Why Latin America Is a Great Destination for Nearshore Software Development
Even the latest and greatest advancements in collaboration tools aren’t enough to offset the challenges (and headache) of offshoring your critical development projects–difficulties around access to talent, time zone, and cultural similarities persist. In order to stay competitive, leading businesses across industries are adopting nearshore outsourcing as a cornerstone of their product development strategy.
Nearshoring enables you to outsource software development to a nearby country, versus offshoring work to teams halfway around the world. For companies in the U.S., nearshoring typically involves outsourcing to teams in Latin America, where new tech hubs are emerging in countries like Costa Rica, Colombia, and Mexico, due to the region’s proximity to the U.S., availability of IT talent, cultural alignment, and competitive rates.
In this blog, we’ll explore what makes Latin America such an attractive destination for nearshoring software development and how selecting the right nearshore partner can make all the difference in achieving your product development goals.
Nearshore development benefit #1: Cultural Alignment
Similar to software developers in the U.S., Latin American engineers are committed to quality, innovation, and customer satisfaction. These shared values and business ethos form the foundation for seamless communication between Latin American and U.S.-based teams. The cultural fit helps facilitate team collaboration and minimize misunderstandings that could cause costly errors, delays, and employee frustration.
For example, geospatial technology provider Maxar worked with Gorilla Logic to nearshore its software development work in Latin America and was impressed by the team’s deep technical knowledge across various modern technologies. The cultural alignment allowed the Gorilla Logic team to grasp Maxar’s requirements quickly—simplifying the onboarding process and making it possible to release new services into production within the first month of the engagement.
Nearshore development benefit #2: Minimal communication barriers
Real-time communication among software development teams is critical to successful collaboration. Latin American countries like Mexico, Colombia, and Costa Rica offer a bilingual workforce that fosters smooth communication.
In fact, English is the top language of choice for conducting international business in Latin America, with 80% of jobs in the region requiring proficiency in English. Many countries have prioritized English learning in their education systems, while students recognize the tremendous opportunities available to those who become fluent in English.
For example, English learning is now compulsory in Costa Rica. The government launched an initiative in 2018 to help teachers improve their English skills. Meanwhile, English has been a mandatory subject in the Mexican educational system at the secondary level since 1929. Plus, interest in learning English in Mexico has grown in the past decade, with half of Mexican universities offering English-taught programs. In Colombia, a 2014 initiative called “Colombia Very Well” established English as the dominant foreign language to be taught in schools across the country.
Additionally, time zone alignment between the U.S. and Latin American countries means teams have ample opportunities to communicate synchronously, facilitating collaboration and idea exchanges. Mexico, Colombia, and Costa Rica all sit in U.S. time zones, ranging from Pacific to Eastern time.
Nearshore development benefit #3: Deep technical talent pool
Many Latin American countries have invested significantly in IT education to stay competitive in the international market, offering a wealth of skilled developers and engineers.
Costa Rica has a robust IT infrastructure, with universities and technical institutes offering many IT programs. The government allocates over 6.5% of GDP to education and training, and the country has a literacy rate of 98.04 %—the highest among Latin American countries.
Colombia is one of the top three Latin American countries with the highest number of 25-34 year-olds with tertiary education, while 20% of Mexican college graduates receive engineering degrees, supplying the labor market with 110,000 new graduates per year.
With the right nearshore software development partner, you can access full-stack, end-to-end design and development services to fill skill gaps and expand your capabilities on a dime. These services range from product ideation and tech stack analysis to software architecture, UI development, DevOps, and more. For example, when you partner with Gorilla Logic, as OpenGov did, you can get the support you need to implement highly complex cloud projects with resources from purpose-built, Latin America-based development teams.
Make the most of your IT investment with the right nearshore development partner
Selecting the right partner is the key to reaping the full benefits of the nearshore outsourcing model. When selecting a partner, keep the following in mind:
- Nearshoring doesn’t mean “set it and forget it.” Constant communication and efficient project management are critical for success. A trusted partner with boots on the ground and a U.S. presence like Gorilla Logic can help you bridge the gap and ensure seamless collaboration without the headache. Our nearshore development centers in Latin America operate in overlapping time zones to the U.S., meaning your entire delivery team is accessible throughout your workday using tools like Slack and Zoom for video conferencing and chat.
- Finding the right talent and assembling a team can be challenging if you don’t know the lay of the land. A reputable partner that understands your company’s needs and has a vast talent network in the region can help you source the right team members, with the experience and skills you need for your projects. Gorilla Logic’s in-house recruitment organization sources the top 1% of engineering talent in Latin America, and a strict vetting process further ensures you get the exact experience and skills you need to meet your product goals.
- Not having a clear vision of your needs and goals can impact the outcome of the partnership. It’s important to maintain close contact and an open line of communication with your nearshoring partner so they can provide you with the right resources based on your current needs. Gorilla Logic offers a breadth of strategic design and product development services, giving you the support you need from concept to code. We can scale dynamically with you based on your requirements.
- Confusion about workflows, processes, and responsibilities can impact team productivity. Work with your nearshoring services provider to define how the partnership will work. Clarify details like team structure, access to your infrastructure, and daily/weekly update schedules. At Gorilla Logic, we rely on Agile principles and ceremonies, like daily standups, retros, and dedicated collaboration channels, to ensure communication is productive and effective and that nothing slips through the cracks.
Nearshoring in Latin America offers many benefits, but you must select the right partner to maximize your investment. Gorilla Logic has the experience to help you navigate these hurdles and maximize the benefits of this outsourcing model. We hand-select developers based on your business’s needs, assembling a purpose-built team to help you build exceptional digital products and bring your vision to life.