How to Outsource Software Developers from LatAm
Outsourcing software developers from LatAm can be a real game-changer for fast-growing small and medium-sized businesses in the US and Canada. By leveraging the region’s skilled talent and favorable labor costs, companies can accelerate growth, reduce costs, and achieve faster time-to-market.
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Contact Us Today!If you’ve never worked with nearshore software developers from LatAm before, it might seem a little intimidating. That’s perfectly understandable! Putting your trust in outsourced developers to deliver the results you are looking for is a big decision in any capacity, especially when success of your business as a whole depends on it.
With over a decade of experience in nearshore software development, we’ve curated a comprehensive guide to help you navigate the process of outsourcing software developers from Latin America. Discover the steps involved, the substantial benefits to be gained, and effective strategies for sourcing top talent in this dynamic region.
Our goal is to equip you with the knowledge and insights you need to make informed decisions as you embark on the journey of hiring nearshore developers from LatAm. Let’s dive in!
While the allure of Latin America’s vast pool of skilled nearshore developers is undeniable, outsourcing your software project requires careful planning. Follow these 3 essential steps, each broken down into subcategories, to ensure a successful nearshore partnership:
Before you start to recruit nearshore software developers, you must go through the exhaustive preparation stage. This is the foundation, the pillar, the heart and soul — pick whatever phrasing you prefer — of the successful future collaboration.
The preparation phase will include the following tasks:
So, let’s get into more detail with each of these tasks and how you can approach them.
Every business is unique, and your nearshore software development partnership should be tailored to your specific needs and goals. To ensure a successful collaboration, carefully consider how nearshore developers can contribute to your business’s growth and success.
The following 5 questions can help you map out your needs and guide your search for the right talent:
The nature of your project — whether it’s a minimum viable product (MVP), a full-scale application, or support for existing systems — will significantly influence the skills and experience you need from your nearshore developers.
For instance, if it’s an MVP project, adaptability and the ability to work independently is crucial. A freelance or contract-based arrangement may be suitable for this type of project.
In contrast, if there’s a need for ongoing support for IT services, it will make more sense to outsource dedicated nearshore developers or a team of nearshore developers. This way, the chosen candidates can integrate closely with your existing team over the longer term.
The clear answer will help you decide between hiring individual freelancers for specific tasks, engaging with a third-party nearshore software development agency for a more comprehensive solution, or hiring full-time remote developers for ongoing work.
All the previous work done helps you determine the collaboration that you’re comfortable with. Your choice will affect task delegation, coordination, and cost.
The collaboration model — whether freelance, part-time, or full-time — should align with the project’s scope and your capacity to manage remote work.
Your management capacity, familiarity with remote supervision, and the need for direct oversight will further dictate the optimal collaboration model.
Identify the technical skills crucial for your project:
Also, many projects these days demand experience with databases (e.g., MongoDB, Postgres, MySQL), cloud platforms (e.g., AWS, Microsoft Azure, Google Cloud), and DevOps practices.
Last but not least at this point, establish a clear budget framework for hiring nearshore developers early on. The process will include your calculation of the available financial resources in addition to understanding how to translate these resources into the kind of talent you can attract.
Certain factors will significantly influence the cost. They are:
Once you have decided what skills you are looking for, it’s time to think about the creation of a thorough job description and/or project requirements.
A detailed job description helps potential candidates understand their daily tasks and responsibilities. It also minimizes the risk of mismatches. Here, you must be as explicit as possible about the role’s requirements, including all must-haves and nice-to-have skills.
Another important part of your job description should be listing the details about the project which the nearshore developers will be working on. It’s always better to be open about all the nuances so the person (or people) who will be reading this job description can understand if they are willing to or capable of doing such a job.
Once you have a clear understanding of your project’s scope and goals, you can specify the precise technical skills, programming languages, and frameworks required for the role. A well-defined job description will help you attract qualified candidates and streamline the hiring process.
By clearly outlining the technical requirements, you can effectively filter out applicants who do not meet the necessary qualifications, saving time and effort in your search for the ideal nearshore developer.
With your needs clearly defined and a compelling job description in place, it’s time to start headhunting. To maximize your reach and attract the best talent, consider utilizing a combination of hiring channels.
Let’s look at some of the channels that you can leverage.
