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Advantages Of Nearshore Outsourcing For Startups

It’s no secret that staff augmentation has taken over the IT industry. According to Statista, companies requiring staff augmentation grew from 5.2% to 6.3% over the last couple of years. While several established companies have opted to start nearshore outsourcing to reduce their development costs and further scale their business, many are still debating whether or not startups can also benefit from this hiring model. At Next Idea Tech, we’ve been helping businesses during various growth stages to hire nearshore software developers and scale their capabilities. That’s how we know nearshore outsourcing is great for startups. Keep reading to learn the 6 key benefits of nearshore outsourcing for startups! 

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6 advantages of nearshore outsourcing for startups

1. Greater flexibility and employee independence. 

One of the main advantages of nearshore outsourcing for startups is the opportunity to achieve staff flexibility from the get-go. As an emerging company, it’s best not to commit to long-term contracts if the future isn’t foreseeable and you don’t know what difficulties might arise. That’s when hiring nearshore developments can simplify your staffing decisions. 

With nearshore development, startups can hire remote developers for as long as they need, with both short-term and long-term arrangements available. These IT professionals will not be your employees either, instead, you will use their services as independent contractors, which keeps you safe if you ever need to cut ties with them unexpectedly due to budgeting issues or other reasons. 

2.  Ease of communication. 

While offshoring (hiring developers from locations with severe time zone differences from your company’s headquarters) can help you save as much money as nearshore outsourcing, nearshore development allows for more effective communication between teams. Nearshore developers live in countries that tend to have less than a three-hour difference from the US, meaning your remote development team will still share several work hours a day with your startup organization. 

This opportunity for minimal time zone differences combined with the lack of cultural and language barriers makes communication between startups and nearshore development teams far easier to manage, as long as you build enough trust with your developers

3. Rapid access to top software development talent. 

When you hire local developers, the IT talent shortage starts to show. This phenomenon has been brewing since early 2020, but the pandemic has accelerated the hiring issues that affect the entire tech industry. The difficulties in hiring developers can also affect startups more than usual, as emerging companies usually have a smaller development budget and offer fewer perks and other benefits. 

Instead of fighting with tech giants like Google or Apple for the scarce IT professionals within their local headquarters, startups can hire nearshore developers ready to join their times. The hiring process can be completed in as little as a couple of weeks and contracts can be renewed for as long as you need! 

4. Affordable software development costs. 

Startups tend to have minimal budgets for their IT operations, which often causes difficulties when hiring developers the traditional way. As we all know, coding solutions come at a cost, and it’s often an expensive one. The good news is that nearshore outsourcing for startups allows emerging businesses to lower their software development costs thanks to the difference between the cost of living in those nearshore locations and the US. 

Countries like Argentina and Brazil offer the opportunity to hire top IT talent for as much as 40% less than the price of hiring local developers in North America. As long as you ensure your remote development team is compensated fairly for their work, you can get the same quality coding results for a fraction of the price. 

5. Latin America offers plenty of nearshore outsourcing options. 

As we’ve just mentioned, countries like Argentina, Brazil, Chile, and Uruguay are situated in Latin America and are prime nearshore outsourcing locations. This particular region has positioned itself as the main nearshoring hub of the continent during the past decade and is now rivaling the once dominating offshore locations such as India or Dubai. With many well-known US companies hiring nearshore developers in Latin America in 2022, there are no reasons not to give try staff augmentation strategy a try, especially as a startup. 

6. Opportunities to scale your startup at a faster pace

Nearshore outsourcing for startups offers staff flexibility, which allows you to hire talented software developers for the short term instead of committing to full-time contracts with local IT professionals. While this is a key advantage of nearshoring, this hiding model also offers startups the possibility to scale their emerging businesses at a faster pace. 

This is achieved through a shorter, more efficient interview process and the right remote onboarding procedures that allow startups to find the right fit for their team in just a few weeks. With the option of hiring more developers as needed, you can grow your company as fast as you want with no concerns for staffing shortages in the future. 

Are you looking to hire nearshore software developers in Latin America?


Those are the 6 key advantages of nearshore outsourcing for startups, and as you can probably tell, we have no doubt this hiring model will save your company both time and resources in the long run. At Next Idea Tech, we have provided US businesses with nearshore outsourcing solutions for years, always ensuring maximum client satisfaction and prioritizing a true match between the company and the developer.

We do this through our signature vetting process, which allows us to discover the best international talent ready to partake in staff augmentation. Contact us today to learn how to hire nearshore developers!

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Posted on

May 27, 2022