Offshore wages have increased, nearshore talent has expanded, and AI tools are changing ERP productivity, yet many organizations are still using delivery models chosen several years ago. As project demands shift, it is important for IT leaders to remain flexible in how they structure ERP delivery.
There is no single right approach to nearshore vs offshore ERP delivery. Nearshore, offshore, and hybrid models each have real strengths. The decision depends on what works best for your budget, timeline, project phase, and collaboration needs.
Why the Offshore Delivery Math Has Changed
Offshore delivery has been part of enterprise technology projects for decades. Its growth reflected companies’ need to reduce labor costs, access larger talent pools, and scale technical teams more quickly. For many years, the cost difference was significant enough to make offshore delivery a standard choice for ERP development and other large technology projects.
As global technology markets expanded, countries such as India developed deep pools of ERP consultants, developers, testers, and support professionals. Companies could add specialized talent at lower hourly rates than they would typically pay in the United States. This made offshore teams especially attractive for large build phases that required many people.
Over time, however, wages in major offshore markets began to increase. For example, Aon found that salaries in India rose 9.3 percent in 2024 and were expected to increase another 9.2 percent in 2025. Within technology consulting and services, salaries increased 7.6 percent in 2024, with another 7.7 percent projected for 2025.1
These increases do not mean offshore delivery is no longer cost-effective. However, they do mean that a staffing calculation developed in 2018 may not produce the same results in 2026.
The hourly rate also represents only one part of the total cost. Organizations must consider time spent coordinating handoffs, delays caused by limited working-hour overlap, rework from unclear requirements, and additional project management. The speed at which business users can review and approve work can also affect timelines and costs.
Today, many organizations are reviewing where and how ERP work is delivered. Deloitte reported that three-quarters of global business services leaders planned to refine their delivery footprint.2 The offshore advantage may remain, but leaders should recalculate the full cost before assuming the previous model still offers the best value.
Nearshore vs. Offshore ERP Delivery: Where Nearshore Adds Value
The most important question when comparing nearshore vs. offshore ERP delivery is simple. How much real-time coordination does the work actually need?
Offshore teams offer access to large talent pools and competitive labor costs. They tend to work well for clearly defined development, testing, support, and maintenance tasks. This work can move through structured handoffs. It does not need constant input from US stakeholders.
Nearshore teams work differently. Latin American professionals often share working hours with North American business users, project managers, and technical teams. That overlap creates more chances to discuss requirements and approve changes. It also means problems get solved as they come up, not a day later.
This matters most during Agile ERP implementations. A delayed answer can stall configuration, integrations, testing, and every sprint task that depends on it. Deloitte also notes that nearshoring can ease the strain of early-morning or late-evening handovers between US and Asian teams. ³
If most of your answers point toward close coordination and fast feedback, nearshore delivery is worth a closer look:
- Does the work require frequent discussions with US business users?
- Will developers and functional consultants need quick approvals?
- Could delayed answers slow down testing, configuration, or integrations?
- Does the project involve shifting requirements or short Agile sprints?
Nearshore delivery will not automatically outperform offshore delivery every time. Its advantage shows up when working-hour overlap cuts delays and keeps ERP teams moving in sync.
How AI Is Changing ERP Team Size
AI-assisted development is changing how companies think about ERP team size. In the past, large offshore teams were justified by a simple idea. More people meant more output at a lower blended rate.
AI is making that math less predictable. A peer-reviewed study tracked 4,867 developers at Microsoft, Accenture, and an anonymous Fortune 100 company. Developers using an AI coding assistant completed about 26 percent more tasks than those who did not. ⁴
That does not mean every SAP configuration will move 26 percent faster. The same goes for Oracle integrations and Dynamics 365 customizations. ERP work still needs business knowledge and technical judgment. AI cannot replace careful human review.
Where AI does help is in the supporting work. It can draft initial code and prepare documentation. It can build tests and catch common errors. It can also summarize requirements and handle repetitive configuration tasks.
That shift can let a smaller team of experienced consultants deliver what once took a much larger group. But speed cannot substitute for expertise. Skilled professionals still need to check AI-assisted work line by line. That is how you protect quality.
The better question for 2026 is not how many offshore resources you can add. It is what mix of experienced talent and AI tools will actually deliver the outcome you need.
How Onshore, Nearshore, and Offshore Work Together
The strongest ERP delivery strategies do not pit onshore, nearshore, and offshore against each other. They put each model where it adds the most value.
A typical structure might use onshore leaders for discovery, governance, and executive communication. Nearshore consultants support daily development, configuration, and integration work. Offshore teams handle clearly defined testing, support, or other repeatable technical tasks.
That mix can also shift as a project moves forward. Discovery tends to need more onshore involvement. Build and testing phases can support wider nearshore and offshore participation. Go-live often pulls more work back toward teams available during US operating hours.
A combined approach tends to work well when:
- Onshore leaders guide strategy while nearshore teams handle daily execution
- Nearshore consultants provide real-time collaboration while offshore teams add capacity
- Offshore teams complete structured work while senior specialists protect quality
- Delivery responsibilities shift by project phase instead of staying fixed throughout
Related reading: Onshore vs Offshore Delivery Models
Not Sure Which Delivery Model Fits Your Next ERP Phase? Let’s Talk It Through
Raso360 works with organizations building onshore, nearshore, and offshore teams for SAP, Oracle, Dynamics 365, and Salesforce projects. If you are reassessing a current delivery model, we can give you an honest read on what still works. If you are planning your next project phase, we can help there too.
Reach out, and let’s build the right delivery mix for your budget, timeline, and project risk.
References:
- “Aon Asia Newsroom – Salaries in India to Increase by 9.2 Percent in 2025 Amidst Global Uncertainty and Softening Growth, Aon Study.” Aon.Com, 2025, https://www.aon.com/apac/in-the-press/asia-newsroom/2025/salaries-in-india-to-increase-by-9-2-percent-in-2025-amidst-global-uncertainty-and-softening-growth. Accessed 24 July 2026.
- “Shared Services and GBS Location Strategy | Deloitte US.” Deloitte, 2023, https://www.deloitte.com/us/en/services/consulting/services/sustainable-shared-services-location-strategy.html. Accessed 24 July 2026.
- “Software Engineering Nearshoring | Deloitte US.” Deloitte, https://www.deloitte.com/us/en/services/consulting/articles/nearshoring-as-offshore-alternative.html. Accessed 24 July 2026.
- Cui, Zheyuan Kevin, et al. “The Effects of Generative AI on High-Skilled Work: Evidence from Three Field Experiments with Software Developers.” Microsoft Research, June 2025, https://www.microsoft.com/en-us/research/publication/the-effects-of-generative-ai-on-high-skilled-work-evidence-from-three-field-experiments-with-software-developers/. Accessed 24 July 2026.