If you want to hire a team of nearshore developers, not just one freelancer, it’s a good idea to start browsing review platforms and connect with top nearshore software development companies.
Examples: Clutch, Wadline
Remote job boards are often used by professionals looking specifically for remote opportunities. As such, they are an excellent place to start searching for nearshore software developers in LatAm who are already comfortable with remote work.
Examples: Stack Overflow, Remote.co, AngelList, Hired
Freelance platforms work best for short-term projects, specialized skills, or long-term cooperation with one or several specialists.
Examples: Upwork, Toptal, Freelancer, and Fiverr
Different tech communities allow you to tap into networks of professionals who might be open to new opportunities or can refer others.
Examples: Slack groups, subreddits, meetups related to specific technologies
If your choice is to outsource software development to a tech company, you may find out their level of expertise in a certain area by reading publications.
Examples: Publications on dedicated platforms like LinkedIn or Medium, blog posts on a company’s website.
Another nice option to hire outsource software developers from LatAm is to ask employees, partners, and colleagues for referrals. Many companies these days encourage their teams to share the job opening within their networks and even offer referral bonuses as an incentive.
Examples: Referrals from trusted sources
Having completed all the tasks listed above, you can move on to the next step of hiring LatAm developers. Regardless of your chosen platform, you’ll still need to assess the skills of the potential candidates or companies.
Freelancing portals allow you to go through the profile and work history of the nearshore developers you are planning to hire. And as we said earlier, if you’re using platforms like Clutch, you’ll want to find out what other clients say about the respective nearshore software development service providers.
The initial review of either resumes and applications or case studies of software development companies will help narrow down the list of candidates who will go into the next round. Here, the main task is to filter applicants based on essential criteria aligned with your project’s needs and the role’s specific requirements.
For individuals, focus on relevant skills, experience, and achievements. For companies, evaluate their portfolio and case studies to understand their capability to handle projects similar to yours.
Once you’ve received applications, carefully review each candidate’s resume and portfolio to assess their skills and experience. Pay close attention to keywords and technologies mentioned in their profiles that align with your project’s requirements.
Given that the outsourced software developers from LatAm will be working remotely, communication skills and professionalism are a few more points to look for in candidates. Of course, you can be somewhat subjective when assessing these qualities. It’s in our human nature. But try your best to pay attention to the clarity and coherence of the information presented in resumes and cover letters, as well as any interactions you may have had with the candidate thus far.
Professionalism in communication, attention to detail in the application materials, and a respectful tone in any preliminary exchanges can indicate a candidate’s ability to collaborate and engage in a remote work environment effectively.
After the initial screening, it’s time to interact directly. For individuals, this means personal interviews; for companies, set up discussions with key team members.
With questions about previous work experiences or projects, collaboration with teams, and responses to challenging work situations, you will get a more complete picture of the person or team you are talking to.
Example questions for individuals:
Example questions for companies might include:
A candidate’s or a company’s communication skills show their ability to express ideas clearly and concisely – both in writing and verbally. So it makes sense to check them out.
Example questions for individuals:
Example questions for a company:
Use behavioral questions to understand problem-solving abilities
You use behavioral interview questions to elicit specific examples of past behavior, which can show how a candidate solves problems and how they approach challenges.
Example questions for both individuals and companies:
This step is about understanding the practical abilities to handle your project’s demands. For individuals, this might include coding tests; for companies, a review of technical solutions provided in past projects.
To practically assess a candidate’s coding skills and knowledge for your project, consider a targeted approach. For example, if you plan to develop a ride hailing app using React, create a mini-project or task that mirrors a typical component or feature in your actual project.
Example: You can ask the candidate to build a simple user interface with React, incorporating state management and API calls to demonstrate their proficiency with these important aspects.
It can be helpful to create a take-home assignment that reflects a condensed version of a real challenge your project might face.
Example: if this is an eCommerce app development project, you could ask the candidates to design a simplified product catalog feature with basic CRUD (Create, Read, Update, Delete) operations.
This assignment should be time-boxed to respect the candidate’s time. But it has enough scope to demonstrate their coding abilities, architectural thinking, and familiarity with your tech stack.
You can also incorporate live coding sessions for immediate interaction or online coding platforms like HackerRank or Codility for ready-made coding challenges and tests.
When evaluating a nearshore software development company, you may ask for non-sensitive materials, such as general technology presentations that outline methodologies and approaches without disclosing client-specific data.
