Nearshoring has become a popular strategy for engineering managers and CFOs looking to expand their development teams efficiently. The ability to collaborate with skilled developers in nearby time zones, often at a lower cost, makes it an attractive option. But while the benefits of building nearshore software development teams are clear, the road to success isn’t always smooth. Many companies stumble into common pitfalls that can derail their efforts and limit the potential of their offsite teams.
If you’re considering nearshoring—or already have nearshore developers on your team—here are the key challenges to watch for and how to address them proactively.
1. Underestimating the Importance of Onboarding
Nearshore teams thrive when they’re treated as integral parts of your organization. But all too often, companies neglect to onboard these teams as thoroughly as their in-house employees. Without proper introductions to tools, workflows, and—perhaps most importantly—company culture, nearshore developers can feel disconnected and struggle to integrate effectively. A strong onboarding process sets the foundation for a cohesive, high-performing team
2. Treating Nearshore Teams as Outsourced Resources
One of the biggest mistakes companies make is viewing their nearshore developers as external contractors rather than as full members of the team. This mindset can lead to disengagement, reduced productivity, and a lack of innovation. Instead, nearshore teams should be included in team meetings, brainstorming sessions, and other collaborative efforts. By valuing their contributions equally, you’ll build trust and foster a sense of ownership in their work.
Further reading: Beyond “Resources”: Building Stronger Contract Software Development Teams
3. Insufficient Communication
Even with time zone alignment, remote work relies on consistent and effective communication. A lack of regular check-ins or unclear collaboration channels can quickly lead to misunderstandings, inefficiencies, and missed deadlines.
To mitigate this, establish regular team meetings and one-on-ones with supervisors. These personal check-ins allow team members to voice their concerns, share feedback, and build stronger relationships across the team. A culture of open communication ensures that everyone stays aligned and productive.
Further Reading: Best Practices for Working with Remote Teams
4. Focusing Solely on Cost Savings
It’s no secret that cost savings are a major driver of nearshoring. However, prioritizing cost above all else can be a recipe for disaster. Hiring less experienced talent to save money may seem like a win initially, but it often leads to delays, rework, and higher long-term costs.
Instead, focus on hiring for quality and balance cost savings with experience. A skilled team will deliver better results and save you money in the long run.
5. Not Balancing the Team Portfolio
Cost savings in nearshoring don’t come from cutting corners; they come from smart team design. Just like in the U.S. or Canada, experienced developers in Latin America command higher salaries. Some senior talent may even have compensation comparable to their North American counterparts.
The key is to build a balanced team portfolio. Include a mix of junior, mid-level, and senior developers to optimize costs without sacrificing quality. This approach ensures you maintain a competitive edge while reaping the benefits of nearshoring.
Further Reading: In-Demand Tech Roles: AgilityFeat’s Most Placed Talent
Make Nearshoring Work for Your Company
Avoiding these common pitfalls requires intentional effort, but the payoff is worth it. With the right strategies, nearshoring can help you build high-performing teams, reduce costs, and scale your development capabilities.
At AgilityFeat, we specialize in helping companies build and manage successful nearshore teams in Latin America. Whether you’re just starting your nearshoring journey or looking to refine your current approach, we’re here to guide you every step of the way.
Contact us today to learn how we can help your company thrive with nearshoring.
