Software development talent has become one of the most wanted outsourced roles by North American companies in the last few years. For industry leaders, this is one of the most preferred strategies, not only because they can access a larger talent pool expertise without neglecting their core business, but because of the value and collaboration they can bring to their internal software development team by adding new experts from nearby countries, where cultural fit, time zone, and language are not a barrier.
In addition, one of the benefits of outsourcing software development talent in LATAM countries is the cost of living in these countries compared to North American countries, resulting in a motivated team that is being well remunerated, and this represents savings within your budget. Imagine you are looking to hire a backend software developer. You bet to find this talent expertise in Mexico (EST time zone), for example, but the recruiting process and meeting the legal requirements to hire in Mexico is far away from the task of your core business.
Choosing a partner for this recruiting task and legal paperwork to bring this backend developer to your team will help you avoid these time-consuming tasks. For example, Teilur Talent is one of the partners that specialize in connecting tech talent to North American companies, and what makes them stand out is the pricing transparency, disclosing their fees upfront and never charging more than 20% of the developer’s salary.
The 7 benefits of outsourcing software development in LATAM
1. Cost savings:
Companies that manage all aspects of their business internally often pass on higher costs to customers. When it comes to bringing new team members, you should pay a team to do this talent search job, the legal constitution of your company in nearby countries, and consume too much time selecting the right talent. In contrast, partnering with an outsourcing software development company can help reduce these costs in Staff Recruiting and HR, and that can bring you pre-vetted talent from nearby countries where the salary represents a high amount for life quality and represents savings for your business.
Outsourcing software development teams can cut your development costs by up to 53%, according to a study by Existek:
2. Access to a larger talent pool
One of the biggest benefits of outsourcing software development teams in LATAM is that it allows companies to access a broader talent pool unhindered by geographic limitations. Most outsourced software developers work remotely, giving companies the opportunity to hire top experts from nearby countries.
When partnering with outsourcing firms, business leaders can avoid sifting through numerous resumes to find suitable candidates for their software development projects. Instead, they can select from a list of experienced professionals who possess a diverse range of skills and strong expertise.
3. Focus on core business
Outsourcing software development allows you to focus more on your core business activities without needing to delve into technical details.
This benefit frees up your internal resources, enhancing efficiency, speeding up decision-making, decreasing the workload of your in-house team, and ultimately increasing profitability. Additionally, professional software development companies bring extensive experience and expertise to handle the complexities of software development, ensuring a smooth workflow that stays within budget and maintains your business's momentum.
4. Time zone advantage and Geographical advantage
By outsourcing software developers in nearby countries to US and Canada, you will have advantages like efficient communication and collaboration: LATAM as the nearest region to US and Canada, and the emerging tech talent export region in the last few years, the communication and time zone alignment will be a fit, as most of this countries have similar time zones to northamerican countries, and the Geographical proximity to the US, for example, a flight between Miami to Medellin, Colombia only takes 3h 33min.
5. Compliance and regulatory advantage
As a business leader, you can avoid the complex regulatory, compliance, and legal parameters for each country in LATAM. Avoiding the headaches of these regulatory requirements allows you to focus on what's important: your core business. Partnering with a company that does this for you is the best way to move faster, find quality talent, and add value to your internal software development team and business.
6. Scalability
As your business grows, so do your needs and expectations. Whether your company is launching a new product, expanding into new markets, or adjusting to fluctuations in demand, you need to move quickly because the market won't stop waiting for you. Making decisions quickly is critical to staying ahead of the competition. Adding new team members who can add value and take advantage of LATAM as the emerging region for exporting tech talent is an asset that you, as a business leader, will definitely consider.
7. Talent Expertise
Outsourcing software development provides access to top talent and expertise. In a survey conducted by the CIO, it was reported that 46 percent of CIOs prefer outsourcing because of access to "world-class skills. The software development field is constantly evolving due to technological advancements and changing market demands. To stay competitive, companies need skilled developers, designers, and project managers who can turn their vision into reality.
Conclusion
Looking in retrospect, the benefits of outsourcing software development teams go beyond borders, politics, or regions; it’s about your business growth. This strategy keeps increasing with the past years, and with a predicted analysis, it will double by 2032. As a business leader, make sure to find the right partner that allows you to access a large tech talent pool, with a transparent pricing model for no later surprises or hidden fees. If you are ready to talk to a partner, contact us.
FAQ
- What is Outsourcing nowadays?
Outsourcing nowadays is no longer just about cutting corners. It's a smart, strategic move for businesses looking to stay competitive in a rapidly changing world. Whether it's tapping into global talent, using AI to automate tasks, or saving on costs, outsourcing is evolving in exciting ways.
- What is the future of outsourcing?
Sectors like IT, healthcare, finance, and HR lead the way in outsourcing. And it's not just large companies: In the past year, 90% of small businesses across industries planned to outsource. The global business process outsourcing market is worth more than $260 billion.
- Is outsourcing software development a good idea?
Outsourcing software development can provide several benefits to your organization, such as increased efficiency and cost savings. Outsourcing also gives you access to a larger pool of experienced developers with the specialized skills and resources necessary for completing your project on time.
- Why do US companies outsource jobs?
Advantages of outsourcing include not having to hire more employees, access to a larger talent pool, and lower labor costs.
