Nearshore software development: The engine of growth for European tech companies

In 2025, hiring skilled developers in Western Europe costs over €80K per year - and that's if you can find them. 

But forward-thinking companies have discovered a better way: strategic nearshore partnerships in the Balkans.

Why? It delivers both expertise and value. Finding and keeping skilled developers in Western Europe is getting harder and more expensive.

To gain a strategic edge without breaking the bank, European companies are turning to nearshore software development services.

With thriving hubs in the Balkans, nearshoring provides access to a world-class talent pool. That allows companies to  move beyond simply filling roles and instead access the right expertise, right now.

Finding a tech partner is no longer just about technical skills; it requires a deep understanding of both technology and your core business objectives - something that traditional staffing models often overlook.

This is especially critical now, as the software development industry faces new realities.

In Western Europe, senior developer salaries routinely exceed €80K annually.

Beyond salaries, companies face substantial overhead maintaining large in-house teams.

Meanwhile, finding and retaining specialized talent locally has become increasingly challenging.

Not to mention that many companies delay or abandon crucial projects due to the perceived risk of high costs and uncertain outcomes.

Traditional staffing models lack the flexibility modern businesses need.

When projects demand rapid scaling or specialized expertise, internal teams often struggle to adapt quickly enough.

This rigidity can mean missed opportunities and delayed innovation.

It's not unusual for Swedish companies to initially express skepticism about working with development agencies outside of Sweden.

Concerns around communication, cultural differences, and quality control are common.

We’ve experienced it on our own skin. That's why we've made it our mission to demonstrate the value of strategic nearshoring partnerships, particularly in Bosnia and Herzegovina – a region brimming with skilled developers. Read more about why nearshoring software development in Bosnia might be the best move you haven’t made yet.

However, many of our current clients, even those who initially shared those concerns, have been thrilled with the results.

For example, Familjehem Göteborgs Stad, a government organization facing a particularly tight timeframe, stated:

"Given a very tight timeframe, we are satisfied with having a user-friendly app that we now hope to further develop and refine. We are pleased with the collaboration with ZenDev and our contact person Aida, who has been very available, helpful, and quick. Thank you!"

This demonstrates how we can overcome initial reservations and deliver successful solutions, even under pressure.

That's why we at ZenDev are committed to removing those barriers for our clients. We provide clear and strategic assistance, and we ensure transparency at every phase. Building on this commitment, we recently organized a live networking event in Gothenburg to discuss the benefits and challenges of nearshoring. This event, drawing on our 9 years of experience and countless stories of both success and failure, served as a platform for sharing insights and fostering connections within the Swedish business community.

We've seen firsthand how outdated tech can hold companies back. We've helped clients modernize clunky e-commerce platforms and untangle webs of legacy code. We bring that same problem-solving approach to the risks involved with nearshore software development.

Here's how we empower our clients to make nearshore a success:

• Flexible engagement models that minimize long-term commitments.
• Transparent communication and project management, 
• Technical solutions that deliver tangible value, with deep understanding of your business.

By partnering with us, companies like yours can spark innovation, cut costs, and reach your goals.

Still a bit unsure about this whole 'nearshore' thing?

Totally fair enough. Lots of people are at first. Instead of trying to convince you, how about we just show you what we can do? Book a quick demo - no pressure - see our approach, and then you can decide.

Nearshore development teams offer a compelling set of strategic advantages for European businesses. 

Small time zones difference

Time zone alignment enables real collaboration, not just coordination. When your team in Stockholm or Berlin needs to discuss critical issues with their development partners, they can do so during normal business hours, maintaining project momentum.

Lack of cultural differences

Our teams don't just speak your language - they understand your business culture. Balkan tech professionals share European business values and work practices. They understand the importance of direct communication and proactive problem-solving. Accessing nearshore software development teams with strong cultural alignment ensures smoother collaboration and better outcome for your project.
While costs run 40-50% lower than Western Europe, that's not the whole story. Our clients choose us because we deliver more value:

• faster project completion
• higher quality solutions
• better resource utilization

Either way, you might choose the cheapest option without considering factors like cultural alignment, communication skills, or the ability to contribute to innovation. The real advantage, however, comes from accessing top talent that's flexible to scale based on business needs.

On top of that, we understand that European businesses need absolute confidence in their data security.

That's why we take data protection extremely seriously, implementing a full suite of measures to keep your data safe and ensure compliance with European regulations - from EU data residency to advanced encryption and regular security audits.

Rest assured, your data is in the best hands.

We leverage the unique strengths of the Balkan region to provide our clients with a competitive edge:

1. Uninterrupted communication: Our dual-presence model - leadership in Sweden and development teams in Bosnia - allows for efficient project oversight.
2. Cultural understanding: Our teams share European business values while bringing fresh perspectives to problem-solving.
3. Cost savings without compromising quality: We focus on delivering maximum value rather than minimum cost.

Close geographic proximity

With direct flights under 2.5 hours to major European cities, face-to-face collaboration remains practical and efficient. This proximity enables:

• regular workshops
• strategic planning sessions
• team buildings

Ready to explore how a strategic nearshore partnership in the Balkans can unlock innovation and growth for your business? Contact us today for a free consultation and discover how we can help you achieve your digital transformation goals. 

Our experience with industry leaders demonstrates clear patterns of success:

Kalmar transformed their global operations through strategic digitalization. Our partnership increased their operational efficiency by 103%, streamlining processes across their worldwide equipment management systems.

