When it comes to nearshore work, two myths often get in the way of smart business decisions. First, there’s the belief that lower costs mean lower quality, “you get what you pay for,” right? Second, there’s the fear that nearshore workers won’t be as committed as in-house employees, “they don’t get the same perks, so why should they care as much?”
In reality, nearshore services can be a major advantage. Adoption among U.S. manufacturing executives surged from 78% in 2023 to 92% in 2024. Companies are saving 30% to 50% on labor costs compared to U.S. rates. Latin American developers charge $45 to $65 per hour, while U.S. rates range from $80 to $150. Plus, with Mexico’s low unemployment rate of 2.9%, it’s a hotspot for skilled talent.
So, why do these misconceptions persist?
Where Do These Myths Come From?
We get it. You’ve probably had a few frustrating experiences with budget-friendly services. Maybe deadlines were missed, communication was a mess, or the quality just didn’t measure up. It’s easy to see why some might think that paying less means getting less or that people aren’t as invested as those in expensive or luxury services.
But here’s the thing. Those frustrations can happen just as easily with high-cost, so-called luxury options that are really just cheap imitations wrapped in false promises.
Let’s be honest, these misconceptions often come from a few bad experiences with poorly managed products or the mistaken belief that cost is the only factor that matters.
With nearshoring, you can achieve significant cost savings while maintaining high quality and commitment levels. Take a closer look at the real story behind nearshore services and see how they can lead to faster project completion, seamless team integration, and achieving beyond your goals.
Example 1: Dropp’s Rapid Go-to-Market Strategy
The Challenge: Dropp, a logistics startup, needed to launch their service quickly and ensure their tech infrastructure could scale as they grew. With a tight timeline and big ambitions, they needed a development team that could hit the ground running.
How Nearshore Made a Difference: Dropp teamed up with a nearshore team already skilled in the tech stack they required. This wasn’t just a coding job. The team worked closely with Dropp’s leadership to craft a long-term technical strategy. They shared the same time zone, allowing for real-time collaboration and a faster-than-expected launch.
The Impact: Dropp’s nearshore team played a crucial role in meeting their aggressive go-to-market goals. Without this partnership, they might have faced delays and compromised scalability and security.
Example 2: Comparis’s Seamless Team Integration
The Challenge: Comparis.ch, Switzerland’s leading online comparison service, needed to scale their development capabilities quickly but struggled to find the right talent locally.
How Nearshore Made a Difference: They turned to a nearshore provider who quickly assembled a team of skilled developers working in the same time zone. These developers didn’t just join the project; they became an integral part of Comparis’ existing teams, attending standups and following the company’s processes.
The Impact: The nearshore team’s seamless integration boosted productivity, sped up scaling, and led to a successful expansion of Comparis’ services. Without this partnership, Comparis would have struggled with delays and higher costs trying to scale locally.
Example 3: Fexco’s Technology Transformation
The Challenge: Fexco, an Irish fintech giant, needed to modernize their legacy systems and migrate to a cloud-based infrastructure. Finding the right talent locally was a challenge, and they needed a reliable partner to overhaul their technology stack.
How Nearshore Made a Difference: Fexco partnered with a nearshore team that brought in specialized skills in modern tech stacks. This team didn’t just update the systems; they completely transformed them, creating a new cloud-based solution and a central API that sped up development across the board.
The Impact: Thanks to their nearshore partners, Fexco completed a faster, more efficient technology transformation than they could have managed with local resources alone. The nearshore team’s expertise was key to delivering a secure, scalable solution that kept Fexco ahead in the fintech industry.
Now You Know, Nearshore Talent Delivers Quality and Commitment
These examples make one thing clear: Nearshore is not about cutting corners. It’s about finding the right partners who bring the same, if not higher, levels of quality and commitment as in-house teams. When done right, nearshoring can lead to faster project completion, better integration, and significant cost savings, all without compromising on the quality of work or the dedication of the team.
So, the next time you hear someone say that paying less for nearshore talent means settling for less, you can confidently tell them it’s a myth. Nearshore teams are not just contractors; they’re partners in your success, bringing the expertise, commitment, and flexibility needed to drive your business forward.
CASE STUDIES SOURCES:
https://www.zartis.com/success-stories/dropp-case-study/
How VariaCode Can Actually Make Your Life Easier (Yes, Really)
We get it—tech recruitment can feel like herding cats, blindfolded, in the dark. At VariaCode, we don’t just understand these challenges; we thrive on them. We’re here to turn your hiring headaches into a smooth, manageable process. Here’s how we can help, without the usual corporate jargon:
1. AI-Driven Recruitment (Because Who Has Time to Sift Through Resumes?)
Our smart AI tools do the heavy lifting—screening, sorting, and finding the gems—so you can skip straight to the best part: meeting candidates who actually fit the bill.
2. Soft Skills? More Like Superpowers.
We’re not just looking for tech wizards; we’re after those who can actually, you know, communicate. We find talent that won’t just work with your team but will make Monday meetings a little less painful.
3. Work from Anywhere (Or Just Your Couch)
Need a flexible solution? We’ve got you covered. Remote, hybrid, fully on-site—we’ll work with you to find the setup that suits your needs. Your business is unique, and so are our staffing options.
4. Skills-Based Hiring (AKA No Guesswork)
Let’s cut to the chase. We focus on what really matters: skills. You get exactly the talent you need, without the surprise endings. Think of us as matchmakers, but for job skills.
5. DEI Isn’t Just a Buzzword for Us
We’re serious about building diverse teams that aren’t just ticking boxes but actually making workplaces better, more dynamic, and innovative. Diverse teams, better results—it’s that simple.
So why partner with VariaCode?
Because we’re not just another recruitment service. We’re your behind-the-scenes superheroes, working tirelessly to bring you the talent you need without all the fuss. Ready to make hiring feel less like pulling teeth? Reach out, and let’s talk!