Reducing software development costs in 2026: nearshore, offshore or AI?
In 2026, French CIOs and CTOs face an impossible equation: do more, faster, with stagnant IT budgets. Software development outsourcing remains the most effective lever, but not all options are equal.
The 4 options on the table
When a French company looks to reduce development costs, there are four main options: local hiring in France (expensive but controlled), nearshore in Morocco or Tunisia (30-40% savings, same timezone), offshore in India or Vietnam (50-60% savings, but timezone and cultural gap), and freelancers (flexible but unstable).
Morocco nearshore vs India offshore: the numbers
A senior Java developer costs on average €55-70K/year in France, €35-45K/year in Morocco, and €20-30K/year in India. But raw cost only tells part of the story. When you factor in hidden costs (management, communication, bugs, turnover), Morocco nearshore is 30-40% cheaper than France, versus only 20-30% for India offshore.
Why Morocco nearshore wins in 2026
Morocco has three decisive advantages for French companies: native French speakers (zero communication barrier), same timezone as Paris (0-1h), and an education system aligned with France. Add Casanearshore infrastructure (100+ IT companies, including IBM, Capgemini, Atos), and you get a mature ecosystem.
AI changes the game: the hidden multiplier
In 2026, generative AI (Claude Code, GitHub Copilot) multiplies developer productivity by 2-3x. This means a nearshore team of 3 AI-augmented developers produces as much as 6-9 traditional developers. The savings are no longer just salary-based — they're structural.
How to calculate your real ROI
Take your current team. Calculate the full cost (salaries + benefits + management + tools + turnover). Compare with an AI-augmented nearshore team, led by a senior tech lead. In most cases, savings are 40% with equal or superior quality.
Our recommendation
Don't choose the cheapest option. Choose the one that maximizes value per euro spent. For French companies in 2026, that's AI-augmented nearshore: controlled costs, guaranteed quality, smooth communication, and multiplied productivity.