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Nearshore software development is a type of outsourcing in which businesses hire software development teams in nearby countries. This model offers several advantages, such as proximity, cultural compatibility, and cost-effectiveness, while still allowing for effective communication and collaboration with nearshore tech talent.

The location of the outsourcing team is the main difference between nearshore and offshore software development. Nearshore teams work in nearby countries with similar time zones, while offshore teams work across continents and time zones. Nearshore outsourcing has advantages in terms of cultural similarity, communication, and travel costs. In contrast, offshore outsourcing is typically less expensive but could present language barriers, require more complex communication structures, and offer a few similar hours for real-time interactions.

Cost-effectiveness: Compared to hiring in the U.S. for the same profiles and expertise, nearshore outsourcing typically saves money.

Location: Nearshore outsourcing teams are located close to one another, making travel and communication easier and more effective.

Cultural compatibility: Because nearshore outsourcing teams come from similar cultural backgrounds, it is easier to establish effective communication and collaboration. The onboarding process is usually shorter compared to offshoring.

Time zone alignment: Nearshore outsourcing teams typically work in similar time zones, reducing delays and allowing for real-time communication.

Expertise: Nearshore outsourcing teams provide access to specialized skills and expertise that may not be available locally in areas such as product development, web development, mobile apps, and more.


While salary ranges may vary between countries, hiring developers from this region supposes a 30%-50% cost saving compared to local hiring. If you are looking for a particular role, we recommend downloading our 2024 LatAm Compensation Report. There you will find detailed insights on the region and salaries based on profile.

Yes! With an increasing number of startups, tech companies, and talented professionals entering the scene in recent years, the region has emerged as a major hub for technology and innovation.

Latin America has a large and diverse tech talent pool, with many universities and technical schools providing world-class education in computer science, engineering, and related fields. The region is also known for its thriving entrepreneurial culture, with many young professionals launching their own businesses and bringing new ideas to market.

Leverage our team of expert recruiters and avoid the hassle of hiring internally. Hiring with our method saves you time and resources. Whether you hire directly or through TECLA, your business will benefit from our matching technology and deep knowledge of the region. A group of pre-screened professionals, including data scientists, will be ready to interview with you within a few days!