Nearshore Backend Development: Powering Global Tech Across Borders

The global shortage of skilled software developers continues to pose a challenge for companies worldwide. According to McKinsey, the tech talent gap in the European Union (EU) could reach between 1.4 and 3.9 million people by 2027. The shortage is especially evident in backend development, one of the most sought-after IT skills in 2025. To address this growing demand, many organizations turn to alternative recruitment strategies and hire external talent through outsourcing companies.

While IT service providers can be found in almost any region of the world, nearshore backend development offers distinct advantages in many cases. It offers flexible access to global talent, cost savings, and real-time collaboration.

In this article, we explain why hiring nearshore backend developers is becoming the go-to strategy for growing tech teams. We also share the Neontri expert-vetted checklist to help you choose the perfect partner.

Key takeaways:

• Nearshore backend development offers access to a broad pool of skilled professionals. It provides seamless collaboration through aligned time zones, cultural similarities, and the flexibility to meet in person when needed.
• Companies establish effective collaboration with nearshore backend developers by setting clear expectations, ensuring open communication, and integrating outsourced developers with an in-house team.
• One of the most important decisions when opting for this outsourcing model is selecting the right outsourcing destination. For example, Poland is a perfect choice for Western European businesses.

Benefits of nearshore backend development 

Before we dive into the practicalities, let’s quickly cover what nearshore backend development is and how it differs from other hiring models.

Nearshore software development involves outsourcing software development tasks to professionals in destinations with minimal time zone differences (1-3 hours) or within the same time zone. Meanwhile, backend development focuses on building the server side of web and mobile applications. So, nearshore backend development occurs when businesses outsource this critical function to an external provider in a nearby country.

This model strikes the perfect balance between the two other collaboration options: hiring an in-house team and offshore development. The latter involves working with outsourcing companies in distant countries that have significant time zone differences (often more than 5 hours).

This approach offers a unique blend of convenience, cost-efficiency, and communication ease—making it an increasingly popular choice for companies looking to scale smart. Let’s take a closer look at the specific benefits nearshore backend development offers.

Cost savings

By providing access to skilled backend developers in regions where salaries are more competitive than in local markets, nearshoring offers excellent cost efficiency. For instance, programmer rates in Eastern Europe are much lower than in the UK or Germany. The average backend developer salary is currently about EUR 60,000 in Germany and GBP 48,000 (EUR 57,400) in the UK, according to Glassdoor. Meanwhile, companies nearshoring their backend development to Poland can expect to pay local software engineers an average of EUR 40,000. That translates to saving about EUR 20,000 per year per developer.

Time zone alignment

Nearshoring assures close temporal proximity—either sharing the same time zone or being just a few hours apart—between an in-house team and external software developers. This allows teams to hold productive meetings during business hours, receive timely responses to requests, and resolve issues swiftly.

For instance, time zone differences within Europe are largely non-existent. Nearshore developers from Poland typically work the same daily hours as their German clients. For clients in other parts of Europe, the time difference is minimal—one to two hours, making collaboration smooth and efficient. If any issues arise, they can be addressed immediately.

Another unique advantage related to the geographical proximity of nearshore software teams is the ability to arrange offline meetings. With expert developers just a few hours’ journey away and no visa barriers, meeting in person before a project kick-off or for team-building events becomes a practical and effective option.

Cultural fit

Nearshore software development partners often share similar business practices, values, and communication styles. This cultural alignment makes it easy for each team to understand the other’s expectations and reduces the risk of friction between teams.

For example, most European countries are culturally close and share a common work ethic. Eastern European nearshore backend developers are likely to approach their tasks in a similar manner to their Western European in-house counterparts, respecting deadlines and proactively seeking clarification when needed. These cultural similarities contribute to seamless communication and enhance productivity.

Close historical ties between countries in Europe also reduce language barriers. For example, it’s fairly common for Polish tech specialists to speak German and English. Working with a nearshore backend development team that shares a common language with the in-house team is convenient for both sides, promoting accurate communication and mutual trust.

