Explore ACL's comprehensive guide on nearshore software outsourcing in Latin America. Achieve cost savings, tap into a diverse talent pool, and make informed decisions on the best countries to hire. Dive into the essence of nearshoring with our three-part guide.
Complete Guide: Hiring Latin American Developers & Nearshoring in Latin America and South America- Part 1
Mexico and Brazil
Considering nearshore software outsourcing to the Latin American region? At ACL, we champion nearshoring as an efficient, cost-effective avenue for software outsourcing. Hiring nearshore developers from Latin America allows companies to achieve substantial savings while enriching their teams with a diverse talent pool. With an array of countries to choose from, it's imperative to have a clear guide. We've got you covered with our comprehensive guide on navigating nearshore outsourcing in Latin America. Dive into the essence of nearshoring with us! This three-part guide will help you make informed decisions on the best countries to hire in Latin America!
What makes us experts on Latin America?
At ACL, our proficiency in hiring the finest developers in Latin America is unparalleled. With over 30 years of experience and boasting a robust team of over 700 Latin American developers, we have a sprawling presence across 14 countries in the region. Our sterling track record is further illuminated by our collaboration with industry giants like IBM, Deloitte, Oracle, and Walmart, among numerous others. This success isn't coincidental; it's the fruit of meticulous efforts by our dedicated team of 25 expert recruiters. Over the past two years alone, we've sifted through more than 5,000 developer profiles, ensuring that we only onboard the crème de la crème. This vast experience and laser-focused approach position ACL as the gold standard when it comes to recruiting developer talent in Latin America. For a more in-depth look at our clients and projects, feel free to check us out.
Looking for Custom Software Development? We are pretty good at that also. Want to learn more from a different source? Check out this ARTICLE from Bloomberg about countries leading the nearshore phenomenon.
Understanding Nearshoring
Nearshore vs Offshore: The distinction lies in proximity and compatibility. Nearshore software outsourcing involves collaborating with development professionals in neighboring countries that align closely with the US in terms of time zones. Contrarily, offshore outsourcing involves collaboration with developers from far-flung areas like India or Pakistan. A tangible example of nearshoring is partnering with developers in Argentina. With a negligible one to two hours' time zone difference from the EST and frequent direct flights to the US, it signifies the convenience nearshoring offers.
The Advantages of Nearshoring: Nearshoring empowers businesses with access to pre-vetted IT talents in a condensed time frame. It facilitates the engagement of skilled remote developers on a contractual basis, adapting flexibly to the duration of your projects. If a project concludes and you don't have immediate tasks for the developer, nearshoring allows a seamless transition without cumbersome paperwork or complexities. Simplifying the process, nearshoring ensures that scaling your in-house team with elite coding expertise is not just feasible, but also efficient.
Three Prime Benefits of Nearshore Software Outsourcing to Latin America
Significant Cost Efficiency:
Engaging with remote nearshore developers can substantially trim your development costs. Often, nearshore developers from Latin America tender their services at rates significantly lower than their local counterparts. This can translate to cost savings ranging between 30% and 40%. The rationale behind this price cut includes the economical nature of IT staff augmentation in contrast to traditional in-house hiring, the inherent savings from hiring developers as contract-based professionals, and the favorable cost of living in their native countries. Opting for nearshoring in Latin America ensures that while you economize on your budget, your extended team remains equitably compensated for their dedicated work.
Swift Recruitment and Adaptive Staffing:
One salient advantage of nearshoring is the expeditious recruitment procedure it entails. The conventional in-house hiring process can be protracted and costly - with the Society of Human Resource Management revealing an average recruitment cost of over $4,000 per hire. Nearshoring drastically reduces these timelines and expenditures. If you're unequivocal about your IT needs, pre-screened professionals can be onboarded within a fortnight. The inherent flexibility of nearshoring ensures you're never overstaffed or understaffed; you wield full discretion over contract durations, allowing for scalability based on evolving project needs.
Access to Expansive Talent with Fewer Time Zone Hurdles:
According to the Manpower Group Talent Shortage Report, there's a looming talent shortage in the US, with a talent shortage rate touching 75%. Furthermore, a CNBC report pinpoints nearly a million IT vacancies in the US, underscoring the present talent crunch. Nearshoring to Latin America is the strategic solution to this challenge. It unlocks access to a vast reservoir of adept developers, offering a wider selection spectrum than the constrained US talent pool. The proximity advantage ensures that time zone differentials are negligible, rarely exceeding 4-5 hours with respect to EST. Additionally, Latin America places a significant emphasis on English education, ensuring that the developers you engage with not only communicate effectively in English but are also acclimated to North American work ethos.
Advantages of Nearshoring to Latin America
Minimal Time Zone and Cultural Barriers:
When juxtaposed against offshore locations, Latin America's time zone aligns closely with that of the United States. With mere hours separating most of the region from EDT and EST, synchronization of work hours becomes seamless. Additionally, English proficiency is emphasized in Latin American education systems, ensuring that developers not only communicate effectively but also resonate with the prevailing corporate culture.
Proximity to the United States:
While offshoring may occasionally prove more economical, nearshoring offers unparalleled geographical proximity. Whether it's Mexico or as far south as Argentina, you're never too distant from these strategic locations, a key reason why many US entities gravitate towards Latin American nearshore developers.
Emerging IT Hub:
Latin America has been steadily carving a niche as a prime IT destination. Despite the setbacks of 2020, the region's tech sector witnessed an impressive rebound, growing by an estimated 6.8% in the subsequent year. With the growth trajectory still ascending, it presents a golden opportunity for businesses to embed themselves in this burgeoning market.
