In-house software development teams are not as crucial as they used to be. The rise of remote work has provided some level of confidence to organizations, and now talent is not only being sourced in one city or country.
Software outsourcing has helped companies in all industries to stay productive, save on costs, and complete projects on time. Traditional outsourcing models, such as offshoring, proved to have many flaws that are only obvious in retrospect. The limitations of the offshore model pushed companies to come up with new solutions. At this point, the nearshore model seemed like a perfect fit.
In this article, we will review nearshore software development basics and how US-based companies can leverage development teams in Latin America.
It involves delegating partial or complete software development tasks to companies or consultancies that employ IT talent in countries geographically close to your country. For example, a company in Austin, TX, hires a React Consultancy that provides them with three senior software engineers based in Colombia to complete critical parts of their corporate chat application.
An additional example includes a company in San Francisco, CA hiring a Ruby on Rails Consultancy to develop iOS and Android apps that are fully integrated with their existing web application. The consultancy built a dedicated team based in Latin America to complete the project.
Different engagement models fit all kinds of businesses and projects. Nonetheless, the foundation is the same: qualified IT talent, located within a minimal time difference of 1-3 hours compared to you, working as part of your local team or working on developing a specific project.
Nearshore software development helps companies get their products and ideas to market more quickly. Companies that do not specialize in software development can focus on their core expertise while still building a quality product. Let’s analyze the benefit for US-based companies of having Latin American software development teams:
At FullStack Labs, we practice what we call Nearshore Plus. That means our team is a mix of US-based and Latin American designers, developers, and project managers. But every project, no matter its geographic mix, gets a US-based technical lead and project manager to ensure physical proximity and maximum communication.
We identified that the Nearshore model could provide more value to our clients by also adding local resources. If you want to learn more about nearshore software development and want to know if it’s the right approach for your business, drop us a line — we’ll be happy to chat with you.
We’d love to learn more about your project.
Engagements start at $75,000.