Nearshoring Web Development: 7 Benefits of Outsourcing Staff Augmentation to Latin America

Staff augmentation has grown by nearly 20% in the past decade, primarily due to a high demand for a skilled, affordable, and scalable workforce. According to Staffing Industry Analysts, “most companies prefer staff augmentation when facing high priority or fast-changing needs,” including implementing a new project or entering a testing phase, when companies need to double-down on focused employees.

Depending on external talent during a period of critical growth is a common solution for many companies, who often rely on outsourcing or nearshoring to augment current staff with pre-trained experts at a fraction of the costs.

Latin America Emerges as a Global Leader in Technological Nearshoring

In the past decade, Latin America has emerged as a global leader in web and mobile app development, with technological initiatives starting as early as grade school to ensure a talented, proficient population. According to Forbes, software teams in Latin America (LATAM) have provided development for leading companies like Google, HP, Netgear, Viacom, and IBM.

Many companies in the United States have shifted their outsourcing and staff augmentation from India or China to LATAM -- from outsourcing to nearshoring. It’s easy to see why LATAM countries are emerging as a hidden gem in staff augmentation for software, web, and mobile app development.

1. LATAM Nearshoring Lowers Costs by 30-50%

Right out the gate, LATAM developers charge a lower hourly rate than those in the United States. According to the Software Outsourcing Rates for 2018, companies in the US can save up to $25-30 per hour on salary, coupled with $15 per hour in payroll and benefits. It can be the difference between a $1.6 million dollar project and a $700,000 one.

“By eliminating employee overhead costs,” it explains, “you’ll decrease your fully-burdened cost of employee benefits, taxes, paid time off, company perks, training and retention, and gain flexibility around growing (and shrinking) team.”

2. Access to highly skilled workers, no training required

Latin American development companies remove the financial burden of training from the US team that augments them. LATAM companies provide highly-skilled developers, who have years of experience in technology and development, including Full-Stack development in Python, Django, and Javascript.

By hiring an augmented staff from LATAM, companies in the US can be assured their new team is responsible for management, provision, and quality control, as well as training and expertise. This allows managers to focus on their project, without worrying about recruiting or onboarding, while enjoying the flexibility to increase or decrease their team size as-needed.

3. Neighboring Time-Zones Means Shared Work Day

One common struggle companies face when augmenting staff with an outsourced team from India or China is the time difference. Often, overseas employees are working overnight while the US team is sleeping. Not sharing a common workday creates a communication lag that may make it difficult for the two teams to truly connect.

However, when nearshoring with a team from LATAM, companies can experience 100% team integration, participating in team meetings, daily processes, and even morning scrum.

Many LATAM companies use modern channels like Slack to create a dedicated place for team members to have constant, real-time communication. By implementing Slack and even video chat, the augmented team feels as if they’re just sitting in the next room. Especially when using Agile framework, this constant interaction between teams is critical to the success of a project.

4. Similar Holidays & Vacations

Overseas development teams sometimes celebrate holidays during different times of the year than their United States teams. Just like the different time zones impact a project’s productivity, when working on a development sprint, it’s important that the two teams share similar work hours and work days.

However, Latin America and the United States share a common cultural heritage, meaning countries across North and South America celebrate similar holidays and vacation-times.

5. Overall Cultural Connection

To build a synchronous team, it’s important for team members to be able to bond over shared television programs and daily experiences. On Monday morning, the team from the United States wants to discuss the latest episode of Game of Thrones -- and so does the LATAM team!

Latin Americans share similar cultural ideals and work values with the US corporate culture, making it easier to avoid communication glitches. Consuming similar media, enjoying the same music, and watching the same TV shows are important for healthy team-building, which keeps morale and productivity high and allows for smoother discussions.

6. Scalability Allows Temporarily Augmentation During Periods of Growth

Augmenting with nearshored staff from LATAM gives management maximum control of a project’s scalability -- to dial up or dial down staffing as needed, controlling the budget with precision.

Whether a company is developing a new mobile app or entering the testing phase for a new product, management may not always immediately know how many employees will be needed or how long the job will last. Augmenting staff allows management to scale their team according to the changing needs of the project.

7. Total Team Integration

During an initial engagement with long-term clients, LATAM developers may visit the US company, spending a couple of weeks with the new team to build rapport and trust.

“Communication is vital to the success of the relationship,” shares Roberto Uriarte, the CEO of Innuy. By creating specialist Slack channels and utilizing video conferencing, many LATAM companies work seamlessly alongside their new teams, even going so far as to include new teams in birthday celebrations.

For LATAM development companies like Innuy, building camaraderie is invaluable. Uriarte shares, “Many of our clients come visit Uruguay, and we do team building activities and adventures.”

He adds, “We want to ensure that they feel that our engineers are really a part of their internal team.”
Increase Productivity, Save Money, and Bolster Your Team

If your company has an upcoming web or mobile development project and you’re looking for a staffing solution to save money and turbocharge your team’s productivity with additional talent, it may be time to consider nearshoring to LATAM.

  • Maximize affordability
  • Allow for a shared work day (due to similar time zones and holidays)
  • Provide flexibility to increase or reduce team’s size
  • Increase control over the staff allocation and budget
  • Allow access to the most qualified developers in LATAM
  • Create a deeper cultural connection
  • Allow for total team integration

Need a little inspiration? These case studies show the incredible results of choosing a LATAM development team.

Need a staffing solution for Full-Stack development in Python, Django, or Javascript? Want assistance developing a mobile app or website with high-level functionality, with Native Development in Swift (iOS), Java (Android), and Hybrid: React Native or Ionic Framework?

Call our team of web developers at +1 252 723 5982 or contact us to learn more about our services and all the benefits of teaming up with a dev team in LATAM.

At the end of the day, when we’re working with geographically dispersed teams, the distance doesn’t matter because we’re all trying to get to that same common goal: A complete and successful project.” - Roberto Uliarte, CEO of Innuy


  1. I really enjoy simply reading all of your weblogs. as we provide Website Design Miami at affordable prices. for more info visit our website.

  2. In today's competitive world of business over the web, every online business website needs the latest web technology solutions with best web developer. But there are intense competitors when it involves developing an attention-grabbing website and making it function effectively or perform fast and straightforward multi-tasking.

  3. I really loved reading your blog. I also found your posts very interesting. we also provide IT Services Staff Augmentation Company in India. for more information visit on our website.


Post a Comment