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05 Dec 2023

How To Set Up a Nearshore Software Development Center in LATAM

The concept of nearshoring has risen greatly over the last few years in the US due to two major factors. One being COVID-19, and the other being the fact that software services in LATAM cost much less compared to onshore outsourcing for US companies. Therefore, many tech minds decided to establish nearshore software development centers in various LATAM countries. A Nearshore Software Development Center in LATAM (Latin America) refers to a facility or team of software developers located in a country within the Latin American region, providing services to clients primarily from the United States or other countries with a similar time zone. For US firms wanting to hire LATAM developers, they can simply collaborate with a LATAM outsourcing agency and can be assured that their project is in safe hands. In this blog post, we aim to assist tech minds in establishing their own nearshore software development center in LATAM. 

Why Set Up a Nearshore Software Development Center in LATAM

graphic showing the difference between software developer hourly rates when hiring LATAM devs and local IT solutions in North America

Setting up a nearshore software development center in Latin America makes a lot of sense for a few good reasons. First off, it's like having your tech team just a hop away, especially if you're based in the United States or nearby countries. No crazy time zone differences mean smoother communication and less headache coordinating work. Plus, developers in Latin America often share similar trends and cultures with North Americans, making it easier to work together. Cost-wise, it's a sweet spot. While it might not be as cheap as outsourcing to far-off places, it's definitely more budget-friendly than keeping everything in high-cost spots like the States. Also, there are more and more skilled tech experts in LATAM, so you don't have to give up quality to save money. Plus, some Latin American countries have stable politics and economies, which is a good thing. It helps lower the risks that can come with outsourcing. So, overall, having a setup in LATAM for software development is like getting the best of both worlds – good work without breaking the bank and less hassle.

How To Set Up a Nearshore Software Development Center in LATAM

Choosing the Right Location

When you're starting a Nearshore Software Development Center in Latin America (LATAM), the first big decision is picking the right spot. Think about things like time zones, language skills, and how well your way of doing things fits in. Some countries, like Mexico, Brazil, and Colombia, are popular choices because they have lots of skilled workers, and the environment is friendly for businesses.

Now, let's talk about each point in more detail:

Complying with Regulations

Before you jump into the setup process, there's a legal side to understand. Every country has its own rules, so get familiar with what you need to follow in your chosen LATAM country. This includes knowing about taxes, and labor laws, and getting any necessary permits. Talking to legal experts and teaming up with locals who know the rules well can make sure you're on the right side of the law.

Recruitment and Training

After you've sorted out the legal stuff, it's time to focus on building a great team. Use local recruitment agencies and online platforms to find talented software developers. Once you've got your team, make sure to train them well. This means helping them understand how your company works and making sure they know how to use the tools and processes you use.

Breaking it down further:

Protecting Data and Intellectual Property

Ensuring the safety of your data and intellectual property is a top priority. To achieve this, put in place strong security measures that safeguard sensitive information. This involves setting up secure networks, utilizing data encryption techniques, and establishing clear policies on how information is handled within your nearshore software development center. It's not a one-time task – regularly update your security protocols to stay ahead of potential threats. This ongoing commitment is crucial for maintaining the integrity of your software development projects and safeguarding valuable intellectual assets.

Breaking it down further:

Monitoring and Feedback

To keep things running smoothly, set up a system for continuous improvement within your nearshore software development center. This involves keeping a close eye on your team's performance and gathering feedback regularly. Assess the efficiency of your development processes at regular intervals, seeking input from team members. This proactive approach allows you to identify areas that need improvement and implement necessary adjustments swiftly. By doing this, your development center stays agile and responsive to the changing needs of your projects.

Breaking it down further:

Hire Developers in Latin America With Blue Coding's Nearshore Software Development Services

A nearshore outsourcing agency has many responsibilities to handle. It ensures that the project is completed on time, the intellectual property of the client is not compromised, the client is satisfied with the product, and many more! It also takes a lot of effort and skills to connect the right developers with the right clients. In case you yourself are on the hunt for the right developer for your software project, you can trust Blue Coding! We provide services such as staff augmentation, custom development, app development, website designing, and more. Contact us now for more information!

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