Desarrollo Digital

Why US Companies Choose Nearshore Outsource for Software Developers3 min read

5 noviembre, 2019 2 min read
Carla Alvarenga


Why US Companies Choose Nearshore Outsource for Software Developers3 min read

Outsourcing development projects has continued to rise in popularity. This is a highly-effective way to to reduce overhead costs, shorten the time-to-market and drive a quicker Return On Investment. Over the last decade more businesses have been outsourcing software development, in fact more than 60% of the total Outsourcing industry consists of IT workers.

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Business of all shapes and sizes are hiring teams of developers in nearby countries located closer to their home base, including many Latin American countries such as Mexico, Brazil, Costa Rica, El Salvador, Argentina and others. Hiring developers in a nearshore methodology poses several advantages in a business contest. This why American and Canadian businesses are looking towards Nearshore partnership strategies: to reduce costs and reduce the time to go-to-market. But how exactly?

Nearshore Outsourcing

The most ambitious and innovative way to outsource is Nearshore. This way, you get all the benefits of the traditional outsourcing model (contracting foreign labor for a particular task/project) but with added value such as:

  • In most cases, nearshore partners are only a 3-hour flight away
  • Shared time zones
  • Similarities in culture, but also enough diversity to create a fun and interesting work dynamic
  • Fewer language gaps

These added benefits are much more relevant in the software development field. In this case, when adopting a Nearshore model, communication problems are effectively mitigated. User demands and new technologies are changing the way businesses are using outsourcing models. Initially, American businesses relied on offshoring for lower-level positions. These businesses are now relying on outsourcing software development to support more robust and strategic roles as well.

Companies around the world but especially in the LATAM region, are training their teams on how to become experts in adapting their working skills to the highest standards, when it comes to software development. Latin America and North America have a shared history spanning more than three centuries, as well as a physical border. This commonality is crucial in fostering effective communications. Cultural alignment supports a more efficient and collaborative working environment across teams, which in turn generally means fewer complications along the way.

Teams collaborating in similar time zones have the ability to respond to client requests faster and therefore get to solutions quicker. The distance between them is not too far that they could never meet in person, but can easily schedule a face-to-face meeting with periodicity. This is a factor that clients who are located in different continents can’t afford to make, in some cases it never happens.

Nearshore Outsourcing in LATAM

Software development services in a nearshore model are occasionally overlooked because there’s a misconception that outsourcing, especially technology, is equivalent to unreliable, low quality providers located in the most remote places of the world. However, it is important to note that high quality talents exists only a few miles away.

A great option is outsourcing technolgy partners from Latin America countries. The geographical proximity gives clients more control, meaning they share same time zones, which makes communication flow more easily and there’s a better chance to have face-to-face meetings. There’s also an increasing wave of developers in the region and a great part of them are looking for job opportunities in companies mainly located in the U.S. More agencies and firms in LATAM are offering IT services specifically catered for the North American market, taking additional steps to meet the demands and standards in the region.

Elaniin is a tech company with over five years of experience in software development and digital marketing. A large majority of the projects we have developed have been for foreign clients. Many of them, residing in the U.S. We are ready to create the best version of your brand, company and projects. Let’s start today, send us a note at: