Top 8 Staff Augmentation Companies in Mexico and Latam with 20+ Years of Experience (And Why You Should Consider Them)

Top 8 Staff Augmentation Companies in Mexico and Latam with 20+ Years of Experience (And Why You Should Consider Them)

The software development landscape in Latin America has seen a surge in staff augmentation services. While this offers an overwhelming variety of options, it also presents challenges.  Unqualified providers can infiltrate the market, hindering your ability to find the perfect talent for your project. This is where established staff augmentation companies with a proven track record come in.

Staff augmentation companies offer businesses a cost-effective way to access skilled developers, allowing them to scale their teams quickly and efficiently. However, with the abundance of providers, the challenge lies in identifying reputable companies with the experience and expertise to deliver.

There are several reasons why staff augmentation has become so popular in Latin America.  One key factor is the cost savings compared to hiring in-house developers, particularly in developed countries.  Latin America boasts a large pool of skilled development talent, allowing businesses to find qualified individuals at competitive rates.

Another factor is the cultural adaptability of Latin American developers. Many have experience collaborating with foreign companies, fostering seamless communication and integration into your existing team.

Finding the Right Partner

If you’re considering staff augmentation for your software development project in Latin America, due diligence is crucial. Ensure you partner with a reputable company with a proven track record. Research their experience, expertise, and client testimonials.

To help you navigate this landscape, we’ve compiled a list of the top 8 staff augmentation companies in Mexico and Latam, each boasting over 20 years of experience in the software development industry.  These companies have a strong reputation for delivering high-quality talent and fostering successful project outcomes.

Top 8 Staff Augmentation Companies in Mexico and Latam

  • Scio (Mexico): Founded in 2004, Scio is a leading provider of outsourcing and staff augmentation services with a focus on building strong partnerships with tech companies, digital transformation agencies, and mid-sized companies. We specialize in identifying the best talent across various IT disciplines to ensure a perfect fit for your project needs. Consider Scio if you value a personalized approach, a partner who takes the time to understand your unique business goals, and who takes good care of their organizational culture.  (https://www.sciodev.com
  • Globant (Argentina): Established in 1999, Globant offers staff augmentation solutions with a global presence (18 countries, 25,000+ employees). They focus on digital transformation and user experience. (https://www.globant.com/)
  • TATA Consultancy Services (TCS) (India): Founded in 1968, TCS is a global IT giant (46 countries, 600,000+ employees) offering staff augmentation services. They emphasize robust infrastructure and proven methodologies. (https://www.tcs.com/)
  • NTT DATA (Japan): Founded in 1988, NTT DATA is a leading IT services provider with a global reach (50 countries, 130,000+ employees). They offer staff augmentation services to assemble project-specific teams. (https://www.nttdata.com/global/en/)
  • CI&T (Brazil): Founded in 1995, CI&T offers staff augmentation solutions with a focus on digital transformation, user experience, and software development (8 countries, 5,000+ employees).https://ciandt.com/us/en-us  
  • Wizeline (Mexico): Founded in 2014, Wizeline offers nearshore development and staff augmentation services, combining AI with design and agile methodologies. (https://www.wizeline.com/es/)
  • Stefanini (Brazil): Established in 1987, Stefanini is a global IT services company (29 countries, 30,000+ employees) offering staff augmentation services with a comprehensive recruitment process. (https://stefanini.com/en)
  • Neoris (Mexico): Founded in 2000, Neoris offers staff augmentation solutions with deep industry knowledge (15 countries, 4,000+ employees). They focus on digital transformation, BPO, and software development. (https://www.neoris.com/)

 Why Choose a Staff Augmentation Company in Mexico and Latam?

