The Benefits of Nearshore Software Development in Latin America

Nearshore development companies are becoming an increasingly popular resource for businesses interested in increasing the quality of their software by outsourcing crucial parts of the development cycle.

This type of outsourcing involves working with a development firm located in a nearby country. For American businesses, this typically means working with a company located in Latin America. These US-based companies are outsourcing development to Latin America for several important reasons.

First of all, nearshore software development improves the level of collaboration between in-house employees and contractors. Secondly, outsourcing firms located in highly-developed regions like Latin America have access to high-quality engineers outside of the historically competitive US job market for programmers.

These outsourcing partners also help their clients maintain long-term staff flexibility and accelerate the development cycle. Finally, they can help improve software security by integrating data privacy specialists into every step of the software development process.

In brief, companies outsource software development to Latin America to:

  • Expand their talent search beyond national borders.
  • Accelerate the software development lifecycle.
  • Maintain long-term staff flexibility.
  • Improve software security.
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IMPROVE COLLABORATION

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Executives who are wary of outsourcing software development often point to one major problem: traditional outsourcing companies located in Asia typically hire contractors in the same region who struggle to communicate with their American counterparts.

Communication problems typically occur for one of two reasons. One, developers in Asia tend to work during standard business hours for their region, which is often the complete opposite of their American colleagues. This hinders collaboration and makes simple tasks take longer.

Secondly, while many engineers located in Asia are incredibly talented and have a strong development skill set, a great deal of those specialists have poor English skills. This frequently results in misunderstandings, leading to cost overruns and project delays.

Nearshore outsourcing solves the work hours problem. Rather than waiting for their counterpart in Mumbai to respond when they arrive at the office at 8:00 pm EST, American developers in New York can instantly communicate with their Buenos Aires colleague who begins work at the same time.

Software developers located in Latin America, on the other hand, are typically fluent in English and able to communicate easily with their in-house colleagues. They also have the same level of education and identical skillsets compared with their American counterparts.

EXPAND THE TALENT SEARCH

One of the most important benefits associated with outsourcing software development to Latin America is the ability to find high-quality talent without the competition that typifies the U.S. job market.

Latin America is currently producing some of the most innovative software developers in the world. That’s one reason why the region is becoming a darling of the American venture capital community.

Before 2011, the most recognizable startup accelerators in the United States had yet to accept a single Latin American member. Today, they’ve invested in more than 100 Latin American startups and counting. That’s a major reason why the region has received more than $5.5 billion in tech investment in the past decade.

The native success in the region is a major reason why American CEOs are looking towards Latin America as the solution to their talent problems. Software engineers have a current unemployment rate of just 1.9%, meaning that most U.S. companies are struggling to find the experienced developers that they need to thrive.

BairesDev is one company that helps American companies source the right talent for their development needs. BairesDev accomplishes this by only working with the top 1% of talent in Latin America. Each contractor is well-educated, fluent in English, and has a stellar track record in the industry.

THE NATIVE SUCCESS IN THE REGION IS A MAJOR REASON WHY AMERICAN CEOS ARE LOOKING TOWARDS LATIN AMERICA AS THE SOLUTION TO THEIR TALENT PROBLEMS.

ACCELERATE SOFTWARE DEVELOPMENT

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Perhaps the most frustrating aspect of the traditional hiring process is how long it takes to find and hire the right candidate. Research demonstrates that the average time to hire in the technology industry is over a month and a half

This becomes even more frustrating when a company needs to fill several open positions in order to launch a development project. Candidate sourcing can end up delaying a project by several months, leading to cost overruns and frustration from key stakeholders.

In addition, delays in the hiring process can cause projects to run far past their scheduled time. That’s one reason why only 52% of projects are completed “within their initially scheduled times.” 

Nearshore outsourcing companies help accelerate the software development lifecycle by placing contractors in roles on-cue. This allows managers to start projects on-time and set their teams up for success.

These types of outsourcing partners also accelerate the development process through seamless collaboration. They also reduce the total development time by ensuring that in-house employees and contractors alike are working at the same time, as briefly mentioned above.

IMPROVE SOFTWARE SECURITY & DATA PRIVACY

AMERICAN COMPANIES HAVE BEGUN WORKING WITH LATIN AMERICAN OUTSOURCING COMPANIES BECAUSE OF THE REGION’S DOMESTIC STARTUP SUCCESS AND FOCUS ON DATA PRIVACY.

Another major benefit found through nearshore software outsourcing is improved software security. This is especially important given the current status of data privacy in the United States.

Research shows that the number of data breaches continues to increase every year. In addition, experts predict that the total damage from cyberattacks will reach $6 trillion per year by 2021.

American companies have begun working with Latin American outsourcing companies because of the region’s domestic startup success and focus on data privacy.

Outsourcing partners like BairesDev help their clients maintain software security by building multidisciplinary, autonomous delivery teams that integrate data privacy into every aspect of the software development lifecycle.

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In summary, nearshore software development in Latin America helps businesses:

  • Access a wider network of talent

    Software development outsourcing companies in Latin America can help businesses in the United States hire contractors outside of the ultra-competitive American hiring market.

  • Start and finish software development projects quicker

    Experienced outsourcing firms have a list of talented programmers ready to begin a project on-cue.

  • Ensure long-term staff flexibility

    By hiring software engineers and other experts only as-needed, businesses maintain a lean in-house staff and keep their budget flexible for the future.

  • Enhance data privacy

    Work with experienced software security experts who can integrate privacy protections into every step of the software development lifecycle.

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