Nearshore software development has been a well-known practice for US businesses to get work done at a lower cost and with less hassle. In 2023, 49% of US companies across various industries have outsourced their IT and software development needs to top nearshore destinations in Mexico and Canada, including Vancouver, Toronto, Montreal, Mexico City, Guadalajara, Tijuana, and other cities (Statista, 2023).
This buyer’s guide aims to help US businesses find the best nearshore outsourcing partner for their software development and IT initiatives.
The mentioned trend has remained consistent over the years since nearshore technology contractors share cultural, language, and time zone similarities with their American employers. Besides, while they are well-skilled and experienced, their hourly rates are often lower by as much as 35% compared to those of the typical US software development team.
Hourly Rates (RPH) for Nearshore Software Developers: North vs. Latin America (2024)
| Country/ Region | Junior Developer RPH | Middle Developer RPH | Senior Developer RPH | Overall Average | Difference from US Rates |
| United States | $20 – $40 | $40 – $70 | $70 – $150+ | $66.40 | – |
| Mexico | $20.45 | $25.67 | $31.92 – $35.50 | $25 to $60 | 40% to 67% lower |
| Canada | $25.00 | $36.06 | $63.19 | $60.13 | 5% to 10% lower or comparable |
| Latin America | $20 – $30 | $30 – $50 | $50 – $75 | $45 to $65 | 2% to 32% lower |
Experience level:
– Junior develop: 0-1.5 year
– Middle developer: 1.5-4 years
– Senior developer: 4+ years
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Our Selection Criteria
We regularly review a pool of IT firms offering staffing and outsourcing services in the North American region to identify the top nearshore software development companies.
In July 2024, we reviewed 127 professional IT services firms in both countries and prepared a curated list of the nine top-rated nearshoring vendors from Mexico and Canada for 2024. We hope that our guide will help you find the best nearshore technology company.
We use the following vendor selection criteria for our rating:
- Industry experience
- Portfolio
- Skillset and expertise
- Employee growth
- Marketing activity and operations in the region
Top-Rated Nearshore Technology Companies Offering Software Development Services
1. Intersog
Intersog is one of the fastest-growing IT companies in North America that offers full-service software outsourcing solutions, including nearshore developers, industrial automation, custom software development, cloud computing, AI development, etc.
Intersog is headquartered in Chicago, IL, and has delivery centers in Vancouver, BC, Guadalajara, and Kiyv. Ukraine. They have been providing IT consulting and software development services since 2005. In 2022, Intersog counted 200 employees, and LinkedIn estimated a 12% growth of engineering and IT staff for 2023.
Intersog has developed cutting-edge software solutions for healthcare delivery, payroll, digital agencies, automotive companies, and insurance firms. Their clients are well-known businesses from North America, Europe, and Asia, such as Tesla, Mitsubishi, CDW, and Bosch.
2. Softtek
Softtek has been one of the pioneers in providing nearshoring software outsourcing services to American businesses since 1982. They started out as a local IT services provider in Mexico, and within a span of forty years, they have expanded globally, with offices in North America, Latin America, Asia, and Europe.
Softtek enjoys a high level of recognition and experience working with many high-profile clients across the globe, such as Samsung, Deutsche Bank, McDonnal, and Vodafone. Their annual revenues range from $120 to $150 billion (LinkedIn, 2022). They hire over 3,000 software developers and have a client portfolio of over 1,000 projects.
The firm provides a comprehensive range of IT outsourcing services such as application development, cloud & DevOps, and digital transformation for healthcare, insurance, media, and fintech businesses.
3. BairesDev
BairesDev is a full-service software development and design firm providing nearshore development and staffing services since 2009. They have been recognized as a top IT company 2022 in Canada and the US by Clutch and GoodFirms.
BairesDev’s clients include Autodesk, Google, Groupon, Rolls-Royce, and Netgear. They have a team of 450+ software developers, engineers, and designers available on-demand, 24/7. The company counts over 3,500 employees (LinkedIn, March 2023).
Baires Dev has an HQ in San Francisco, California, and has multiple offices in Canada, Spain, Argentina, Brazil, Colombia, and Mexico.
4. Blue Coding
Blue Coding is a small company from Miami, Florida that has been helping US firms hire top software developers in Latin America through their staff augmentation and managed IT services since 2014.
Blue Coding has a strong reputation for providing high-quality nearshore services. In addition, they help businesses assess their technology needs to develop software products.