Mexico and Latam offer a compelling combination of factors that make them ideal destinations for staff augmentation partnerships. Here’s why:

  • Vast Talent Pool: Mexico and Latam boast a large and growing pool of highly skilled IT professionals, providing you with a diverse range of talent to choose from.
  • Cost-Effectiveness: Staff augmentation can significantly reduce your overall project costs. You avoid expenses associated with recruitment, onboarding, and infrastructure.
  • Flexibility and Scalability: Staff augmentation allows you to scale your team up or down as project requirements evolve. This flexibility is crucial for businesses navigating dynamic project landscapes.
  • Expertise and Experience: Staff augmentation companies possess the expertise and experience to streamline the talent acquisition process. They efficiently identify and match your specific project needs with the most qualified individuals.
  • Reduced Time to Market: By leveraging pre-vetted talent, you can expedite project initiation.

Choosing the Right Partner: It’s All About Trust

Beyond cost and talent availability, there are other crucial factors to consider when choosing a staff augmentation partner.  Evaluating the company’s experience in staff augmentation services, how they care for their talent, and their key performance indicators (KPIs) will provide valuable insights.

One important KPI is the Employee Net Promoter Score (eNPS).  This metric measures employee satisfaction and willingness to recommend the company to others. A high eNPS, like Scio’s 98%, indicates that employees are happy with their work environment and likely to stay with the company long-term. This translates to a reliable and committed team for your project.

Another key metric is customer lifespan, which reflects the length of time customers stay with the company.  Scio’s strong customer lifespan of 5 years demonstrates our ability to provide high-quality services and build strong relationships with clients. This ensures we can deliver on our promises and provide you with the ongoing support you need.

Finally, a low employee turnover rate is a strong indicator of a company’s ability to attract and retain top talent. Scio’s 2.9% turnover rate signifies this strength.  This translates to a higher likelihood of finding qualified and experienced developers for your project, ensuring its success.

Ready to experience the advantages of staff augmentation with a trusted partner?

Scio, with over 20 years of experience, has a proven track record of building strong relationships and finding the perfect talent fit for your project. We take pride in our commitment to agile environments and fostering a collaborative spirit within augmented teams.

Contact us to discuss your project requirements and explore how we can help your business to achieve even greater success!

Agile Austin Takeaways: Refining Your Software Development Approach for Mid-Sized Tech Companies

Agile Austin Takeaways: Refining Your Software Development Approach for Mid-Sized Tech Companies

As a nearshore software development staff augmentation company with over 20 years of experience, Scio understands the challenges faced by mid-sized tech companies (30-200 employees) in the software development industry (SaaS, Mobile, or On-premises). Recently, our team participated in the Agile Austin virtual event, a valuable forum fostering collaboration and knowledge sharing within the Agile community. This experience provided us with fresh perspectives directly applicable to your team’s success. 

Shifting the Agile Paradigm: From Methodology to Mindset 

One key takeaway emphasized the importance of viewing Agile as a core company principle, rather than simply a defined methodology. Think of it as a cultural shift, not just a process change. Agile principles such as iterative development, continuous improvement, and collaboration become ingrained in your team’s DNA. One of our Scio Project Manager, Jesús, found a quote from Bob Galen, particularly resonant:  

“While intricate solutions hold a certain allure, their complexity can present risks.”  

Bob Galen, KAA 2024 Keynote Speaker

This sentiment underscores the crucial role of resilience within Agile environments. Complex methodologies can be cumbersome and hinder adaptability, a key strength of Agile. 

Jesús also presented the concept of a “help-o-meter” – a tool that fosters a growth culture by tracking instances of offering and seeking assistance within the development team. This straightforward practice not only strengthens team dynamics and promotes a collaborative spirit, but also encourages knowledge sharing and continuous learning. 

Prioritization and Psychological Safety: Cornerstones of Effective Agile Teams 

Another member of our team, Angeles, Scio Business Analyst, highlighted the significance of prioritization within Agile teams. By clearly identifying the features that deliver the most value to your customers, you ensure a laser focus on what truly matters. However, the benefits of Agile extend beyond project management frameworks and feature sets. Establishing a culture of psychological safety empowers team members to openly communicate concerns, take calculated risks, and contribute their best ideas. This fosters a more creative and innovative environment, leading to better problem-solving and ultimately, a more successful product. Additionally, tracking Key Performance Indicators (KPIs) allows for data-driven decision-making and facilitates continuous progress. Regularly measuring progress against defined goals allows you to identify areas for improvement and adapt your approach as needed. 

