We’ve talked about the benefits of nearshore software development and agile nearshoring in previous articles. Now, we’re going to analyze the current state of agile nearshoring in the region by understanding the IT industry in Latin America, as well as some trends to look out for in 2025 if you’re looking to hire a nearshore team.

IT Software Development in Latin America 2024

Latin America has slowly been becoming the prime agile nearshoring destination for companies looking to begin nearshore software development. According to Alcor, these are some of the statistics around Latin America and their technology capabilities:

Key Insights

• Colombia has the largest number of technological companies within the sample, even though it doesn’t have the largest talent pool. This could be due to having a large number of startups in the region.
• Mexico has the second fewest number of technological companies within the sample, despite having the largest talent pool. This could insinuate the preference for agile nearshoring talent from here over others.
• Python is one of the most common technologies used in Latin America.

The Future of Efficient and Sustainable Business is Agile Nearshoring

Latin America is the Strategic Shift

Latin America has slowly seen an increased focus as a destination for agile nearshoring. Nearshore software development teams from the region share cultures, time zones, and provide highly skilled professionals, especially in North America.

Businesses are constantly looking for ways to optimize their operations and receive a competitive edge. Leveraging the benefits that countries like Mexico, Colombia, Argentina, Chile and Uruguay have to offer can bring efficiency and effectiveness to your nearshore software development projects.

Bringing Offshore Talent Back Home

The days of offshoring are over. So much so, now some companies are beginning to pull back their operations, although not completely. 

Companies are looking to balance cost, quality and efficiency in their software development projects. Software nearshoring is one of the methods that allow companies to strike that balance we mentioned before, and combined with how the natural shift has been towards Latin America, it’s no wonder companies in the United States are looking towards the region to set up nearshore software services.

Nearshoring Evolved

Nearshore software Development has usually been treated as just offshore software development, but closer by. However, that approach can’t satisfyingly deliver on the needs of the market.

Companies looking to build a nearshore team need to focus on collaboration and knowledge sharing between their internal teams and the nearshore team they build. Some companies like Teravision Technologies have been ahead of this curve for a while, offering agile nearshore teams that focus on integrating their activities with an internal team’s dynamic. 

Specialization and Automation

Nearshore software development is becoming more specialized, as many other industries are. This means that companies will be looking to hire companies that specialize in some kind of discipline or industry. Colombia for instance is well known for their robust IT talent pool, perfect for nearshore agile development.

Automation is also becoming more important for software developers to understand. For many industries, automation is a way to improve efficiency and reduce the risk of human error. AI and machine learning are leading the charge when it comes to this aspect of business operations. Having a dominion over these technologies will improve the performance of any agile nearshoring team built.

The Growth Has Been Consistent

When it comes to agile nearshore development, Latin America is becoming a premier place. It’s not just because of the strategic implications, but because of the potential and growth the region holds. The current market trends shows just how much growth the region possess; not only are they close by, but are clearly beneficial in terms of cost, talent pool and growth potential, with multiple tech hubs being present in different parts of the region.

Agile nearshore software development is only going to become more necessary, and LATAM is seeming to be more useful.

Sustainability as a Key Driver

Closer proximity equates to reduced costs for logistics and travel, making nearshore software development a perfect solution for sustainability. Something to look into for more eco-conscious companies as a whole.

Risk Mitigation Strategies

Agile nearshoring is becoming a centerpiece when it comes to risk management strategies as a whole. By diversifying your nearshore software development locations, you can also mitigate the risk of having your projects suffering from political instability, IP concerns and regulation changes.

Evolving Talent Landscape

The demand for skilled talent in Latam is a natural consequence to the increase need for nearshore software development teams.

Education and career advancement will be key in keeping talent onboard, as well as a way to prepare agile nearshoring teams for the current nearshore environment. Consistent forms of payment will not be enough to keep them on anymore.

Get Your Start at Agile Nearshoring with Teravision Technologies

All these factors should serve as an indicator that 2025 is going to continue being the year for nearshore agile development. If you are looking to build a nearshore team to help you accomplish your business goals, struggling to bring the best out of your internal team, contact us and let’s build an agile nearshore team to bring you closer to your goals. We’ve been ahead of the curve of this problem for over 20 years. What’s stopping you from getting over your own?