Nearshore Staff Augmentation: Key Benefits and Peculiarities

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Julia Sakovich , Author at Geomotiv
Published: Apr 13, 2023

Given the current market conditions and the situation in the software development industry, the interest in working with external programmers from the side of many businesses is continuously growing. 

IT staffing agencies are trying to be very flexible and offer as many options for establishing cooperation between clients and developers as possible to satisfy all demands. But the expanding range of offerings can pose serious questions for many businesses. How can you understand which option from the whole range is best for you? The only way is to analyze your current situation, needs, and the peculiarities of different models. 

In this article, we’d like to tell you about nearshore staff augmentation and when this model will become a feasible choice.

What is nearshore staff augmentation?

Let’s start with the general definition of this notion.

Staff augmentation presupposes “renting” developers from your IT partner. You do not officially employ these developers (legally, they will stay the staffing company’s employees). Still, they will join your team to fill in the existing gaps and share the skills and knowledge that you require to realize your project.

This model is trendy among companies with in-house software development departments, but their resources need to be improved for some projects. When you start working with a vendor, you are provided with access to a pool of talents, and at the same time, you can spend your time and budget on something other than headhunting, recruiting, and onboarding activities. These tasks will be the responsibility of the vendor. 

Another benefit of staff augmentation is that, although you do not need to deal with all administrative issues related to remote developers, their work can be fully controlled and managed by you.

“But what do you mean by nearshore?”- you can ask us. This term is used not only concerning augmentation or any cooperation at all. It can be used in a broad context, and it is used for describing neighboring countries.

When we are talking about nearshore staff augmentation, we mean hiring remote developers from neighboring countries following the conditions of the staff augmentation model. So, for example, if your business is based in the US, nearshore staff augmentation will presuppose working with programmers and other tech experts from Canada and the LATAM region.

Then, we recommend you read this article explaining the difference between onshore, offshore, and nearshore outsourcing.

Read the article

Advantages of nearshore staff augmentation

This model boasts a rather high popularity these days, and among our customers, many companies prefer this option. This demand is related to a wide range of benefits businesses can enjoy if they choose a reliable staffing partner.

  • No language barrier. For software development projects, it is crucial to support regular and clear communication. Otherwise, misunderstandings and problems in project realization are inevitable. When you work with nearshore developers, you can often work with native English speakers. Many developers learn English today, and if we take Canada, a popular choice for nearshore staff augmentation, we will see that most programmers have C1-C2 English skills.
  • Cultural similarity. Even in the globalization era, cultural peculiarities may cause severe issues in the working process. But when cooperating with developers with similar cultural values and a similar understanding of how the interaction between people should organize, the efficiency of this cooperation will be significantly higher than in those cases when you work with people with an absolutely different worldview.
  • Small time difference. When you need to communicate with specialists from another part of the world, a huge time difference is not a rare thing. When you choose nearshore staff augmentation, the time difference will usually be around 2-3 hours, which is okay for efficient communication, regular calls, and timely reaction to any possible issues. Moreover, in case of necessity, it is always easier to organize a nearshore trip than an offshore one.
  • Cost reduction. As a rule, nearshore staff augmentation can be a more cost-effective option than onshore cooperation models or in-house hiring.
  • Wider talent pool. When looking for in-house developers, your search area is restricted to one country only (sometimes even to one city). However, the local labor market often does not offer access to the required skills. In this case, nearshore augmentation can become a good solution as it allows you to look for candidates in several countries.
Discover the advantages of nearshore staff augmentation

Disadvantages of nearshore staff augmentation

We are sure that if we say this cooperation model has some pitfalls, you won’t be surprised because nothing is perfect in the business world. But it is always useful to know about them in advance to make an objective decision and, at the same time, to be well-prepared for them if you choose this model.

  • Price. If you compare the costs of nearshore services with the rates set for offshore staff augmentation, the nearshore model can be more expensive. Nevertheless, the nearshore augmentation model is a more feasible variant compared to onshore staff augmentation services and expanding your team with in-house workers.
  • Time difference. Though the time difference is generally quite acceptable and less significant than in the case of offshore cooperation, even 2-3 hours of difference can become a problem for some projects. If you have a very tight delivery schedule and you need to follow it strictly, even this difference can negatively affect productivity. For such cases, it is highly recommended to look for developers who are based in the same time zone that you have.
  • Limited market offer. If you compare the offer of the nearshore market with what you can get when you choose offshore staff augmentation, you will see that, in the first case, the pool of talent is not as vast as you wish. Nevertheless, when we are talking about Canada and the countries of Latin America, there is no shortage of developers, and you will likely be able to find the necessary skills nearshore easily. 
Discover the disadvantages of nearshore staff augmentation

Who usually uses nearshore staff augmentation services?