Building Successful Agile Teams: Communication, Collaboration, Adaptability 

The Agile approach thrives on effective communication, collaboration, and adaptability. Daily scrums become a platform for active participation, transparency, and shared goal alignment. Team members openly discuss progress, identify roadblocks, and work together to find solutions. This fosters a sense of ownership and accountability, leading to a more engaged and productive team. By nurturing these core elements, Agile teams thrive in a constantly evolving environment and consistently deliver value to your customers. 

Scio: Your Partner in Agile Success 

At Scio, we leverage our extensive experience in nearshore software development staff augmentation to help you build successful Agile teams. We provide highly skilled and experienced developers who seamlessly integrate into your existing teams, fostering an Agile environment that drives results. Our dedication to clear communication, collaboration, and cultural understanding ensures a smooth transition and a successful partnership. 

Contact Scio today to discuss your specific needs and explore how we can help you build a high-performing Agile team that consistently delivers value to your customers. 

Freelance Developers: Friend or Foe for Your Next Tech Project?

Freelance Developers: Friend or Foe for Your Next Tech Project?

Tech companies face a looming crisis: a staggering 1.2 million software developer shortage is predicted by 2026, according to the U.S. Bureau of Labor Statistics. This talent gap is forcing them to explore creative solutions beyond traditional hiring to build and maintain their development teams. While freelance engineers offer a tempting cost-effective option, it’s crucial to weigh the potential risks before making a decision.

With over 20 years of experience helping tech companies build successful development teams, we understand the complexities involved. In this article, we’ll present some risks we have seen associated with hiring freelance software engineers and provide alternative solutions for businesses.

1. Quality and Consistency:

  • Freelancers come with varying levels of experience and expertise. Evaluating their skills and ensuring they possess the specific technical knowledge required for your project can be challenging.
  • Maintaining consistent code quality and development processes across different freelance developers can be difficult, leading to potential integration and maintenance issues down the road.

2. Communication and Collaboration:

  • Effective communication is fundamental to project success. With freelancers working remotely, establishing clear and consistent communication channels can be challenging, leading to misunderstandings and delays.
  • Collaboration is essential for efficient problem-solving and knowledge sharing. The lack of a dedicated team environment can hinder collaboration and slow down progress.

3. Project Management and Control:

  • Managing multiple freelance developers can be time-consuming and complex. Assigning tasks, monitoring progress, and ensuring deliverables meet deadlines require significant effort, taking away focus from core business activities.
  • Freelancers may not be readily available to address unexpected issues or adapt to changing project requirements. This can lead to delays and impact your project’s overall timeline and budget.

4. Intellectual Property (IP) and Security:

  • Protecting your intellectual property rights can be a concern. Ensuring that freelancers understand and adhere to your company’s IP policies requires careful consideration and legal agreements.
  • Maintaining data security is crucial. Freelancers working remotely introduce additional security risks that need to be mitigated through robust security protocols and access controls.
Alternatives to Consider

Alternatives to Consider

While freelance software engineers can be a valuable resource for specific tasks, they may not always be the optimal solution for building and managing long-term development projects. Scio offers an alternative approach:

  • Dedicated Nearshore Development Teams: We provide experienced and vetted software engineers who work seamlessly as an extension of your in-house team, ensuring consistent quality, efficient communication, and project control.
  • Reduced Risks and Improved Control: Scio takes care of recruiting, onboarding, managing, and overseeing your dedicated nearshore team, allowing you to focus on your core business strategies.
  • Cost-Effectiveness and Flexibility: Nearshoring offers cost benefits compared to onshore development while maintaining the advantages of a dedicated team environment and cultural compatibility.
Building Reliable Teams for Long-Term Success

Building Reliable Teams for Long-Term Success

Hiring freelance software engineers can provide temporary support, but it’s vital to weigh the potential risks against your long-term project needs. By considering the challenges associated with quality, communication, project management, and security, CTOs, and tech leaders can make informed decisions.

