The world is changing rapidly, as it has been over the past few decades. Globalization and telecommunications have changed completely the paradigm of how we live and work. In such context, many companies started to delegate certain projects to teams working in other countries or adding people to their teams that work remotely and sometimes belong to outsourced companies.
Said companies can be anywhere in the world. However, there is one alternative that has been gaining popularity recently, and that is “nearshoring”. The Collins dictionary defines “to nearshore” as: to source service activities to a neighbouring country, especially for economic reasons (1). It is related to the broader term, to outsource, or to offshore. However, in this particular scenario, the provider of the services is located near the hiring country or within a similar time zone. This trend has been growing rapidly over the last few years, being adopted by some of the giants of the industry, as well as smaller companies.
This practice is particularly interesting for North American software development companies who choose to nearshore to Latin America: as opposed to the “traditional” outsourcing destinations, such as India or China, Latin American countries offer a number of advantages worth considering for software outsourcing: the time difference is very little, making it possible to work simultaneously; Latin America has also some of the best developers in the world, highly trained and with a broad experience in a number of projects. What is more, most IT workers are bilingual or have a very high English level, which enables a fluent daily communication. And, to complete the picture, the cost of hiring software development partners in Latin America tends to be quite competitive. However, working with offshoring partners also has some disadvantages, such as distance, lack of direct control over what is being done and, sometimes, not contemplated costs.
The following e-book was designed to provide you with a more in-depth look at the advantages and disadvantages of extending your team through nearshoring or in-house hirings. You can download it for free in the link below.