Nearshoring in Latin America: why it’s ideal for tech startups

As tech growth evolves globally, talent scarcity, cost control, and the need for speedier development are confronted by every tech startup. Nearshoring in Latin America is turning out to be a very strategic route for overcoming such challenges due to access to skilled talent, cultural compatibility, and cost efficiency. 

In this blog, we will explain why Latin America is a hotspot for tech startups looking to nearshore by highlighting some real-life examples of successful implementations.

Nearshoring to Latin America offers several distinct advantages for tech startups, making it an increasingly popular choice. Some of them are:

Latin America is a developing talent pool with thousands of software developers graduating yearly from top universities. For example, Mexico tops the list in the region with the most proportionate STEM graduates, amply supported by government-backed tech universities and innovation hubs like the Guadalajara Software Center​.

On the other hand, Argentina is also highly proficient in English, gaining momentum with its startups and becoming a solid nearshoring center.

Nearshore talent in Latin America generally represents a 40-50% lower cost than those hired within the U.S. without compromising quality. 

For example, software development is significantly cheaper in Brazil and Colombia while maintaining the standard of skills and expertise as in the United States. This allows the use of much more resources for innovation and product development.

Working in similar time zones is another decisive advantage of nearshoring to Latin America. In fact, this overlap allows for real-time collaboration, which is key for startups that need iterations to move fast and make quick decisions. 

Countries like Colombia, Costa Rica, and Peru belong to similar time zones as the U.S., making communication and collaboration seamless​. Also, Latin American talent in technology is very knowledgeable about North American business practices, minimizing cultural obstacles and developing efficient team integrations​.

Latin American startup ecosystems are strong candidates for growth, as they are supported by favorable government policies, startup accelerators, and venture capital funding. 

Note-worthy initiatives include Start-Up Chile, which offers grants to technology startups, and Costa Rica's tech hubs, which have helped position the country as a driver of IT exports and digital transformation.​ These ecosystems create the perfect avenue for tech startups to plug into established networks, create innovation, and speed up product development.

Bertoni Solutions has allowed several startups to scale by nearshoring to Latin America. From custom solutions to Agile development, our team has led these companies to fast-track growth and innovation.

Bertoni developed a web-based product configurator for this Swiss manufacturer, helping them improve customer engagement and reduce time-to-market. This solution allowed Hawa to manage product updates on its own, showcasing the flexibility and speed of nearshoring.

To support Ferroflex’s digital transformation, we designed a customized e-commerce app at the heart of improved user interaction and data management. The cooperation allowed Ferroflex to widen its market presence by optimizing its backend processes, demonstrating our team’s expertise in delivering end-to-end solutions.

Lacking in-house capacity, this software company relied on staff augmentation services with Bertoni. Focused on sustaining a skilled nearshore team, the company successfully sustained its project momentum. It quickly reached vital development milestones—a further indication of the scalability that nearshoring in Latin America can offer with ongoing projects​.

A successful nearshoring strategy in Latin America will have to include serious planning and collaboration. Here's how to get it done in five steps:

First, understand whether a particular role or project will be suitable for nearshoring. Based on your requirements for software development, quality assurance, or IT infrastructure, determine what responsibilities can be performed efficiently by the nearshore team. 

Consider budget, timelines, and skill gaps while doing so to ensure nearshoring stays on track with your overall business strategy.

Establish explicit objectives for the nearshoring initiative. For example, this may be to gain shorter time-to-market, more technical capabilities, or more customer support. 

Establish specific measures to assess performance, such as key performance indicators, quality thresholds, and deadlines. This will ensure clarity on expectations to establish coherence and responsibility between your tech startup and the nearshoring team.

In short, a good partner will determine the success of your nearshoring strategy. Look for a software development partner with previous experience in your specific industry and positive feedback from previous clients.

Ensure the proper cultural match by researching their way of communication and technical skills. Working with a partner whose values and philosophy match those of your startup is how you can achieve greater success.

Establish open communication right from the start. Set up clear channels using Slack, Zoom, or Jira for regular updates, immediate feedback, and frequent check-ins. Clearly define the meeting cadence, reporting format, and communication protocol to allow transparency, manage expectations, and keep the project on track.

se agile methodologies to maximize the effectiveness of your nearshoring efforts. Agile workflows are where Latin American teams excel and enable iterative development, quick course corrections, and real-time feedback. Divide projects into sprints, and your startup can adapt to any requirement changes and reduce time-to-market for your project.

Nearshoring in Latin America is a game-changer, as it lets tech startups scale up their businesses at increased speed and lower costs—all while having access to first-class talent. Latin America offers an ideal destination for such startups, considering the cultural compatibility, time zones shared by most countries, and thriving tech ecosystems.

With nearshoring, startups can speed up product development, achieve better operational efficiency, and ultimately gain a competitive advantage in the market. Ready to explore nearshoring in Latin America? Book a call today to discover how we can help you build a high-performing team that aligns with your startup’s vision!