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Building the Ideal Nearshore Development Team: A Guide for CTOs

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Building the Ideal Nearshore Development Team: A Guide for CTOs

Covid-19 brought tech closer to our lives, dramatically changing the role of CTOs in startups to greater complexity and impact. With increased reliance on tech, hiring qualified software developers has become a significant challenge for tech businesses due to the high demand and limited talent pool in an expensive market.

Many CTOs are now turning to nearshore outsourcing as a solution. Working with a nearshore development team means you delegate software development to talented software engineers in close geographical proximity to your country. CTOS looking to scale up their software development capacity, can benefit from nearshoring because it gives them access to top tech talent from neighboring regions at a significantly lower price. Time zone alignment means that your teams work together more effectively and efficiently.

Read on for more on how your startup can benefit from a reliable nearshore development team. 

In this article:

Innovate and Cut Costs with Nearshore Development Teams

Why hire nearshore talent? Benefits include innovation, cost-effectiveness, scalability and access to a quality talent pool.


Nearshore outsourcing combines the best features of onshore and offshore software development by giving your tech business instant and cost-efficient access to top tech talent. Here are the benefits of this outsourcing model:

Enhancing innovation-

Geography is no barrier to accessing top talent. With nearshore outsourcing, you can access cross-functional teams with diverse perspectives in booming tech talent regions like Latin America.

Diverse teams enhance innovation-

Working with people from different countries exposes your house teams to new cultures, unique perspectives, and ideas, which boosts your innovation and enriches your product or service offerings. For example, the founders of Skype worked with a nearshore development team for their backend and website, creating the features we enjoy today.

Cost-effective-

Hire top nearshore tech talent that earns above standard in their home countries while saving you roughly 30 to 50% in costs. For example, the cost of living in Mexico is much lower than in the United States, even though the skill level among developers is the same.

Easier team scaling-

A nearshore development team is ideal for CTOs looking to hire for a one-time project. The team can build and maintain a project for as long as you need them to, without setting up a new office and paying salaries.

Time zone alignment-

Nearshore teams are in the same or similar time zone as your company. Sharing the day’s work cycle with your team allows for real-time collaboration. Also, if your team is based in Panama, for example, it is easier to hop on a quick flight to meet with them face-to-face compared to meeting an offshore team in Poland.

Access to a larger pool of skilled professionals-

While the United States struggles with a software developer shortage, LatAm is growing in tech skills with a larger tech talent pool ready to handle your project.

High level of communication-

A big percentage of LatAm’s population has a high English proficiency, which increased further during the pandemic. So, you can expect minimal language barriers compared to an offshore team. Also, working with a LatAm-based development team means you have a higher cultural alignment, making work easier.


 Interested in hiring a nearshore partner with access to LatAm’s top tech talent?
Contact TECLA today. 


Why Effective Communication Is Important for Successful Projects


Setting up a nearshore software development team requires careful planning and coordination to ensure everyone is on the same page and working towards the same goals. So, your in-house and nearshore teams must collaborate successfully to achieve project objectives and ensure customer satisfaction. If there’s a rift between the onshore and offshore staff, developers may forge ahead and work on the project without consulting each other, leading to problems and costly rework. Here are the best practices for a successful collaboration: 

  • Define strategic goals-  Your in-house team and extended developers must be on the same page. Be very clear on your goals and requirements. An example of a clear goal is monetizing an app to earn $10,000 monthly in three months. 
  •  Identifying key business objectives-  Break down your goals into objectives because they will determine the daily tasks and milestones your nearshore team must accomplish. 
  • Focusing on project requirements- How many team members do you want on your project? Who do you want on your team? How do you want your project to be approached? Is it through waterfall, Agile, or other project management methodologies? Make your project specifications clear from the get-go.
  • Communication channels-  It is important to establish regular communication channels when your team is located remotely. You can use channels like Confluence, Microsoft Teams, Slack, and email for efficient and transparent communication. The more visibility you offer the nearshore team, the higher the chances for your project to be delivered successfully, on time, and with the anticipated outcomes. 
  • Define the roles, responsibilities, and expectations of each team member, as well as the tools, processes, and methodologies that will be used. Ema members need to understand their tasks and specific and measurable performance indicators. What particular KPIs will you use to assess their performance? Clear KPIs have been linked to better job satisfaction and work engagement. So, getting this right ensures a productive relationship with the nearshore team.
  • Ensure a shared sense of purpose and direction- Ensure that both teams have a common purpose and are on the same track to achieve your business goals. Most importantly, let them work independently without micromanaging their every move. This can reduce morale, demotivate your team, and slow down your project since the whole team depends on you. 


