is near-shoring to canada right for your company?

What is Nearshoring?

Software development nearshoring to Canada is becoming more popular among companies looking for software solutions.

This article will help you decide whether nearshoring software development to Canada is the right choice for your business.

Why IT Nearshoring is Important

There are several reasons why IT nearshoring has become so important for firms today.

Some of these reasons include:

- The need to lower costs by outsourcing work to countries with relatively low salaries;

- The fact that software development skills are in high demand, making it difficult to find skilled employees for your company's technology department.

- The need for time zone overlap to quickly respond to changes and exchange information with other companies (customers, vendors) located in different regions of the world or even on different continents.

- The need to have work done in a country with strong technology expertise, especially when working on projects that might include software development outsourcing.

For most companies, a nearshoring company is important because they want to lower costs while still being able to access talent quickly for software solutions.

Let's find out if nearshoring is the right outsourcing choice for your business.

For more details on why Nearshoring is important and its benefits,visit our last blog on : Why Nearshoring To Canada Is On The Rise

Availability of Talent in Canada

The good news is that Canada has plenty of experts to choose from, especially in areas where IT outsourcing firms are often expected to deliver IT solutions. These regions include:

- Gatineau, Quebec;

- Montreal, Quebec;

- Ottawa, Ontario;

- Toronto, Ontario.

It is often the case that software outsourcing companies have to be flexible in order to hire IT professionals for offshore projects. This means these developers are not always available in one region of Canada only. Outsourcing partners might need to come up with IT staffing plans or IT consulting plans that include work done in more than one region of Canada.

- IT salaries in Canada are lower compared to those paid in Western Europe and United States;

- The Canadian labor market has a steady supply of IT employees, with only 7% of IT professionals reporting difficulties finding a job.(Source:The Information and Communications Technology Council)

- Software certifications are well-respected in the IT industry. Companies hiring employees from Canada prefer professionals with certifications such as MCSE, Microsoft .NET or Cisco certifications.

- The Canadian labor market has a steady supply of IT employees, with only 7% of IT professionals reporting difficulties finding a job. -IT professionals from Canada are experts with IT certifications and experience on IT projects. They can help your department and teams work more efficiently and productively;Outsourcing businesses have been often quoted to say that nearshoring is a profitable business model for both sides.Outsourcing firms from the United States and outsourcing companies from other countries use it as a valuable strategy to make business more profitable.

Why Canada is a Great Location for an Engineering Team or Hub

The IT industry in Canada is well-developed and outsourcing companies working with nearshore development companies in Canadian say they are professional IT outsourcing partners.

Tech talent, affordability, and tech expertise are just some of the reasons outsourcing firms appreciate nearshore software development in Canada.

What about your business? Here's why you should consider nearshoring in Canada:

  • The time zone overlap between Canada and United States is one of the biggest pros of nearshoring in Canada;
  • Canadian citizens have a well-developed IT education system. This means that IT professionals from Canada are highly skilled, English speaking IT experts who can easily be upskilled for specific projects or tech tasks.
  • Canada has a very strong homegrown technology sector. There are over 43,200 companies in the Canadian Information and Communications Technologies (ICT) sector (Source : ITA)
  • IT professionals from Canada are experts with IT certifications and experience on IT projects. They can help your department and teams work more efficiently and productively;
  • Outsourcing businesses have been often quoted to say that nearshoring is a profitable business model for both sides.Outsourcing firms from the United States and outsourcing companies from other countries use it as a valuable strategy to make business more profitable.

What about the Legal Aspect? Regulatory Environment in Canada

Current outsourcing legislation is very friendly towards nearshoring. Outsourcing companies are allowed to outsource work carried out in Canada to IT offshore development companies outside of Canada because employees working on IT solutions do not need a work permit.

- The Canadian labor market has special IT laws that outsourcing companies know. Nearshore companies in Canada are experts in IT law compliance and security. Companies working with outsourcing providers understand the risks involved when it comes to data protection, personal information protection and business confidentiality;

- Software development in Canada is a great choice for departments looking for an IT outsourcing partner where privacy of customers is guaranteed.

Is Nearshoring For You

In the outsourcing industry, nearshoring is a growing strategy used by IT businesses from North America. Does your company want to start development in Canada? Here are some questions that might help you determine whether it is a good fit for your business:

  • Would it help teams work more efficiently and productively?
  • How far is your current team from the Canadian region? Are there any barriers or difficulties in communication between your IT department and teams working onsite in Canada. In other words, would nearshoring be a suitable solution for outsourcing??
  • Does your department work with remote employees or teams that work from home and take calls and requests only during the business hours in Canada.. Would software nearshoring be a suitable approach to make your existing software team more productive?
  • Can IT teams work efficiently together despite the geographical distance?
  • Do your employees use IT tools to communicate and collaborate on tasks?
  • Does your software department have experience with outsourcing?
  • If yes, how did it work out?

If you answered 'Yes' to all questions, nearshoring in Canada might be a good IT strategy for your IT department and IT teams.

Outsourcing companies usually use offshoring when it comes to software development projects that are less time-sensitive. Development sites in the Canadian region are therefore a perfect choice for IT departments looking for project partners with which they can develop IT solutions at a slower pace.

What Kind of Nearshoring Partner Do You Want?

Are you looking for an IT partner that offers full software nearshoring services?

There are some outsourcing organizations that offer full nearshoring services - they have a fully functional IT office close to your IT department -Business Analysis, Designing, Development, Program Management, Project Management, Quality Assurance (QA), etc.

Are you looking for an IT partner that offers partial nearshoring services?

On the other hand, some Nearshore software centres also offer partial nearshoring services. They hire top-notch engineers in Canada and work on your existing software product or software solution.

