Nearshore development in Latin America saves US companies 50-70% on labor costs while delivering 20-30% faster development cycles than offshore alternatives.
A 5-person nearshore team costs $351,750 annually versus $986,000 for an equivalent US team. That’s $634,250 in first-year savings with break-even by Month 4. A 10-person hybrid team saves $1.38M annually with break-even by Month 3.
This guide covers the full ROI calculation: direct salary comparisons, hidden costs like EOR fees and statutory burdens, productivity factors, and real-world case studies from FinTech, HealthTech, and EdTech companies.
Nearshore Development ROI Calculator
Calculate first-year cost savings when hiring software developers in Latin America. Compare US in-house costs versus nearshore teams in Mexico, Colombia, Argentina, Brazil, and Chile.
Team Composition
Nearshore Configuration
Burden multiplier: 1.38x | EOR fee: $550/mo
Your First-Year ROI Projection
| Cost Category | US In-House | Nearshore | Savings |
|---|---|---|---|
| Direct Salaries | $620,000 | $215,000 | $405,000 |
| Fully Loaded (benefits/taxes) | $837,000 | $311,750 | $525,250 |
| Recruitment Costs | $124,000 | $40,000 | $84,000 |
| Equipment & Overhead | $25,000 | $0 | $25,000 |
| Total Year 1 TCO | $986,000 | $351,750 | $634,250 |
Calculations based on 2025-2026 market data. Includes country-specific statutory burdens, EOR fees ($400-$700/mo), and management overhead (5-10% for nearshore vs 15-25% for offshore). US costs assume 1.35x burden multiplier, 20-25% recruitment fees, and $5,000 equipment/overhead per developer.
Ready to validate these savings? Get a custom quote based on your specific requirements.
Get Free ConsultationWhat Is a Nearshore Development ROI Calculator?
A nearshore development ROI calculator measures total cost savings when hiring developers in Latin America versus the United States. The formula accounts for salaries, benefits, statutory costs, recruitment fees, and productivity differences.
Growth-stage companies with $5M-$100M revenue face intense competition for US engineering talent. Wage inflation, Big Tech competition, and high turnover threaten product roadmaps. A proper ROI calculation helps justify the business case for nearshore hiring.
Why Do Companies Need to Calculate Nearshore Development ROI?
Companies calculate nearshore ROI because the US labor market has reached a saturation point. US developers average $132,720 annually. LATAM developers average $53,000-$63,000 for the same skills.
Three factors drive the need for precise ROI modeling:
- Wage inflation: US developer salaries increased 8-12% annually from 2020-2024
- Talent scarcity: Growth-stage companies compete with Big Tech for senior engineers
- Turnover costs: Replacing a senior developer costs 1.5-2x their annual salary
LATAM nearshore is now used for core product development, AI integration, and cloud-native architectures. It’s no longer limited to legacy maintenance.
What Costs Should You Include When Calculating Nearshore Development ROI?
Include direct salaries, statutory employer burdens, EOR fees, recruitment costs, and equipment expenses. Direct salary comparisons alone understate total savings by 15-25%.
What Are the Direct Costs of Nearshore Development Teams?
LATAM developer salaries range from $53,000-$63,000 USD annually. That’s 43% of the US average of $132,720. Hourly rates range from $42-$70 for a blended average across seniority levels.
| Country | Junior (1-2 Years) | Mid-Level (3-5 Years) | Senior (5+ Years) | Staff/Tech Lead |
|---|---|---|---|---|
| Mexico | $24,000-$42,000 | $42,000-$66,000 | $66,000-$90,000 | $100,000-$130,000 |
| Brazil | $27,900-$50,100 | $47,200-$75,800 | $71,300-$104,800 | $95,000-$120,000 |
| Argentina | $18,000-$40,000 | $40,000-$66,000 | $66,000-$92,000 | $90,000-$115,000 |
| Colombia | $30,000-$42,000 | $42,000-$78,000 | $78,000-$105,000 | $85,000-$110,000 |
| Chile | $30,000-$35,000 | $50,000-$70,000 | $80,000-$100,000 | $110,000-$140,000 |
Specialized senior talent in premium markets like Mexico City or São Paulo commands $85-$140/hour. US onshore rates exceed $100-$150/hour for senior freelance or agency talent.
