Nearshoring Custom Software Development

Written by Scott Craig|Posted on February 27, 2023

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To meet the demanding software requirements of the modern digital marketplace, many businesses are turning to nearshore outsourcing solutions, in which development teams from Latin America are hired to create custom software products for North American companies. Here’s why more and more companies are choosing nearshore:

To Stay Ahead Of The Curve

The IT industry is a fast-moving sector, with new trends and tech being adopted all the time, e.g., blockchain or virtual reality. Staying up to date with global shifts and cutting-edge tools is difficult for companies that aren’t already IT specialists–that’s why businesses turn to nearshore outsourcing to experts so that they can stay ahead of their competition.

Competition for Tech Talent

The speed of digital transformation has made competent IT professionals a hot commodity. Every business looking to establish itself in the market should offer attractive, functional, and distinctive websites, mobile apps, and software. As a result, companies compete to snap up workers, leading to an increase in salaries and greater difficulty in sourcing and attracting talent. With the finite talent pool in the US becoming increasingly expensive, nearshore outsourcing to countries in Latin America, with their highly skilled workforce and lower cost of living, becomes much more appealing.

Linguistic and Cultural Similarities

Clear communication, trust, and understanding are all essential to good collaboration, and a large part of the appeal of nearshore outsourcing is that Latin American countries have a good level of English proficiency and closer cultural ties to the US than other outsourcing destinations. This helps collaboration between clients and developers go more smoothly.

Time Zone Alignment

Latin American countries operate in time zones that are close to those in the US, which means that virtual meetings and other communications can take place during the same hours of the working day for all parties involved. This avoids the possibility of long delays in productivity if one side is mostly sleeping while the other is working.

Shorter Distances

Nearshore locations are geographically close to the US, making it cheaper and more convenient to conduct in-person visits and meetings if necessary.

The competitive advantages of nearshore outsourcing continue to be relevant in 2023, so expect this trend to persist in the near future.

To read the original news article, click here.

Scott Craig

Scott Craig



Kirkland, WA, USA

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