How to choose nearshore agencies to turbocharge your software development?

Many successful tech companies have been built by product visionaries who have leveraged the expertise of software development agencies to bring their ideas to life. One example is Calendly, a scheduling platform launched in 2013 with a product developed by an off-shore agency. It’s now valued at $3B. But not all outsourcing is created equal. By nearshoring software development to excellent teams, companies can turbocharge their efforts by accessing top talent at more affordable rates while maintaining communication cohesion in the same time zone.

Whether you're a startup founder or an established business, software development is complex and it can be daunting to find the right partner to help you bring your product to market. Let's look at the different options you have to satisfy your development needs.

There are two groups of options. The first, is to integrate specialized technical skills into your team, where you will manage them directly. For example:

1. Technical founders, or technical specialists are individuals who have a deep understanding of technology and the skills to build a digital product themselves. They can provide a more affordable alternative to working with an agency, but it's important to note that they may have limitations when scaling and managing a large team
2. Individual contractors specialize in specific development areas, such as front-end, back-end, or mobile development. They can be a cost-effective option, but they will likely need additional support to reach a full-fledged agency's level of experience and expertise. This can be cost-effective, but due to their specialization, you might be taking a significant risk with their ability to make critical decisions for your product in areas outside their core expertise. As a result, bad decisions can turn into a very costly problem. 

The second group is to rely on an existent and experienced team. These come in three variants:

1. US-based premium agencies are known for their high-quality work and expertise, but they also come with a premium price tag. It is common for them to have $200/hr+ rates. If you're not careful, this could cut down your runway enough to jeopardize your success.
2. Off-shore agencies, typically based in Eastern Europe or Asia, can offer more affordable rates. Still, they may need more attention and management due to the time zone difference and language barriers. Communication and responsiveness are going to be an issue when 3 pm is the middle of the night for your technology team!
3. Nearshore agencies, typically based in Latin America, offer a balance of affordability and quality and the convenience of being in the same time zone. Additionally, you can easily find bilingual options. However, finding the ones that approach US-based premium levels of ability could be tricky. It may take some time to find the right one, but it's worth it, considering that you could stretch your budget 3 to 4x this way. This cost difference may give you the additional cycles needed to reach product-market fit.

Based on price, quality, and communication considerations, nearshore agencies can be the best choice for many companies. They offer the benefits of working with a US-quality agency while affording the cost advantages of having a distributed team nearshore. Additionally, they are in the same time zone, and you can find an English-speaking team, which helps to reduce communication barriers. Furthermore, nearshore agencies are often structured and operated to maintain high expectations. The right agency will use the right tools, be conversant with the entrepreneurial landscape, and be strategically savvy on top of being technically proficient. 

Excellent near-shore agencies can deliver polished and professional work that meets the standards of US-based premium agencies. Therefore, for companies that value cost-effectiveness, communication, and quality, an excellent nearshore agency can be the ideal solution for their custom software development needs.

Is nearshoring the right approach for you? We can help. At Telos, we know from first-hand industry experience how difficult it is to work with effective teams, and focus intently on helping our clients turbocharge their software development delivery. That is why we pride ourselves in using the most effective and high-speed development practices based on the Ruby on Rails ecosystem, alongside a LatAm English-speaking team, spanning product strategy, UX/UI design, and full-stack development. 

Schedule a time to talk to us today here. 

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