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With so many things affecting the IT industry right now, such as the 2022 tech crash, you might be considering implementing some radical changes within your company. After all, the times call for trying something new. When things don't seem to be working out, it’s best to take a chance than to wait and hope for external change and sink in the meantime. Nearshore outsourcing can be the next shift for your company, the next step towards saving money on development costs. But where can you hire nearshore developers who are ready to work for North American companies? The answer is simple: Latin America.
What is nearshoring?
Let’s get the basics out of the way first. What exactly is nearshoring? This is an outsourcing strategy where North American companies hire software developers and other IT professionals from countries located at a nearshore distance. For the US and North America, this means the Latin American region. It’s a completely different practice than offshore outsourcing given that the distance between countries is significantly shorter. Through nearshore outsourcing, North American organizations looking for efficient coding solutions at a convenient price can hire expert developers from different LATAM countries to complete various projects.
Now, we consider Latin America to be the prime nearshoring location. This region will allow you to hire amazing IT professionals at a lower cost, and it’s only a matter of time before you too realize why LATAM is the perfect spot for you to outsource developers. For now, here’s our list of favorite reasons why to hire nearshore software developers from Latin America!
Benefits of nearshoring to Latin America
Large Talent Pool.
It’s no secret that the Latin American region has a large IT talent pool. This part of the continent is composed of 20 different countries and, according to Statista, over 1 million software developers. No more struggling to find qualified candidates who are a good fit for your company culture within a small area, just one state, or even just one country. Once you access the Latin American talent pool, you can look for the best IT professionals knowing there’s seriously a lot to choose from. This also grants you the possibility to hire more diverse and culturally rich individuals whose global experiences can be just as good of an asset to your team as their development abilities.
No Significant Time Differences.
Want to know the key difference between nearshore outsourcing and offshoring? Nearshore software developers in Latin America work with very similar time zones to those in the US. That’s right, no need for three AM business calls or early morning Slack messages because your team is hours ahead or behind you. Most nearshore developers are only a couple of hours ahead or behind the EST time zone. This allows you to have virtually the same business hours and work together in real-time to complete projects at a faster pace.
Better Cultural Fit.
While there are other nearshoring and offshoring alternatives with similar rates, the fact is that Latin American countries often have very similar cultures to those of North America. You’d be surprised at the way their corporate culture resembles that of your own company. Thanks to the similar work ethic and customs, nearshore developers from Latin America can seamlessly integrate into your company and get along with your existing team in no time.
Best Bang for Your Buck.
Latin American developers charge up to 50% lower development rates compared to their American counterparts. This allows companies to save big money on development costs and better allocate those resources towards advancing other current projects.
Established IT Industries in Each Individual LATAM Country.
It’s no secret that Latin America is positioning itself as an IT powerhouse. Over the years this region has experienced incredible growth not only within the technology sector but also in the marketing and communications industry. From Chile and Argentina to Panama and The Dominican Republic, all of these countries have their own internal tech hubs you can look into to find experienced developers for a lower price.
In which Latin American countries should I hire LATAM developers?
We get it. Latin America is a large continent with dozens of countries to choose from when it comes to hiring remote nearshore developers. Yet there are a few of them that have a more robust IT industry and a larger talent pool to choose from. Here are the best Latin American countries to outsource software developers:
Future Outlook: The Evolving Landscape of Nearshore Software Development in Latin America
1. More Demand for Specialized Developers
As technology keeps evolving, companies need developers with specialized skills in areas like artificial intelligence (AI), blockchain, and cybersecurity. Latin America is becoming a great place to find these experts, making nearshore software development even more attractive for businesses looking for top talent.
2. Governments Supporting Tech Education
Many Latin American countries are investing in tech education to create more skilled developers. Programs that focus on coding and English skills are helping prepare students for jobs with international companies. This means more talented developers will be available for nearshoring in the future.