Implementing Remote-Friendly Work Practices


Now that you’ve identified the right nearshore team to work with, the next thing to do is to implement remote-friendly work practices. Understandably, working with a remote team has many challenges, including cultural differences, communication barriers, remote troubleshooting, legal issues, security issues, and more. Here’s how you can overcome them: 

  • Addressing cultural differences-  While there are a few cultural nuances when working with Latam developers, cross-cultural training is essential to ensure the project flows smoothly. 
  • Overcoming communication barriers- You can utilize training tools to enhance remote communication. For example, TECLA has an all-in-one platform specifically created to train nearshore team members and ease cultural and language barriers, making communication easier. 
  • Address legal and regulatory compliance issues-  Have proper contracts in place to minimize legal risks. The contracts should hash out all the information linked to access to sensitive information, payment, and any other legalities.  Also, let your legal team review agreements before signing if you choose to use them. They include Master Services Agreements(MSAs),  Service Level Agreements(SLAs),  Non-Disclosure Agreements(NDAs), and more. 

Comparative table umming up the goals and actions needed for the success of your remote team


Choosing the Right Partner to Build Your Ideal Nearshore Development Team


Finding the right nearshore software development company can be challenging. Most companies may not understand your business and tech requirements, embrace the product roadmap, and help you achieve it. Also, you’re entrusting them with your software’s source code, so at the very least, you must verify that you’re dealing with a thoroughly vetted and trustworthy partner. That means you’ll have to research and follow the proper guidelines. Here are the steps to take:

Start your search for quality candidates-

Screen potential nearshoring partners on websites like Crowd Reviews, Clutch, G2 Crowd, and more that offer reviews for companies from past clients. You can also cross-reference sites to check whether the reviews match.

Check their website and socials-

Check each potential partner’s website to get a feel of how they present themselves. Also, check their socials to see the kind of content they post and how they interact with other professionals in the industry. Do they sound like subject matter experts? Doing so lets you learn more about the company’s work and expertise.

Review their portfolios-

Potential nearshoring partners should provide a comprehensive portfolio outlining work they’ve handled for clients in various fields. Ideally, the company should have experience in the same industry as you.



TECLA is a trustworthy nearshore software outsourcing partner committed to accelerating your growth with top developer talent on demand. 300+ Tech companies from the U.S. have trusted our nearshore staff augmentation service and for good reason. We have a team of over 40,000 LatAm pre-vetted senior developers fluent in English and in your time zone. Also, we’ll handle everything for you, from legal, HR, payroll, and more, as you focus on scaling your tech. Interview top developers and scale your team in a matter of days with zero risk, thanks to TECLA’s 14-day trial period and a 90-day guarantee.

Book a call with TECLA today to scale your in-house development team. 

FAQs

What Is Nearshore Development?
This is outsourcing software development to a region that is geographically proximate to your country. For example, a U.S.-based tech company can outsource its software needs to a nearby country in LatAm America.
What Are Nearshore Staffing Services?
Nearshore staffing services give CTOs access to top tech talent from nearby countries when they need to scale their teams. For example, TECLA is a nearshore staffing service with a platform that connects U.S.- and Canadian-based tech companies with the best tech talent from LatAm.
Why Is Nearshoring An Effective Strategy?
Nearshoring is an effective strategy because it provides many benefits for your tech business, including: - Access to a vast pool of talented developers - Close geographical proximity - Costs savings - Easier team scaling - English language proficiency, and cultural alignment
How Can I Build An Ideal Nearshore Development Team?
To build an ideal nearshore development team, you need to have clear goals, do your research, interview potential partners, and clearly communicate your expectations to assess if they can achieve them, and then outsource to the right team. The right team should be skilled in acquiring and retaining talent, practice agile development methodologies, and ensure the process is hassle-free. TECLA is a nearshore staff augmentation partner you can liaise with to build your ideal team, helping you scale your technology.

Abigail Houck

By 

Abigail Houck

Abigail Houck

Abigail is COO @ TECLA. With more than ten years in the tech recruiting industry, she is especially focused on international and global talent acquisition.

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