Web development

Practical look at nearshoring

Aug 20, 2025

Practical look at nearshoring
A practical look at nearshoring. Entrepreneurs, executives, and HR professionals are faced with the question: How can I quickly and reliably find top IT talent and employees?
Interview: IT Outsourcing (Onshore, Nearshore, Offshore) – with Nearshoring Service | North IT Group
Interview & Insider

Practical Look at Nearshoring Compared to Onshore and Offshore

Entrepreneurs, executives and HR face a crucial question: How can I quickly and securely access top IT talent and staff? In this interview, Stephan Hoffmann (Founder of North IT Group GmbH) explains when Onshore, Nearshore or Offshore makes sense – and how Nearshoring as a Service (Outstaffing) works in practice.

Interview with Stephan Hoffmann

Why is IT outsourcing especially relevant for SMEs right now?

Skills shortages and limited budgets hit IT particularly hard. Outsourcing opens access to talent that is hardly available locally, especially in rural areas – without overstretching the organization.

Why do you focus on Nearshoring?

As a company based in the Harz region, the local talent pool is limited. That’s why we decided back in 2019 to cover our needs with Nearshoring. For me, Nearshoring means European proximity, strong senior profiles and predictable costs.

What is Nearshoring particularly suitable for?

Long-term product/platform development, app builds (Web, iOS, Android), DevOps/Cloud, QA, and project peaks of at least 6 months.

You don’t just do sourcing for your own company in your Nearshoring centers?

That’s correct. We currently provide Nearshoring, also called Outstaffing, for 5 clients. This has allowed our customers in Germany and Switzerland to rely on our expertise and build teams within 4–6 weeks with up to 6 talents.

You don’t operate offshore centers – why?

Besides significant time zone delays, culture and being able to be on-site are crucial. If problems arise, I want to be there quickly and solve them. Also: friction in communication and unclear quality standards. From my experience, the hidden transaction costs are very real.

Types of IT Outsourcing

Your conclusion after 6 years of Nearshoring?

Nearshoring is a great way to strengthen our team in Germany in a targeted manner. Since we run the centers ourselves, we have full control and can train Nearshoring employees. For those who want proximity, speed and quality, Nearshoring is usually the best choice.