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07 Feb 2023

5 Common Misconceptions About Nearshore Software Development

Nearshore software development has become increasingly popular in recent years as more and more organizations look for cost-effective and quality solutions for their development needs. In fact, for over 75% of development outsourcing, nearshoring is the chosen option for North American companies. However, there are many who still believe still some of the misconceptions about nearshore software development that may be preventing them from taking advantage of the benefits it offers. In this blog post, we will be exploring the five most common misconceptions about nearshore software development and why they are not relevant to the nearshoring conversation.

What is nearshore software development? 

Nearshore software development is an IT recruitment strategy that consists of outsourcing software development to companies from countries geographically close to the organization. More often than not, North American companies getting into outsourcing choose the Latin America software industry as the nearshore location to hire remote developers. This can be beneficial in many ways, as it allows organizations to save considerable money on development rates, travel costs, and infrastructure prices. 

Top 5 common misconceptions about nearshore software development

1. Nearshore developers will face a language barrier. 

Many people would instantly assume that nearshore developers - especially from Latin America - have a low English proficiency level since it’s not their native language. Luckily, this is 100% not the case with LATAM developers. In fact, this region is known for its high English proficiency and most software developers have at least a decent command of the language. Furthermore, most remote developers from LATAM are almost if not fully bilingual, and have years of experience working with English-speaking companies. Still, if your organization is concerned with potential language barriers, you can always check the English language skills of all coding candidates during the interview process, as well as look for any red flags along the way. 

2. Nearshoring doesn’t offer significant enough savings.

One of the most common misconceptions about nearshore software development is that the savings it provides could never be compared to those generated by offshore development - or even that outsourcing isn’t a money-saving strategy at all. However, this could not be further from the truth of hiring nearshore developers in Latin America. By working with remote developers from nearshore locations, North American organizations can save up to 50% on software development costs thanks to the lower rates of Latin American developers. In fact, companies such as Microsoft and Oracle have saved millions of dollars by leveraging nearshore software development and hiring remote IT professionals. Moreover, nearshore software development companies typically have well-established hiring procedures in place to ensure high-quality output. This means that organizations don’t need to compromise on quality while saving money on labor costs.

3. Nearshore software development is risky.

One of the most common misconceptions about nearshore software development is that this is a risky venture. Now, we’re not going to sugarcoat the challenges of staff augmentation. While any type of outsourcing comes with some level of risk if your company is new to remote hiring and taking over the new challenge without any expert support, nearshore software development can be done in a risk-free way. This is thanks to the long-standing systems that nearshoring vendors have in place, such as a prevetted talent pool to outsource from and extensive interview procedures. If you partner with a trusted staff augmentation firm, your organization can rely on the agency’s expertise and extensive experience to get into nearshore software development without taking as many risks as there would be through freelancing platforms or job-board hires. 

4. Nearshore development leads to lower-quality results. 

Another common misconception about nearshore software development is that it results in low-quality software development results. Whether it’s because of the remote nature of the work or because the products are outsourced to foreign IT professionals. Still, both nearshore developers and nearshoring firms have different measures to ensure both an efficient working relationship and high-quality development output. Moreover, nearshore software development companies typically have strong relationships with their clients, which helps them manage all remote developers more efficiently and oversee any development project. In fact, hiring nearshore developers from Latin America can increase the quality of your development products. Not only through high-quality results, but also thanks to the unique capabilities of the remote developers from this region. One of these interesting aspects is the bilingual language skills of LATAM developers, to which we have dedicated an entire article to this topic thanks to its many benefits

5. Nearshoring remote developers will affect the company’s workflow. 

Now, while many think remote work is the future, there are also those who still cling to old beliefs, such as considering remote work a waste of time and a productivity risk. This clearly isn’t the norm, as statistics have shown otherwise for years now. In fact, 77% of those who work remotely at least a few times per month have proved to have increased their productivity levels, according to recent reports. This shows hiring remote nearshore developers will not affect a company’s workshop or efficiency. On the contrary, this hiring strategy has the possibility of speeding up the development process entirely.

Why the Latin America software industry is perfect for nearshoring

Now that you know that most of the common misconceptions about nearshore software development are entirely based on misinformation and not actual facts, it’s time to explain why the Latin America software industry is the perfect choice for North American companies looking to get into nearshoring. This region is famously known for its lower development rates and the strong English-speaking skills of its software developers. Moreover, because of the nearshore nature of the Latin America software industry, it’s possible to work with these remote developers in real-time, thanks to the lack of significant time zone differences. These elements make LATAM the perfect place to hire nearshore developers and contribute to the ever-growing popularity of this development region. 

Ready to get started with nearshore software development and hire LATAM IT professionals? 

Overall, nearshore software development provides organizations with cost savings, high-quality outputs, and risk management capabilities. If your organization wants to save money on development costs, then you should consider trying nearshore software development as it offers multiple advantages over traditional offshore software development. Leveraging this IT recruitment strategy can help you benefit from reduced development rates, improved quality assurance processes, and effective risk management strategies. 

At Blue Coding, we offer modern-day solutions to software development issues. Thanks to our large network of LATAM developers, we are able to help North American companies hire software developers in Latin America for a fraction of the cost of recruiting IT professionals locally. Our team handles every step of the process, from vetting and interviewing to billing and boarding in order to make nearshoring as hassle-free as possible. Contact us today to learn more about our custom nearshore software development services and access a free outsourcing strategy call! 

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