Nearshore Agile Software Development: Benefits, Best Practices & Success Guide

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Nearshore Agile Software Development: Benefits, Best Practices & Success Guide

Faster Development Cycles with Nearshore Latin America Teams

Nearshore agile software development is ideal for accelerating your product life cycle. As a sprint-based method, agile is ultra-efficient for teams, saving you up to 60% in time-to-market (McKinsey & Company). At the same time, nearshore experts have the advantage of real-time communication within shared time zones, which streamlines collaboration.

Cultural Compatibility: Latin America & U.S. Tech

Nearshore agile teams tend to align well with your workplace, due to shared cultural and language similarities. For example, LatAm tech professionals often are well-versed in U.S. expectations and English proficiency. Ultimately, this boosts communication and unifies team culture, enabling you to boost company performance by up to five times (World Financial Review)

Cost Efficiency: Saving 40–50% with LatAm Agile Talent

A major benefit of nearshore agile development is cost cutting. In addition to the method’s efficiency, nearshoring involves lower salary rates – up to 40-50% less – for the same high level of talent. Choosing agile nearshore outsourcing also trims your recruitment cycles and extends retention, which leads to even more savings.

Common Challenges in Nearshore Agile & How to Overcome Them

Nearshore agile software development comes with a wealth of advantages. Even so, your business should tread carefully when implementing nearshore teams. Stay strategic by addressing common challenges and leveraging our nearshore agile best practices.

1. Challenge: Remote Team Integration for U.S.–LatAm Agile Squads

Building cohesion across different locations can slow down sprints if teams aren’t properly onboarded and integrated. In fact, 63% of leaders saw improvements in communication after undertaking team building activities.

Solution (Tecla.io Best Practices):

  • Comprehensive onboarding: We assign a Tecla Culture Buddy to every new hire to facilitate introductions, set expectations, and share company norms.
  • Aligned sprint kickoffs: We use Miro boards to live-share during onboarding calls so that both U.S. and LatAm members visualize sprint backlogs together.
  • Virtual team-building: We run biweekly Coffee & Code Slack huddles for casual conversation and cross-border knowledge sharing.

For even more team integration tips, see Atlassian’s best practices for remote standups here.

2. Challenge: Communication Barriers Between U.S.-LatAm Teams

Effective team communication has the potential to enhance productivity by 5x (McKinsey & Company). Yet, it can be difficult to establish seamless communication channels, especially with fragmented tools and professionals from unique linguistic locations.

Tecla.io’s Recommended Solutions:

  • Clear communication channels: We use top tools such as Slack and Zoom to set up straightforward channels (and avoid email overload!).
  • Documented workflows: We keep up detailed documentation of workflows and policies for team members to consult 24/7.
  • Transparency above all: We keep our virtual doors open to prevent misunderstandings and encourage proactive relationships.

Check out even remote communication best practices from Harvard Business Review researchers here.

3. Challenge: Time Zone Differences With U.S. Companies

While nearshoring removes many of the difficulties of asynchronous teaming, you may still face some friction from time zone differences. In fact, 19% of remote workers report challenges with working across time zones (Buffer State of Remote Work Report).

Tecla.io’s Expert Solutions:

  • Asynchronous tools: We take advantage of communication tools like Loom and Slack to keep teams aligned off-hours.
  • Project management platforms: We use PM tooling such as Jira, Trello and more to establish a single source of truth for project assignments.
  • Milestone setting: We use agile practices for setting daily/weekly milestones to ensure aligned work and address questions so work can proceed seamlessly.

Learn more about the importance of sharing time zones in Harvard Business Review’s recent survey here.

4. Challenge: U.S.-LatAm Cultural Alignment Across Borders

Nearshore agile teams work best when they share cultural affinity. Cultural alignment also a huge motivator for top talent, with 39% of workers citing “poor company culture” as the #1 reason they leave a job.

Tecla.io’s Solutions:

  • Hire right: We recommend taking your time to hire best-fit professionals who integrate well with your company culture from day 1.
  • Clarify expectations: We put together comprehensive documentation and a virtual office space where our teams can constantly communicate and align work.
  • Foster respect: We focus on showing respect for all team members' diverse backgrounds in order to find common ground.

