Is nearshore development better than offshore?

Neither is better in general. Nearshore suits work that depends on daily real-time collaboration; offshore suits well-specified work where a lower rate matters more than overlap. Many companies use both for different parts of a product.

Which countries count as nearshore for North America?

Latin American countries such as Mexico, Brazil, Argentina and Colombia are the usual nearshore locations for US and Canadian companies, because their working hours largely overlap with North American time zones.

Outsourcing & Engagement Models

Nearshore Development

Nearshore development is the practice of contracting software work to a team in a nearby country that shares most of the client's working hours. For US and Canadian companies, nearshore usually means Latin America, where Mexico, Brazil, Argentina and Colombia are common locations.

The main benefit is time-zone overlap. A nearshore team can join stand-ups, pair on a problem and answer questions the same afternoon, which shortens feedback loops on products where requirements change often. Travel for workshops is also shorter and cheaper.

Nearshore rates sit between offshore and domestic ones. As of September 2026, agency-delivered ranges for senior developers in Latin America run about $45–75 an hour, compared with $35–55 in India and $150–250 in the US and Canada. Many companies pick nearshore for work that needs close daily collaboration and offshore for well-specified work.

Shared hours

Little or no time difference, so meetings and reviews happen in real time.

Mid-range cost

Lower than domestic rates, usually higher than offshore regions.

Good for changing scope

Fast back-and-forth suits products still finding their requirements.

Codazz builds this in production — Offshore Development.