The benefits of Nearshore software development in Latin America

Nearshore development companies are becoming an increasingly popular resource for companies 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 company located in a nearby country. For American companies, 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.

Firstly, nearshore software development improves the level of collaboration between internal employees and service providers. Second, outsourcing companies located in highly developed regions like Latin America have access to high-quality engineers outside of the historically competitive U.S. job market for programmers.

These outsourcing partners also help their clients maintain long-term team flexibility and speed up the development cycle. Finally, they can help improve software security by integrating data privacy experts into each step of the software development process.

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

• Expand your talent search beyond national borders.
• Accelerate the software development lifecycle.
• Maintain team flexibility in the long term.
• Improve software security.

Improve collaboration

Executives who are wary of outsourcing software development often point to a major problem: Traditional outsourcing companies located in Asia typically hire contractors in the same region who have difficulty communicating with their American counterparts.

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

Second, although many engineers located in Asia are incredibly talented and have a strong development skill set, many of these specialists have limited English skills. This often results in misunderstandings, leading to cost overruns and project delays.

Nearshore outsourcing solves the problem of working hours. Instead of waiting for their colleague in Mumbai to respond when they arrive at the office at 8pm EST, American developers in New York can instantly communicate with their colleague in Buenos Aires who starts 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 internal colleagues. They also have the same level of education and identical skill sets compared to their American counterparts.

Expand your 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 characterizes the U.S. job market.

Latin America currently produces 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 recognized startup accelerators in the United States still did not accept a single Latin American member. Today, they have invested in over 100 Latin American startups and counting. This is one of the main reasons why the region has received more than US$5.5 billion in technology investment over the last decade.

Native success in the region is one of the main reasons why American CEOs are looking to Latin America as the solution to their talent problems. Experienced software engineers have a current unemployment rate of just 1.9% which means most US companies are struggling to find the experienced developers they need to thrive.

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

Accelerate software development

Perhaps the most frustrating aspect of the traditional hiring process is the time it takes to find and hire the right candidate. Research shows 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 to launch a development project. Hiring candidates can end up delaying a project for several months, leading to cost overruns and frustration for key stakeholders.

Additionally, delays in the contracting process can cause projects to go beyond their scheduled deadline. This is one of the reasons why only 52% of projects are completed.” within the initially scheduled times .”

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

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

Improve software security and data privacy

AMERICAN COMPANIES HAVE STARTED WORKING WITH LATIN AMERICAN OUTSOURCING COMPANIES DUE TO THE SUCCESS OF THE REGION'S DOMESTIC STARTUPS AND THE FOCUS ON DATA PRIVACY.

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

Research shows that the number of data breaches continues to increase every year . Furthermore, experts predict that the total damage from cyber attacks will reach 6 billion dollars per year by 2021.

American companies have begun working with Latin American outsourcing companies due to the success of the region's domestic startups and focus on data privacy.

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

• Access a wider network of talent: Software development outsourcing companies in Latin America can help companies in the United States hire contractors outside of the ultra-competitive American hiring market.
• Start and finish software development projects faster: Experienced outsourcing companies have a roster of talented programmers ready to start a project on time.
• Ensure long-term team flexibility: By hiring software engineers and other specialists only when needed, companies maintain a lean internal team and their budget flexible for the future.
• Improve data privacy: Work with experienced software security experts who can integrate privacy protections into every step of the software development lifecycle.