories of the vanishing developer, the never-ending late night conference calls with the offshore dev team, and the mounting frustration of dealing with buggy code, missed deadlines and poor communication. We built Azumo to solve those problems and offer you more. We deliver well trained, senior developers, excited to work, communicate and build software together that will advance your business.

Want to see how we can deliver for you?

schedule my call

Benefits You Can Expect

Release software features faster and maintain apps with Azumo. Our developers are not freelancers and we are not a marketplace. We take pride in our work and seat dedicated Azumo engineers with you who take ownership of the project and create valuable solutions for you.

Industry Experts

Businesses across industries trust Azumo. Our expertise spans industries from healthcare, finance, retail, e-commerce, media, education, manufacturing and more.

Illustration of globe for technology nearshore software development outsourcing

Real-Time Collaboration

Enjoy seamless collaboration with our time zone-aligned developers. Collaborate, brainstorm, and share feedback easily during your working hours.

vCTO Solution Illustration

Boost Velocity

Increase your development speed. Scale your team up or down as you need with confidence, so you can meet deadlines and market demand without compromise.

Illustration of bullseye for technology nearshore software development outsourcing

Agile Approach

We adhere to strict project management principles that guarantee outstanding software development results.

Quality Code

Benefits from our commitment to quality. Our developers receive continuous training, so they can deliver top-notch code.

Flexible Models

Our engagement models allow you to tailor our services to your budget, so you get the most value for your investment.

Client Testimonials


Azumo has been great to work with. Their team has impressed us with their professionalism and capacity. We have a mature and sophisticated tech stack, and they were able to jump in and rapidly make valuable contributions.

Drew Heidgerken
Director of Engineering

We worked with Azumo to help us staff up our custom software platform redevelopment efforts and they delivered everything we needed.

James Wilson
Discovery Channel

The work was highly complicated and required a lot of planning, engineering, and customization. Their development knowledge is impressive.

Discovery Channel
Costa Constantinou
Senior Product Manager

Azumo helped my team with the rapid development of a standalone app at Twitter and were incredibly thorough and detail oriented, resulting in a very solid product.

Seth Harris
Senior Program Manager

So much of a successful Cloud development project is the listening. The Azumo team listens. They clearly understood the request and quickly provided solid answers.

Matt Sutton
Head of Product
Bento for Business

Azumo came in with a dedicated team that quickly grasped our problem and designed and built our data integration solution. They delivered a clearer picture for our business in a timeframe I didn’t think was possible.

Bento for Business
Sean Anderson
Chief Operating Officer

How it Works

schedule my call

Step 1: Schedule your call

Find a time convenient for you to discuss your needs and goals

Step 2: We review the details

We estimate the effort, design the team, and propose a solution for you to collaborate.

Step 3: Design, Build, Launch, Maintain

Seamlessly partner with us to confidently build software nearshore

We Deliver Every Sprint

Icon illustrating the advantage of time zone-aligned software developers from Azumo, ensuring work hours synchronized with client schedules.

Time Zome Aligned

Our nearshore developers collaborate with you throughout your working day.

Icon showcasing the advantage of hiring expert engineers from Azumo for software development services.

Experienced Engineers

We hire mid-career software development professionals and invest in them.

Icon symbolizing how Azumo's software developers prioritize honest, English-always communication for building quality software.

Transparent Communication

Good software is built on top of honest, english-always communication.

Icon representing how Azumo's developers enhance velocity by approaching software development with a problem solver's mindset.

Build Like Owners

We boost velocity by taking a problem solvers approach to software development.

Icon illustrating how Azumo's quality assurance process ensures the delivery of reliable, working code for every project.

Expect Consistent Results

Our internal quality assurance process ensures we push good working code.

Icon depicting how Azumo follows strict project management principles to stay aligned with your goals throughout the development process.

Agile Project Management

We follow strict project management principles so we remain aligned to your goals