Request a technical presentation from the company’s lead developers that showcases how they solve common problems in your industry, their architectural strategies, and how they ensure code quality. Such presentations offer insights into their technical depth and expertise without violating confidentiality agreements. If possible, include a demonstration of generic code or components that are similar to what might be used in your project but are not client-specific.
In-depth interviews of individuals or finalization discussions with a company, while often not a must-have step, offer the final strokes on the picture of a candidate’s suitability. They focus on the nuances of technical and interpersonal skills, which are important since you’re outsourcing your project to remote nearshore developers.
Engage in discussions with senior developers about specific technical challenges to take a deeper look at their problem-solving capabilities. Soft skills, such as teamwork, communication, and time management, are also vital, as these traits ensure smooth integration into remote teams.
Additionally, explore their remote work experiences to confirm their ability to maintain productivity and effective communication in a distributed work environment.
Once you’re happy with the shortlisted candidate, you can officiate the hire with a contract. Specify the expectations from both parties clearly and provide all the necessary requirements to commence the job.
When negotiating the budget, keep the following aspects in mind:
For companies, discussions may focus on
For example, a nearshore developer with specialized skills in machine learning may command a higher rate than a generalist web developer. Your task is to offer a competitive package and be clear about the breakdown — how much is the base salary, bonuses, and any benefits like health insurance or professional development allowances.
The same goes for cooperation with a nearshore vendor: If they are just starting out, the cost of development is usually much lower than if you go with an expert company that has finished multiple projects.
Also, don’t forget to make the payment schedule, whether monthly or bi-weekly, crystal clear to set clear expectations.
As for your contract, it should detail responsibilities and deliverables, like
Include what you expect in terms of work hours, availability for meetings, and communication protocols. Another important part of the contract is to outline the compensation package as agreed upon during negotiations. Specify any conditions under which the contract might be terminated, ensuring you comply with the labor laws relevant to the developer’s location.
For example, if you hire nearshore developers from a Latin American country with strict employment protection laws like Argentina, ensure termination clauses are legally valid.
Did you know that giant tech companies like IBM are hiring Latin American software development teams to develop solutions covering software, storage, automation, and security? IBM is outsourcing most of its development work and it is saving them millions in budget.
If you’re running a startup or a small business, you have every reason to outsource software developers from LatAm, and here are some of them.
Hiring in-house developers with the required expertise can be a daunting affair. This is particularly true if you’re based in the US, which is currently struggling with a major tech talent crunch.
Outsourcing software developers from LatAm broadens your pool of IT expertise. For example, if you’re having trouble finding a Python developer locally, you can find them, for example, in Mexico or Costa Rica.
When you hire developers by yourself, you have to go through the mundane process of putting up ads, holding interviews, evaluating, shortlisting candidates, and onboarding. They are time-consuming and time is a luxury that many businesses can’t afford to waste.
Instead, you’ll cut short the hiring process when you outsource to a nearshore IT staffing agency. All are sorted out by the outsourcing agency.
Many businesses, especially startups, are plagued with uncertainties during the early years. Ideally, you’ll want to maintain a fluid organizational structure as the startup grows. This means hiring a team of in-house developers is not an ideal option, as it introduces substantial long-term operational costs.
In this scenario, it’s an attractive option to outsource software developers from LatAm. You don’t get tied up with long-term commitment as you only pay for services you need.
In developed countries, tech talents come at a premium. In the US for example, you could be paying around $100 per hour for a developer, but in Brazil, the same expertise could cost $40.
Cash is the lifeblood of any organization, and you’ll want to be cautious about how you’re spending it, particularly for recruitment.
If you want a higher chance of success when building your app on the first try, you’ll want to work with nearshore developers. The reason is quite simple. Nearshore developers tend to work on various types of projects and are likely to be familiar with the app you’re building.
For example, our team has built apps in eCommerce, real estate, fintech, and many other niches. Chances are high that we are familiar with your industry and could help you avoid common pitfalls when building the app.
Last but not least, even if it seems that outsourcing freelance software developers is the best option for startups and small businesses due to perceived flexibility and cost savings, the reality is that this approach may not deliver the best long-term value.
Here’s why.
Full-time nearshore developers from a dedicated vendor like Next Idea Tech align more closely with your company’s culture, processes, and long-term objectives.