Are you looking for a partner with specific region knowledge?

Outsourcing Firms in Canada are IT partners with IT knowledge about the projects that can be delivered from Canada. Staff Augmentation organizations know IT laws and regulations that affect business in Canada. They also have connections and experience with local government agencies, universities and colleges;

Are you looking for an IT partner with specific project management knowledge?

Project management is a competency firms in the Canadian region possess. IT outsourcing companies have project managers who manage teams and projects from start to finish. Nearshoring can entail staff augmentation where your business needs manager or need a team with specific skills - technology knowledge, technical expertise, etc

How Do You Find Your Ideal Nearshoring Partner?

The good news for you is that there are plenty of reputable nearshore development companies in Canada willing to work with you.

  • One way of getting a good nearshore development company in Canada is by asking for recommendations from other companies that have worked with outsourcing companies in Canada before.
  • Search for organizations with expertise in your industry and IT business
  • Search for nearshoring partners on Google or LinkedIn
  • Outsourcing companies that are active on social media are easier to find.
  • Development companies with good case studies are helpful too. This shows that they have done IT offshoring work for other companies before, therefore, it is more likely they can do nearshoring as well.
  • Software development companies with reviews on outsourcing websites are good candidates.
  • Outsourcing companies that have records of staff augmentation or IT contractor work might be interested in nearshoring too. After all, companies need to hire software developers and engineers to keep the department running.
  • Find firms who have strong security, data protection and privacy policies

The bottom line is that finding an experienced, reputable IT nearshoring development company in Canada doesn't take too much effort.

Tips on Finding Nearshore Software Development Companies

1. Are you looking for a partner with specific tech skills?

Nearshoring brings outsourcing providers from different geographical locations to work with teams on a daily basis. Firms nearshore to the Canadian region as their partners have the necessary IT skillset and experience required for successful projects.

2. Look for Industry Expertise and Long-term Experience

The first thing to inquire about with any potential partners is their expertise in your field and how far it goes back. The best proof that they're doing something correctly is firms that have thrived for many years working with customers from a variety of sectors.

3. Rely on Facetime to Measure Compatibility, not RFP's

Many organizations make a choice based only on an RFP (request for proposal), which can lead to misunderstandings and misalignment. Nothing compares to interacting with your potential partner in person, seeing the facilities and environment in which they operate, and learning about them firsthand. At the very least, schedule some video conversations or video tours so you may get to know the real company and not just a document.

4. Speak with References or Past Clients

It's a good idea to inquire with the vendor as to which customers they presently serve and which ones would be ready to talk about their relationship openly. Of course, they might provide references that will shine a favorable light on them, but third parties will be more forthcoming once you have them on the phone, so ask some serious questions: When did they start working with IT outsourcing providers? How successful were they? What would be their advice to someone else considering offshoring with service providers?

5. Ask Partners to Demonstrate Their Abilities

When you're trying to figure out what someone does, ask them technical questions. Deeply investigate the specifics of your project and its complexity, especially if it involves a combination of technologies and platforms. What did they learn from the project and how will they apply that knowledge to your collaboration? Do they already have the talent on staff or do they intend to recruit for what you need?

Check the company's project portfolio. Canadian organizations should be able to provide professionals with certifications that best fit your project needs, skills and experience in industry, knowledge of the latest technologies,frameworks and trends.

6. Don't Think that Price Is Everything

Price is a necessity, but it's not the only factor to consider. For example, you may have to pay slightly more for quality services because the software providers are experts in software law compliance and security. They use best practices in project management for nearshore projects which result in lower costs over time.

7. English fluency of Development Teams

It is important that your offshore partner has excellent English fluency to be able to communicate with you on the fine details and various other challenges that may arise in your project.

8. Cultural Affinity of the team

Working with people who share your culture and language will make communication much easier for all parties involved.

9. Agile Fluency of Teams

Look out for a partner who has a workforce trained in agile methodologies, knowing the best Information Technology practices. Are there Self-managing teams that can tap into team members' expertise and deliver in scaling frameworks? Bottom line, if a company isn’t using Agile practices, your best bet is to keep looking.

10. Easy scalability

Ask if your partner can provide Small teams, and have the capability to expand to a larger team or multiple teams based on your requirements in the future when the project expands.

11. Continuous visibility and transparency

Ask if you will be given the provision to Communicate directly with your developers and look at your code. Your Partner must maintain complete visibility and transparency at all times once the NDA is signed.

12. Remember the Needs of Your Own Teams

Nearshore outsourcing projects companies are there to make life easier for your team by providing skilled professionals as a valuable extension to that team. Engineers are in high demand all over the world, so it's important to keep your employees happy with the nearshore outsourcing partnership to prevent the risk of them migrating to other companies.

13. Security Practices

Make sure you're well-versed in the security procedures of your nearshore partner since they'll have access to some or all of your data. Do they maintain separate networks for each customer, or will you be sharing your network with other teams? Does the firm request information on firewalls and physical installations? A good nearshore partner should have everything from tracking and usage stats to identification of suspicious activity all set up.

14. Engineers with Higher Education

Look out for IT Service partners who have Engineers having master's degrees in Computer Science or related fields.


When you're looking out for consulting companies nearshore, it is important to know where and how you can find them. You may not need a full-scale software project that will require teams of several hundred developers; you might just need expert developers for a particular project.

When you're looking for a nearshore partner, it is important to keep in mind all the important criteria that will guide you towards your final decision and guide you towards the perfect nearshore partner. Cabot Solutions is a software Nearshoring company based in Windsor , Ontario who has been providing Nearshoring solutions to clients in the United States for the past 15 years in Healthcare, Finance, HR, and Hospitality Domains.



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