For decades, companies have been outsourcing entry-level positions to save money on labor costs.
First, it was with countries like India, China, and the Philippines, which have long been known as offshore outsourcing centers. But now, more businesses are looking closer to home, thanks to some of the benefits of nearshore outsourcing.
The blend of highly skilled workers, lower labor costs, and more closely aligned cultures has made nearshore outsourcing a viable option for technical and non-technical positions.
With job markets as competitive as ever, entrepreneurs are looking for a simple answer to: What are the best nearshore outsourcing companies for US businesses?
Below, we’ll define nearshore outsourcing, explain why it benefits businesses, and examine the 14 best nearshore outsourcing companies available today.
What Is Nearshore Outsourcing?
Nearshore outsourcing is a type of business process outsourcing (BPO) where companies outsource certain roles to workers in countries that are geographically close, or in other words, nearshore locations.
Businesses—and their potential customers—can enjoy similar time zones, cultures, and even languages, leading to improved customer service and efficient communication. For startups or other small businesses, the cost savings from nearshore outsourcing can allow better resource allocation and stimulate the rapid growth of key metrics.
Nearshore vs. onshore vs. offshore outsourcing
Sometimes it isn’t easy to know where to outsource. The three main types of outsourcing are nearshore, onshore, and offshore.
Onshore outsourcing is when a company outsources work to vendors within the same country. This type of outsourcing can be beneficial because it allows for:
- Better communication between both parties
- More straightforward compliance with local laws and regulations
- Easy-to-understand cultural similarities with the business in that particular region or country
The downside is that it is often more expensive than other forms of outsourcing due to higher wages and taxes or more competition for the same services.
Offshore outsourcing is the traditional model that’s easiest to imagine. It involves sending work to vendors in other countries, often ones with lower labor costs and access to a large pool of talented professionals. This type of outsourcing can be beneficial because it allows for:
- Lower labor and overhead costs
- Access to a global talent pool
- Ability to tap into different markets and cultures
The downside is that communication breakdowns can occur due to time differences, language barriers, or cultural misunderstandings, leading to delays or miscommunications.
Nearshore outsourcing is somewhere between the two—companies outsource functions to vendors based in nearby countries. This type of outsourcing offers many of the same advantages as onshore and offshore without as many downsides.
In contrast to offshore outsourcing, with nearshore workers, you will end up with team members working in the same or very close time zones. For example, most remote workers in Latin America work in US time zones.
Why Should You Hire Nearshore?
Nearshore outsourcing is an excellent option for companies. By working with nearshore providers, you can benefit from:
- Reduced time zone differences
- Improved communication
- Lower labor costs
- Access to high-quality talent pools
One of the biggest challenges with offshore outsourcing is establishing trust, as language and cultural barriers make employee interaction more difficult. With nearshore countries, which are more closely aligned culturally, teams can more easily connect and build relationships.
With any sort of outsourcing, there is a risk of political destabilization or natural disasters affecting the availability of your contracted nearshore team. However, most Latin American countries have stable political environments and governments, reducing the risk of disruptions compared to regions with more volatile political climates.
Plus, the proximity of nearshore agreements means that travel arrangements for occasional in-person connections are more realistic.
By 2028, the global BPO market is expected to approach $500 billion, meaning competition for trustworthy outsourced labor will continue to increase. Only the companies that are prepared to follow new paths and fairly compensate their contractors will succeed.
Talent shortages in the United States have made it more difficult to adopt new technology, even if stakeholders are willing to invest. By approaching nearshore providers with access to high-quality talent pools, companies can take advantage of every opportunity.
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What Are the Top Nearshore Outsourcing Companies for US Businesses?
It can be daunting to try and sort through the marketing material and sales pitches to find the right nearshore service provider for you. You’ll have to consider things like:
- Language capabilities
- Culture compatibility
- Cost structures
- Quality of service
For a full breakdown of adding talent from outside the US, check out our Comprehensive Guide to Hiring Remote Foreign Employees, which examines the legalities, best practices, and avenues for outsourcing.
To make it easier, we’ve rounded up 14 of the best nearshore outsourcing companies, in no particular order, available today. Each provider specializes in different services and has its own unique approach to customer satisfaction. Let’s take a look.
1. Near
A relative newcomer to the outsourcing market, Near joined the game in 2020 and has quickly ascended into one of the most reliable nearshore providers.
The unique thing about Near is the different pricing models.
- Recruiting model. A one-time fee that results in a direct hire of a qualified candidate.
- Staffing model. A monthly rate for Near to handle all recruiting, hiring, and payroll responsibilities to keep your business operating.
Thanks to countless connections with recruiters, universities, and corporations in Latin America, we can source talent for technical and non-technical roles.
2. Softtek
A massive operation, Softtek has delivery centers all over the world. While their offices in China, India, and Spain wouldn’t classify as nearshore for US businesses, they have several other locations in Mexico, Argentina, and Brazil.
They have been around since 1982 and claim to be the first company to offer the nearshore business model. They provide nearshore IT services, including software and mobile development, cloud computing, product engineering, analytics, and more.
Softtek prides itself on its customer-oriented service and the ability to quickly scale up or down depending on the needs of its clients. This is a great option for businesses that don’t want to commit long-term but still need short-term access to top talent.
3. Encora
For many years, Nearsoft was one of the best nearshore outsourcing companies for US businesses. Now, they’re known by another name after being acquired by Encora, a global outsourcing firm.
They focus on enterprise-level clients looking for a long-term partnership and connect companies with engineers that will be 100% focused on a single client. They claim to average nearly five and a half years with their clients, so they are a great choice for businesses that want to build lasting relationships.
