April 6, 2022 Last updated April 21st, 2022 1,445 Reads share

The Rising Cost of Nearshore Developers: It is Time for a Solution!

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The shift towards digitalisation has been rapidly increasing and the pandemic has exacerbated an already apparent problem facing development teams. With the ever-growing need for technology innovation, businesses are struggling to find the right people to fulfill their software development needs.  It goes without saying that as businesses grow and scale their tech, the need for more developers rises along with it. 

With the ever-evolving landscape of tech stacks, businesses also often struggle to find developers who have the right skills for their needs. What’s more, businesses often have to hedge their bets by choosing to work with a single technology. This can limit their ability to grow and expand with the ever-changing tech market. 


Outsourcing for software-related needs has always been a good option, preferably nearshore, as the time difference is minimal and communication is easier and smoother. However, as the market is growing, the rising demand for nearshore outsourced development teams is helping to push up costs. 

The increasing need for outsourcing has created a gap in the market, filled by innovative businesses such as Deazy, who do all the leg work of vetting and matching nearshore teams with businesses. With a large number of nearshore development teams that are tailored to meet the unique needs of clients, Deazy helps businesses of all sizes with digital innovation and transformation.

Skilled developer scarcity this decade

In recent years, the issue of developer shortages has grown significantly. While it is difficult to suggest a single reason for this problem, here are a few reasons why this might be happening. 

One potential factor for increased demand for developers could be the unprecedented growth of new technologies within mobile apps, big data, and cloud computing industries. This results in the rising requirement of diverse skill sets and tech stacks.  Developers need to constantly keep up to date with new and emerging technologies while ensuring their existing skills remain at the required level.   Obviously, this can take a toll on static in-house teams, meaning that having access to highly skilled developers on a flexible basis is a very attractive option for businesses that want to remain agile while keeping associated costs low.

The demand for skilled personnel has been so high that many enterprises are finding it hard to keep up. Hiring in-house developers is not always the best solution. For companies running multiple small projects alongside each other, it is often difficult to find a single developer who can cater to every tech stack required. This often leads to making the difficult decision of hiring multiple full-time developers for part time jobs, or abandoning crucial digital innovation projects due to a lack of suitable hires. Unvetted nearshore teams may try to capitalise on this lack of talent, by quoting escalated rates, knowing that many organisations cannot find the development talent they need. 

In turn, some businesses may decide to work with offshore developers to acquire a development team that has the experience and skills of their choice. Unfortunately, they may not always find a cost saving choice. What’s more, when using unvetted teams, businesses may experience delays and communication issues – and in some scenarios even get low quality output. 

The lack of development options drives prices up globally

With the increase in demand for development, hourly developer rates have gone up. A study by Microsoft predicts that the UK alone will need an additional 1 million software developers by 2025 in order to meet the overwhelming demand. 

Nearshore developers tend to be a more attractive and feasible choice when it comes to outsourcing development, especially with the right technology partner. The reduced time difference makes communication more efficient as well as reducing delays in development milestones. Despite reports suggesting companies have been paying 50-60% more for nearshore development than they would have had to 3 years ago, selecting the right nearshore outsourcing partner can help reduce development costs. 

The Best of Both Worlds

One solution business can try to overcome the challenges of today’s development market is by creating a blended team of in-house and nearshore developers. Choosing to outsource alone can lead to problems with a lack of in-house knowledge, risky project handovers, and an increase in costs. On the other hand, a blended team can balance in-house and outsourced talent and allows businesses to flex their team up and down as required. Flexible, pre-vetted, developers also allow a business to support legacy code whilst continuing to work on their innovation roadmap with ease. In today’s ‘digitalise or die’ business landscape, the choice to hire nearshore talent can quickly elevate a business to be a market leader. 

Therefore, employing flexible nearshore team strategy to augment existing teams, allows business to stay agile, adapting to ever evolving technology requirements. Augmented teams also increasingly cater to a unique and crucial part of today’s tech landscape – giving businesses access to talent at a low cost, with little handover risk and all while keeping in-house staff happy. 

For many businesses, a partner like Deazy takes the risk out of augmenting an in-house team with nearshore talent. With intelligent matching pre-vetted talent, and ongoing project oversight from an experienced in-house team, Deazy helps ensure that augmented teams are successful at providing development talent when, where and how you need them.

Addressing the Problem with Deazy

With a high demand of development expertise, that too, of different tech stacks, Deazy is offering cost-effective development solutions and access to a limitless range of development options.  Against a background of rising costs, Deazy offers a meaningful and cost-effective solution to offset the reported 31% average increase in the costs of Nearshore developers.  

Deazy has empowered nearshore teams to work more effectively, while giving clients access to top talent, through their delivery platform, DeliveryOS. The platform allows users to:  

Book quality, available developers

Deazy has built a development ecosystem of around 50+ teams all intelligently connected through their platform, DeliveryOS.

Compare options

Deazy offers comparative quotes to benchmark against their quoted price. They also pre-approve negotiated rate cards, so you can buy confidently, knowing that you are getting great value and pre-vetted talent  within  an increasingly volatile market. 

Flexible Engagement Models

Deazy offers complete freedom to choose the time span you want to work with developers or the team. Choose an engagement model that best suits your needs and pay accordingly.

Reliability and Accountability

Every developer and development team at Deazy are screened for tech knowledge, English skills and culture. Deazy’s experienced in-house team also oversee all projects, giving you an extra layer of assurance.  This eliminates any concerns related to the reliability of the developers and the probability of delay in the project delivery.

Reasonable Rate-Card

Zero policy for hidden or excessive charges makes Deazy the perfect technology partner. Complete details and comparative quotes about pricing prior to making any commitments let the clients comprehend how much they will be paying throughout the procedure. 

Satisfactory service

Deazy understands that the work is not done until the client is satisfied. We do not hesitate to substitute our developers if we observe a lack of value addition. 


Wrap Up

The problem presented by the nearshore developer scarcity is clear. By implementing a solution such as the one offered by Deazy, you will have a team that is more prepared to meet the ever-increasing development demand. You can also enjoy all of the benefits associated with nearshore development like additional, flexible capacity, when are where you need it,  and lower costs without giving up quality or control over your work. So, what are you waiting for? Tackle the problem today and get your development needs met the easy way!

Paula Antalffy

Paula Antalffy

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