What Indirect Costs Affect Nearshore Development ROI?
Employer of Record (EOR) services add $400-$700 per employee per month. Statutory burdens vary significantly by country.
| Country | Burden Multiplier | Key Components | Mandatory Benefits |
|---|---|---|---|
| Brazil (CLT) | 1.65-1.80x | INSS (20%), FGTS (8%), Sistema S (5-6%) | 13th month, 1/3 vacation bonus, 30 days PTO |
| Colombia | 1.35-1.40x | Pension (12%), Health (8.5%), Parafiscales (9%) | 13th month (Prima), 15 days PTO |
| Argentina | 1.40-1.50x | Social Security (24-27%), Work Accident Coverage | 13th month (Aguinaldo), scaling PTO |
| United States | 1.30-1.40x | FICA (7.65%), Unemployment, Workers Comp | Health insurance, 401(k), PTO |
Example: A senior Brazil developer with $5,000 monthly base costs $9,000/month fully loaded under the CLT framework. A US developer with $12,000 monthly base costs $16,200 after benefits and taxes.
What Hidden Expenses Reduce Nearshore Development Savings?
Three hidden expenses impact ROI: management overhead, timezone friction, and turnover costs. Nearshore eliminates most of these compared to offshore alternatives.
Management overhead for offshore teams runs 15-25% of total project cost. Nearshore teams require only 5-10% management overhead. The 0-4 hour timezone difference enables same-day communication. Offshore APAC teams face 10-14 hour differences that extend project timelines by 20-30%.
How Do Nearshore Development Teams Create Cost Savings?
Nearshore teams save 50-70% on labor costs while maintaining equivalent or better productivity. The savings come from lower base salaries, reduced overhead, and eliminated friction costs.
How Much Can Companies Save on Developer Salaries?
A 5-person nearshore team saves $634,250 annually. A 10-person team saves $1,379,750 annually. These figures represent 64-65% reductions in total cost of ownership.
5-Person Team Comparison:
| Cost Category | US In-House | Nearshore | Annual Savings |
|---|---|---|---|
| Direct Salaries | $620,000 | $215,000 | $405,000 |
| Fully Loaded (benefits/taxes) | $837,000 | $311,750 | $525,250 |
| Recruitment | $124,000 | $40,000 | $84,000 |
| Equipment & Workspace | $25,000 | $0 (included) | $25,000 |
| Total Year 1 TCO | $986,000 | $351,750 | $634,250 |
What Overhead Costs Are Eliminated Through Nearshore Development?
Equipment and workspace for a US developer costs $3,000-$5,000 annually. Nearshore partners typically include equipment in their service fees.
US recruitment fees run 20-25% of first-year salary. That’s $30,000-$50,000 per developer. Nearshore partners include recruitment in predictable service fees. Some charge a one-time placement fee. Others build it into monthly rates.
How Do Time Zone Alignment and Cultural Proximity Reduce Costs?
LATAM offers 0-4 hours of timezone difference from US offices. That enables 4-8 hours of daily overlap for real-time collaboration.
Offshore APAC models suffer 10-14 hour differences. Overlap shrinks to 0-2 hours. A question asked by a US manager at end-of-day waits until the following morning for an answer. This “24-hour lag” extends project timelines by 20-30%.
Nearshore teams achieve 20-30% shorter development cycles. Same-day code reviews and synchronous standups eliminate revision loops.
What Factors Influence First-Year ROI Calculations?
Four factors determine first-year ROI: developer seniority, tech stack requirements, engagement model, and country selection. Each factor shifts costs by 10-30%.
How Does Developer Seniority Impact Nearshore Costs?
Senior developers cost 2-3x more than juniors in every LATAM country. But the savings gap versus US equivalents grows at senior levels.
