How to Build LatAm Nearshore Development Teams

How to Build LatAm Nearshore Teams

Building a software development team, regardless of location, presents its own unique challenges. The prospect of building nearshore teams in Latin America can be particularly daunting. Indeed, there are many risks related to remote software team management: will such a team be motivated to work? How will they organize the development process? Am I not wasting money? Well, these and more questions will definitely be lingering in your mind.

In spite of these fears, tech giants like Oracle, IBM, Microsoft, and Google, have built development centers across Latin America that are at the forefront of spearheading innovation in software development, cloud engineering, artificial intelligence, and technical analysis.

Well, it turns out making successful businesses by building LatAm nearshore teams is a reality. It only takes some practical management skills to build a successful nearshore team.

In this article, I want to share some tricks of building nearshore software development teams in Latin America that I acquired from working with foreign clients. You will learn:

Which skills to look out for when hiring nearshore development teams?
How to organize the development process of the nearshore team?
How to set up the communication for a nearshore team?

So let us dive right in.

Step 1 – Find a Proper LatAm Software Development Team

While technical skills are essential, building a successful nearshore software development team hinges on more than just coding prowess. Soft skills play a crucial role in fostering a productive and collaborative partnership.

Remember, even though your LatAm nearshore development team may be remote, they will become an integral part of your project. It’s essential to find individuals who not only possess the necessary technical skills but also fit seamlessly within your company’s culture.

Therefore, while interviewing a potential software development team, pay attention to candidates’ soft skills, like ⬇

Being team players

Developing products is not about only writing code anymore. In fact, harmonized teams with integrated communication have more chances to produce a high-quality product than a team of isolated developers. So try to check candidates’ ability to communicate, make common decisions, share experience, and achieve goals together. Here are some hints on how you could check this out:

Organize a call with the candidates and ask questions on their work process.
Ask if the candidate(s) has experience of working in your targeted domain.
Ask about the candidate’s favorite product/client, kinds of tasks they like to work at, and check what they value the most.

Balance between freedom and responsibility

Contrary to popular belief, freedom and responsibility are not opposing forces but rather complementary elements. Netflix’s remarkable success is a testament to this principle, embodied in their “no rules rule” philosophy.

Reed Hastings, Netflix’s CEO, emphasizes that people, not strict policies or hard work, are the foundation of a successful company. Trust is at the core of their corporate culture, fostered through transparency, feedback loops, and a departure from traditional vacation and salary policies.

Netflix’s success is undeniable, with a massive subscriber base of 207.64 million as of the first quarter of 2021. Their approach has proven that empowering employees with freedom and responsibility can lead to exceptional results.

At Next Idea Tech, we follow a similar philosophy, building a community where individuals are empowered to organize their work schedules and determine their salaries while also taking responsibility for their commitments and contributions. This Freedom and Responsibility (F&R) value is a cornerstone of our company culture.

Putting business needs first

Your nearshore software development team may consist of talented professionals who are good at completing tasks and finding great solutions to problems. But that will cut no ice, if these decisions do not bring any benefit to business.

I can’t stress it enough: every decision made within your company should ultimately contribute to your business goals. Communicate this expectation clearly to your nearshore team, ensuring they understand the importance of aligning their work with your strategic objectives.

Expert’s tip: During the interview process, pay close attention to candidates’ questions and their focus on understanding your business needs. Candidates who demonstrate a genuine interest in your company’s goals and how their work can contribute to its success are more likely to be a valuable asset.

A case in point, in one of our projects, a client insisted on including a feature that, while technically feasible, did not provide any tangible business benefit. By emphasizing the importance of aligning features with business objectives, we were able to convince the client to prioritize features that would directly contribute to their growth and success.

Step 2 – Organize Working Procedures in your Software Development Team

To ensure a smooth and productive working relationship with your Latin American nearshore development team, it’s essential to establish clear guidelines and processes. To achieve this, you can undertake the following steps:

Unveil the idea of your project

One of the most critical steps in a successful nearshore software development partnership is providing your team with a clear and comprehensive understanding of your project. For the best result, avoid leaving any ambiguity that could lead to misunderstandings or delays.

You need to present all the project details, explain where all your ideas come from, and make sure the software development team understands your goals. Moreover, with more information at hand, the development team will deliver the estimates for your project faster. Specifically, you can:

Share the history and context of your project, including any existing systems or previous iterations.
Clearly articulate your long-term vision for the project and the desired outcomes.
Explain the specific industry or domain in which your product will operate and the target market you aim to reach.

Provide your nearshore software development team with the right communication and project management tools

Effective communication and project management tools are essential for fostering collaboration and ensuring project success. Choose tools that align with your team’s preferences and work style. Here is a short list of the tools that we use and recommend for remote collaboration:

Slack – for everyday operations;
Jira – for task management;
TeamViewer and Google Meet – for video calls;
Figma – for design development;
Miro for real-time teamwork with a whiteboard.

Among our stack there is also Plai – a performance management tool, specifically helpful for remote/distributed teams to align on a company’s strategy and team’s contribution.

Provide proper documentation

The project’s documentation is the ensemble of all the functional and non-functional specifications and constraints necessary for the developers to start working on the project. So make sure you have provided all the requirements on your project and thus strictly outline a shared vision and common values of the project.