Staff augmentation services can generally suit businesses of many types and sizes. And when our clients ask us to help them choose the most appropriate form of cooperation with external developers, we always consider each case individually to ensure that the selected model will correspond to the ongoing business conditions and the company’s capacities. Nevertheless, it is possible to name some widely spread cases when nearshore staff augmentation can become the most feasible option.

When should you consider nearshore staff augmentation?

  • When you have a startup, and you do not want to expand your team with new in-house developers;
  • When you have a well-established business and even have in-house engineers, but you do not want to allocate your time and resources to recruiting and hiring activities;
  • When you want to develop an additional software product, and you do not wish to allocate your existing resources for this task as your in-house developers are engaged in your crucial software development project;
  • When you have problems hiring developers in your local market;
  • When you do not want to hire staff on permanent contracts but wish to manage and control the development process on your own;
  • When you need to hire new specialists but wish to avoid the responsibilities related to headhunting and recruitment;
  • When you want to work with external developers, the time difference is critical for you.

Why hire software developers in Canada and Latin America?

Today many companies based in the United States prefer to look for local and offshore developers. So instead, they choose nearshore. Canada and countries of Latin America (and especially Argentina and Brazil) are among the most popular options.

These regions are known for a good level of IT education and high English proficiency among developers. Moreover, thanks to the insignificant time difference (1-2-3 hours or no difference), organizing work within teams is relatively comfortable.

Let’s analyze the key benefits of cooperating with developers from these regions in more detail.

Education and skills

Latin American universities, for example, the University of Buenos Aires and the University of São Paulo, have good educational programs for future software developers. This industry is actively evolving these days in the region and attracts a lot of talented students. Latin American developers understand the latest technologies and tools and work with all modern programming languages.

The same can be said about the developers from Canada. In general, IT education is prestigious. Every year, local universities, such as Simon Fraser University and SAIT Polytechnic, attract thousands of international students who come to Canada to get a degree in programming and computer science.

Language skills

People in Latin American countries start learning English from an early age. A continuously growing number of software development projects that require strong language skills from team members is a good motivator for programmers to enhance their skills.

As for Canadian developers, you can be sure you will work with them without any language barrier.

Comfort of cooperation

Developers from Canada and Latin America can seamlessly join your team, and it will be comfortable for all team members to work together. Mainly, the software development industry is influenced by the approaches approved in the US. For example, Agile and Scrum are preferable options in many countries in Latin America and Canada. If you use these methodologies and hire specialists from any of these countries, you won’t need to explain how all processes are organized to your new team members.

The popularity of the IT industry

The software development sphere in Canada and the LATAM region continuously attract more talented young people. Good salaries, excellent working conditions, a lot of flexibility, and the possibility to constantly develop skills and get new knowledge are among the most important factors ensuring talented specialists' retention.

Following your requirements, we can find the required skills in Canada or the LATAM region. Let’s create a team of seasoned and highly-motivated programmers together!

Nearshore staff augmentation with Geomotiv

If you are interested in nearshore staff augmentation and want to find talented developers from Argentina, Brazil, or Canada at Geomotiv, we can help you. 

We have access to a rich talent pool in these countries and know how to find experts based on your requirements in the shortest terms. Therefore, when you contact us and list your needs and expectations, we will look for the most skillful engineers with expertise in the indicated spheres and business domains.

Developers from Canada and Latin America not only have strong practical skills but also deeply understand the ongoing tech trends and can solve even the most complicated tasks in the framework of your project.

Thanks to nearshore staff augmentation, you can enrich your team with seasoned developers and, at the same time, optimize your operation costs and reduce the range of administrative tasks that are typically associated with traditional in-house hiring.

You can entirely rely on us in the questions related to headhunting, recruitment, and onboarding, which will help you to save time and focus more on other core business tasks.To contact us, please, fill in the contact form on our website and indicate your request. Our specialists will analyze it as soon as possible and reach your back to discuss possible variants of our cooperation.

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