For building reliable and high-performing development teams, a dedicated nearshore solution from Scio can be a strategic choice, offering both cost-effectiveness and reduced risk compared to relying solely on freelance resources.

Contact Scio today to discuss your specific needs and learn how we can help you achieve your software development goals.

How to avoid an IT day from hell? Look for the partnerships you deserve

How to avoid an IT day from hell? Look for the partnerships you deserve

Curated by: Sergio A. Martínez

Running an IT department is not an easy task. With a daily grind of patches, fixes, updates, and all sorts of technical hurdles, most IT professionals know that their workload can sometimes get too overwhelming, making a balancing act between short-term fixes necessary to keep systems running with long-term improvements to futureproof the network. And even with the best preparation, the job of IT can sometimes be challenging and unpredictable, usually with an impossibly long list of tasks that need to be completed. Nothing is ever easy; the person in charge has to navigate through a tangle of hardware and fix whatever problems are presented, while making sure their work will stand the test of time.

How to avoid an IT day from hell? Look for the partnerships you deserve

However, there are ways to avoid those bad days when everything seems wrong. Taking the time to ensure that all of your to-dos are in order, that essential files and documents are safe, and that data backups are running will go a long way in avoiding panic if something goes wrong. If at all possible, allocate time each week for software updates or checking on vulnerable systems to save you hours of headaches down the road if a potential issue is caught early on. Finally, establishing a rapport with your colleagues is critical, as it ensures that everyone remains on the same page and problems can be easily spotted early on. But even with safeguards like these, things can go sideways in unexpected ways, which can test every ounce of the skill, patience, and determination of an IT professional.

In other words, without the proper support, IT departments face a difficult job, often leading to days from hell for your employees. But with the right partner in IT support, this looming dread becomes a thing of the past — free from these worries, your team can efficiently eliminate many of these time-consuming tasks and have more energy to dedicate to other projects and initiatives within their organization. This shift in priorities allows them to focus on driving technological advances rather than simply running from one issue to the next. With an experienced partner in IT services at your side, you’re setting your team on a clear path for growth that allows everyone to focus on doing their best work.

Avoiding a crisis

How to avoid an IT day from hell? Look for the partnerships you deserve

Nobody wants days like these in IT, so it’s important to prepare and make a checklist of daily tasks to avoid spreading your attention too much. Keeping an eye on projects and deadlines, prioritizing tasks based on importance, blocking off time for large assignments, always saving work right away, and keeping the organization’s software up-to-date and running smoothly is a bit of standard advice that can save a lot of headaches in the long run. Nevertheless, in a mid-sized company, a crisis can still happen, and a fast and efficient resolution by the IT department is going to be pretty critical.

 The first approach, then, should include gaining an understanding of the full scope of any issue by identifying affected systems and data, as well as any potential implications on the business operations of the whole organization. Once the breadth of the problem has been established, it’s important to consider what methodologies and resources will be needed to manage the crisis properly. For instance, if there are significant hardware issues or a technical outage that needs attention, engaging an IT vendor or specialized contractor ensures that all personnel has the appropriate skill sets and qualifications for remediation. 

Moreover, creating a sound action plan for responding (for example) to customer questions and managing any legal repercussions from a breach can help minimize stress during such trying times. And while no one ever wants to deal with an IT crisis at their company, having a comprehensive plan that covers all possible angles ensures you can tackle it in an orderly fashion for smooth sailing throughout recovery. Time is always of the essence, so the best approach is developing a strategy that considers all stakeholders involved, with quick, proactive communication between departments and employees becoming essential for triaging the issue. It’s also important to be clear about the goals and expectations of the organization so everyone understands the urgency of addressing a problem before the situation gets worse. Having a good system in place to track progress will ensure rapid resolutions; if mistakes are made, acknowledging them quickly and openly with leadership sets the right tone to confront such issues. And seeking outside help when necessary is always a must.

