5 Best Countries for Nearshore Software Development

Best countries for Nearshore ITAs the demand for skilled software developers and other tech specialists continues to rise, many companies are turning to nearshore software development. Nearshore development offers a tidy solution to the shortage of software developers hindering many companies’ progress and ability to compete in their industry. Nearshore software developers work in the same or similar timezone as their partners and share closer geographical proximity. This article will explore the five best countries, in no particular order, for sourcing nearshore software engineers

Costa Rica

Costa Rica has grown rapidly in the technical arena over the last few decades. With a reputation for serious innovation in sustainable energy and biomedical research, Costa Rica has extended their attitude of innovation and growth to software development. The software development industry in Costa Rica is rapidly growing and has placed them solidly on the global map as a source of high-quality, technically skilled talent. Costa Rica’s laws and regulations regarding secure data and IP are modeled, like many Latin American countries, on the European standards for data protection. Costa Rica’s recent revamp of its privacy laws makes them an attractive option for companies that deal with sensitive data. 


Mexico is a top country for nearshore software development and is home to stunning nature and beautiful culture. More people graduate from IT-related fields in Mexico each year than in countries like Canada or Germany. Mexico’s government strongly supports nearshoring and the tech industry by investing in STEM education nationwide. With an average of 130,000 yearly graduates in the engineering and technical fields, Mexico’s investments are paying off. This success is attracting international players, such as Tesla, who confirmed the construction of their fifth Gigafactory in Monterrey, Mexico. Tesla will be manufacturing their next-generation electric vehicle at this new Gigafactory. 

Mexico is a strong player in the business process outsourcing (BPO) arena. Many of the world’s top software engineering firms, including companies such as Oracle, have a large presence in Mexico. Almost forty IT clusters throughout Mexico offer software development, among other technical services. Many companies also find more accessibility to niche IT resources in Mexico. Additionally, US companies have strong IP protection in Mexico due to trade agreements. This is one of the many reasons many North Americans work with nearshore partners in Mexico, along with the similar culture and timezones it shares with North American companies. 


Argentina is among the most popular countries to source nearshore software developers and other technical talents. The country is known for its software engineering, and its engineers are known for their superb skills. Since the 90s, Argentina has been a hub of software development, steadily producing more software engineers and being home to a growing number of tech companies. Argentina is considered a serious player in AgTech, FinTech, and game development. Additionally, software developers in Argentina are consistently ranked close to or at the top of the list regarding engineering skills. Its long history in the tech industry and supportive government make Argentina a top choice for sourcing nearshore partners. For example, Argentina’s free trade agreements with many countries, such as the United States, Brazil, and Mexico, offer many advantages to companies. Argentina is also attractive to foreign investors, which supports the fundraising efforts of companies that call this country home. Argentina’s government is also continuing to invest in the country’s infrastructure, including implementing FTTH (Fiber to the Home) and expanding cell and broadband internet coverage.  It’s worth noting that Argentinian engineers are ranked highest in their English skills, a critical factor in a nearshore partnership. 


Brazil boasts the largest economy in Latin America (LatAm), which helps it set the stage as a top player in the nearshoring industry. Many Fortune 500 companies, like multinational company IBM, base their operations in Brazil. As a growing hub for technology, Brazil is attracting interest and investments from across the globe. Brazil is rising on the global lists for technological innovation, creating a strong technical talent pool. Brazil is also a financial hub with many banks and financial institutions. The financial sector works closely with software development; many companies have strong software engineering divisions. Brazil has developed as a technological hub for many years, making it a strong choice for nearshore software development partnerships. Part of this development is due to the country’s impressive investment in education at both early and collegiate levels. Recently Brazil has adopted comprehensive data protection regulations that mirror the EU General Data Protection Act (GDPR). 


Considered one of the top choices for nearshore software development, Colombia is the home base of thousands of tech companies. Recently Colombia ranked 4th for the number of internet users in LatAm countries. This reflects the country’s goal to become the Silicon Valley of Latin America. In 2021, Columbia experienced 33% growth in registered software and IT services exports, or USD 218.8 million.  Its capital city, Medellin, is considered a hub for technology and science. This South American country gained international acclaim when the Fourth Industrial Revolution Center selected Medellin as its headquarters. 

Why Partner with Encora for Nearshore Software Development?

Encora offers modern businesses a global talent pool with proprietary Agile Engineering capabilities. Encora has partnered with hundreds of companies to improve the quality of their products as well as speed to impact. Encora specializes in nearshore software development, with eighteen offices in six LatAm countries. And, with a high concentration of their 9,000+ workforce in LatAm, Encora is uniquely situated to offer nearshore software development to companies of all sizes and software development needs, no matter how specialized. Companies that partner with Encora receive the value of world-class software development and the ease of similar timezones, business culture, and language. Contact Encora today to learn more about nearshore software development.

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