A senior Mexico developer costs $66,000-$90,000. A senior US developer costs $155,000-$210,000. You save $65,000-$120,000 per senior hire. Junior savings are smaller in absolute terms.
What Role Does Tech Stack Complexity Play in Nearshore ROI?
Rust developers command the highest LATAM salaries at $52,300 average. Go developers average $49,220. AI, ML, and DevOps roles add 10-20% premiums.
| Technology | Mexico (Senior) | Brazil (Senior) | Argentina (Senior) | Colombia (Senior) |
|---|---|---|---|---|
| Java | $54,000-$66,000 | $58,800-$65,000 | $48,000-$60,000 | $51,600-$63,600 |
| Python | $48,000-$66,000 | $75,000-$80,000 | $48,000-$60,000 | $51,600-$63,600 |
| .NET/C# | $54,000-$66,000 | $55,000-$62,000 | $48,000-$60,000 | $51,600-$63,600 |
| React/Node | $48,000-$66,000 | $50,000-$60,000 | $45,000-$58,000 | $48,000-$62,000 |
| Mobile (iOS/Swift) | $60,000-$75,000 | $76,200-$82,000 | $55,000-$68,000 | $58,000-$72,000 |
Mexico React/Node specialists command a 15% premium due to e-commerce and logistics demand. Argentina blockchain/FinTech talent commands 10-12% premiums.
How Do Engagement Models Affect Nearshore Savings?
Three engagement models exist: staff augmentation, dedicated teams, and project-based contracts. Each has different cost structures and break-even timelines.
Staff augmentation provides individual developers on monthly retainers. You manage them directly. Overhead is minimal. Break-even comes fastest.
Dedicated teams include project managers and team leads from the nearshore partner. Higher monthly cost. Lower management burden. Best for companies without technical leadership bandwidth.
How Do You Calculate Your Current In-House Development Costs?
Calculate fully loaded costs by multiplying base salary by 1.3-1.4x. Then add recruitment, equipment, and workspace expenses.
What Should You Include in Total Compensation Per Developer?
US average gross annual pay for a developer is $132,720. Apply a 1.35x multiplier for benefits and taxes. Fully loaded cost: $179,172 per developer. This includes base salary, health insurance, 401(k) match, FICA taxes (7.65%), unemployment insurance, and PTO accrual.
What Recruitment and Onboarding Expenses Should You Factor In?
US recruitment fees run 20-25% of first-year salary. For a $132,720 developer, that’s $26,544-$33,180. Add $3,000-$5,000 for overhead (workspace, equipment, licenses). Onboarding adds another $2,000-$3,000 plus 40-80 hours of senior developer time for knowledge transfer.
How Do You Estimate Nearshore Team Costs for Your First Year?
Use this formula: Total Monthly Cost = (Monthly Base Salary x Country Multiplier) + EOR Fee. Multipliers range from 1.35x (Colombia) to 1.80x (Brazil).
What Are Typical Nearshore Developer Rates by Region?
Hourly rates range from $42-$70 for blended seniority. Senior-only rates in premium markets reach $85-$140/hour.
Mexico and Colombia offer the best value for mid-level talent. Brazil has the deepest talent pool but highest statutory burden. Argentina offers strong senior talent but currency volatility affects pricing.
How Do You Calculate Monthly Costs for a Nearshore Team?
Take a senior Colombia developer at $7,500/month base. Apply the 1.38x Colombia multiplier: $10,350. Add $550 EOR fee: $10,900/month total.
Compare to a US developer at $11,060/month base. Apply 1.35x multiplier: $14,931/month. The Colombia developer costs 27% less monthly before counting recruitment savings.
What Management and Coordination Fees Should You Expect?
Nearshore management overhead runs 5-10% of total project cost. This covers account management, quality assurance, and coordination.
Offshore management overhead runs 15-25% because of timezone friction and communication gaps. You need expensive US senior staff to spend significant time on documentation and clarification.
How Do You Account for Productivity Differences in ROI Calculations?