When a crisis strikes, I know it’s extremely tempting to try and tackle the issue yourself. After all, it’s often time-consuming and expensive to seek out external expertise, but the thing is, seeking an expert can result in a more efficient outcome than spending exhausting hours in front of a keyboard while tasks begin to accumulate”, says Rod Aburto, Service Delivery Manager and Partner at Scio. “External expertise can be fantastic for getting to the bottom of difficult problems quickly and thoroughly, allowing you to get back into business as soon as possible. Plus, with specialized knowledge on your side, you can keep glaring security risks at bay. Ultimately, when it comes to technology, outside assistance can make all the difference in staying ahead of an IT crisis.

A partnership you can rely on

How to avoid an IT day from hell? Look for the partnerships you deserve

Having a small IT department often means limited access to technical resources, which is a challenge when you want to roll out new projects or solve an IT crisis. And the best way to get around this is to bring Nearshore development support to the table. Nearshore developers can provide expertise on any project your team may not be able to handle, while still allowing you to maintain control of the project efficiently. And by having more knowledgeable people on board who have had experience rolling out similar projects, you can complete work faster and more cost-effectively without sacrificing quality. In the case of the US, a Nearshore company such as Scio, which has some of the best software developers in Latin America, offers close proximity (both culturally and geographically) to their partners, making communication easier and more efficient.

All in all, by partnering with a specialist, any IT department can efficiently eliminate many time-consuming tasks and have more energy to dedicate to other projects and initiatives within their organization. This shift in priorities allows them to focus on driving technological advances rather than simply running from one issue to the next. In short, choosing an outsourcing partner is a great way for IT leaders to create order from chaos and avoid the feeling of a day from hell in the process, or for small or mid-sized IT departments that want better results without upgrading their existing workforce.

Ultimately, when you’re in the midst of an IT crisis, finding the right external expertise can often make or break a resolution, and recruiting well-qualified Nearshore professionals will offer an invaluable response to pressing difficulties facing an organization. Investing in this extra support when your company hits the wall can be a lifesaver and put your organization lightyears ahead in alleviating any IT challenge and ensuring maximum productivity, which is an absolute must if you want to stay ahead of the curve in the digital world.

The Key Takeaways

  • In the IT world, it’s not especially difficult to have a “day from hell” thanks to the demands and responsibilities an IT professional juggles daily.
  • And for a small team, a huge project or a software crisis can be a lot more dangerous than expected, with quick responses as a must-have.
  • For these reasons, having the correct expertise in the field is extremely important, and a development partner is always the right answer.
  • In the case of Nearshore, which offers proximity and technical know-how, these crises can be easily tackled without sacrificing efficiency, or worrying about flexibility in the team.
Overwhelmed by the demands of IT? Don’t worry, help is on the way with Nearshore partnerships

Overwhelmed by the demands of IT? Don’t worry, help is on the way with Nearshore partnerships

Curated by: Sergio A. Martínez

It makes sense to say that a well-budgeted IT department with enough resources is critically important for any business, mid-level and beyond. If your IT people are equipped to do their job, everyone can take advantage of top-quality technologies like enterprise-level systems, expertly managed networks, and secure cloud computing that could push productivity and effectiveness through the roof. And obviously, these benefits flow right down to the bottom line. It’s hard to overestimate just how vital a fully staffed, adequately funded IT infrastructure is for improving your company’s performance. Yeah, we’ll say it: IT is the cornerstone of modern business, and ensuring it’s properly managed is your key to success.

Overwhelmed by the demands of IT? Don’t worry, help is on the way with Nearshore partnerships

However, for a lot of IT professionals out there, the reality is… different. Small IT departments often face some daunting challenges, ranging from the increased focus on personnel and operations to the escalating pressure of project management, trying to constantly do more with fewer resources. Things like juggling multiple tasks with limited staff can lead to a lot of frustration, and implementing new technologies and systems as quickly as possible can become quite Sisyphean. Tech advancements, after all, happen at such a breakneck speed that it can be hard for SMEs to stay on top of them all. That combined with a minimal budget for technology and limited training opportunities, these teams often find themselves struggling to leverage new software and solutions into their daily operations. 