Such specialists
All of this fosters stronger relationships and ensures project success beyond mere task completion. So, for more sustainable growth and project satisfaction, full-time remote professionals are often the superior choice.
Now that we’ve pointed out convincing reasons to hire nearshore developers from LatAm, let’s explore the platforms we talked about earlier in more detail. To aid you in your remote hiring campaign, here are a few sources that could land you your first hire.
It’s important to note that the choice of platform greatly depends on the collaboration model. Here, we will focus more on channels for searching companies and teams and less on channels for freelance individuals.
Remote job boards are specialized platforms where you can find remote nearshore software developers. This is an option if your task is to establish cooperation with one of several remote specialists in Latin America, not a dedicated team of a nearshore software development company. Each remote job board caters to distinct needs and offers unique features to speed up and facilitate the hiring process.
Stack Overflow, known for its comprehensive community of programmers, has a premium job board functionality, meaning you must pay a fee to post a job listing. But the money pays off as the platform is completely focused on software development issues.
Remote.co is a job board dedicated entirely to remote work. It provides a curated list of job opportunities across various domains with a strong emphasis on tech roles. The platform is designed for employers who want to adopt remote work arrangements and seek experienced remote workers.
AngelList is the go-to platform for startups that want to hire talent. This platform is particularly useful for startups that offer competitive packages, including equity options, which are attractive to potential employees looking for more than just a traditional salary.
There are quite a few tech communities that can work well for networking with and outsourcing top-tier software developers from LatAm. Visiting them grants you access to professionals who are not actively looking for jobs but are open to exciting opportunities.
GitHub is a powerful networking tool and a popular repository hosting service. Millions of developers collaborate on various projects on GitHub, making it an ideal place to outsource LatAm developers to help you with your software development initiatives.
This is a subreddit designed by and for the community of programmers who discuss topics ranging from software engineering to web development. It has more than 6 million followers, so you can definitely find candidates from Latin America who are well-versed in the technologies you need.
Dev.to is a community-driven platform where developers write articles, participate in discussions, and share updates about the latest technologies and programming practices. Here, you can identify thought leaders and active contributors in specific technology areas.
Let’s say you want to cooperate with a nearshore software development firm on a remote basis. Before actually hiring nearshore developers, it would be a good idea to check their blogs. Luckily, most IT staffing firms maintain a good content marketing strategy. You’ll want to check out blog articles, thought-leadership pieces, and case studies from companies offering software development services.
Some companies publish on platforms like LinkedIn and Medium. But you can do a quick search on Google on software topics to find blogs published by such companies.
From the publications, you’ll have a good idea of what the outsourcing provider is capable of. You’ll get a glimpse into the provider’s past works, developers’ expertise, quality standards, working style, past works, and recommendations from clients.
Getting unbiased reviews and research from third party platforms is a good way to help you search and decide on what remote team to hire. Here are a few that help.
Clutch has more than 150,000 IT agencies in its directory and has sought out more than 98,000 reviews from real customers. You can search for IT development companies in any location and check out brief details like hourly pricing, service focus, and clients’ feedback.
Wadline has a big directory of over 50,000 tech and IT service providers, enriched by more than 20,000 authentic customer reviews. The platform allows for an easy search of tech agencies across various locations, along with insights into their service specialties, project sizes, and client testimonials.
Get connected to more than 60,000 IT companies offering a diverse range of services at GoodFirms. This B2B IT review site has garnered more than 30,000 verified reviews from clients who sought out the companies under its listing.
Upwork is the leading freelancing marketplace in the world. It boasts a huge pool of freelancers in various disciplines, including software development. You can post a job on Upwork or browse through the profiles of Latin American developers to hire one.
Toptal has a stringent selection process that only allows top developers on its platform. When you hire LatAm developers at Toptal, you’re assured of the best candidates possible but be prepared to pay a premium price for the service.
As far as remote software development is concerned, Next Idea Tech is much more than a staff augmentation and IT solutions provider. Our mission is to become a dedicated partner in your growth journey through a collaborative approach where we’re completely on the same page about your unique challenges and goals, ensuring that every strategy aligns with your vision. We want to hear what you truly need to find the best solution available, so we invite you to share with us what you hope to achieve. We’ll make it happen.
Ready to get started? Contact us today to discuss your project and learn how we can help you achieve your business goals.
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