Once you have decided to outsource your IT needs and work with a dedicated software development team, you are probably wondering if your company is really saving money. Here we’ll tell you all about it.

When thinking about making a software development team bigger or adding extra support to the current group, the option of working with a nearshore software team appears as an interesting alternative that, strategically, will be key for taking your business to another level. However, having made this decision, some concerns may appear: Is it profitable in the short, medium, and long term for the company’s structure? Am I really saving costs by outsourcing a dedicated software development team?

Estimating a project’s costs determines the quality and quantity of the resources (money, effort, capability, knowledge, and time) that will be needed to carry out the project efficiently.

This is a process that will certainly impact the management of the business. But, without going into details about the how (to make a cost analysis), what I am trying to show you is what your company earns when working with a tech partner to solve your software development needs.

How does your business’s wallet benefit from all this? Here are some of those hidden costs you might be saving (unknowingly) when you make the decision of hiring a nearshore company:

  1. Time is gold. When it comes to software development, lost time means lost money. Time is a resource that we cannot afford to lose. How can your company save on this? By outsourcing, you leave everything related with contractual issues, searching of professionals and so on, in experts’ hands. That process can take a long time, and for sure, the nearshore company you are going to work with already has the team work available.
  2. Quality payroll and competitive prices. Software development is an extended practice with an easy access for its learning; therefore, the team’s payroll cost will inevitably vary from the cost of living of the place from where the team works. In recent years, countries like Argentina are positioning as a market with a great international potential: competitive costs, high level of knowledge in technologies, quality and excellence of their professionals, and English proficiency, among others. When hiring a nearshore team, think about how much your company could save with a foreign investment.
  3. Long selection process. A software development is an important economic investment for every company, so what would be better than hiring the best engineers to handle that kind of investment? Contracting the perfect professionals for a specific project can be a waste of time (if you’re the one who does that), but at the end, all this will translate into money.

Having a nearshore software development company who does the searching and recruitment job for you will be essential. This will ensure that, even though we are in an over-demanding market, you have the best-trained and ready-to-start professionals from day one. Thanks to a nearshore company, everything related with the curriculum evaluations, interview coordination, negotiation, and contracting, will be in their hands.

  1. Treat them like Rockstars. The salary is just one aspect to consider within the costs of establishing a software development team. Deepened by the fact of high market demand, today there is a need to generate retention strategies through benefits that meet the team needs. Today, prepaid medicine, retirement insurance, gym, flexible hours, among many others, are basic needs the market of development professionals are asking for.
  2. Infrastructure costs. To support the job of a development team, you need a technological infrastructure, as well as an IT team that offers support to carry out the necessary configurations and maintenance. When hiring the development with another company, these responsibilities, as well as staying on the crest of the wave with technology, are the outsourced company responsibility. It costs a lot to be careless. Indirectly, this cost is already being paid at the moment of hiring.
  3. Training and coaching. Technology is constantly evolving, and keeping up with it is getting more and more demanding. By outsourcing services of this type, your company will have access to new ways of developing, technologies, methodologies, and experiences. Being in touch with people with strong and diverse technical experience will help to make the transfer of knowledge to your company faster, avoiding training costs that otherwise you would be forced to make.
  4. Just in time. Many times, building a software development does not require the same effort as maintaining it or evolving it. It is quite possible the same technologies are not needed over time. Also, in case of any eventuality, your company won’t have to deal with disengagement costs, which are often the least considered at the time of cost analysis.
  5. The customer service also costs a lot. One of the biggest costs that is hidden behind a software development is directly related to the service quality that is offered. Usually, when hiring an external service of this type, the company in which you are relying on the development already has a service and quality focus. Therefore, the standards are higher, and better results are obtained. In the short term, you will start to see how your investment was totally worth it.


Having a nearshore dedicated software development team hides (in a certain way) the management costs and allows you to decrease the risks that can be presented along the way, letting you manage a smaller internal team while filling only the positions you consider essential within the company. Extending your development to a nearshore model will allow you not only to scale faster but to focus better on your core business.