The result is a constant battle to work faster and smarter. The lack of resources (from a budget standpoint to personnel) can cause a lot of issues getting projects off the ground or implementing new approaches, and finding innovative ways to keep everyone on the same page is a challenge if the person responsible for IT wants operations to run smoothly. All this without mentioning the abundance of issues and complaints that plague the IT team working in this kind of environment—from dealing with printer malfunctions to handling user requests, this job might seem never-ending. So yeah, a lot of concerns need to be addressed if an IT department is going to remain effective at delivering services efficiently. So, what to do?

Seeking help

Overwhelmed by the demands of IT? Don’t worry, help is on the way with Nearshore partnerships

Convincing management to invest in software development partners and other resources can be tricky for a small IT department, considering the financial constraints they typically face. The key, however, is explaining the long-term value of bringing in some extra help. A team not only can save money by having development partners offload specific non-core tasks, but also will save time by utilizing that same expertise in areas with shortages in talent. To this end, outlining exactly how this support would impact the bottom line is of utmost importance when making your case before the correct people. If management sees there’s an immediate improvement to both resources and output, their support becomes easier to secure.

So, if an IT department wants to get the attention of management and convince them to invest in the technology necessary to make this work, there are a few steps they can take to increase their chances. First, compiling a persuasive presentation highlighting the areas where you feel these new investments will bring the greatest return is a great start. Sharing any positive outcomes from similar projects you’ve seen in other organizations that demonstrate cost/benefit could also work. Finally, building relationships with stakeholders and discussing use cases within your organization so they can visualize how it will have real, tangible benefits for the company is your trump card. With a combination of proactive research, clever business reasoning, and solid data, any IT department can make a solid case for investing in the correct talent, and adequate resources.

However, what kind of help should you look for? Well, if you want to see an immediate change for the organization you work for, Nearshore partnerships can be an incredible option for small IT departments seeking software solutions done quickly and well. By hiring a Nearshore partner to build software for you, whether it’s custom-built or COTS, the development process can be much smoother and faster—no more worrying about the hassle of finding your own qualified engineers, who then have to learn systems from scratch. Nearshore partnerships also provide great access to outside talent, giving your team all the support they need while avoiding language barriers and closing the time zone gap to synchronize every effort during the project. And with cost-effectiveness being another major perk of Nearshoring, you’ll quickly see why it’s an unbeatable option when it comes time to revitalize your IT department and bring the solutions that your organization needs.

Finding help

“You teach and learn at the same time”: The value of an internal project for a Nearshore company like Scio

If you already decided to work with a Nearshore partner, and you need to convince management of what a good idea this is, making the right choice will be critical for success. Nearshoring can help scale operations and reduce the burden on your own team without sacrificing quality, that much is clear, but when looking for a partner, it’s important to align on culture, core values, and technical capabilities. 

To that end, it’s important to do your research and make sure that you’re working with a team with a business culture that matches that of the organization you work for. Take some time to ask questions about their processes, their continuity plans, and what makes them stand out from other Nearshore contenders—this will help narrow down your list of potential candidates, but also make sure you know their approach to collaboration, sharing of knowledge, and how communication and trust are usually built between teams. You should also ascertain whether or not they have experience dealing with existing infrastructure and whether they are properly certified in every framework and tool that best suits your plans. ast but not least, it’s sensible to check that the individuals involved have the necessary skill sets needed by your company, if they are open to learning and growing their skills, and ensure that there is clear communication between them and you throughout the whole process. Letting this kind of effort into developing a strong relationship with a Nearshore provider will pay off when it’s time to make decisions and get results delivered.

