Advantages of Nearshore Software Development

Why are many large corporations partnering with nearshore teams in Latin America (LatAm)? LatAm nearshore software development teams provide superb technical skills, training, and experience, costing far less than hiring talent in North America. Choosing a LatAm nearshore partner makes sense between the cost savings and the worldwide technical labor shortage. And these are only two of the benefits of partnering with a nearshore software development team. 

What is Nearshore Software Development?

When a company chooses to outsource its software development, they partner with a team of software developers in another country. Nearshore software development is outsourcing involving working with a partner in a company’s identical or similar timezone. When a North American company chooses a nearshore partner, they are looking at a time difference of three hours at most. Companies have a lot of flexibility with nearshore software development, from using an on-demand model or working with a dedicated team. LatAm is a hub for nearshore software development because of its deep pool of technical talent. 

Why Outsource Software Development to LatAm?

There are many reasons why companies, including many large international corporations (such as the world’s leading logistics company, DHL), are choosing to outsource their software development to a nearshore partner. 

Ease of communication

With a nearshore partner, companies can easily communicate with their nearshore team for most of the workday. The most significant time difference will be similar to what East and West coast companies experience in the U.S. And, a nearshore partner can be in the same timezone. 

When speaking about the ease of communication that a nearshore partnership brings, it isn’t solely about convenience. Sharing the same or similar timezone makes it easier to get work done and done well. If a bug is found, it can easily be fixed because both teams can speak about it and make changes in real-time. The easy flow of communication, in addition to having tangible benefits like better quality assurance, also supports team cohesion and rapport. 

And, speaking of rapport, team cohesion is also enhanced by LatAm’s similar culture and language. Most software developers in LatAm (and all of those working for Encora) are fluent in English, which makes communication more effective. 


2. Cost savings

One of the primary reasons a company will choose nearshore software development is that labor costs are significantly lower in LatAm. And, while the costs are lower, the developers' skills, competency, and experience are superb. Hiring in-house software developers can be difficult for many reasons. And cultivating an in-house team is often far more expensive than working with a nearshore partner. 

Plus, in-house teams often can’t scale up or down quickly, impacting a company’s bottom line and speed to market. With a nearshore partner, a company can maintain an ideally sized in-house team and scale up when needed with a nearshore team on a project basis. Or, a company can bypass an in-house team altogether and simply outsource their software development to a highly competent nearshore team. 


3. Access to technical talent

It is predicted that the global shortage of full-time developers will continue to soar. The U.S. government has also identified a lack of skilled software developers, which is mentioned to give the scope of the issue. The shortage of trained technical talent is so severe that it rates the concern of governments worldwide. 

On a more local scale, the average company is feeling the pinch of the labor shortage. Competition is fierce for available talent, and retaining talent leads companies to increase pay, perks, and benefits. There are other side effects of this shortage beyond it being challenging to hire in-house software developers. Many developers face burnout as they are tasked with projects they need more time or support to complete successfully. 

When a company decides to outsource to a nearshore company in LatAm, they take advantage of the region’s deep pool of software developers and other technical talent. LatAm countries are producing many skilled software developers and offer companies access to experienced IT professionals that they might not otherwise have. This allows companies to partner with the technical talent they need, including any specialized software development skill set that they might need for a certain project. 

How to Get Started with Nearshore Software Development

Encora can help companies expand their development teams with talented developers for any software development project. Between Encora’s global talent pool and its proprietary Agile engineering capabilities, companies can improve their software development quality and speed to market. Companies can expect diverse and experienced technical talent from Encora and will enjoy the many benefits of a nearshore partnership, like a shared language and culture. Reach out to Encora with any questions or to get started today!

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