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

Jul 25, 2022 | Development, Nearshoring

IT nearshoring with Latin America based software talents 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) show 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 business 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 reachmore than 900,000 and expect to be around 1.2 million in the next five years². 

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 nearshore outsourcing firms provide a solution which combines reducing costs with accelerating results.  

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 the biggest barrier to achieving business success. 

Nearshore software outsourcing comes as the 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 probably already know where the best place is to find tech talent for a far more competitive pricing. Yes, Latin America is the answer.  

Advantages of Nearshoring with LATAM based talents 

In simple words: 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 talents are the best choice for many reasons, and here you can see some of the advantages of nearshoring with them: 

  • Ready pool of skilled, affordable talent. 
  • More competitive pricing compared to the North American market, keeping high level of quality. 
  • Time zone alignment with North America operations. 
  • Capacity to quickly deliver high performance professionals on demand. 
  • Strong cultural fit and business perspective. 
  • Solid English and communications skills. 
  • Fast integration into onshore operations. 

What is the difference between hiring nearshore software outsourcing and offshore? 

Although nearshore outsourcing firms tend to have a higher price than offshore companies (such as those located in Asia, for example), IT nearshoring has several advantages in relation to the 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 talent 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. 

To conclude, it is important to understand that 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.  

And if you relate to any topic of this content and have challenges you need to overcome, worry no more: we can help you. NTConsult is a 20-year-old San Diego headquartered company with nearshore agile software development centers based in Latin America. We develop cutting-edge digital solutions that add value to our clients and solve their business challenges, working with a large range of programming languages.

With our nearshore services, we deliver squads with the best software specialists of the market for clients based in eight countries, with strong presence in USA and Canada. And the best part: all of that for a more competitive pricing than North America! That is precisely why NTConsult offers a perfect cost range that ensures 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 expect to hear from you soon! 

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