The benefit of connecting with a Nearshore development partner for a small IT department trying to implement a new software solution cannot be understated”, says Rod Aburto, Service Delivery Manager, and Partner, at Scio. “It’s more efficient, cost-effective, and hassle-free compared to hiring additional employees or plain outsourcing. By engaging in Nearshore development, you or your team will have direct access to experts who have infrastructure and resources right on hand, so you can trust that any implementations or changes will go smoothly, without worrying about time zone differences or language barriers. And you can be certain that the process won’t stretch out of control as it often does when using offshore solutions. Given their efficiency, working with Nearshore solutions means less stress on budget concerns allowing the Head of IT to find the best route forward for their company.

In the case of the best software development in Mexico, Scio offers expertise and technical know-how to engage and deliver the best software solutions around, with a collaborative approach that can augment any project from the get-go. We know that finding the right software solutions for a small IT department can often be a daunting task, and limited resources and staff make it difficult to find solutions quickly and efficiently in an organization of any size. That’s why the Scio approach to Nearshore partnerships remains the best option to bridge this gap, providing efficient IT solutions developed with experienced developers ready to seamlessly integrate with any workflow. Legacy systems and other barriers to innovation in companies that traditionally don’t do software can build these partnerships to deliver a wealth of knowledge and experience, allowing for quick scalability and turnaround times—ideal for teams who are looking for solutions with minimal risk. By having dedicated back-end support, location flexibility, reasonable cost savings, and considerable expertise available at the same time, Nearshore partnerships are one of the best options for any small IT department that needs quality software fast. At Scio, help is on the way, with all the skills you need.

The Key Takeaways

  • IT is the cornerstone of many mid-sized companies and beyond, but if software is not the priority, budget, and resources might not be the best.
  • Ideally, the IT department of any organization would have enough resources to implement any innovative solution that might make work and productivity more efficient, so alternatives should be considered.
  • In that sense, Nearshore development partners might be the answer for a small IT department, offering the flexibility and scalability necessary for any kind of budget and support.
  • However, you should make sure that the business culture matches your organization, as this will guarantee that any partnership and collaboration effort will yield the best outcomes.

Nearshore software development: A solution for the growing tech talent shortage in the post-pandemic world.

Nearshore software development: A solution for the growing tech talent shortage in the post-pandemic world.

Curated by: Sergio A. Martínez

When it comes to the Technology sector in most countries, one fact has been making itself clear since the beginning of the COVID-19 pandemic in 2020: talent shortage is on the rise. In fact, according to a survey by the Harvey Nash Group, among 3000 tech leaders, 67% acknowledged a lack of availability of skilled software developers, and this gap will only increase as our demand for technological solutions (like platforms, applications, and programs) keeps growing as in the past couple years.

Nearshore software development: A solution for the growing tech talent shortage in the post-pandemic world.

The global events of the past two years have seen the appetite for emerging and innovative technologies, such as cloud computing, big data, and artificial intelligence, increase dramatically across all industries”, indicates an article by the Australian Financial Review. “But the current pipeline of talent simply cannot keep up with the pace at which jobs are being vacated or created.

The projections about this talent gap are not very optimistic, at least when it comes to the local US developer pool. According to the blog Youteam.io, the US alone will face a shortage of 85.2 million competent tech workers by 2030, which means the loss of revenue opportunities totaling $8.452 trillion in less than a decade.

So to solve this problem, many companies have been turning to a myriad of solutions to try and mitigate this gap, like adopting “IA-generated software” or “no-code” platforms to ease development without depending too much on skilled talent, but the long-term success and viability of this strategy is still unknown, especially among smaller-sized organizations. 

A different challenge for every organization

It’s also important to note that this talent gap is not the same across the software industry, and different organizations of different sizes face very different challenges when it comes to attracting and retaining skilled developers. The main one is that corporations like Google or Amazon drain the local talent pools, adding about 45,000 new tech jobs for the roughly 2000 new developers entering the workforce in 2022 alone, according to a report by the tech blog 8allocate.

What this means is that small and medium-sized companies, even with the advantages they offer in terms of culture and perks, have a more difficult time attracting talent to remain competitive, which only exacerbates the issue. However, the silver lining is that, as the software development industry becomes increasingly globalized, many companies are outsourcing their software development needs to countries with lower labor costs to remain competitive, one of many reasons the practice of outsourcing software development has become so popular in the US. 

