Nearshore Software Development and the Future of Digital Transformation


When we talk about the benefits of outsourcing, most executives think about cost savings as the top benefit. This practice has an established reputation to offer savings like few other options can. Going to market happens on a budget, and every dollar needs to be spent carefully.

But this decision comes with the same list of complaints too. Offshore outsourcing teams are only available for a small window of business hours for U.S. companies because their time zone could be 10+ hours ahead. In-person meetings are difficult, if not essentially impossible, because of impractical flight costs and times. Quality standards at the development company might be consistently lower than the client’s, for the product and in data security. 

These “hidden” costs of offshore outsourcing can often outweigh the potential savings. Especially in the likely event of project delays, it’s challenging to communicate and overcome the barriers slowing down time to market. Even sharing the necessary documents with the correct permissions can be its own obstacle. Lastly, the offshore project management team often feels like it’s not coordinating with the business and their product vision. This poor communication can result in a digital delivery that doesn’t align with the user base or your goals.

Nearshore technology partners alleviate some of these pain points. More than that, partnering with staffing businesses from nearby countries gives you opportunities you wouldn’t have otherwise.

illustration of the talent pool

Value Beyond Cost Savings: Nearshore Solutions

Massive talent pool:

When business processes moved online because of the pandemic, every company became a tech company. This meant that the labor market for digital professionals got very competitive—very fast. Turning to neighboring countries in Latin America, pioneering companies discovered a large and growing talent pool of 1M+ active developers and other digital experts. A reputable nearshore outsourcing company can close talent gaps faster than traditional recruiting, so you can get back to innovating and defining the market.

Talent growth trends:

Latin America has the fastest projected IT growth in the world according to the IDC Spending Guide. The expected revenue growth rate for LATAM in the 2020s is 5.3% (making it two percent higher than the 3.3% average worldwide). As the market expands, new professionals will flock to it and keep growing the region’s high-quality talent pool.

Ease of doing business:

Because of the geographical proximity, you can travel to LATAM from the U.S. in one flight that takes just a few hours. Meet the team in person, or have them come to your company to work on your software solutions. Prefer to stay all-remote? Internet access has doubled in LATAM since 2010, so your nearshore team can work from home. Nearshore outsourcing and staff augmentation services can be custom-fit to your business.

Access to education:

Along with record education growth since the 2000s, Latin American STEM initiatives in 2020-2021 launched with the help of Siemens Stiftung and other institutions teaming up with the regional Ministries of Education. UNICEF has also launched STEM skills initiatives for girls in LATAM and the Caribbean to encourage inclusivity. Some nations’ governments are also providing free education for technological degrees, creating a growing trend of digital talent in this part of the world.

High rates of English fluency:

The EF English Proficiency Index (EPI) in 2021 showed that Latin America averaged at around 500 for its overall fluency, with the top scores being over 550. The EF EPI ranking system defines this across two tiers. At over 550 (high proficiency), people can write business emails and be involved in meetings about their field. With English skills ranging from 500-549 (moderate proficiency), people can make work presentations, understand conversations, and read well. Over half of LATAM nations have moderate to high levels of English proficiency.

Time zone aligned:

This region shares a similar time zone to the United States (if not the same, depending on the countries doing business together). LATAM time zones are only one to four hours different from the contiguous United States, meaning it’s easy to arrange for regular meetings. Your in-house teams can stay involved in the project by measuring the productivity and progress of your partner company.

Globalize Your Business with a Quality Nearshore Partner

As technology grows and the internet becomes more accessible around the world, globalization is the natural next step. Be at the center of this movement by tapping into resources from nearshore staff augmentation and outsourcing. Devsu offers world-class digital talent in just 14 days, complete with training and coordination with your in-house team. Tell us about your project or contact us at (407) 807-0664 with any questions today. We’ve got you covered.


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