Building a Nearshore Development Team? Follow These Steps and Insider Tips

Nearshore custom software development can be a goldmine. Done right, it gives you high-quality results — plus some surprising extra perks along the way.

But here’s the real question: how do you make sure you’re doing it right?

Hi, I’m Katherine Lazarevich, a senior tech expert with 15+ years of experience and co-founder of Digiteum.

Me in the office of Diflexmo, our client since 2022

Let’s start with the step-by-step process companies typically follow when working with a nearshore development team. Nothing revolutionary, but it’s always good to make sure we’re on the same page from the get-go.

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When it comes to choosing a nearshore software development team, the options might be fewer than offshoring — but there are still plenty of choices out there, especially across Europe. So how do you narrow it down to the one?

Gather proof of expertise

Check referrals, reviews on platforms like Clutch, and their portfolio. If the company has solved challenges like yours before, it’s a big plus.

You’ll be spending a lot of time with these folks, so look for a partner who speaks your language — both literally and figuratively. Consider their flexibility, transparency, and strong communication. And don’t forget about the vibe. The right fit isn’t just about technical skills — sometimes, it’s that perfect chemistry that really makes everything click, just like in personal relationships.

Remember when I said to share your goals early? Here’s why: A good vendor won’t just pitch their standard package — they’ll tailor their plan to what you need. I’ve been on both sides of the table — as a vendor and as a client — and I’ve seen how some vendors just sell what they have without really listening. The right vendor will focus on your goals and might even suggest a simpler (and cheaper) solution if it still gets the job done.

Alright, you’ve found your ideal nearshore dedicated development team. They seem like a perfect fit, and you’re ready to get to work. Now it’s time to figure out how to manage a nearshore development team, starting with the right contract and collaboration tools.

By now, you’ve probably got a good sense of how this collaboration is going to work. Most clients figure this out early, narrowing down partners who can align with their preferred approach.

Now’s the time to lock in the details — IP rights, jurisdiction, payment terms, and other essentials — to avoid surprises later. For more tips, check out this guide on IT contract negotiation, it’s packed with helpful insights.

And if you’re still undecided on models, check out our guide on software development outsourcing where we break down the difference better them (yes, free tips, because we’re nice like that).

If you have your own set of collaboration and communication tools, feel free to invite your nearshore team to use them.

Struggling to pick the right tools? Don’t hesitate to ask your partner for some suggestions or help getting everything set up.

For example, we love using Figma for design collaboration. If your team doesn’t have access or experience there, we’re happy to invite you to Figma to collaborate there. Or, if your in-house team is small and doesn’t use advanced tools like Jira for task management, we can share access to our instance as part of the project.

In other words, talk to your partners! They might bring in some great new tools and take your processes to the next level.

Communication is key to project success, so it’s worth taking the time to set it up properly from the start. Plus, it’s way easier than trying to fix it later if things go off the rails.

Here are a few tips to guide you.

Decide on reporting schedule and tools

Define how often and in what way the nearshore custom software development team reports progress.

You will also need a RCA (Responsibility, Communication, and Approval) matrix. This matrix clarifies which decisions need your approval and which ones the dev team can handle on their own. This saves a lot of back-and-forth in your work.

We don’t usually expect problems. But having a clear process for reporting and resolving issues will give you peace of mind knowing problems will be handled quickly if they arise.

Communication is always easier when everyone’s role is clear. Make sure you know who does what in your nearshore team, and they know who is responsible for what on your side.

You might also have multiple people on your side. For example, you could have a Product Owner managing scope and strategy, while your CTO or another technical specialist takes charge of technical direction.

Once you’ve set up your communication flow, make sure everyone is on the same page. Each team member should know exactly how to track their progress, who to reach out to for issues, and what to do when a problem arises.

Now, it’s time to get the nearshore development team up to speed and delivering quickly. So, let’s talk about onboarding.

Onboarding isn’t just about reviewing tools and tasks. Even the most experienced development team that knows your industry won’t magically get your business overnight — especially the nuances that make your business uniquely yours.

So, share the essentials:

• How your business really works;
• Who your competitors are;
• Your near-future goals;
• Your long-term objectives.

And don’t underestimate the human touch. Think about this: in one scenario, your external developers are working in isolation — in another, they’re fully integrated into your internal communication channels, occasionally visiting the HQ, getting invited to team-building events, and maybe even receiving some cool company swag. (I’m still jealous of the Lodgify sweatshirts our team got!) Which do you think will lead to more efficient work?

Sure, you’re not required to do all that. But trust me — those little gestures can make a huge difference in productivity and team morale, just like they did for our work on the Lodgify vacation rental platform. Sometimes, it’s the small things that work their magic.

The development process should be agreed on upfront. At Digiteum, we typically use Scrum, Kanban, or Scrumban, but the team will adapt to your needs.

Regardless of the process you choose, it’s essential to clearly define the initial deliverables that you can review and discuss with your team.