Read more cultural alignment tips from Forbes’ Leadership here.

5. Challenge: Achieving High Quality on Hybrid U.S-LatAm Teams

Agile nearshore outsourcing has an excellent reputation for building top products. That said, it’s essential to set up rigorous standards and QA to ensure that you achieve high quality.

A “shift-left approach” is especially effective, as teams who start QA early spend 22% less time fixing bugs.

Solution (Tecla.io Best Practices):

  • Check skills: We always verify the technical skills of your developers so that your teams are ready to attain top caliber.
  • Integrate QA at every stage: We incorporate QA early in the agile life cycle for ongoing checks and feedback on developer work.
  • Agile-style quality checks: We set up a variety of formal and informal feedback sessions, including with peers, a scrum leader and more.

Learn more about creating a robust nearshore QA team from our Tecla.io experts here.

6. Challenge: Cost Management of Large-Scale IT Projects

Nearshore agile software development combines the cost efficiency of agile with the significantly lower salaries of nearshore experts.

Even so, 35% of software projects aren't completed within budget. It can be challenging to manage costs for large-scale or long-term projects, especially if you have revolving requirements and/or a complex tech stack.

Tecla.io’s Best Practices:

  • Detailed scope: We create a rigorous scope before kicking off the project, so that everybody has a realistic understanding of costs.
  • Flexible contracts: We draft flexible contracts, so it’s easy to scale the project and change directions with minimal extra expense.

Read more about IT project cost overruns in this guide from The Economist here.

7. Challenge: Guaranteeing Data Security With Global Tecla.io Teams

Data security is a vital nearshore agile best practice that guarantees your data, IP and infrastructure remain safe and compliant. After all, six in 10 U.S. businesses were affected by a cyber attack last year.

Tecla.io’s Solutions:

  • Make a plan: To ensure maximum protection, we craft a data security plan for monitoring storage, backup and compliance.
  • Teach and train: We establish access controls and schedule regular staff training for security awareness.
  • Use only the best tooling: Third-party tools are often backdoors for data breaches and cybercrime. We choose only industry-best platforms for an airtight tech stack.

Learn more about worldwide data breach data in IBM’s industry report here.

8. Challenge: Attaining High Talent Retention With LatAm Experts

(Source: McKinsey & Company)

Retaining the best developers on your team can be a difficult feat in today’s competitive market. While nearshore experts from Latin America are known to be career-driven and don’t job-hop as frequently, you may still face the challenge of keeping up full, specialized teams.

Our Tecla.io Retention Playbook:

  • Strategize: We define a talent retention strategy that starts at the hiring level. It’s especially important to look for candidates interested in long-term career building.
  • Focus on career: At 47%, career development is the #1 most wanted factor for digital workers. We create career and learning opportunities to get our best professionals to stick around.
  • Add stronger benefits: We audit and design job packages to keep top developers on board. Common factors include flexible hours, team culture and more.

See more details in Harvard Business Review’s survey of top tech talent here.

Tecla.io Case Study: Limber Health Saves 52% With LatAm Agile Team

Tecla.io’s Initial Assessment & Cultural Fit

Limber Health, a Washington, D.C.-based healthtech startup, had difficulty scaling with off-site developers in Eastern Europe and India. In particular, they were unsatisfied with the cultural gap and lack of real-time collaboration.

As a result, they needed developers with:

  1. HIPAA-compliant healthtech experience
  2. Shared U.S.-friendly time zones (EST/CST)
  3. Strong English communication
  4. Career-driven for long-term collaboration
  5. Cost-effective rates for sustainable growth

Tecla.io’s Expert-Led Recruitment Process

We designed a screening process that evaluated talent for a unique cultural fit – in addition to technical requirements.

First we assessed technical skills (React, AWS, Python) and HIPAA knowledge. From here, we ran culture interviews to confirm alignment with Limber’s patient-first values.

1. Discovery Call & Needs Mapping

We defined key roles: Full-Stack Developer, DevOps Engineer, React Native Specialist and Data Analyst.