Blue Coding’s nearshore software developers are well-versed in various technologies, including Java, C#, .NET, AngularJS, SQL Server, Python, PHP, and more. In addition, developers enjoy working on frontend and backend application development using the latest tech tools.
5. Krasamo
Krasamo, Inc. is a US-based IT company delivering nearshore software development services in Mexico. They have been working with US businesses since 2010 and boast a proven track record in providing digital consulting and product development services, including custom software, web development, and mobile app development.
According to LinkedIn, Krasamo has been growing its operations in Mexico throughout 2022, a good sign for US businesses looking for the best nearshore outsourcing services provider.
In addition, Krasamo always hires high-tech specialists like AI developers and big data engineers to expand their team. According to its website, the company lists over 50 clients and has worked on more than 120 software development projects.
6. N-iX
N-iX is a well-known IT firm that helps businesses solve their software development and staffing needs through professional nearshore technology services. They have an HQ in Miami, Florida, and delivery centers in Ukraine, Poland, Sweden, and Malta. N-iX relies on a global team of software developers and designers to provide top-quality services.
N-iX is no stranger to the battle for being on the top of any outsourcing list. It has been in similar positions in Clutch’s ratings for 2020 and 2022. They offer a wide range of IT services, including consulting, software engineering, and mobile app development.
7. AccelOne
AccelOne is a US-based IT consulting firm providing services in the development, deployment, and maintenance of mobile, web, and enterprise applications. They use a hybrid approach with experienced nearshore developers from Mexico and Canada to work with clients and help them achieve their digital transformation goals.
In 2022, AccelOne was included in the Inc 5000 list, a ranking of the United States’ fastest-growing firms, since 1979. They’re valued at $250 million and have around 100 employees. AccelOne specializes in technology consulting, application coding, website design and development, artificial intelligence, and network security.
8. Developers.Net
Developers.Net is on a mission to help American technology businesses recruit and retain outstanding nearshore developers from Latin America and Canada. They are top experts in various stacks, including Ruby, Java, Angular, Python, machine learning, and more.
Developers.Net was founded in 2017 in Austin, Texas, and currently has around 90 employees. The company positions itself as a nearshore developers marketplace that connects top talent with US clients. However, they look very much like an outsourcing company rather than a freelance platform like TopTal and Upwork.
9. ClickIT
ClickIT is a cloud development and nearshore outsourcing company that provides high-quality remote IT services to businesses in the US, Canada, and Mexico. The company specializes in various technology stacks, including enterprise development, custom software, cloud DevOps, microservices, and AWS Managed Services.
ClickIT’s engagement models include project delivery, staff augmentation, and dedicated teams. The company has been working with clients since 2011 and has been a top performer in several international rankings. It has over 80 employees (LinkedIn, 2023).
Expanding Horizons: Offshore Software Outsourcing
While the focus on nearshore software development in North America has proven beneficial for US businesses, the rise of offshore development companies, especially those in Europe, has introduced a new dimension to the outsourcing landscape.
European software development firms offer a unique blend of advanced technological expertise, innovative approaches, and competitive pricing that appeals to global markets, including the US. Countries such as Poland, Ukraine, Hungary, and Romania have emerged as leading tech hubs, hosting companies specializing in various services, from bespoke software development to blockchain technology and AI solutions.
Below is a good example.
Mobilunity
Located in Ukraine, Mobilunity is a standout in the provision of dedicated development teams to businesses worldwide. What sets them apart is their ability to cater to specific needs, particularly for those seeking to hire Hungarian developers. With a talent pool of over 200,000 Ukrainian engineers, including a significant number of highly skilled Hungarian professionals, Mobilunity ensures that clients have full control over the development process, aligning projects precisely with their needs.
Mobilunity’s focus on people, fostering a culture of loyalty and ambition, and its commitment to direct engagement, ensuring dedicated project focus, superior development outcomes, and cost efficiency are the pillars of its success. The 3R strategy—recruitment, relationships, and retention—underpins its ability to deliver skilled professionals poised to drive project achievements.
Conclusion
Nearshoring has become the most common outsourcing trend in the technology industry. While companies from Europe, Japan, and South Korea have been outsourcing to India for a long, businesses from the US prefer to outsource their IT needs to nearshore locations in Canada and Mexico.
We believe that our rating of top nearshore software development companies will assist American businesses looking to outsource their IT needs to a trusted partner.
