Success Stories: How Nearshoring to Latin America Transformed These Tech Companies

Nearshoring development teams to Latin America has become an increasingly popular option for tech companies looking to optimize their operations and drive growth. 

In this article, we’ll explore some success stories of tech companies that have near-shored their development teams to Latin America and benefited from this strategic decision.

1. Case Studies of Successful Nearshoring in Latin America

1.1 Tiempo Development

Tiempo Development is a software development company based in Arizona that provides custom software development services to companies across various industries. In 2009, Tiempo Development decided to near-shore their development teams to Mexico to reduce costs and access a larger pool of talent. Since then, Tiempo Development has grown rapidly and has been recognized by industry analysts and publications as a top Nearshoring provider.

Tiempo Development’s success story is backed by some key facts and figures. The company has experienced a 96% client satisfaction rate, and its near-shore teams have contributed to a 46% reduction in development time and a 50% reduction in costs for its clients. Tiempo Development has also been recognized as a top software development company in Mexico, with over 400 software engineers across its near-shore locations.

1.2 Belatrix Software

Belatrix Software is a software development company based in Argentina that specializes in software development, testing, and innovation services. The company has worked with clients across various industries, including healthcare, finance, and e-commerce. By Nearshoring its development teams to Argentina, Belatrix has been able to provide high-quality software development services at a lower cost than many of its competitors in the United States.

Belatrix Software’s success story is backed by some key facts and figures. The company has experienced significant growth, with a 33% increase in revenue in 2019 alone. Additionally, Belatrix Software has been recognized as a top software development company in Argentina, with over 1,000 employees across its near-shore locations.

1.3 Altoros

Altoros is a software development company based in California that provides custom software development services to companies across various industries. In 2013, Altoros decided to near-shore their development teams to Argentina to reduce costs and access a larger pool of talent. Since then, Altoros has grown rapidly and has been recognized as a top Nearshoring provider by industry analysts and publications.

Altoros’ success story is backed by some key facts and figures. The company has experienced a 90% client retention rate and a 25% reduction in costs for its clients. Additionally, Altoros has been recognized as a top software development company in Argentina, with over 500 software engineers across its near-shore locations.

1.4 4Geeks

4Geeks is a software development company based in Miami that provides custom software development services to companies across various industries. In 2017, 4Geeks decided to near-shore their development teams to Costa Rica to reduce costs and access a larger pool of talent. Since then, 4Geeks has grown rapidly and has been recognized as a top Nearshoring provider by industry analysts and publications.

4Geeks’ success story is backed by some key facts and figures. The company has experienced a 98% client satisfaction rate and a 30% reduction in costs for its clients. Additionally, 4Geeks has been recognized as a top software development company in Costa Rica, with over 60 software engineers across its near-shore locations

1.5 InRhythm

InRhythm is a software development company based in New York that provides a range of services, including software development, UX design, and quality assurance. InRhythm decided to near-shore its development teams to Medellin, Colombia in 2016, as the city had a growing technology sector and a strong pool of technical talent. Since then, InRhythm has experienced significant growth and has been able to expand its service offerings and client base. By Nearshoring to Colombia, InRhythm has been able to access top talent at a lower cost and offer its clients a wide range of software development services.

2. Benefits of Nearshoring in Latin America

These success stories demonstrate the many benefits that tech companies can experience by Nearshoring development teams to Latin America. Some of the key benefits of Nearshoring in Latin America include:

1. Cost Savings: Nearshoring to Latin America can be significantly less expensive than hiring local talent or outsourcing to other regions like Europe or Asia.
2. Skilled Talent: Latin America is home to a highly skilled and educated workforce, with many countries producing graduates with technical skills that are in high demand.
3. Time Zone Compatibility: Nearshoring to Latin America offers time zone compatibility with the United States, making communication easier and more efficient.
4. Cultural Compatibility: There are cultural similarities between the United States and many countries in Latin America, which can make it easier for companies to work with outsourcing partners in the region.
5. Reduced Risk: Nearshoring to Latin America can reduce some of the risks associated with off-shoring to other regions, as it can be easier to manage intellectual property and data security when working with a partner in a nearby country.

3. Statistics on Nearshoring in Latin America

Here are some relevant statistics that highlight the benefits of Nearshoring development teams in Latin America:

• The Latin American software outsourcing market was valued at $10.9 billion in 2020 and is projected to reach $17.6 billion by 2026, representing a compound annual growth rate of 7.7%. (Source: MarketsandMarkets)
• Mexico, Brazil, and Argentina are the largest software outsourcing destinations in Latin America, accounting for 79% of the market share in 2020. (Source: Statista)
• The average hourly rate for software developers in Latin America ranges from $25 to $45, depending on the country and skill level. This is significantly lower than the average hourly rate in the United States, which ranges from $100 to $150. (Source: Clutch)

Here is a table with relevant statistics on Nearshoring development teams in Latin America:

Statistic	Value
Latin American software outsourcing market value in 2020	$10.9 billion
Projected Latin American software outsourcing market value in 2026	$17.6 billion
Compound annual growth rate of Latin American software outsourcing market	7.7%
Largest software outsourcing destinations in Latin America (Mexico, Brazil, Argentina)	79% market share
Average hourly rate for software developers in Latin America	$25-$45
Number of people employed in Latin American outsourcing industry	Over 600,000
Expected job growth in Latin American outsourcing industry by 2024	80,000
Belatrix Software revenue growth rate in 2019	33%
Tiempo Development’s client satisfaction rate	96%
Altoros’ reduction in costs for clients	25%
4Geeks’ client satisfaction rate	98%

Visit our exclusive page on Hiring Nearshore Developers to learn more about finding the ideal LatAm talent for your business.

If you’re looking to hire LatAm developers remotely, take a look at our guide on the Top 7 Websites to Hire LATAM Developers in the Americas for more in-depth information.

4. Conclusion

Nearshoring development teams to Latin America offers numerous benefits, including cost savings, access to skilled talent, time zone compatibility, cultural compatibility, and reduced risk. These benefits have been demonstrated in the success stories of Tiempo Development, BairesDev, InRhythm, Belatrix Software, Altoros, and 4Geeks, which have all near-shored their development teams to Latin America and experienced significant growth and success. By Nearshoring to Latin America, tech companies can access top talent at a lower cost and improve their overall efficiency and competitiveness.