Nearshore teams reach full productivity in 3 weeks. US hires take 8 weeks. This 5-week difference represents 12% of first-year productivity.
What Is the Typical Productivity Ramp-Up Timeline?
Nearshore developers hit full productivity at Week 3. They integrate faster because they work synchronously with your US team from Day 1.
US hires take 8 weeks on average. Remote US hires may take longer due to onboarding logistics. This gap means nearshore developers deliver 5 extra weeks of full productivity in Year 1.
How Do You Adjust ROI Calculations for the Onboarding Period?
Reduce expected output by 50% for the first month, 25% for the second month. For a $90,000/year developer, that’s roughly $5,625 in reduced productivity.
Apply the same formula to both US and nearshore hires. The 5-week ramp-up advantage for nearshore translates to approximately $3,750 in additional value per developer.
What Metrics Measure Nearshore Team Productivity?
Track sprint velocity, deployment frequency, and defect rates. Nearshore teams report sprint velocity increases of 25% due to same-day incident triage.
Nearshore teams achieve 15-25% fewer defects in first-pass QA compared to offshore alternatives. Cultural alignment and real-time collaboration reduce miscommunication.
What Is the Formula for Calculating First-Year Nearshore Development ROI?
ROI = (US Team Cost – Nearshore Team Cost) / Nearshore Team Cost x 100. For a 5-person team: ($986,000 – $351,750) / $351,750 x 100 = 180% ROI.
How Do You Calculate Total Benefits from Nearshore Development?
Sum all cost differences: salary savings, benefit savings, recruitment savings, equipment savings, and productivity gains.
10-Person Team Calculation:
| Cost Category | US In-House | Nearshore Hybrid | Savings |
|---|---|---|---|
| Direct Salaries | $1,380,000 | $465,000 | $915,000 |
| Fully Loaded Costs | $1,863,000 | $674,250 | $1,188,750 |
| Recruitment & Training | $276,000 | $85,000 | $191,000 |
| Total Year 1 TCO | $2,139,000 | $759,250 | $1,379,750 |
How Do You Determine Net Savings in the First Year?
Net savings = Gross savings minus transition costs. Transition costs include vendor selection time, process documentation, and initial coordination overhead.
For a 5-person team, expect $10,000-$20,000 in transition costs. Net savings: $614,250-$624,250. That’s still a 63% reduction.
For a 10-person team, transition costs run $20,000-$40,000. Net savings: $1,339,750-$1,359,750. Still a 64% reduction.
What Is the Payback Period for Nearshore Investments?
A 5-person team breaks even at Month 4. A 10-person team breaks even at Month 3. Larger teams break even faster due to economies of scale in partner management.
The math: Monthly nearshore cost for 5 developers is approximately $29,300. Monthly savings versus US equivalent: $52,850. Cumulative savings exceed transition costs by Month 4.
How Does Nearshore Development ROI Compare to Offshore Development?
Nearshore delivers lower total cost of ownership despite higher sticker prices. A $100,000 offshore project often becomes $140,000 after management and rework. A $150,000 nearshore project stays on budget.
What Are the Cost Differences Between Nearshore and Offshore Teams?
Offshore developers cost 10-20% less in base salary than nearshore. But management overhead erases this gap.
Offshore management overhead: 15-25% of total project cost. Nearshore management overhead: 5-10%. On a $500,000 project, that’s $50,000-$75,000 in additional offshore costs.
How Do Communication Efficiency and Time Zones Affect Comparative ROI?
The “24-hour lag” in offshore communication extends project timelines by 20-30%. Delays compound across the project lifecycle.
LATAM offers 4-8 hours of daily overlap. Issues get resolved same-day. Offshore APAC offers 0-2 hours of overlap. Issues wait 24 hours minimum.
What Quality and Rework Costs Should You Factor Into Nearshore vs Offshore ROI?
Nearshore teams report 15-25% fewer defects and higher first-pass quality. Cultural alignment means developers “get” the business context faster.
