Why Companies Choose Nearshore Development Services

Nearshore development services was not a thing just a few short years ago. Over the last few decades, businesses of all shapes and sizes have been thrust into the ocean of digital transformation and constant global, technological changes. They continuously find themselves under pressure to adapt to these changes by embracing technology instead of avoiding it. Those that still seek to operate in the traditional sense often find themselves outdated and have a difficult time keeping up with the rest. 

We live in a day and age where technology isn’t only for ‘’techy’’ businesses anymore. Now, almost every scaling business needs to make the right use of technology to get to where they need and want to be.  For businesses to confidently take advantage of using technology for their operations, processes, and overall functioning, they need to have the right people in place to make this happen. Whether they be IT professionals, software developers, or cybersecurity experts, being able to count on these skilled individuals to help streamline operations for businesses to adapt to the current digital landscape is vital.

Unfortunately, businesses, especially small and medium-sized, often face recruiting and sourcing challenges and struggle to find the right talent when they need it most. Sometimes, they don’t have the budget to hire in-house, full-time professionals and end up losing them to bigger, more established brands. Finding and hiring local talent may also become complicated, especially in times of talent shortage.

This is where nearshore development services solve some of the most common problems: Time-consuming hiring difficulties, lack of local talent, and budget constraints. Nearshore development services help businesses delegate software development and related tasks to companies in neighboring countries. An example of this is when a US business chooses to work with a nearshore development service provider in Mexico. Here, we discuss some of the main reasons why companies choose nearshore development services and how they can ultimately come out as winners.

Cutting down on cost while staying productive 

Saving money is one of the biggest advantages that nearshore software development offers today. Businesses have the opportunity to source the best engineering talent outside their country’s borders, giving them the luxury of finding the right talent at a much better cost. The cost and upkeep of hiring full-time, local software developers in the US are much higher than they would be if a business were to outsource specialized talent in a nearby country or region like Mexico or Latin America. Salary averages in nearby, developing countries are much lower than local, US salaries are. Plus, by using nearshore development services to hire already qualified individuals, businesses no longer have to worry about investing in domain-specific training and upskilling programs.  

Even though businesses will be cutting down on full-time employment costs, this doesn’t mean that they will be sacrificing work and project quality outcomes. Companies that provide nearshore development services come with the experience, skills, and methodologies that give clients the confidence to continue focusing on their core business objectives. By choosing the right provider, preparing proper onboarding, and making sure the right kind of communication is in place, productivity will be a natural result.

Favorable geographic positions

Cultural and language barriers can be extremely challenging for effective team collaboration and they are usually difficult to overcome in the long run. These barriers result in frequent communication issues, project delays, and misunderstandings between team members. 

Because nearshore development services are all about geographical proximity between client businesses and nearshore service providers, working in the same, or a similar time zone, makes it much easier for the nearshore team to integrate with in-house teams seamlessly. Communication and collaboration also become more fluid, making the transfer of knowledge easier. Nearshore teams are able to adapt to their client’s processes and requirements at a faster pace because fewer barriers are involved. Language limitations are also solved with nearshore as teams are able to communicate in the same language. For example, many Mexican engineers already come with a strong level of English working proficiency and are familiar with American culture.

When building products and working with engineering teams, communication and working styles should never be a problem as they are essential ingredients for efficiency and productivity. Unlike offshoring, nearshoring brings much more clarity to the communication process between you and your nearshore team.

Access to a larger talent pool

When you go the nearshore route and hire a team or service provider in an adjacent country, you broaden your pool of talent by finding more capable and skilled people to work on your projects. Businesses don’t have to wait to find and work with the right talent because nearshore service providers are able to provide almost immediate access to highly qualified professionals. 

Latin America is an emerging leader when it comes to what it can offer talent-wise and many companies considering nearshore software development are already investing in hiring experienced software engineers and developers from within the region. No longer do businesses have to be confined to local hiring where sourcing and hiring the right talent may take much more time than one can afford.

For more reasons why a company should consider nearshore outsourcing, download our free eBook, 6 Ways Nearshore Outsourcing can Benefit Your Business Today.  

About Icalia Labs

Icalia Labs is a world-class nearshore software product firm enabling businesses to translate their digital strategies into tangible value. With a customer-centric design and an engineering culture, the firm guides its clients through an agile framework to acquire new digital capabilities and fortify their innovation-to-market mindset.

Icalia Labs delivers value through a frictionless software environment, assembling the right people, products, and processes into the mix. We have grown our team all across the Americas, leveraging economies of scale to achieve more in less time while providing better solutions.


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