Strategies to Employ Nearshore Developers in Latin America:
Engaging Through GEO or PEO:
Global Employment Organizations enable businesses to employ developers via local affiliates. While this introduces a mediating third party, it provides a structured framework for recruitment. Expect to cover the developer's complete remuneration, benefits, and an additional service fee, often upwards of 20%.
Freelancing Platforms:
These platforms serve as global repositories for freelancers. While Upwork and Freelancer lead the pack, they sometimes blur the lines when assessing a developer's competency and language skills. As these platforms also deduct a portion of the freelancer's income, we advise exploring alternative platforms for a more transparent hiring experience.
Direct Contractor Engagement:
Directly collaborating with contractors offers an undiluted nearshoring experience. It's tailor-made for those familiar with freelance engagements and with a clear vision of their development needs. While this approach may require a tad more legwork, participating in premier Latin American tech events can be a valuable starting point.
Leveraging Nearshoring Agencies:
Associating with an agency dedicated to nearshore software development services is a prudent choice for those seeking in-depth market insights and rapid recruitment. At ACL we meticulously screen developers from Latin America, ensuring that our clients are paired with professionals who perfectly align with their project requisites.
Dive into the world of nearshore development with a backdrop as historic and enriching as the Chichen-Itza!
Mexico boasts multiple time zones, but a significant portion of the developer community operates in the Mexico City time zone. Conveniently, this is just one hour ahead of EST, offering a near seamless collaboration for businesses in the eastern US.
Sharing a robust border spanning 1,954 miles (3,145 km), Mexico's adjacency to the US is unparalleled in Latin America. With 48 designated U.S.–Mexico border crossings and 330 ports of entry, business travel is a breeze. Of course, catching a flight remains a viable option!
Mexico's IT scene is pulsating with energy, hosting a spectrum of firms from nimble startups like Codebay and Teravision, to global giants such as Oracle. Significant financial entities like BBVA, Santander, and HSBC Mexico are also strong contributors, boasting robust software engineering divisions. With a community of over 223,398 developers, Mexico's strategic position and bilingual advantage make it a rising star in software exports and an alluring nearshoring destination.
While the IT professionals, particularly in tech hubs like Mexico City, often display a commendable grasp of English, it's worth noting that the broader populace may not possess the same fluency. Despite this, Mexico's tech industry stands resilient and continues to grow, with bilingual IT professionals serving as vital bridges in global collaboration.
With roughly 1250 universities, both public and private, Mexico continually nurtures a fresh batch of software talent. Esteemed institutions like CETYS University, Universidad Anáhuac Mayab, the Technological University of Leon, and Gauss Jordan Specialized Institute emphasize not only technical acumen but also essential business and organizational skills.
The demand-supply dynamics have positioned skilled Mexican developers competitively on the remuneration front. For businesses considering remote hires:
Please note that if you're collaborating with staff augmentation firms, they may charge an additional service fee, typically ranging from 20% to 30% of the developer’s compensation, to ensure a precise talent fit for your needs.
Want to learn more about Mexico? Check out our BLOG on how to hire in Mexico!
Delving into Nearshore Development in Brazil: A Guide
Brazil is synonymous with its rhythm, carnival, and the iconic Rio de Janeiro. As you consider nearshore software development here, immerse yourself in the unique Brazilian spirit.
Brazil spans multiple time zones, much like the US. However, when we examine the Brasilia - Federal District and the EST/EDT time zones, there's a mere one-hour difference. This makes real-time collaboration a breeze!
At approximately 4546.3 miles from the US, Brazil is easily accessible via an 8.1-hour flight.
Brazil's IT landscape is rich. From innovative consultancies like PlataformaTec to tech giants like IBM, the country's tech prowess is evident. With banking giants like Itau Unibanco and Banco Bradesco embracing tech, the country is on an upward IT trajectory. Major cities like São Paulo and Rio de Janeiro are teeming with talent, though many gems are found scattered throughout Brazil's vast expanse.
While Brazil stands 60th out of 112 countries in the EF EPI score 2021, with a focus on English, many in the tech sector are bridging this gap.
Brazilian developers showcase expertise in a myriad of technologies including:
With over 2600 universities, Brazil's academic arena is thriving. Top institutes like Universidade de São Paulo and Federal University of Rio Grande do Sul mold the next-gen tech leaders. This, coupled with Brazil's vibrant tech corporate scene, promises a continuous stream of proficient software engineers.
Hiring in Brazil offers a blend of quality and affordability. A glimpse of potential investments for developers proficient in English:
When collaborating with staff augmentation firms, anticipate an added service charge, typically around 20%-30%. This ensures they scout and match the finest talent for your needs.
Want to learn more about Brazil? Check out our BLOG on how to hire in Brazil!
Proceed to Part Two of our comprehensive guide, where we delve deeper into the intricacies of hiring practices across various Latin American nations. We're committed to providing you with insightful and valuable information to enhance your global recruitment strategies.
At ACL we ensure your software development projects are successful by helping you hire the best nearshore developers in Latin America through staff augmentation and nearshore outsourcing. Our technical recruiters will find the top LATAM talent for your development solutions and handle everything from vetting to initial interviewing. Whether you’re looking to hire a big outsourced development team or just do one direct placement, our team can help you welcome the right people to your staff. Contact Us today to book your free discovery call and learn more about our software development outsourcing services!
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