This documentation should include:

Functional Specifications: A detailed outline of the features, functionalities, and behaviors that the software must exhibit.
Non-Functional Requirements: Specifications related to performance, security, scalability, usability, and other factors that influence the software’s quality.
Constraints: Any limitations, restrictions, or constraints that may impact the development process.

Software documentation is an essential part of software development. But fear not, as you do not have to handle it by yourself. In fact, your nearshore team can provide valuable assistance in defining and documenting your project requirements. Collaborate with them to ensure that the documentation is accurate, comprehensive, and aligned with your vision.

Step 3: Building Strong Communication Channels

Hands down, effective communication is the cornerstone of managing a remote software development team. By establishing clear communication channels and fostering a culture of open dialogue, you can overcome the challenges of remote work and create a high-performing team.

In his interview, Marc Zukerberg once mentioned that teamwork is about “ the social connections, it’s the culture, and it’s creativity.” The possible lack of communication is seen as the only downside of remote work.

Well, we can’t stress it enough: communication is the key. So here are some tips that could help you to set up the communication while working remotely:

Set up a calendar of meetings

Good communication means regular communication. Being systematic is very important for business as a whole, be it the documentation routine, marketing, or outlet distribution.

The same relates to how you check in with your colleagues in a remote software development team: it is better to keep it organized rather than improvised. These could be meetings with a project manager, team lead, or a personal check-in with each team’s members. The key point is – they should be regular.

Another point here is regular meetings are not about controlling the development team. Instead, in trust-based relationships, you literally “check-in” on the team’s progress, help to remove the blockers and align the future plans.

Here are the types of regular meeting that help us stay synchronized at Next Idea Tech within the Scrum framework:

Backlog Grooming meetings. Here we discuss the remaining items in the backlog and plan what’s going to be completed during the upcoming sprint.
Planning meetings. At these meetings, we put the existing tasks in the priority order and form precise tasks out of the backlog items.
Daily check-ins. These meetings are necessary to keep personal contact with each team member via discussing the routine tasks and providing help if necessary.
Demo. The sprint demo is a critical stage when the entire team presents a completed part of the client’s work.
Retrospective. During retrospective meetings, the team comes together in an informal setting to speculate on the sprint, figure out the main mistakes, highlight the improvements to make conclusions on what to do next.

By incorporating these regular meetings into your workflow, you can foster open communication, address challenges proactively, and ensure that your nearshore team is aligned with your project goals.

Build personal connections

While maintaining regular communication with nearshore team leads and managers is important, building personal relationships with all team members can further strengthen your connection and create a more positive work environment. For this, you could organize informal online meetings and set up individual check-ins with each team member, for example, 1:1 s to discuss their work, provide feedback, and address any concerns.

Tip: Daily/weekly 1:1 s should not be strictly about the business. Small talks are also a great way to build a healthy corporate structure within the company and keep personal contact with team members. As such, don’t hesitate to include casual conversation to build rapport and foster a positive work environment.

Another piece of advice is to be prepared for 1:1s; do not turn these meetings into time-wasters. Create an agenda, set clear goals, and come prepared with topics for discussion to make your meeting productive.

Define the Roles and Responsibilities in Your LatAm Nearshore Software Development Team

The composition of your nearshore software development team can vary, depending on your business needs. A typical software development team consists of such specialists as:

Software Engineers – the people who will handle the frontend and backend parts of your software. How your product will function depends on the work of these people. So investing in sound engineers eventually pays off.
QA engineer – a specialist who makes sure the software functions the way it is required in the documentation;
Project Manager – the person who handles all the documentation, budgeting, and manages risks according to the project requirements;
UX/UI Designers – not only will these specialists make your app/website vibrant and appealing, but also they will check on the app’s usability for the end-users.

Additionally, the software development team can also include:

Product Owner – a person who translates the business needs into software requirements;
Product Manager – a person who advises you on product development and drives the product development cycle. In that, they define the product’s value proposition, product-market fit, and product development roadmap. How are they different from a project manager? Read in our related article.
Business Analyst – a specialist, charged with defining the product’s scope and gathering requirements for the project.
Chief Architect – in case you have a complex project with multiple departments and teams, you will need an architect who will coordinate the workflow between these teams.

Summary

Building a successful nearshore software development team in Latin America requires careful consideration and planning. By understanding your specific needs and following best practices, you can effectively navigate the process and build a high-performing team.

Key Takeaways:

Define Your Requirements: Clearly outline your project’s goals, scope, and technical requirements to attract the right candidates and ensure alignment.
Conduct Comprehensive Assessments: Evaluate candidates’ technical skills, soft skills, and cultural fit to identify the best talent.
Organize Efficient Workflows: Establish clear processes, communication channels, and tools to streamline collaboration and productivity.
Foster a Collaborative Culture: Create a positive and supportive environment where team members can work together effectively and achieve shared goals.

Partner with Next Idea Tech

At Next Idea Tech, we specialize in building high-performing nearshore software development teams. Our team of experienced professionals is dedicated to understanding your unique needs and delivering exceptional results.

Jeremiah