4. 3Pillar
Another name that might not be familiar to US businesses is 3Pillar, which acquired Tiempo Development in 2020, along with its three delivery centers in Mexico.
There are two sides to that story. On the one hand, Tiempo was known for its outstanding customer service and quick delivery. That is still available with 3Pillar, but it is no longer the local firm that was named one of the fastest-growing private companies in America from 2011–2014.
Still, with the added resources of 3Pillar’s global distribution, an even larger pool of talent is available for US companies.
5. Vates
With 30 years of experience, Vates has polished its nearshore outsourcing model considerably. They now focus on custom software development, application testing, IT consulting, and big data analysis.
Their hiring pool is limited to technical expertise, though, so if you are looking to fill non-tech roles, you will need to look elsewhere. But if you are looking for a custom software solution, they may be a good option for you.
6. Menlo Technologies
Unlike some other companies that were swallowed up by more prominent brands, when Menlo Technologies joined Quisitive, it retained some of its unique expertise. The cloud-based IT solutions firm has experience in financial services, travel and hospitality, and health and life science.
Joining Quisitive also brought a premier partnership with Microsoft, giving Menlo a shiny badge of honor for anyone looking to build on Azure.
7. DB1 Global Software
DB1 Global Software positions itself as more than just a nearshore outsourcing service; it wants to be a strategic partner for all technology decisions, guiding businesses every step of the way.
With an eight-step vetting process that includes coding challenges and personality tests, they accept only the highest-quality candidates. You can be sure you’re getting a qualified developer when you hire through DB1, though they are another tech-only solution.
8. CI&T
Distributed workforces are no problem with CI&T, the global outsourcing giant that acquired CINQ Technologies and its Latin American delivery centers. With a ton of experience in artificial intelligence, e-commerce optimization, and FinOps security infrastructure, they are relied on for some of the most significant projects in the world.
If you’re looking for a boutique firm that will put all of its attention on your company, CI&T might not be the best choice. But if you are looking for a prestige option that can staff anywhere, it’s a great option.
9. Teravision Technologies
Teravision prides itself on ultra-fast staffing, claiming it can build a “highly effective custom dedicated team in a matter of days.” They can make this promise because of what they call the “Bench Concept,” of holding back several developers to assist at the drop of a hat.
This extra roster of talent can be deployed to your project if there is an urgent deadline or sudden change in plans, and it still comes at a reasonable price. They also provide rescue services to save a project (or replace a struggling team) at the last minute.
10. Codebay
Explicitly focused on Mexican developers, Codebay explains that the country provides the best cultural match for US businesses. They are evangelical SCRUM masters, and their process is designed to ensure customer satisfaction.
With web and mobile development, QA testing, and daily maintenance coverage, they can provide a well-rounded portfolio for US companies to choose from and work with.
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11. 10Pearls
For those looking to make a buck and make a difference, 10Pearls is committed to being a top-notch software development outsourcing company and a sustainable partner in developing communities worldwide.
They offer things like 10Pearls University, a continued education organization to foster career growth, and the Empower Foundation, which provides volunteer and accessible learning opportunities for women, children, and people with disabilities.
12. Gorilla Logic
Be unstoppable. That’s the tagline of Gorilla Logic, a full-stack nearshore outsourcing firm with locations in Mexico, Costa Rica, and Columbia (as well as India and Poland). They have a long list of service offerings, from UX/UI design to product ideation and IoT development.
They have a literal “no jerks” policy for their talent pool and claim that 97% of their developers would recommend working at Gorilla Logic to others. With strong results for some high-profile clients in their portfolio, they’re among the best nearshore outsourcing companies for US businesses.
13. BairesDev
How about a list of clients that includes Rolls-Royce, Google, Pinterest, SiriusXM, Hewlett-Packard, Johnson & Johnson, and the Associated Press? That’s just the front page of the BairesDev portfolio, which is probably the most impressive among nearshore outsourcing companies. It’s a great choice for companies looking for software development services.
They are constantly working with Fortune 500 enterprises to develop streamlined technical solutions. However, they will also spend time on startups and small businesses. Still, it can be intimidating trying to secure attention from a company with a roster like that, so it might not be the best option for smaller US businesses.
14. Altoros Labs
With development centers in Argentina, Poland, Moldova, Georgia, Turkey, Canada, and Ireland, Altoros is truly a global experience. It offers managed solutions, specializing in Java, Ruby on Rails, Angular, React, and many other languages and environments.
Interestingly, Altoros has experts in specific niches like sports app development and automotive engineering. It is a suitable option for businesses seeking specialized services from a nearshore provider.
Final Thoughts
It’s never been easier to access top talent from across the world. Nearshore outsourcing is an excellent option for businesses of all sizes that want to benefit from reduced labor and operational costs and improved customer service.
The list above should give you a good idea of what’s available regarding nearshore providers. As you evaluate the ones that look like they will be a good fit for your needs, remember to ask questions like:
- What language capabilities do their workers have? How do they access the level?
- Do their values align with your company’s mission and culture?
- Which types of industries do they usually work with?
- Are their rates competitive in the nearshore market?
Armed with answers to these questions, you’ll be well on your way to finding the right provider.
Remember, it’s not just tech jobs that Latin American (LatAm) candidates are filling through nearshore outsourcing. If you want to find out how one CFO filled eight finance positions—including three managers—and saved $500K (annually!), check out our CyberFortress case study.
If you would like to pursue how Near can help you fill your tech or non-tech positions with highly qualified remote team members based in LatAm, then schedule a complimentary remote recruiting consultation today. We usually help our partners find and hire amazing talent in under three weeks.