Simplified legal compliance

Hiring nearshore development teams often means businesses follow similar legal frameworks, regulations, and industry standards as one another, simplifying legal compliance. For example, all businesses within Europe must adhere to strict data protection standards—standards that are often absent or more lenient in other parts of the world. Specifically, software development companies in EU member states must comply with:

• General Data Protection Regulation (GDPR) which imposes strict rules on how businesses collect, store, and process personal data
• Network and Information Systems Security (NIS2) Directive which introduced stringent security requirements for critical infrastructure across the EU.

Many of these companies also meet ISO/IEC 27001 requirements, a widely recognized international standard for information security management systems. On top of that, EU countries are known for their strong rule of law and contract enforcement.

With all these benefits, nearshoring backend development is a sensible option to access skilled tech talent who can work synchronously with the rest of the team at a reasonable cost.

How to get started with nearshore backend development

The first step to establishing a successful nearshore development collaboration is choosing the destination: a country in a similar or the same time zone with a favorable business environment and a robust tech talent pool. The next step is doing research on the nearshore software development service providers in that country.

Research country options

To qualify as a nearshore destination, a country should be in a time zone within 1-3 hours of the business searching for a team. For companies based in Western Europe, that means countries in Central and Eastern Europe (CEE), such as Poland, the Czech Republic, Romania, and Hungary. Then, companies need to consider the following factors for each country:

• How many skilled backend developers does the country have? 

A larger tech talent pool means a greater variety of developers to choose from, increasing the likelihood of finding the right skill set for a specific software project.

• What is the skill level of the country’s developers? 

This can be estimated by the country’s rankings in international programmer competitions like those held by HackerRank and SkillValue, which indicate the level of expertise in the tech community.

• Are there any prominent tech universities or IT hubs in the country? 

Their presence often signals a strong pipeline of well-trained developers.

• Do global corporations have branches there? 

Branches of global companies signify a competitive and advanced tech ecosystem that attracts top talent and fosters innovation.

• Does it have a strong legal framework? 

Countries with robust intellectual property protection and data security laws ensure that your project’s code and sensitive data are kept secure, reducing legal risks.

• Is it politically stable? 

Political stability is important to ensure business continuity and minimize the risks associated with sudden regulatory changes or civil unrest.

• What transportation connections does the country have? 

For clients who plan to meet the nearshore development team in person, having direct flights and reasonable travel times can be a key decision-making factor.

• What is the English proficiency level? 

A high level of English proficiency is critical to ensure smooth collaboration. Even if some backend developers speak the client’s language, English is a must as it remains the international language for business communication.

• How established is the country’s outsourcing industry? 

A well-established outsourcing industry offers teams more familiar with the collaborative nature of nearshoring and, thus, better alignment with client expectations.

• What is the country’s average pay rate for backend developers? 

Understanding expected compensation rates helps businesses determine the cost-effectiveness of nearshore development.

• Are there any hidden costs or risks? 

It’s crucial to consider hidden costs and risks, like turnover rates or problems with work quality, which can impact budgets and project success. For example, Romania has experienced a significant brain drain in recent years, leading to high developer turnover as professionals continue to migrate for opportunities abroad.

Here’s a completed checklist for Poland as an example for Western European countries looking for a nearshore backend development partner:

Comparing several countries by these criteria, it’s easy to choose which offers the best combination of affordable rates, highly skilled talent, robust data security laws, and a compatible culture.

Decide on a partner company

Selecting a nearshore software development company can be challenging. Each shortlisted country will probably have a lot of vendors that claim to have the best backend developers, eager to take on a new project. Here’s a list of questions that businesses can use to make the right decision:

• How long has the company been in business? 

The longevity of a company indirectly indicates its ability to deliver quality results over time.

• How large is their talent pool? 

A large and diverse talent pool means the outsourcing company can find and offer skilled developers who meet the client’s requirements faster. It also reflects their ability to scale resources as project needs grow.

• What is their backend technology stack? 

Backend developers typically specialize in a tech stack that includes programming languages and frameworks such as JavaScript (Node.js), Python (Django), Java (Spring Boot, Quarkus), C# (.NET Core), Ruby (Ruby on Rails), and PHP (Laravel). Businesses should ensure that the company’s tech stack will meet their specific needs.

