Nearshore Agile Software Development: how to accelerate results while saving money

Jul 25, 2022 | Development, Nearshoring

IT nearshoring with Latin America based software professionals is an attractive option for North American companies because of the close workday overlap, strong cultural fit and high English proficiency. Nearshore countries are also easier to travel to for in-person interaction. Recent research carried out by Accelerance¹ (a global outsourcing and tech authority) shows that working with nearshore software outsourcing can save around 55% overall costs while speeding results and keeping high quality standards.  

It is crystal clear that technology will continue to boost businesses across all industries and no one expects the software talent shortage problem will solve itself. A challenge that can be illustrated with numbers: unfilled software development jobs in the US is currently more than 900,000 and expected to be around 1.2 million in the next five years². 

Nearshore software outsourcing - Data

Companies are already aware that they must invest in IT outsourcing to keep achieving their goals, however, it is always hard to deal with a market in which the professionals are so expensive and hard to find. That is why many US based companies are finding that partnering with nearshore outsourcing firms provide a solution which combines reducing costs with accelerating results.  

IT Nearshoring

Nearshore software outsourcing: where is the sweet spot? 

According to Accelerance, around 60% of US recruiters find hiring developers as their biggest challenge, a process cited as long, difficult and expensive³. The supply-demand mismatch is evident more and more every year, and the average salary across all software roles tends to increase. As noted in a recent Everest Group study4, 86% of organizations believe the lack of software professionals is their biggest barrier to achieving business success. 

Nearshore software outsourcing can be seen as a main choice to solve this challenge. Nearshoring means a service provided by companies in a nearby country, sharing the same time zone. Many US based companies choose this option because of the many advantages. If you work at a North America based company, you might have already come to the conclusion that the most efficient way to outsource is with a LATAM partner. 

Advantages of Nearshoring with LATAM based professionals 

It’s like working with people in the building next door. They work in your time zone and are aligned with your country’s culture which ensures real-time communication without language barriers and greater synergy with your other teams working on your projects. Many US based companies made the mistake of hiring offshore firms to develop their digital solutions, and now they are paying the price. 

LATAM based tech professionals are the best choice for many reasons, and here you can see some of the advantages of nearshoring with them: 

  • Very competitive pricing compared to the North American market 
  • LATAM puts a big emphasis on training and educating technology professionals 
  • Time zone alignment with North America operations 
  • Capacity to ramp-up teams on demand. 
  • Strong cultural fit and business perspective 
  • Solid English and communications skills 
  • Fast integration into onshore operations 
  • US headquartered  

What is the difference between nearshore and offshore  outsourcing? 

Although nearshore outsourcing firms can at times be slightly more expensive than offshore companies (such as those located in Asia, for example), the benefits gained by working nearshore is tremendous. Such as time zone compatibility with North America, in addition to higher levels of English proficiency. Also, there is greater cultural closeness, which ensures a highly efficient level of communication that accelerates results. 

What we see today is that those organizations that hired an offshore IT service are gradually shifting their staff and hiring companies that offer teams based in Latin America. Finally, it is important to consider quality-cost tradeoffs. Offshore IT firms offer low prices on a scale that no one else can, but as rates decline, quality can drop off exponentially. We’ve seen this dynamic many times as clients come to us for help, telling stories about the problems they used to have with offshore companies. 

It is important to understand that it is not impossible to find a high-quality team for a lower rate – the key it to know where and how to look, and that place is Latin America, especially in Brazil.  

Case 24 Hour Fitness - Process Automation - Nearshore Agile Software Development

NTConsult is a 20-year-old San Diego headquartered company with nearshore agile software development centers based in Latin America. We build cutting-edge digital solutions. We can be product centric to help you meet your goals or provide staff augmentation to your existing teams. We work with most leading technologies and our continual training programs keep our professionals up-to-date with new trends and languages. With our nearshore services, we deliver teams of senior software specialists for clients around the globe. And the best part: it feels like you are working with an extension of your team but the pricing is more competitive than North America! That is precisely why NTConsult offers a perfect cost range that ensures a quick ROI and delivers the kind of quality that internationally known clients use as success stories to this day. 

Now that you have learned more about the advantages of nearshoring, be sure to contact us to discuss any challenges you are facing. Just send us a message in the quick form at the bottom of this page and we will get back to you shortly! 

Thanks for reading our content. We look forward to chatting and hearing about your challenges! 

And if you liked this content, you might also be interested in some of our related posts here:  

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How your company can overcome the 5 biggest challenges in software outsourcing projects – Updated 2022  

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