Outsourcing software development is heavily advised for projects that don't need constant supervision. It has been one of the most popular business trends in the last few years. The outsourcing market is expected to grow at an annual CAGR of 8.26%, resulting in a market volume of $587.30 billion by 2027.
Many small and medium-sized businesses outsource their software development to offshore/nearshore companies. Often, the only feasible way for a small business to grow its services is by hiring outsourcing companies that create and maintain their software products. You can filter your outsourcing vendor based on Glassdoor reviews, work culture, etc. One of the most popular outsourcing strategies is nearshore outsourcing, i.e., using a software development vendor in neighboring countries.
Let's explore the advantages of nearshore outsourcing to LATAM countries.
1. Cost of Development
This is one of the most important reasons businesses outsource software development today. Even though you can hire local, full-time professionals, they will likely charge a huge amount for a software project.
That's not the case with outsourcing companies. The fee charged by nearshore vendors tends to be much less than that charged by the local vendors/employees. In addition, all engineers are hired on contract, so you don’t have to worry about utilization and payrolls.
Furthermore, you don't have to pay for utilities such as machines, software licenses, office equipment, Internet connection, HR management, Human Development, etc. This further brings down the cost of product development and adoption.
2. Development Time
With outsourcing companies, you save a lot of time since:
- There is no need to invest your time on interviews, candidate selection, or inductions.
- Many outsourcing vendors work round the clock. That means your projects won't just start on time, they'll finish on time too. LATAM has good time overlapping with North America, and can also overlap with European times.
- You can scale up or down your team as required. You do not need to keep engineers on the payroll when you need to scale down, and you can scale up fast with an outsourcing vendor that has a steady source of qualified engineers.
- Many LATAM vendors also include on-site maintenance and 99% availability in their SLA contracts. Such clauses can be extremely effective for post-deployment support and maintenance.
3. Access to new skills
With outsourcing, you get a chance to access the best talent across the world. This allows you to fill skill gaps in your company. Many companies hire nearshore developers for niche projects such as artificial intelligence, cloud computing, and data analytics.
This allows you to add flexibility to your development pool. For example, if you need to add augmented reality to your mobile application, the vendors can provide front-end engineers specializing in it. Likewise, if you need to connect and access databases, the vendor can add DB admins and backend engineers to the project.
There are many amazing nearshore LATAM vendors in the market with dedicated and skilled professionals that will boost your software development. For example, Jalasoft. It is a nearshore software development company that provides robust methodologies and skilled developers for full-cycle enterprise software development.
3. Highly efficient teams
Since the developers handling your project are trained experts, you can rest assured that they will tackle your work efficiently. In addition, most nearshore development vendors have their own leadership, complete with team leads, project managers, and delivery managers. This improves project visibility and reduces the risk associated with hiring outsourcing vendors. Many LATAM vendors also follow a scrum/agile development methodology, which improves accountability.
4. Culture Changes
LATAM countries are very similar in culture to the US. They share similar values and follow similar work protocols. This allows them to seamlessly collaborate with US clients in a way that no other outsourcing vendors can. Cultural similarities are also useful for reducing misunderstandings in the project.
Since most LATAM development companies work in the same time zone as the US, there's a full workday overlap. That means you don't have to worry about time zone differences when outsourcing your development to LATAM vendors. You can also visit their offices for face-to-face meetings if required.
Even if an engineer is the best in business, communicating your points can be difficult if they don't understand English. This is not the case with LATAM vendors since most LATAM countries speak English. This reduces communication gaps, and makes communicating goals, requirements, and deadlines easy.
Even the best talent cannot work in isolation. Engineers need facilities such as electricity, a strong internet connection, and an ergonomic setup environment to work.
LATAM companies know this and provide their engineers with the best infrastructure to work in. They also ensure that there are no technical debt and code lock-in issues in the final release. Proactive actions like these ultimately lead to better software standards, reduced time to market, and comprehensive QA testing before release.
Outsourcing software development can be one of the best financial decisions you ever make for your business. The benefits are self-evident since outsourcing allows you to produce better quality software at a fraction of the cost.
However, you also need to be careful while selecting an outsourcing vendor. You have to clearly define your business requirements so there's no miscommunication in project objectives. You also need to vet your outsourcing partners carefully and ensure they understand the project's objectives, deliverables, and workflow.
There are a few risks associated with hiring outsourcing vendors, such as hidden costs, control issues, quality issues, etc. But there are ways to manage and reduce these risks. The advantages of outsourcing software development far outweigh the risks associated with them.
If you want to know more about Jalasoft or see if our services are a good fit for your company, we invite you to contact us in our form below.