It often takes time to develop the first working prototype. However, your first deliverable with a nearshore team doesn’t have to be a functional product. It could be a walkthrough of a design prototype, flow diagrams, or specifications. Something that ensures that your team follows the project direction.

When it comes to the first development sprint or iteration, keep it small as well. This will allow you to assess not only progress but also the quality of the work.

Early-stage frequent demos help keep everyone in sync. As the process stabilizes, you can adjust how often they happen.

Many clients want to skip discovery or design phases, jumping straight into development while working on specs and designs in parallel. This may lead to confusion.

In practice, taking time for discovery and design simplifies the development and helps you build a shared understanding with your nearshore development team.

Last but not least — even with the most well-thought-out processes at the start, be prepared to adjust and improve them as you go. Continuous improvement is not just about fixing problems; it’s about building a stronger, more efficient collaboration over time.

If something doesn’t sit right, don’t keep it to yourself — speak up early! Work with your nearshore team to discuss and implement changes that take your process to the next level.

Fortunately, reliable vendors know how to build a nearshore team that can pivot, adapt, and help you navigate the twists and turns along the way.

Now, let’s check some of the common challenges we see — and the questions our clients often ask.

This one usually comes down to doubting the company’s commitment. But what it really boils down to is transparency. Transparency is key — and that’s achieved through regular status updates and a framework that lets you track progress at every step.

We all know this micromanagement fear. This is actually tied to that same transparency issue. Regular check-ins and updates mean you won’t have to play “project manager” 24/7. You’ll know your team is staying on track without having to look over their shoulder constantly.

Totally valid concern, especially when we’re talking about projects that cost tens and hundreds of thousands. The key here is being crystal clear about your budget upfront. Discuss with your tech partner how often you want updates — whether monthly, bi-weekly, or another schedule — that keeps you informed and in control.

This usually happens when requirements are being checked off mechanically, without understanding the why behind them. And you’re right — this can be a huge problem.

Developers can’t always know exactly what you need unless they understand the context. So, “an effective mobile app” or “a complex platform” doesn’t always cut it. Being clear on the why behind your goals is just as important as the what.

And don’t forget regular demos! Frequent reviews keep everything aligned and make it easier to catch and fix issues early.

In our guide to nearshore software development, we’ve already touched on some common concerns that businesses often have.

Things like unclear budgets or a lack of transparency can create real headaches. But don’t worry, I’ve got some best practices for working with nearshore teams.

As I’ve mentioned, a solid communication plan is key for setting up a nearshore development team. The good news? One of the biggest perks of nearshoring over offshoring is that you can actually meet on-site to get things started — and I highly recommend you take full advantage of this opportunity.

Here’s an example from Digiteum’s experience: When we kicked off with Champion Data’s UK office, we spent a week on-site — setting up processes, building relationships, and, yes, just hanging out. It was a game-changer for building a solid foundation. How solid? Well, we’ve been working together on sports data intelligence solutions since 2021, and our partnership is only growing stronger.

When you’re building a nearshore tech team, things don’t always go as smoothly as you’d like. Even if you’ve got a manager in place, you need an extra layer of support. This is where strong leadership steps in.

For example, at Digiteum, we don’t just provide nearshore developers. There’s always a C-level in the loop who keeps an eye on the big picture. So if you have questions or need advice, me and the rest of the team are always there.

If this is your first time working on an IT project, you’ll want to hire nearshore software developers who can support you along the way.

At Digiteum, we’re always ready to guide our clients on how to assign tasks, track time, and use tools effectively — no problem if you need any help! Remember, we’ve got a lot of expertise, and you can use its different aspects to better navigate the process.

Take remote work tools, for example. If you don’t already have a system in place, we’re happy to share ours and walk you through it step-by-step.

What happens if a team member leaves? It’s a risk that can’t always be avoided. But the best way to manage this is through clear documentation and ticket sharing.

When we work with our clients, we always stress the importance of knowledge sharing — and this is how you protect your project from disruptions.

Since 2010, we’ve been helping companies across the UK, Germany, Spain, and beyond scale with our nearshore development team. Many of these partnerships have lasted 5 years or more — and there’s a reason for that.

• We’re close — literally. Located in the stunning city of Gdańsk, Poland (and yes, our airport is as charming as the city itself), we’re just a short flight away when you need us on-site.
• We use the same legal framework. Just like you, we also work under European contracts, terms, and regulations. This means smooth contract signing and solid legal protection throughout our collaboration.
• We’re more than a vendor — we’re your partner. At Digiteum, we’re not here to tick boxes or deliver cookie-cutter solutions. We get to know your industry, understand your unique challenges, and work out solutions that make sense for your business.
• We build stable teams. From DevOps and software engineers to UX/UI designers, we’ve spent years assembling a dream team. And most of our team has been with us for a really long time. That means no revolving door of developers and no need to worry about turnover disrupting your project.