Offshore rework often costs 20-40% of original development. A $100,000 feature that requires $30,000 in rework effectively costs $130,000. The same feature built nearshore at $120,000 with minimal rework costs $125,000 total.
What ROI Can Companies Expect from Nearshore Development in the First Year?
Expect 64-65% cost savings and break-even by Month 3-4. ROI percentages exceed 150% when accounting for all cost categories.
What Is a Realistic First-Year ROI Percentage?
A 5-person team delivers 180% ROI. A 10-person team delivers 182% ROI. These figures assume standard salary mixes and include all cost categories.
Conservative estimates (salary savings only) show 60-70% cost reduction. Comprehensive TCO analysis (all costs) shows 64-65% reduction.
How Quickly Do Most Companies Achieve Break-Even?
Break-even occurs in Month 3-4 for most team sizes. Larger teams break even faster because transition costs don’t scale linearly.
The key variables are:
- Team size (larger = faster break-even)
- Vendor selection time (faster = faster break-even)
- Existing documentation quality (better = faster onboarding)
What ROI Benchmarks Indicate a Successful Partnership?
Two case studies illustrate successful ROI:
FinTech Startup: A US-based company hired a nearshore team in Mexico for a banking platform rebuild. They achieved 42% reduction in app rebuild budget, freeing $800K for marketing. The platform launched in 8 months.
Logistics Company: A Chicago firm hired nearshore developers for legacy modernization. Project completed 30% under budget versus domestic estimates. Sprint velocity increased 25% due to same-day incident triage.
What Are Common Mistakes That Reduce First-Year Nearshore Development ROI?
Three mistakes destroy ROI: poor vendor selection, inadequate onboarding, and scope creep. Each can reduce savings by 20-40%.
How Does Poor Vendor Selection Decrease Nearshore ROI?
Choosing based on lowest hourly rate often backfires. Verify retention rate (target >85%), technical screening process (live coding, not multiple choice), client references, and English proficiency verification before signing.
What Impact Does Inadequate Onboarding Have on First-Year Savings?
Poor onboarding extends ramp-up from 3 weeks to 8+ weeks, erasing nearshore productivity advantages. Invest in documented coding standards, clear sprint processes, knowledge transfer access, and a dedicated onboarding buddy.
How Can Scope Creep Destroy Nearshore Development ROI?
Nearshore teams often operate on fixed budgets. Protect ROI by defining scope clearly, using change request processes, tracking velocity, and building 10-15% buffer into initial budgets.
What Nearshore Regions Provide the Best ROI for US-Based Companies?
Latin America provides the best ROI due to timezone alignment, cultural affinity, and competitive rates. Mexico, Colombia, Argentina, and Brazil each offer distinct advantages.
How Does Latin America Nearshore Development Maximize First-Year Savings?
LATAM combines 43% lower salaries with 0-4 hour timezone overlap. Development cycles run 20-30% faster than offshore alternatives. For a complete overview, see our guide to hiring software developers in Latin America.
The talent ecosystem has matured beyond legacy maintenance. LATAM developers now handle core product development, AI integration, and complex cloud-native architectures.
What Is the ROI Comparison Between Mexico, Colombia, and Argentina?
Each country offers different strengths:
Mexico: Best for proximity and US cultural alignment. 1-3 hour timezone overlap with all US regions. Guadalajara’s Creative Digital City hosts Intel, IBM, Oracle, and HP. Strong enterprise experience. Highest LATAM English proficiency. See our Mexico hiring guide for detailed salary data.
Colombia: Best for cost efficiency. Burden multiplier of only 1.35-1.40x. Medellin’s Ruta N innovation district produces developers experienced with startups like Rappi. Law 1581 provides GDPR-comparable data protection. Learn more in our Colombia hiring guide.
Argentina: Best for senior specialized talent. Highest developer ratings in LATAM. 80% English proficiency. Buenos Aires’ Distrito Tecnologico hosts Mercado Libre, Globant, and Auth0 alumni. The Knowledge Economy Law (Ley de Economia del Conocimiento) provides 70% reduction in employer payroll contributions. Blockchain/FinTech specialists command 10-12% premiums.
