Software nearshoring has become a great option for companies in the United States. Problems like tech talent shortage, high turnover rates, cost-to-hire, and our current world climate are some of the causes why businesses in the US tech industry are opting for this model.
A report from LinkedIn has shown that the tech (software) industry has the highest turnover rate at 13.2% and it claims that one of the reasons why retaining tech talent is so difficult is due to high demand and rising compensation within the industry. US-based companies like Amazon and Google, which we would think are the dream workplaces for Developers and UX/UI Designers, suffer from this problem according to Forbes Magazine.
Another issue is the tech talent shortage, which is about to grow worse since the U.S. government signed an executive order temporarily suspending work visas like the H-1B for foreign workers in specialty occupations. According to an article from TechCrunch, this ban will hit Silicon Valley hard, forcing companies to move their operations to other countries.
Due to the talent shortage and the fact that employees tend to stay in companies for one to two years, it has become extremely difficult to find and retain new top talent in the U.S market. This not only affects your project timeline but also your team dynamics and the quality of the product being built.
How are companies dealing with these issues? Many of them are turning to nearshoring as a staff augmentation solution.
Here are some of the reasons why nearshoring is becoming more common among tech companies, helping them stay ahead of the game:
- Quality talent
- Human resource support
- No language barrier
- Long-term retention
- Overlapping time zones
- Similar culture
- A team that is 100% dedicated to you
- Lower cost-to-hire
“Just like an in-house team, a nearshore team is dedicated 100% to you, and if set up the right way, it can absorb your company’s culture and goals. On the other hand, offshore teams will take more of your precious time and effort to bring them into alignment.” - Andres Max, CEO at Ideaware
Latin America: Colombia as a nearshore option
When it comes to outsourcing/nearshoring, there are many options on the table across the globe, each providing different benefits or concerns. If you are in the US, here is how you can benefit by nearshoring to countries close to the US, like Colombia, instead of countries like India, China, Vietnam, or Eastern Europe.
One such hotspot for US-based companies looking for a nearshoring partner is to work with a company that sources talent in Latin American countries such as Colombia. Colombia has always been known for being a beautiful country with happy, hard-working, and authentic people. These are not the only things it is known for; in the last few years, Colombia has been recognized as one of the best places to innovate and do business in Latin America, thanks to the quality of the workforce. In 2019, the city of Medellín was recognized by Newsweek as the World’s Smartest City.
These are some of the reasons why US-based companies choose to nearshore in Colombia:
- Culture: Cultural differences can present a significant challenge to efficiency. According to Forbes Magazine, Latin American countries share a similar culture with the U.S due to their proximity. This aspect will allow you to feel like your dedicated team is a seamless extension of your company.
- Working hours: Your nearshore team should work across your time zone. Colombia’s official time zone is the GMT−05:00, which is the same as EST time for most of the year. This means that you are going to be able to get an immediate response when you reach out to your team and you won’t have any obstacles with your workflow.
- Cost savings: Potential savings of up to 50% of the costs from hiring a locally based US team.
- Proximity: Your team should be easy to get to in a few hours, which allows you to visit frequently, resulting in a stronger relationship and greater efficiency.
- Skills: With a population of 49.65 million people, Colombia has a large presence of companies providing software and IT services, and it is home to several universities with high academic standards and research, providing top tech talent.
How does Colombia compare to other countries?
While the hourly cost might be cheaper in some other countries, you will find that nearshoring to Colombia will require fewer hours to get the same job done. Why? You don’t have time zone differences. Meaning, you can communicate with your team in real time, and you don’t have to wait 12 or more hours to get an email reply. You can discuss with your team via Slack, Zoom, or email the stages of your project whenever you want and receive updates while the sun is still out.
Let’s compare Colombia to other countries:
We’re close!
Do you want to be able to visit your team without having to spend more than 10 hours flying? With 13 International Airports, Colombia provides easy access and good international air connectivity from major US cities:
- Flight time from Miami to Barranquilla: 2h 40m
- Flight time from New York to Medellín: 5h 40m
- Flight time from LA to Bogotá: 7h 28m
- Flight time from Austin to Medellín: 4 hours 53m
- Flight time from Washington, DC to Bogotá: 5h 30m
More US-based companies are choosing to nearshore their staff augmentation needs for engineers, and Colombia is a great option for an easy and transparent process. You will find yourself thanking the regular working hours, fluent conversations, and the convenience of having your team a couple of hours away by plane. Remember that choosing a country for its low rates doesn’t mean you are saving money or time.
At Ideaware, we support US-based companies with nearshore engineering teams who are full-time dedicated individuals that you can consider as part of your team. We have been providing this service to US-based startups and Fortune 500 companies since 2010.
Your success is our success, and we are always available to support you with world-class staff augmentation services for software design and developers.
Why Ideaware?
Since 2010, we’ve helped US companies scale with top-tier tech talent, not just by filling roles, but by becoming long-term partners in growth.
- We handle sourcing, hiring, onboarding, and retention.
- Start receiving CVs as soon as 48 hours.
- You could meet your new teammate in as little as 8–12 days.
- Our retention rates are 2x the industry average.
Contact us here to discuss your hiring strategy, and we will get in touch with you within 24 hours or less.
