How To Hire Nearshore Developers In Panama
It’s no secret we are huge advocates of nearshoring to Latin America. This region has seen immense growth over the past few years and boasts several countries with experience in software development exports.
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Contact Us Today!One of the most popular nations to outsource software for US-based companies is Panama, known for the Panama Canal and its multiple natural attractions.
Therefore, Panama isn’t just a tourist hangout, this country is also a top nearshore outsourcing destination. That’s why this article is dedicated to the ins and outs of how to hire nearshore developers in Panama.
Let’s dive into the competitive advantages of nearshoring to this country!
There is no time zone difference between Panama and US’s EST time zone. This allows both countries to collaborate in real-time and share most usual business hours on a regular basis. Moreover, Panama is only a short flight away from the United States.
It takes 3 hours and 58 minutes to reach the nearest point of entry to the country and there are a few flights a day interconnecting both nations.
This opens the door to several possibilities, such as regular meetings with your nearshore developers in Panama or corporate retreats/events.
While Panama’s GDP fell to -17.9% in 2020, due to the events of the pandemic, it’s expected to rebound to a solid 7.5% in 2022. Before the 2020 worldwide crisis, Panama had always had one of the strongest economies in all of Latin America, so it’s no surprise to see this country round up 2021 with a forecasted GDP of 9.9 %.
If Panama’s long-established growth is impressive on its own, this next statistic will further tilt the scale in favor of this smaller country. Panama saw a 40% year-on-year growth rate in the second quarter of 2021 and a 25.% growth rate in its third quarter.
This shows the country’s incredible ability to rapidly bounce back from the effects of the pandemic and continue to be headed in the right direction of previous years.
Unfortunately, Panama does not have a very high ranking on the EF English Proficiency Index score. The country ranks #73 out of 112 other nations with an overall score of 475 EF EPI points. This places them into the “low proficiency” category. Still, Panamanian developers are among the group of Panama population who have an advanced level of English.
You can rest assured nearshore developers in Panama are used to working with English-speaking teams and should have no problem getting up-to-speed with your company culture. There’s quite a bilingual talent pool in the country, so vet all developers beforehand to make sure you’re sourcing from this group!
With an adult literacy rate of 95.7 %, it’s only natural for this country to provide a strong software development education. Panama ranks third for the quality of its education out of all Latin American countries, according to the World Economic Forum.
Panama boasts a high number of qualified institutions that offer free public education to its population, even to foreign residents of the country. There are several IT and technology degrees available, as well as different STEM majors for aspiring developers to choose from.
Moreover, 91% of Panamanian developers and other students reach their academic goals every year. With such a strong turnover rate for successfully graduated individuals, when you hire nearshore developers in Panama you are hiring well-educated professionals.
Truth is, hiring nearshore developers in Panama is significantly less expensive than working with US-based IT professionals. This is due to the lower cost of living in Panama and the favorable conversion of Panamanian balboas to dollars.
Both of these factors contribute to your company being able to reduce its software development costs by software outsourcing to Panama.
Like most Latin American professionals, Panamanian developers know the value of having versatility in their work skills. Being proficient in several coding languages helps nearshore developers in Panama find more work and achieve long-term contracts.
If you hire software engineers in Panama proficient in varied languages, your company can work with them on multiple projects.
Here are the most prominent languages when hiring nearshore developers in Panama:
Nearshore software development companies are reliable partners for US-based companies that want to hire nearshore developers in different parts of the world, such as Panama.
These firms handle all the recruitment, payment, and onboarding processes for you and maintain a solid connection with the developer to ensure everything is progressing smoothly. It’s a fantastic way to hire nearshore developers in Panama without taking any unnecessary risks or incurring extra costs.
Referrals make the entire recruitment process much easier for you and your company. When close contact recommends a Panamanian developer that could be a fit for your company, it makes scouting easier. This is thanks to the entire focus of your scouting efforts shifting for the better. Then you instantly have a candidate to approach and interview, rather than having to build a network of nearshore developers from scratch. Once you’re ready to interview them, put into practice these seven tips to find the perfect coding team.
Hiring nearshore developers in Panama as direct contractors can help to lower employment costs and eliminate all third-party interferences. Still, these Panamanian developers usually have tight schedules and limited availability. Plus they’re usually associated with nearshoring firms and freelancing platforms.
Still, you can scout for independent contractors offering nearshore software development services via LinkedIn or Google. You need to inform them of your budget, the type of solutions you seek, and contract details.
Job ads are at the core of remote software development, even with the rise of freelancing platforms. Therefore, it’s in your best interest to share your company’s job posting on job boards and online communities, such as Reddit or Facebook.
Many nearshore developers spend time in those communities to chat with fellow IT professionals and scout for employment opportunities.
This will help you hire nearshore developers in Panama and all of Latin America faster than scouting for an independent contractor without posting about the positions. Just make sure to target all job ads to Panamanian developers to avoid having to filter through applications from candidates living in other countries.
If you prefer a heavily present third-party, Global Employment Agencies and Global Employment Organizations are a long-standing nearshoring alternative. These local organizations have agencies all across the globe and partner with foreign companies that want to outsource professionals.
When it comes to software outsourcing to Panama, Global Employment Agencies allow you to hire Panamanian developers through them. They charge the developer’s salary, the cost of benefits, and a 10% fee for their work.
UpWork and Fiverr have risen in popularity for the past few years. These freelancing platforms are especially prominent now during The Great Resignation, as many full-time workers have decided to try freelancing to have more flexibility and independence.
You can post a job ad on these platforms or scout through profiles of freelancers to find a developer who’s a fit for your company. Just be sure to do your best to vet the developers before hiring them, as it can be tough to review the candidates on these platforms.
There are countless IT events across Latin America, making it easier for US companies to connect with developers in a more informal setting. Several Panamanian developers attend these software development conferences to network with fellow coders and look for better employment opportunities.
That’s when US businesses come into play – by attending these conferences and connecting with developers to find potential candidates. When you hire nearshore developers in Panama, it’s likely at least one of them comes from these events.
Setting up a subsidiary of your company in Panama can help you expand your presence in the region and hire Panamanian developers both remotely and in person.
This flexibility has its advantages. Still, you need to make sure the company complies with all local regulations to avoid conflicts with the law. This is a more costly and ambitious nearshoring alternative, though one that can help to scale your business in the long term.
When you hire nearshore developers in Panama, you’re taking advantage of the several benefits of software outsourcing to this country. It might be smaller than other top nearshore outsourcing destinations, but its development exports are just as relevant.
There are no time differences, fewer development costs, and closer physical proximity compared to other outsourcing locations.
If you are interested in learning about other Latin American countries, we have an in-depth series on this topic. Last week we covered how to hire nearshore developers in Peru!
At Next Idea Tech, we work with nearshore developers from Panama and all over the world. Our talented network of IT professionals has been carefully vetted and includes developers ready to start working with US companies.
We aim to make hiring nearshore developers a simpler process for you and optimize your software needs according to your creative ideas.
That’s why we offer both staff augmentation and direct placement services to hire nearshore software developers in Panama.
When you partner with a staff augmentation agency like us, you are helping your company save countless time and resources. Schedule a consultation with us today and find out how you can start software outsourcing to Panama!
Hiring Panamanian helps your company lower its software development costs, save time and resources, and work with remote developers in real-time.
Nearshoring agencies are reliable partners for US-based companies that want to hire nearshore developers in Panama. We handle all the recruitment, payment, and onboarding processes for you and maintain a solid connection with the developer.
This is an estimate of the costs of hiring nearshore developers in Panama:
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