2. Job Package Design

We created detailed job descriptions and competitive offer packages tailored to U.S. mid-career healthtech talent in LatAm.

3. Technical & Cultural Screening

We underwent a robust vetting process that included a:

- Technical Task: Candidates completed a HIPAA-themed coding challenge.

- Culture Interview: We evaluated soft skills, English fluency, and remote work habits.

4. Reference Checks & Onboarding

We verified three professional references per hire, then facilitated smooth onboarding through our Tecla Culture Buddy system.

Results & Metrics from Our Tecla.io Solution

At the end of our expert-led recruitment process, Limber Health achieved:

  • Hires: 6 senior developers (Full-Stack, DevOps, React Native, Data Analysts)
  • Time-to-Fill: 3 weeks
  • Cost Savings: 52% on average salary rates
  • Series A Funding secured, within two months post-hire

Read the full Limber Health story on our Tecla.io case studies page!

Lean on TECLA for Top Nearshore Agile Software Development

Nearshore agile software development is a powerful option to build your next product with top efficiency and affordability. Reap the benefits of nearshore agile development by leveraging our range of strategies and best practices.

As you put together your dream nearshore agile team, reach out to us. At TECLA, we’re seasoned talent partners with a track record of matching U.S. businesses with best-fit LatAm professionals. Discover more info on our agile-ready talent network here!

Nearshore agile teams offer the best of both worlds: cost savings and real-time collaboration. Learn how to build a winning team with us!

What is nearshore agile software development?
Nearshore agile software development is a results-driven working method that unifies professionals collaborating in similar time zones with leading agile practices. It’s considered one of the most effective models from a business and technical perspective.
What are the benefits of nearshore agile development?
Nearshore agile teams give your business access to specialized expertise at sustainable rates. What’s more, agile is known to deepen collaboration and product quality through regular alignment of goals and feedback-based improvements. Nearshore agile takes this one step further through cultural proximity and shared time zones.
How do nearshore agile teams differ from offshore teams?
Nearshore agile teams are located in a similar time zone as your business, offering workday overlap and tighter collaboration. In comparison, offshore teams join your company from anywhere in the world — which is why cultural compatibility and real-time collaboration often lag other regions.
How do I choose the right nearshore agile development partner?
Get a full sense of your partner’s expertise with diverse technologies, industries and products. The right partner will also showcase excellent communication skills and have established protocols for project scoping, team building, security and more.
What industries benefit the most from nearshore agile development?
Any industry can benefit from having nearshore agile development. The most in-demand include fintech, healthtech, manufacturing, marketing, education, non-profit and more.
How does agile improve nearshore outsourcing success?
Agile nearshore outsourcing sets up the most efficient and user-centric product life cycle possible. As a result, you will cut costs, boost team productivity and achieve top quality.
What are the biggest challenges of nearshore agile development?
Key challenges of nearshore agile development tend to involve building a high-performing team. Some common pitfalls include setting up new hire integration, communication and cultural alignment. Businesses may also face challenges with managing teams and costs with large-scale projects.
How much does nearshore agile software development cost?
The cost of nearshore agile software development varies widely depending on your current project scope, tech stack, timeline and more. That said, nearshoring is known to be significantly more affordable than hiring in the U.S. due to lower competitive salaries and trimmed recruitment cycles.
What are the best countries for nearshore agile development?
The best country for nearshore agile development depends on your business objectives, resource requirements and teaming preferences. Today, U.S. companies often settle on nearshore Latin American countries that offer top expertise, real-time collaboration and affordable rates. Check out our detailed guide into the best Latin American software outsourcing destinations, including Colombia, Mexico, Brazil and more.
What tools help manage nearshore agile teams effectively?
The best tools for nearshore agile teams boost remote collaboration. Our recommended toolkit includes Loom, Miro, Notion, Figma, Live Share and more!
Gino Ferrand
By 
Gino Ferrand
Gino Ferrand
Gino is an expert in global recruitment having spent the last 10 years leading TECLA and helping world-class tech companies in the U.S. hire top talent in Latin America.
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