Brazil: Best for scale. Anchors nearly half of LATAM’s talent pool. CLT framework means higher burden multiplier (1.65-1.80x) but strong labor protections. Open Banking initiative created regulatory-savvy FinTech talent.
How Do Eastern European Nearshore Rates Compare for US Companies?
Eastern Europe offers similar quality but 7-9 hour time differences limit overlap to 1-3 hours. LATAM offers 4-8 hours of overlap. For companies prioritizing real-time collaboration, LATAM provides better value.
Which Nearshore Staffing Model Delivers the Highest First-Year ROI?
Dedicated teams deliver highest ROI for companies without in-house technical leadership. Staff augmentation delivers highest ROI for companies with strong internal management.
What Is the ROI for Dedicated Teams vs Staff Augmentation?
Staff augmentation saves 5-10% more because you pay only for developer time. But it requires your team to manage directly. If US tech leads are at capacity, dedicated teams provide better value despite higher nominal costs.
How Does Project-Based Nearshore Engagement Affect ROI?
Project-based pricing shifts risk to the vendor with fixed costs and defined deliverables. Works best for well-defined scope, one-time projects, and companies with limited vendor management experience.
What ROI Can You Expect from Hybrid Nearshore Models?
A 10-person hybrid model (2 US Tech Leads, 1 US PM, 7 Nearshore Developers) delivers 65% savings. Keep strategic roles in-house while nearshore handles execution. Best for companies needing technical leadership continuity and direct stakeholder communication.
What Tools Help Calculate Nearshore Development ROI?
Use spreadsheet models that capture all cost categories. Include input variables for team size by seniority, target countries, engagement model, and current US compensation. Add calculation fields for country burden multipliers, EOR fees, management overhead, and transition costs.
Build three sheets: US Costs (salaries, benefits at 1.35x, recruitment, equipment), Nearshore Costs (salaries by country, burden multipliers, EOR fees), and Comparison (side-by-side totals, cumulative savings, break-even month, ROI percentage).
How Do You Track and Validate Actual ROI After Engaging a Nearshore Team?
Track actual costs monthly against projections. Adjust estimates quarterly. Most companies see projections validated within 10% accuracy.
What KPIs Measure Nearshore Development Team Performance?
Track sprint velocity, deployment frequency, defect escape rate, issue resolution time, and team retention monthly. Nearshore teams should match or exceed US productivity after 3-week ramp-up.
How Do You Compare Projected vs Actual Savings?
Create a monthly tracking spreadsheet comparing projected versus actual costs, with variance analysis and cumulative savings. Review quarterly with finance and engineering leadership.
What Adjustments Improve ROI Calculations for Future Periods?
Year 2 and Year 3 ROI improves because transition costs are one-time. Retention advantages compound over time.
36-Month TCO Projection Per Developer:
| Model | 12 Months | 24 Months | 36 Months |
|---|---|---|---|
| In-house US Senior | $195,000 | $390,000 | $585,000 |
| US Senior Contractor | $225,000 | $450,000 | $675,000 |
| Nearshore LATAM Senior | $95,000 | $185,000 | $275,000 |
| Offshore APAC Senior | $75,000 | $165,000 | $260,000 |
Nearshore delivers 53% total lifecycle savings over 36 months. Offshore appears cheaper but has 40% annual turnover. A single turnover event costs $100,000+ in lost knowledge and recruitment.
What Intangible Benefits Should You Consider Beyond Cost Savings?
Three intangible benefits improve ROI beyond direct savings: faster time-to-market, reduced hiring risk, and quality improvements.
How Does Faster Time-to-Market Contribute to Nearshore ROI?
Nearshore teams deliver 20-30% faster development cycles. This “Velocity Dividend” often exceeds direct cost savings in value. Faster shipping means earlier revenue, faster product-market fit iteration, and competitive advantage.
What Is the ROI Impact of Reduced Hiring Time?
