What Is Nearshore Staff Augmentation? Key Advantages

As a business owner, CTO, or CIO, chances are you already know what outsourcing means. How about nearshore staff augmentation? Most probably, you are looking for more information about what it entails. In this article, we explore everything you need to know about nearshore staff augmentation and how your business can benefit from embracing this IT staff augmentation strategy. 

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Table of Contents

• What is nearshore staff augmentation? 
• Who needs nearshore staff augmentation services?
• Why US companies are turning to Latin America to address their nearshore staff augmentation needs
• What are the benefits of augmenting staff with nearshore talent from Latin America?
• Nearshore staff augmentation with Bluelight Consulting
• Conclusion

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What is Nearshore Staff Augmentation? 

Nearshore staff augmentation is outsourcing IT talent such as Software Developers, DevOps Engineers, and Product Managers from countries that are in the same geographic region and timezone. This strategy addresses the largest pain points from offshore outsourcing by directly allowing companies to maintain a similar quality of production while reducing operational costs. 

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What is the Difference between Staff Augmentation and Outsourcing?

Outsourcing is a general term for utilizing talent from other regions in the world. Staff augmentation is a specific model of outsourcing where you hire IT professionals through a local talent sourcing partner. This lets you leverage your partner’s regional expertise in contracts, legal, payments, and HR services.

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Who Needs Nearshore Staff Augmentation Services?

Businesses that need nearshore staff augmentation services include: 

• Startups and mid-sized businesses operating in competitive markets losing talent to larger more established brands.
• Competitive businesses looking to hire software engineers, but do not have an internal recruitment team.
• Companies operating in secondary or tertiary cities having trouble hiring good developers due to a shortage of local talent.
• Companies already outsourcing part of their product development but are seeking more insight and control.
• Tech companies seeking accelerated product development, access to specialized engineers, and real-time collaboration to support fast deployment cycles.
• Financial institutions requiring specialized services and secure, scalable teams to manage large-scale digital transformation projects tailored to the financial sector.
• Healthcare organizations needing experienced partners to handle complex technical needs and digital transformation initiatives within healthcare settings.

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Why are US Companies Turning to Latin America for Tech Talent?

Until recently, most companies preferred offshore outsourcing for in software development projects in countries where the tech industry was already established such as Ukraine, Romania, India, China, and Poland. These regions were also known for their low labor costs. Since these countries are geographically distant from the US, this process is commonly referred to as offshore staff augmentation or offshore outsoucing. 

‌Now, Latin American countries such as Brazil, Mexico, Argentina, Colombia, Peru, to name a few are stepping up to provide top tech talent for US companies. While these nearshore countries may not offer rates as low as the offshore outsourcing, the hiring costs are still significantly lower than US-based software developers. The icing on the cake is that remote IT talent from Latin America gives US businesses some distinct advantages that talent from Eastern Europe and Asia cannot.

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What are the Benefits of Nearshore Staff Augmentation?

1) Access to Talent with Specialized Education and Experience

Latin American universities have been strongly influenced by U.S. academics. Agile is being pushed as the preferred method for software development projects and many Latin American countries are training a significant number of students with degrees in computer science and engineering. While offshore outsourcing countries may have equal experience, they present low English proficiency meaning you will have to deal with communication challenges.  

In contrast, students in Latin American countries learn English at a very early age. This means nearshore software developers have a higher proficiency in English, which makes it easier for them to integrate with your team. According to Stack Overflow, remote tech talent in Latin America include web, mobile, back-end, and full-stack developers. Furthermore,  nearshore teams are skilled in using the most popular programming, scripting, and markup languages in the US. This includes JavaScript, CSS, HTML, and Python among pretty much any other modern tool or technology.

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2) Cost-Efficiency

For companies seeking to optimize their budgets, nearshore development teams are a cost efficient solution that delivers both quality and cost savings. Perhaps not as low cost of offshore outsourcing, nearshore tech talent from Latin America will still provide quality IT work for significantly less cost than using onshore talent. ‌

Nearshore Development teams not only reduces the amount of money spent on salaries, but it also reduces the number of full-time employees. Traditionally, on top of paychecks, these inhouse employees would be additionally compensated with benefits, paid vacations, and other perks. Sending the work out to be done elsewhere eliminates the need for any of those things.

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3) Similar Time Zones

Time zone alignment with nearshore teams facilitates smoother collaboration and real-time communication compared to working with an offshore team, where significant time zone gaps can hinder project efficiency. The discord created by working with people on significantly different schedules can lead to work delays and missed deadlines. This isn’t a problem when working with talent from Latin America. Their time zones, for the most part, are similar to those in North America.

The business workday in most Latin American countries is structured similarly to that of the US. Business hours are generally from 8:30 to 5:00, with an hour or two for lunch. The standard workweek is 40 to 44 hours, depending on whether employees work five or six days weekly. Larger businesses and those in major cities may be open for longer hours. This is crucial as it means that your nearshore development team can integrate into company culture and rituals seamlessly.

This is virtually impossible in the case of offshore talent that are based in countries with huge timezone differences with the US.

4) Cultural Compatibility

Cultural similarities between the Americas make team integration between nearshore staff and in house teams smoother, supporting better collaboration and project outcomes. This alignment allows your internal team to focus on core business priorities while nearshore teams complement existing skills and handle non-core tasks.

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4) Agility and Flexibility

Nearshore software development teams in Latin America can quickly scale up or down based on project requirements. Furthermore, their geographical proximity facilitates occasional in-person visits. This helps build trust and ensures that project goals remain aligned with business objectives at all times.

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Why Hire Remote Developers from Bluelight?

We know that innovation is what makes or breaks your business. You must digitally transform, launch incredible ventures, incubate fascinating concepts, and disrupt your core model without succumbing to glamorous technology promises. However, capitalizing on the full potential of technology requires the right people. At Bluelight, we specialize in connecting businesses with the top 1% of nearshore tech talent.

With Bluelight Consluting’s nearshore staff augmentation services, you are able to:

• Augment your existing team with exceptional, motivated, and affordable talent.
• Launch faster, smarter, and more purpose-driven projects.
• Create agile-centric talent ecosystems.
• Reduce the costs associated with traditional onboarding.
• Minimize your talent struggles.
• Maximize your revenue.

To learn more about our nearshore staff augmentation services, visit our service page: https://bluelight.co/nearshore-staff-augmentation

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Conclusion

Latin American workforces continue to become more sophisticated and tech-savvy. As a result, US businesses are shifting towards nearshoring to augment their IT teams while saving on overhead costs at the same time. In the foreseeable future, Latin America is going to be a crucial talent pool for US businesses looking to leverage technology for their growth objectives.

Remote work isn't a passing trend, nor is it limited by geography. Its remarkable growth over the past few years marks an impact that will continue to spread across the globe. Access to the global skills marketplace means that every business and every worker can find the best opportunities in the world—and in order to stay ahead of the curve, they'll need to.

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