Nearshore vs Offshore: Why Nearshore Works Better

Nearshore software development means hiring an engineering team in a nearby time zone instead of one on the other side of the world. For a company in the United States that means Latin America, and we think it is the better choice for almost any team that has to build something together, for one reason: the working day is shared.
Offshore can look cheaper per hour. What nearshore buys you is engineers who work inside your team, in your standups and your code reviews, and who answer the same day. CodigoDelSur has been doing it from Montevideo, Uruguay since 2007, for companies in the United States and the rest of the world.

Why nearshore: your working day is shared

Our working day covers the whole US East Coast day and most of the West Coast's. On a standard working day, a team in Central or Eastern Europe shares one or two hours with New York and none with California, and from India or the Philippines the two working days never meet.

Where the team worksNearshore or offshore for the USVersus New York
US winter 路 US summer
Hours shared with New York
US winter 路 US summer
Hours shared with San Francisco
US winter 路 US summer
CodigoDelSur, Montevideo, Uruguay
10:00 to 19:00
Nearshore2 h ahead 路 1 h ahead8 h 路 8 h, the full day5 h 路 6 h
Krak贸w, PolandOffshore6 h ahead 路 6 h ahead2 h 路 2 hNone 路 none
Bucharest, RomaniaOffshore7 h ahead 路 7 h ahead1 h 路 1 hNone 路 none
Bengaluru, IndiaOffshore10.5 h ahead 路 9.5 h aheadNone 路 noneNone 路 none
Manila, PhilippinesOffshore13 h ahead 路 12 h aheadNone 路 noneNone 路 none

The offshore rows assume a standard 9:00 to 17:00 local day, and the US side a 9:00 to 17:00 day in New York and in San Francisco. Winter and summer are the US seasons: US clocks go forward on the second Sunday of March and back on the first Sunday of November. European clocks change on the last Sunday of March and of October, so for a few weeks a year the two European rows move by an hour. Uruguay, India and the Philippines do not change their clocks at all.

What that means in practice

With an offshore team, someone always works at the edge of their day, or a question waits until tomorrow. With a nearshore team the shared hours are simply the working day, for everyone, and nobody works nights. People who are not working nights stay, which is why our engagements are measured in years.

Five moments when nearshore pays for itself

Shared hours sound abstract until one of these happens. In each of them, a nearshore team gives you an answer today where an offshore team gives you one tomorrow.
The daily standup. Nearshore: at your hour, with everyone awake. Offshore: at the edge of someone's day, or replaced by a written update that nobody can ask a follow-up question to.
A pull request review. Nearshore: opened in the morning, reviewed and merged the same day. Offshore: opened while you sleep, reviewed in your morning, fixed in theirs, and merged the day after.
A production incident. Nearshore: the engineer who wrote the code is online when it breaks. Offshore: it waits for someone to wake up, or for a night on-call rotation you have to organize.
An ambiguous requirement. Nearshore: a ten minute call. Offshore: a written question, a written answer, and a day for every round trip. The less defined the work, the more round trips it takes.
A new engineer's first two weeks. Onboarding is mostly questions. With shared hours they get asked and answered in the same afternoon. Without them, a new engineer spends the first week waiting.

When nearshore is the right call

What decides it is not how well defined the work is. It is whether the people doing it work inside your team. Engineers inside your team need your hours every day, however clear the backlog is: the standup, the code review, the blocker that takes one question to clear. Nearshore is the right call when:

  • Your engineers work inside your team: your repository, your standups, your code reviews.
  • A team owns a product area and talks to your product owner every day.
  • The product is still taking shape and decisions get made while it is being built.
  • Something in production cannot wait for someone on the other side of the world to wake up.
  • A new engineer has to be productive in the first week, which only happens when their questions get answered the same afternoon.

That is most of what companies hire a development partner for.

Where CodigoDelSur fits

For a company in the United States we are nearshore. Our working day runs 10:00 to 19:00 Uruguay time, which covers the entire US East Coast working day and five to six hours of the West Coast's. For a company in Europe we share two to four hours of your afternoon, depending on the country and the season.

What the shared hours are for is working inside your team, not beside it, and staying there: the first client we ever had, in 2007, is still a client today. Three engagements with published case studies where working inside the client's team was the whole point:

  • Help Scout: our engineers in its own production codebase since November 2024, in its repository and its release process, across the React application and the legacy Backbone.js code that still runs alongside it.
  • Leadpages: we worked inside the marketing team to relaunch redesigned pages, reskin their reusable components and move their content from Sanity v2 to v3, and shipped the migration in two months.
  • Grubhub: an embedded team that grew to fifteen engineers over a four year engagement, working on white-label ordering apps for more than 100 restaurants.

If you want engineers inside your own team, that is staff augmentation, and if you want a whole team shaped around your product, that is a dedicated team.

And if nearshore is decided and you are choosing where, here is why we build from Uruguay.

Staff augmentation, dedicated team or full-cycle product development

Once you have chosen nearshore, how the team is organized is the next decision, and it matters as much. Three different products get sold under the same word, "outsourcing". They are not interchangeable and picking the wrong one is the most expensive mistake in this category.

Staff augmentationDedicated teamFull-cycle product development
Who owns the roadmapYouYouShared, we run discovery
Who manages day to dayYour engineering managerYou, with a CodigoDelSur project manager coordinating on our side at no extra costOur project manager
What you getIndividual engineers inside your teamA team shaped around your product, staffed and coordinated by usA product, from discovery to store release
You need to haveTechnical leadership with spare capacityA product owner and a clear roadmapA budget and a problem worth solving
Typical size1 to 4 people4 to 12 peopleScoped per project
Minimum commitmentTwo weeks, one sprintTwo weeks, one sprintQuoted per project
Best whenThe work is defined and you are short on handsYou own a product area and want it staffed and coordinated as one teamYou need the thing to exist and you do not have an engineering org

Frequently asked questions

What is nearshore software development, and how is it different from offshore?

Nearshore software development means hiring an engineering team in a nearby time zone instead of one on the other side of the world. For a company in the United States that usually means Latin America, where the working day overlaps with both coasts. An offshore partner eight to twelve time zones away can be cheaper per hour, but the overlap is small or nonexistent, so a question asked in the morning gets answered tomorrow and a production incident waits for someone to wake up. CodigoDelSur works from Montevideo, Uruguay, at UTC minus 3, which sits inside the US East Coast working day for the whole day.

Why choose nearshore over offshore?

Because most development work is done by people who need to talk to each other. A nearshore team shares your working day, so standups happen at your hour, code gets reviewed the same day, and a production incident is handled by someone who is awake. There are excellent engineers everywhere; what slows offshore work down is the time difference, not the people.

Is CodigoDelSur nearshore for companies in Europe?

For an afternoon overlap, yes. Our day shares two to four hours of the European afternoon, depending on the country and the season, which is enough for a daily standup, code reviews and same day answers.

What time zone do your engineers work in, and how much overlap will I get?

Our engineers work 10:00 to 19:00 Uruguay time, which is UTC minus 3. That covers the entire US East Coast working day, five to six hours of live overlap with the West Coast, and an afternoon overlap with Europe. The schedule is set that way deliberately: shifting the day an hour later widens the Pacific overlap without asking anyone to work nights, and it is the reason this arrangement is still working in month twelve rather than quietly falling apart in month three.

Tell us how your team works

Tell us where your team is and how the work is organized, and on the first call we will tell you how much of your day our engineers would share and which model fits, before you have signed anything. CodigoDelSur has been building software since 2007, from Montevideo, Uruguay, for companies in the United States and the rest of the world.