The Benefits of IT Nearshoring.

April 12, 2023


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Nearshoring is the practice of outsourcing business operations or software development to nearby countries. This trend has become increasingly popular over the last decade due to its significant increase in productivity and profitability. In most cases, businesses focus on cost savings, communication, and flexibility as the main benefits.

Cost Saving

By outsourcing software development or any kind of business operations, businesses can take advantage of lower labor costs without compromising the quality of their products. Additionally, businesses tend to look at tax rates when outsourcing, which can save them millions of dollars on an annual basis, depending on the industry they pursue.


When it comes to communication, businesses tend to outsource to locations where they can easily communicate and make frequent visits to the site. This helps them keep up with the development of the business and build stronger relationships with their partners.


Nearshoring also offers flexibility, which is often not available to businesses in Western Europe or the United States when it comes to resource and staffing allocations. This allows businesses to scale up or down when it comes to hiring or firing employees without worrying about the cost and complications. Additionally, it allows them to have a larger pool of potential employees to hire, increasing the chances of finding the right fit for their business.

Risks of nearshoring in North Macedonia

One of the primary risks of nearshoring in North Macedonia usually tends to be the economic and political instability in the government, which allows business owners to take a step back and look at the history of the business environment in the country. Concerning them of if there will be a turnover, which brings them to overthinking their decisions. Also one of the risks that the Macedonian society faces are the potential language and cultural barriers.

Why North Macedonia is a good place for nearshoring

When it comes to nearshoring in North Macedonia, the available workforce of IT professionals with advanced degrees is worth mentioning. Nearshoring in North Macedonia can be a good decision for any software or business operation company, as it offers low labor costs without compromising quality. Also the IT workforce in North Macedonia is usually fluent in multiple languages, allowing them to communicate faster in decision-making.

Geographical location

The North Macedonian government is also friendly to nearshoring, with a 10% tax rate for IT companies, similar time zones to Western Europe, and a strategic geographical location at the crossroads of Europe and the Middle East, making it an ideal location for a nearshoring business.