Arvid Nilsson needed to modernize their e-commerce platform. Through deep collaboration, we developed over 20 custom APIs and cloud integration that reduced critical processing times from days to minutes.

Their Project Sales Manager captured it well:

"The 110% commitment we received was truly remarkable."

Magnetlabbet's transformation shows how technical excellence drives business growth. Our partnership delivered extraordinary results: 82.6% increase in organic traffic, 110% boost in organic conversion, and 445% improvement in paid conversion rates.

The difference between success and failure often lies in partner selection. 

Look beyond technical capabilities to find a partner who asks the right questions. 

When a potential partner jumps straight to staffing numbers without exploring your business objectives, they're stuck in a traditional body-shopping mindset. 

These partners often fail to address the underlying risks and concerns that prevent companies from fully embracing nearshore custom software development opportunities.

Over 9 years of operation, we've recognized that successful partnerships go beyond technical excellence.

When we started, we made a foundational realization: it's not enough to just provide good developers - we needed to build a system that offers stability and eliminates uncertainty.

Our approach has been transformative.

When clients weren't sure about technical architecture, we took ownership of the solution design.

When they needed help defining project scope, we invested time in discovery workshops.

When they were concerned about remote team management, we developed proven frameworks to ensure success.

Creating a safe environment for growth

Our message has never been simply "we'll build it for you." Instead, we create an environment where clients feel confident taking the next step in their digital journey. We take ownership of technical decisions when needed, invest in proper documentation and knowledge transfer, and build frameworks that ensure long-term success.

This approach, focused on delivering tangible results like efficient global operations and thriving, modern e-commerce platforms, has fostered enduring relationships across our client base. Many of our initial partnerships are still growing stronger today.

This approach has defined our success across industries – leading to efficient global operations and thriving, modern e-commerce platforms.The consistent delivery of tangible results has fostered enduring relationships across our client base; many of our initial partnerships are still growing stronger today.

What if your €100K budget could deliver three product iterations instead of one? What if the right partnership could help you build more with fewer resources? These aren't theoretical questions - they're the kind of strategic thinking that separates true partners from mere vendors.

Beyond exceptional talent and cultural alignment, cost-efficiency is a crucial advantage of our nearshore model. We believe in transparent partnerships, ensuring you have a clear understanding of the investment to achieve your goals. While typical Western European consultant fees can be prohibitive, our model offers a compelling alternative.

To illustrate, here's a summary of typical consultant rates for specific regions, highlighting the significant cost advantages of nearshore development in Eastern Europe compared to Sweden:

These rates reflect our commitment to providing exceptional value without compromising on quality or expertise.

A key factor in choosing the right nearshore partner is understanding the scope of their expertise. We offer a range of services to meet your specific needs:

1. Project-based nearshoring: We solve your business problems by creating prototypes, implementing web, SaaS, e-commerce, and mobile applications, and guiding you to market success.
2. Flexible team options: Extend your capabilities with our skilled developers, QAs, project managers, product owners, and DevOps engineers – choose either individual staff augmentation or a fully-managed dedicated team.

This flexible approach ensures that we can provide the right solution, whether you need complete project ownership or specialized talent to enhance your existing team.

We begin every engagement by understanding what you're trying to achieve – not just what you want to build.

This fundamental shift often reveals opportunities a traditional staffing mindset misses. We use a proven methodology to determine the best nearshore custom software development approach to your business.

Our approach is built on three key pillars, all geared toward maximizing your business value:

1. Strategic assessment: We start by thoroughly analyzing your existing capabilities and business objectives, allowing us to design impactful solutions with clear goals in mind. This is supported by strong leadership presence, with Nikola close to clients in Gothenburg and Senad guiding the development teams in Mostar. This ensures we're all speaking the same language from day one, preventing costly misinterpretations and keeping the project firmly aligned with your desired outcomes.
2. Value-driven development: Technology choices flow from business objectives, not the other way around. To maintain focus and quality through understanding, we have technical council oversight ensuring excellence; regular verification of deliverables against business objectives; and continuous knowledge exchange between teams and clients. This reduces the risk of projects veering off course and ensures alignment with your business goals.
3. Systematic growth: We start with focused solutions, deliver clear value, then expand based on demonstrated success. We are structured for success, to allow dedicated account management for consistent client communication; product teams focused on turning requirements into solutions; development squads led by experienced team leads; and quality assurance integrated at every step. This minimizes the risk of over-investment and allows you to scale your nearshore team based on proven results.

What truly sets us apart is our commitment to shared success. In 2022, we introduced a 50% employee profit-sharing model, ensuring our team's interests are perfectly aligned with our clients' success. This innovative approach drives long-term commitment from our teams, ensures a focus on business value over billable hours, and fosters a true partnership mentality.

The path to a good nearshore partnership?

It starts with asking the right questions. We don't just look at how many developers you need, we dig into what you're actually trying to achieve.

That's why our proven team integration framework, refined through years of successful partnerships, begins with intensive workshops to align objectives and working methods.

That connection - where we understand your business as well as you do – is what makes stuff work, with tech that actually helps your business.

Because let's be honest: the market is flooded with talent providers who'll happily fill seats without questioning the underlying plan. But after 9 years in this space, we've learned something crucial: the best technical solutions often come from challenging the initial request.

The results speak for themselves: significant efficiency gains, improved conversion rates, and consistent growth in client capabilities for our partners.

And the last, most important thing is: your next digital project doesn't have to mean choosing between quality and cost. 

Here's how to start:

• schedule a 30-minute talk
• share your business challenges
• explore practical solutions
• start seeing results