Software Nearshoring: What It Is and Why It’s a Smart Choice

Software nearshoring has become a go-to solution for U.S. brands facing complex technology needs. In fact, the nearshoring demand for Latin American tech talent has recently soared by 286%.

But why exactly is nearshore software development booming?

Here we’ll take a deep dive into IT nearshoring, including key advantages, how it compares to traditional outsourcing, why Latin America is a top choice and how TECLA can connect you with elite talent.

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What Is Software Nearshoring?

Software nearshoring involves hiring experts located in close by regions and/or time zones. The idea is that you can set up real-time collaboration with top professionals, while enjoying reduced salaries.

Nearshoring is unique from other models, such as:

• Offshoring. Hiring developers from anywhere in the world. While you can get cheap rates this way, you may face some challenges with opposite time zones, cultural differences, miscommunications and more.
• Onshoring. Hiring professionals in-country for permanent full-time roles. Often this is the most expensive option, though teaming tends to be effective. Additionally, these roles may be difficult to fill due to limited talent.

Why Companies Are Shifting to Nearshoring

Businesses everywhere are facing a difficult tech hiring market. In the U.S., the developer shortage is significant, with a lack of 1 million professionals today.

What’s more, companies are dealing with:

• Rising salary costs for U.S. tech talent (averaging $132,270 per year)
• A need for accelerated timelines to meet customer demands
• Future-proof products that fit with their evolving business requirements

In this context, companies are looking beyond borders to handle these growing needs and keep their budgets affordable. Nearshoring is often the best way forward to develop excellent products without the pains and expenses of other models.

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Nearshore vs. Offshore vs. Onshore Software Development

How does nearshoring stack up to other solutions? When deciding between nearshore vs. offshore development, keep in mind these pros and cons above. As you can see, nearshoring has a wealth of advantages over both offshoring and onshoring.

Overall, nearshoring combines the best of outsourcing (top talent and affordable rates) with the benefits of onshoring (aligned collaboration, time zones and culture).

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Key Benefits of Software Nearshoring

Software nearshoring can unlock a suite of advantages for businesses – here are the most urgent.

Time Zone Alignment

IT nearshoring is ideal for establishing seamless, real-time communication with your teams. Latin America shares overlapping time zones with the U.S., allowing you to conveniently collaborate.

Cost Savings

Nearshore software engineers have notably lower salaries compared to their peers in the U.S. You can expect savings of up to 40-50%, not to mention cost-effective recruitment cycles. Most importantly, you won’t sacrifice quality as LatAm talent is world-class and provides top caliber compared to offshoring.

High-Quality Talent

Nearshore tech talent has an ideal balance of skills. To start, Latin America is known for its record number of tech graduates. Here you’ll find top-ranked professionals with a range of specializations and experience levels. Moreover, these developers are often career-driven, seeking long-term, stable work.

Cultural and Language Compatibility

Smooth integration of your software teams in LatAm is essential for outsourcing success. Nearshoring makes this process easy, as these professionals have strong English and know-how of the U.S. workplace. You’ll be on the same page for key areas such as coding quality, deadlines and communication styles.

Scalability and Flexibility

While in-house hiring locks you into a permanent set-up, nearshoring opens the door to flexibility. With this model, you can scale your project priorities and expert hours according to your vision and resources. This is especially helpful when undertaking a multi-phase project that may evolve over time.

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Why LatAm Is the Best Region for Software Nearshoring

Latin America is a hotspot for software nearshoring, with the demand for LatAm tech talent going up by 70% since 2020! We’ve outlined the main reasons behind this boom below.

Growing Tech Ecosystem

LatAm countries have accelerated investment in their tech infrastructure. Today countries such as Colombia, Mexico and Brazil are strengthening their IT ecosystem with tech parks, educational programs, startup investment and tax incentives.

Educational Excellence

Nearshore tech talent in Latin America is the result of strong STEM. Many of these countries have government-backed coding and English programs to upskill young people. What’s more, LatAm has record tech graduates, with a total of two million developers available across the region.

Competitive Developer Rates

Competitive developer salaries in Latin America are still about 40-50% less than in the U.S. (See our salary wizard for details!) By choosing nearshore, you can get high-quality professionals at cost-effective rates.

Ease of Collaboration

Nearshore development teams are also easy to work with. The combination of shared time zones, top English and cultural affinity allows for seamless communication. In addition, nearshore software engineers are seasoned in working with U.S. companies and know how to adapt communication for maximum outcomes.

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How TECLA Helps You Build a Nearshore Software Team

Our TECLA nearshore hiring solutions are based on a decade of experience connecting North American companies with top-tier tech talent across LatAm.

1. Vetted Talent Pool

We boast of an elite talent pool of 50,000+ nearshore software engineers in Latin America. Every professional is pre-vetted by our team and ready to collaborate. Overall, we check for technical skills, strong communication and cultural fit to guarantee seamless engagement.

2. Efficient Hiring Process

We’ve refined our recruitment process to be quick and painless. In just 7 days, our talent specialists will hand-select exceptional tech candidates who fulfill your needs. This streamlined process lets you optimize your resources for efficient and easy hiring.

3. Flexible Engagement Models

We tailor our nearshore tech talent solutions according to your main priorities. While most businesses are seeking a full-time role, we also can match you with developers for contract or project-based hiring. No matter what, you’re 100% in control of the terms.

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Leverage TECLA Nearshore Hiring

Software nearshoring is a smart business decision for accessing first-rate talent at affordable rates. Specifically, U.S. businesses can benefit from hiring IT professionals from Latin America, where developers have top skills, U.S. workplace know-how and time zone alignment.

Hit the ground running with our top-ranked professionals. At TECLA, we’re specialists in nearshore tech talent hiring and ready to customize a strategy according to your KPIs. Build your software team with our impressive LatAm developers today.

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