3. Growing Tech Hubs and Startups
Cities like São Paulo, Buenos Aires, and Bogotá are turning into big tech hubs. More startups and tech companies are setting up offices there, creating more opportunities for developers. As these tech communities grow, Latin America’s reputation as a great nearshoring destination will keep getting stronger.
4. More Remote and Hybrid Work
Remote work is now the norm, and companies are more comfortable hiring developers from different countries. Nearshore developers in Latin America can now work remotely or in hybrid models, making collaboration easier and more flexible for companies in North America.
5. Better Cybersecurity and Data Protection
Cybersecurity is a huge concern for companies working with remote developers. Latin American countries are improving their data protection laws to match international standards. This will help businesses feel safer outsourcing their software development projects to the region.
6. New Payment and Contract Options
Companies and developers are coming up with different ways to structure contracts and payments. Some businesses might prefer subscription-based services, while others may choose contracts that focus on results. These flexible options will make nearshoring more appealing to a wider range of companies.
7. More North American Companies Opening Offices in LATAM
Instead of just outsourcing, some North American companies are now opening their own development centers in Latin America. This lets them work directly with local developers while keeping more control over their projects and company culture.
8. AI and Automation Improving Development
AI and automation are making software development faster and more efficient. Latin American developers are starting to use AI-powered tools to improve their workflows, allowing them to deliver high-quality projects at lower costs. This will make nearshoring even more valuable.
9. Stronger Partnerships Between LATAM and North America
Companies in North America are not just hiring nearshore developers for short-term projects anymore. They are now forming long-term partnerships with Latin American teams, focusing on collaboration and knowledge-sharing to create better software solutions.
10. Latin America Becoming a Global IT Leader
Over the next few years, Latin America is expected to move beyond just being a nearshoring option. With more talent, better tech infrastructure, and competitive costs, the region is becoming a key player in the global IT industry. Companies that start outsourcing to Latin America now will benefit as the region continues to grow as a tech powerhouse.
Overcoming Challenges: Strategies for Effective Nearshore Collaboration When You Hire in Latin America
↝ Improving Communication Across Teams
Communication can be tricky when working with remote teams. Even though many Latin American developers speak English well, making it a prime nearshoring location, there can still be confusion because of cultural differences or language nuances. To solve this, companies should use tools like Slack or Microsoft Teams to set clear communication channels. Daily check-ins, good documentation, and clear rules for when to escalate issues can help ensure everyone is on the same page.
↝ Navigating Legal Issues
When nearshoring to Latin America, it’s important to understand the local laws. Each country has its own rules about taxes, labor laws, and intellectual property. Companies need to work with legal experts who understand these regulations and make sure contracts are set up properly. This protects both the company and the developers from any legal problems.
↝ Securing Data
Data protection is a big concern in remote work. Different Latin American countries have different cybersecurity levels, so companies need to take extra steps to protect their data. Using tools like VPNs and multi-factor authentication can keep sensitive information safe. Regular security checks also help prevent cyberattacks.
↝ Maintaining Productivity
Managing a remote team’s productivity can be challenging. To keep things on track, companies should use tools like Asana to monitor progress. Agile methods like Scrum help developers stay focused and meet deadlines. Regular feedback and performance reviews also help maintain high productivity.
↝ Bridging Cultural Differences
Cultural differences can affect how teams work together. Companies should set clear expectations and introduce nearshore developers to their company culture through onboarding programs. Virtual team-building activities can also help build stronger relationships.
Ready To Start Nearshoring To Latin America and Save Money On Development Costs?
We know that hiring new IT professionals can be a challenge, especially if you’re about to start hiring developers in Latin America with no previous nearshoring experience. That’s why at Blue Coding, we want to offer you all the help you need to thrive when hiring nearshore developers. Our team works with a large international network of IT professionals with the necessary experience and qualifications to start working on any of your company’s projects right away. We’re there for you every step of the way to ensure the process goes smoothly, from interviewing to onboarding.
No matter which IT solutions you’re looking for, we’ve got a developer ready to fit your needs. Contact us today to schedule a free consultation and learn more about our nearshoring services!
