The rise of software development outsourcing as a competitive advantage has led to much debate over which of the different outsourcing models best applies to the goals of businesses in the United States. In this article, we’re looking at how the nearshore development model stands out from the rest as the top choice.
Nearshore software development involves engaging with a contractor that is geographically close to your location and therefore also has a similar time zone. From the perspective of US companies, nearshore development teams can be found either in North America or Latin America, offering unique benefits when compared to traditional offshore vendors located overseas.
When it comes to Agile software development, geographical proximity is a huge plus, as travel times and costs will be much lower than offshore locations. Whether you’re looking to visit a vendor or have them fly into your office in the US, many nearshore outsourcing destinations provide easy access and quick travel time frames.
Successful software development projects are predicated on efficient communication between teams. Nearshoring makes it possible for your onsite and remote teams to share similar (if not the same) time zones, therefore overlapping throughout their workday. Most nearshore countries only have a one-hour time zone difference with the US, the maximum being at a four-hour difference.
This is by far the biggest advantage of the nearshore model when compared to overseas vendors, because however skilled offshore developers may be, communication with teams so far away from specific projects can prove incredibly challenging and may lead to project delays and other unforeseen risks if not carefully managed.
Countries in Latin America share the Western cultural values of the United States, and in addition, most of its population has been following US pop culture and events since childhood. Whether it’s through sports, music, films and Netflix series, or late night shows, Latin Americans are regular consumers of US culture.
Moreover, Latin America’s software development workforce is mostly English fluent. In addition to government initiatives to down language barriers and improve English language teaching in public schools, private bilingual schools teaching English as a second language are very popular, and high-paying jobs tend to require language proficiency.
Talent shortage in the US market is one of the main reasons companies look to augment their teams by partnering with offshore and nearshore development companies. Both of these have highly skilled talent pool to offer, but the nearshore option provides the huge added benefit of proximity and can work closely due to similar time zones.
Universities in Latin America have been successful in responding to the growing demand of IT professionals, many businesses and governments continue to enact policies that foster the growth of the region’s workforce. A prime example of this focus on adaptation in the region is Uruguay, which became the top software exporter per capita in the region with a population of 3.5 million by heavily investing in its IT industry and workforce.
Top talent in Latin America is usually found in boutique development shops that specialize in specific technologies and work exclusively for the US market. These smaller-sized technology firms focus on quality and carefully hire and train their developers, and hire software engineers with the goal of reducing any learning curve issues at the time of working along US teams.
As a direct result of all the distinct advantages listed above, the overall cost of nearshore development proves to be lower than the offshore alternative, despite offshore countries having somewhat higher rates. Responsive, real-time collaboration between teams in similar time zones provides the ideal environment for successful projects.
The two best use case scenarios for nearshore software development are as a team augmentation solution to address talent shortages in your home market when looking for the right candidates to hire as developers, and as a cost efficiency and way of delegating specific parts of bigger projects to an external team in order to focus on your core tasks.
At VAIRIX, we help our US partners through additional support for both of these services:
- Staff Augmentation services: As a nearshore development boutique based in Uruguay and working exclusively for the US market, we can help augment your team on demand with seasoned engineers that work with the latest trending technologies, so you won’t have the added cost of hire staff going through a big learning curve.
- Product Development: Whether you need to outsource complete projects or specific parts of a new team or large-scale projects, we can assist you in establishing dedicated Agile project teams that will help you bring your product to fruition.
The right nearshore development team can help you maximize productivity and reduce costs while maintaining high-quality standards. VAIRIX has more than ten years of experience and is featured within the top app development companies according to Clutch. Get in touch to get more insights and learn how our talented team can help you reach your business goals.
Nearshore staff augmentation refers to the practice of hiring remote workers located in nearby countries to supplement an organization's workforce. This approach allows companies to access a larger pool of talent at a lower cost compared to hiring locally. Nearshore staff augmentation has become increasingly popular in recent years as technology has made it easier to communicate and collaborate with remote workers.
One of the primary advantages of nearshore staff augmentation is the ability to tap into a diverse range of skills and expertise. Organizations can easily find and hire workers with specialized skills or experience that may not be available in their local job market. Additionally, nearshore staff augmentation can help companies scale their workforce quickly without the costs and logistical challenges of setting up a physical office in a new location. Overall, nearshore staff augmentation can be an effective strategy for organizations looking to expand their capabilities and remain competitive in their industry.
Nearshore staff augmentation for software development is a popular option for companies operating in competitive markets losing local talent. With nearshore staff augmentation services, companies can leverage the talented pool of software engineers in nearby secondary or tertiary cities, often in Latin America, to supplement their existing team. This staff augmentation strategy is especially useful when internal recruitment teams have trouble hiring good developers or when hiring costs for full-time employees are too high.
Partnering with a staff augmentation company can help businesses access a dedicated team of software developers and a project manager, without the need for in-house employees. Outsourcing services, such as either nearshore staff augmentation outsourcing or offshore staff augmentation, can provide cost-effective technology solutions, without staff shortages and still maintaining high-quality standards.
Latin American talent, in particular, is highly sought after due to its proximity to the United States, cultural affinity, language fluency, and skilled workforce. Boutique development shops in the region, specializing in specific projects and technologies, offer the best value for money and can help reduce the learning curve when working alongside US teams on similar projects.
Overall, nearshore software development provides companies with the opportunity to tap into top talent in close time zones, while avoiding the challenges of working with offshore outsourcing teams. With the right nearshore development team and product managers, businesses can maximize productivity and reduce costs while maintaining high-quality standards.
- VAIRIX Featured on Clutch as a Top Custom Software Developer in Latin America
- Nearshore software development in 2019: The growing IT talent Pool in Uruguay
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