For one thing, it can be a great way to save money; development studios in countries like India and China often charge significantly less for their services than US-based companies, in addition to helping businesses tap into a global pool of talent. In many cases, it’s simply more efficient and cost-effective to collaborate with developers in other countries than it is to try to find and hire talented software developers locally, especially during a labor shortage like the one we are currently seeing. 

Outsourcing software development always had its place as a go-to solution for speeding up development, but with everyone working remotely, the playing field has been leveled. Incorporating outside development teams is now just as viable of an option.” However, the potential downsides to outsourcing software development to these countries, such as language barriers and cultural differences, are well known. So while this may bring a solution in the short term, it can also lead to problems in the long run. For example, when software developers are based in different time zones, it can be difficult to coordinate efforts and collaborate effectively, in many cases thanks to the cultural differences that are present between both territories, a challenge that Nearshore development easily solves.

Nearshore development: Talent in the same time zone

Nearshore software development: A solution for the growing tech talent shortage in the post-pandemic world.

As the software development industry continues to face this talent shortage and the skill gaps they produce, tech companies will need to find ways to remain competitive. One possibility is a focus on Nearshore software development, which provides several advantages over traditional offshore outsourcing, including improved collaboration and a closer cultural fit, thanks to being located in time zones that are more favorable for communication. In the case of the US, for example, there exists the advantage of working with the talent available in Mexico and the rest of LATAM. According to Stack Overflow:

Mexico is home to 223 thousand software developers, and with the constant rise in the count of IT specialists, the country provides access to a huge array of developers. It also holds expertise in Agile development, Blockchain, the Internet of Things, and Analytics. Among the many reasons to opt for Mexico to outsource your software is the perfectly aligned time-zone between the United States and Mexico due to the border it shares and the high number of English-speaking population, which makes the location even more ideal.

As a result, Nearshoring can provide a more efficient and effective software development solution for US-based organizations, providing the same cost savings as outsourcing, reducing the risk of communication problems and other potential issues, without sacrificing anything in the way of skills or expertise, as Mexico and LATAM have a high technical base of talented developers, comparable (and even surpassing) those of Ukraine, China and India, with the added advantage of keeping close in the same time zone, and with similar culture and values.

So outsourcing software development to a Nearshore company like Scio, which has been a partner to over 200 US-based companies and projects since 2003, can be a great way to get the skills and expertise you need without having to hire full-time employees, offering a way to any organization keep competitive, even with a local shortage of technical talent.

So while the talent shortage might seem like a challenge going forward, especially in the increasingly tech-focused world of today, this gap can be sidestepped more easily than you imagine; within the same hours as your main offices, and with seamless communication across every team you partner with, Nearshore development has all the talent you need to keep marching onwards today.

The Key Takeaways

Nearshore software development: A solution for the growing tech talent shortage in the post-pandemic world.
  • Since the pandemic began, our need for technological and software solutions skyrocketed.
  • This, in turn, leads to a huge demand for skilled software and technology developers, creating a shortage of them that will only grow.
  • Not only this could seriously impact the industry in the future, to the tune of billions of dollars lost, but has also created certain inequality among software development organizations.
  • Big corporations drain the local talent pools, and solutions like IA and no-code platforms are imperfect for the current demands of the market.
  • However, the wealth of technological and development skills in Mexico and the rest of LATAM present a solution for this in the shape of Nearshore collaboration, which has similar cultural values, and within the same time zones. 
  • Nearshore development offers the best talent available in these geographical locations, without some of the obstacles present in offshore development, becoming a win-win for both sides of the industry.

  

Scio is an established Nearshore software development company based in Mexico that specializes in providing high-quality, cost-effective technologies to help you reach new heights. We have been developing since 2003 and our experience gives us access not only to the knowledge but also the expertise needed when tackling any project. Get started today by contacting us about your project needs – we’ll be happy to help you achieve your business goals.