Despite a slew of layoffs that the tech industry has seen in the past year, skilled data engineers and software developers are still in high demand.
With hiring budgets squeezed, it is hard for companies to find skilled workforce in their locality. So, what’s the alternative?
For many, it is often outright offshore outsourcing (or staffing). However, the offshore strategy has its own challenges. For instance, there are substantial time zone differences—your offshore team would live on the other side of the globe, and even if the working hours are aligned, there could still be scheduling issues. Then there are cultural differences. From basic courtesy to professional ethics, you may come across notable differences in your values and ideals vs. theirs. Finally, the quality of work may not always be up to the mark or as expected.
What then, especially when you want to achieve that competitive edge?
Think about nearshore staff augmentation.
Nearshore staff augmentation has emerged as a strategic solution for businesses to bridge talent gaps and achieve their goals more efficiently, all within budget.
Let’s talk more about nearshore staffing in detail.
But first, the basics.
Nearshore staff augmentation is a strategic staffing solution that involves partnering with skilled professionals from neighboring countries to supplement existing in-house teams. In the context of North America (the US and Canada), it means finding talent in Latin American countries, such as Brazil, Argentina, Columbia, etc. While both nearshore staff augmentation and offshore outsourcing involve hiring external talent for projects, key distinctions exist between the two approaches.
Offshore outsourcing typically involves partnering with companies located in distant countries, often with significant time zone differences and cultural disparities. Nearshore staff augmentation, on the other hand, focuses on collaborating with professionals from neighboring countries, offering closer proximity and greater alignment in terms of cultural norms and business practices.
Here are some of the benefits of nearshore staffing, particularly if you are interested in nearshore IT staff augmentation.
Nearshore workforce augmentation offers a compelling array of benefits to businesses across various industries. These advantages can contribute to enhanced productivity, cost savings, and accelerated growth:
First of all, nearshore locations often provide access to a rich pool of specialized talent with expertise in specific industries or technologies. While nearshore team expansion is more common in the IT industry, it can be useful for any other industry where the physical presence of the staff is not necessary.
This can be particularly beneficial for companies seeking to fill critical skill gaps or gain cutting-edge expertise that may not be readily available within their existing workforce.
It’s not just talent—it’s the talent at reduced costs. We all know that talent is expensive in North America— as we have calculated, the true cost of your local in-house software development team is 65% more than what it appears. But with nearshore staff augmentation, companies can access high-quality talent at lower rates, often due to differences in labor costs and overhead expenses in nearshore locations.
Additionally, nearshore staffing solutions offer you the flexibility to scale resources up or down as project requirements change. That means businesses can adjust their workforce without the burden of long-term employment contracts.
By collaborating with nearshore professionals, companies can accelerate project completion and reduce time to market. Nearshore teams can work in parallel with in-house teams, extending the available work hours and enabling faster progress.
Plus, the cultural alignment and reduced time zone differences associated with nearshore partnerships facilitate seamless communication and collaboration, minimizing delays and ensuring projects stay on track.
Nearshore staff augmentation provides access to a global pool of talent, broadening the range of perspectives and expertise available to companies. This can lead to innovative ideas, fresh approaches to problem-solving, and a deeper understanding of international markets.
Apart from that, nearshore partnerships can also facilitate expansion into new markets. The team stationed nearshore can provide local market insights and cultural expertise to support business development efforts.
Last — and this is important — is the reduced risk. Most often, nearshore staff augmentation involves partnering with established companies that have a proven track record of success. Like DevEngine!
This can reduce the risk associated with outsourcing your projects to unfamiliar or inexperienced developers or data engineers.
This is not an exhaustive list of the benefits of nearshore staffing, though—there are more as well. For instance, nearshore team scaling can improve the performance of your in-house team. They can dedicate themselves to more strategic tasks, where their creativity or focus could make or break things. By delegating specific tasks or projects to nearshore teams, businesses can optimize the utilization of their in-house resources, leading to increased productivity and overall efficiency.
We talked about a few benefits. Some nearshore models would offer one set of benefits over other models. Let’s talk about them briefly, one by one.
Nearshore staff augmentation can be implemented through various models. As mentioned above, each model is tailored to specific project requirements and organizational structures.
Individual staff augmentation—hiring individual nearshore professionals to fill specific skill gaps within in-house teams. For instance, hiring a developer from Brazil specializing in React for a specific task or project.
Dedicated teams—forming dedicated nearshore teams to manage specific projects or functions, providing a more focused and collaborative approach. Like hiring a data analysis team.
Project-based augmentation — engaging nearshore staff for the duration of specific projects, offering flexibility in scaling resources as needed. Want to make a mobile app? Hire a mobile software developer from Brazil— or any other LATAM country — only for as long as the project exists.
Co-development centers—establishing co-development centers in nearshore locations to foster closer collaboration and knowledge exchange between in-house and nearshore teams. This model would be more suitable for large organizations intending to expand their footprints.
Which model works best for you would depend on factors such as the complexity of the project, the skills required, and the desired level of integration with your in-house teams. But wait, is nearshore staff augmentation for you?
Nearshore staffing strategy can be an effective solution for businesses seeking to address talent shortages, expand their capabilities, and achieve their goals. Whether or not nearshore staff augmentation is the right fit for your organization depends on several factors, a few of which we mentioned above.
Here are some key considerations to help you decide if it is a viable option for your business:
If you have answered “yes” to most of these questions, then nearshore staff augmentation may be a valuable tool for achieving your business goals.
DevEngine is a nearshore software and data engineering team augmentation company that bridges the gap between Canadian and US companies and top-tier Latin American talent.
We provide a range of nearshore staff augmentation services, including:
Besides the specific services mentioned above, you’ll also benefit from DevEngine’s deep understanding of Latin American culture and business practices, which can help you overcome any potential language or cultural barriers.