The U.S. tech sector is facing a perfect storm. Sky-high engineering salaries, intense competition for elite talent, and a staggering turnover rate have brought large obstacles to firms seeking to thrive. American businesses are looking beyond their borders to build their development teams as the domestic talent shortage grows wider. But not all models of outsourcing are created equal. Whether to expand your tech team worldwide is often down to which strategy you will choose between: Offshore versus Nearshore outsourcing in LATAM. If the difference is easy to see, then only by understanding this difference will teams be agile, cohesive, and highly productive. Know what’s In and Out:
The Nearshore and The Offshore
Offshore Outsourcing is essentially applying to people out there in more remote settings, such as Asia (E.g., India, the Philippines) or Eastern Europe (Ukraine, Poland). Offshoring can provide considerable cost savings, but it is associated with high friction in the development lifecycle. The biggest problem is the drastic time difference, commonly between 10 and 14 hours. That’s the asynchronous nature of communication, coupled with delayed feedback loops and the frustrating fact that a very simple bug fix can take a full 24 hours to correct. IT nearshoring, on the other hand, is when a business team hires and collaborates closely with professionals in other countries in the region. This implies going to Latin America (LATAM) for the USA companies. Nearshoring offers the economic benefits of global hiring that come without the challenges of international offshoring.
The LATAM Advantage: Why US Companies Are Gazing South
Latin America has rapidly transformed into a global tech powerhouse. For U.S. companies, the benefits of pairing up with LATAM talent together – and especially exploiting emerging technology capitals such as Peru – are of paramount importance:
- Ideal Time Zone Synergy: Unlike offshore teams, Nearshore outsourcing in LATAM ensures developers work in the same time zones (EST, CST, MST, or PST) as the US region, or within its vicinity on either side of the world. That means that your whole team is online at once. Each day’s stand-ups, pair programming, and real-time problem solving are carried out instinctively, maintaining the agility required of modern software developers.
- Deep Cultural Connectedness: The Latin American countries all have a remarkably similar style of work and business style to that of the United States. They believe in open lines of communication, horizontal hierarchies, and collaborative problem solving and proactive communication. This cultural alignment creates much lower friction and makes sure that staff members from remote work environments fit seamlessly into your existing business culture.
- Engineering Talents at the top of the game: LATAM is graduating the best technical talent. Peru has some very good universities and an exploding pool of skilled software engineers, data scientists, and cloud architects. The Tech workers from the region know the new tech stacks and agile methodologies and can manage complex enterprise projects.
- Fantastic English: The language barrier is a prevalent issue associated with global outsourcing. However, English language skills are exceptionally high among the LATAM tech industry. Developers are in a world where they digest technical papers, communicate, and present in English, ensuring that nothing gets lost in translation.
Bridging the Gap with Gmedia.la
It’s getting local know-how and a rigorous vetting process that are required to find the right talent within a fast-evolving market. And this is where Gmedia.la steps in. We are the glue that connects US companies with the absolute best high-tech talent in Latin America. We know that you’re not only looking for “outsourced help” — but also people with a belief in your vision and desire. Gmedia.la carefully selects leading engineering talent in Peruvian and LATAM markets, providing an ideal technical and cultural fit for your business. Tied to the details of recruitment and integration around the globe, our IT nearshoring solutions enable you to concentrate on what is most important: creating incredible products.
Boost your team force today. Contact Gmedia.la for a free consultation on our Staff Augmentation services.