Nearshore partners deliver pre-vetted candidates in 2-4 weeks versus 45-90 days for US hiring. This 4-12 week acceleration reduces recruiter burden, lowers candidate loss risk, and starts projects faster.
How Do You Quantify Quality Improvements?
Nearshore teams report 15-25% fewer defects in first-pass QA. Defects caught in production cost 5-10x more to fix. Quality improvements reduce hotfix deployments, support escalations, and technical debt accumulation.
How Do You Present Nearshore Development ROI Findings to Stakeholders?
Lead with bottom-line savings. For a growth-stage company, $1.3M in annual savings equals a significant capital injection. Frame for each stakeholder: CFO (extend runway 6-12 months), CEO (2x team size for same budget), CTO (ship 20-30% faster), Board (reduce burn rate while accelerating development).
What Long-Term ROI Improvements Emerge After Year One?
Year 2+ ROI improves due to eliminated transition costs, compounding retention advantages, and established team velocity. Savings increase 10-15% annually.
How Does Team Retention Impact Long-Term ROI?
Nearshore LATAM retention rates run under 15% annual turnover. Offshore markets see 40%+ annual turnover.
Each avoided turnover saves:
- $30,000-$50,000 in recruitment costs
- 8 weeks of reduced productivity during ramp-up
- Institutional knowledge that takes months to rebuild
- Risk of project delays during transitions
What Industry-Specific Benefits Improve Long-Term ROI?
FinTech: Mexico’s FinTech Law and Brazil’s Open Banking initiative created talent familiar with PCI-DSS compliance, digital account openings, and high-security payment systems. One case study launched a robust FinTech platform in 8 months.
HealthTech: Nearshore partners offer SOC 2 Type II certified infrastructure and HIPAA-compliant workstations. US SOC 2 compliance costs $80,000-$350,000 annually. Nearshore partners reduce compliance preparation costs.
EdTech: Brazil’s talent pool is experienced in scaling platforms for millions of users. The Latin America EdTech market reached $35 billion with 37.6% growth rate, creating deep expertise in workforce upskilling platforms and cloud-native SaaS.
Frequently Asked Questions About Nearshore Development ROI
These are the most common questions US tech leaders ask about calculating nearshore development ROI.
How Long Does It Take to Hire a Nearshore Developer?
Nearshore partners deliver pre-vetted candidates in 2-4 weeks versus 45-90 days for US hiring. Partners maintain active developer networks and pre-screen for technical skills and English proficiency.
What If a Nearshore Developer Doesn’t Work Out?
Most quality partners offer 90-day replacement guarantees. If a developer doesn’t meet expectations, the partner replaces them at no additional cost.
Do I Need to Provide Equipment for Nearshore Developers?
Most partners include equipment in service fees. Verify what’s included in your specific contract.
How Do I Pay Nearshore Developers?
You pay the nearshore partner, not individual developers. Invoices arrive monthly in USD with Net 15 or Net 30 terms.
What’s the Difference Between Nearshore and Offshore Development?
Nearshore means nearby countries (Latin America for US companies) with 4-8 hours timezone overlap. Offshore means distant countries with 0-2 hours overlap and weaker cultural alignment.
Do I Need a Local Entity to Hire in Latin America?
No. Use an Employer of Record (EOR) service to handle compliance, payroll, and statutory requirements. EOR fees run $400-$700 per employee monthly.
What’s the Minimum Team Size for Nearshore Development?
Most partners work with 1-2 developers. Dedicated team models may have 3-5 developer minimums.
Ready to Calculate Your Nearshore Development ROI?
Nearshore Business Solutions sources and vets developers from Mexico City, Guadalajara, Bogota, Medellin, Buenos Aires, and Sao Paulo. We screen for technical skills, English fluency, and US work style fit. Our acceptance rate is 16%.
Every placement includes a 90-day replacement guarantee. You receive pre-vetted candidates in 2-4 weeks.
Get a free consultation to discuss your hiring needs and receive a custom quote.