• What project management methodologies do they use? 

Agile methodologies are generally considered the best approach for most projects as they promote flexibility and continuous improvement.

• What kind of projects do they have in their portfolio? 

To show they have the relevant expertise, the company should have a proven track record in building backend systems that match the client’s specific needs.

• What are their rates and payment models? 

Assessing rates helps clients gauge whether the company offers a good balance of quality and affordability. Understanding payment models helps with budgeting.

• What is their work culture? 

This can affect communication, efficiency, and overall project success. A good fit ensures smooth collaboration.

Below is an example of a company profile based on the questions from the list above:

Certain factors, like company culture and approach to collaboration, are difficult to gauge by examining a company’s website and reviews. So businesses should also reach out to their shortlist of providers and conduct interviews.

Overcoming some challenges of nearshore backend development

While collaborations with teams in nearby countries are generally easier to manage than offshore models, they still come with their own set of challenges. Here are the key obstacles every business considering nearshore backend development should be ready to tackle:

• Quality control and code consistency. When the nearshore development team is expected to handle only backend development, it’s vital to ensure seamless integration with the software development project’s front end. Client companies can achieve this by establishing unified code quality standards.
• Security and compliance risks. Transferring sensitive data across borders might entail legal and security risks. However, when nearshoring within the EU, this risk is mitigated. Nearshore software developers across the EU will store and process their customers’ data just as securely as domestic teams.
• Scalability issues. With lengthy and complex projects, scaling may be required at some point. Some nearshore vendors might struggle to deploy additional backend developers to a project quickly enough. To avoid that, evaluate the vendor’s talent pool and flexibility of arrangements before committing.

Most of these risks can be effectively mitigated by finding a reliable nearshore software development partner, signing a strong contract that specifies all important details, and following best practices.

Best practices for collaborating with nearshore software development teams

Even with a reliable partner and a detailed contract, there’s still the matter of how well the client’s team and nearshore backend programmers get on with each other. Here are the keys to fostering a productive collaboration:

• Supportive onboarding. Nearshore developers must be onboarded similarly to remote in-house team members. While the vendor will handle the developers’ taxes and paperwork, the client must educate them about project processes and company culture.
• Clear communication preferences. Companies partnering with a nearshore development team need to set clear expectations for communication style, like required response times and preferred channels.
• Proactive project management. To ensure nearshore backend developers collaborate effectively with the rest of the team, it’s critical to have the right project management tools in place, such as Jira and Confluence. Such tools help track progress, manage tasks, and keep everyone on the same page.
• Clearly defined roles and responsibilities. Establishing clear ownership of tasks helps backend developers hired through a nearshore partner stay productive, prevent work duplication, and quickly resolve any issues that arise.
• Team building activities. One of the key benefits of nearshoring is the ability to bring in-house and nearshore developers together for in-person events. This is especially valuable for long-term projects, as personal connections foster mutual understanding and enhance collaboration.

Summing up, successful collaboration with nearshore software development teams hinges on clear communication, well-structured project management, and a strong team dynamic. Applying these best practices helps businesses build robust software products while incurring minimal risk.

Neontri: Your trusted nearshore development partner

Nearshoring backend development offers forward-thinking businesses the perfect balance of talent access, cost savings, and operational alignment. Finding the right partner is crucial to realizing these benefits. This process requires careful evaluation of technical expertise, industry experience, and cultural fit.

With 10+ years of proven excellence in software development and IT staff augmentation, Neontri has established itself as a trusted nearshore partner for enterprise clients across diverse industries. Our team of skilled backend developers combines deep technical know-how with agile delivery, ensuring smooth collaboration and high-impact results from the start.

We specialize in developing robust, scalable backend systems, delivering end-to-end software solutions, and providing top-tier tech talent through flexible engagement models. Whether you need a dedicated team, project-based delivery, or staff augmentation, our developers integrate seamlessly with your workflows and accelerate your product roadmap.

Let’s build something powerful together! Get in touch to see how Neontri can elevate your backend development.

Resources

https://www.hackerrank.com
https://www.statista.com/statistics/1367003/in-demand-it-roles/
https://skillvalue.com/en/