Why Hire Nearshore Developers in Uruguay?

by | Apr 24, 2020 | Project Management

Why outsource software development?

The world tech capital is concentrated in the United States and Western Europe. 

U.S. companies whose business model relies on the rapid production of high-quality software, suffer from local tech talent shortages and aren’t able to compete for developers with tech giants, as the latter offer software engineers sky-high rates. That’s why outsourcing software development remains to be a popular and efficient solution. 

U.S companies are increasingly turning to Latin America tech talent to bridge the gaps in their development processes without slowing down projects and inflating costs. Traditionally, India and Eastern Europe have been the major players in the global software outsourcing market, but technology professionals have not been able to ignore the benefits of working with Latin American developers. Excellent quality work, cultural affinity, and convenient time zones are just a few of the major contributing factors.

With all the communication and management tools available now, you can establish cooperation with developers in any part of the world and feel no difference between remote and local communication.

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Nearshore outsourcing in Latin America

Nearshore software development is delegating engineering functions to software development agencies located two to four time zones away. By hiring nearshore developers, tech companies optimize web and mobile development costs without compromising quality. For example, an average hourly rate for a senior developer in the US starts from $150 per hour while in Latin America starts from $45 per hour.

Latin America and in particular Uruguay, is a nearshore option for software development in the U.S and some countries on West Europe because it is in a similar time zone, generally with a difference between 1 to 4 hours ahead (U.S) or behind (Europe). This implies that there many working hours overlap between the office locations, allowing a good fit for working together remotely during the day.

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Global IT outsourcing rates comparison

One of the most compelling reasons for outsourcing is to reduce costs. In 2017, Accelerance published its 2017 Guide to Global Software Outsourcing Rates revealing how outsourcing to Latin America may come with a higher price tag than Asia or Eastern Europe, but still presents tremendous cost savings compared to hiring developers in the United States. The report even provides several comparisons of rates by position. For example, an average junior developer in the U.S earns $105–$111 USD per hour while the equivalent in Latin America earns $35–$44 USD per hour.

IT Outsourcing Rates comparison between the U.S and Latin America

(source)

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7 reasons why you should consider Uruguay in your radar

Today, Uruguay frequently ranks as one of the most advanced and affluent Latin American countries. Initially achieving prosperity by exporting meat and wool, Uruguay now supports a variety of export markets, including software. 

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Here are the 7 reasons why you should consider Uruguay in your radar if you are looking for a nearshore development team or skilled IT professionals.

1) A country you can rely on 

Uruguay has democratic, political, and social stability, qualities that have earned the country a solid reputation among investors worldwide. 

Uruguay stands out in Latin America for being an egalitarian society and for its high per capita income, low level of inequality and poverty and the almost complete absence of extreme poverty.

In relative terms, its middle class is the largest in America, and represents more than 60% of its population. Uruguay is positioned among the first places in the region in relation to various well-being indices, such as the Human Development Index, the Human Opportunity Index and the Economic Freedom Index.

Uruguay Profile – The World Bank

 

As a matter of fact, Uruguay is the only country in Latin America to be considered a Full Democracy by The Economist (2018) and the highest Transparency index in Latin America according to Transparency International (2018).

2) We are well-connected

Uruguay enjoys one of the highest broadband penetration rates in Latin America. The country has a strong focus on fiber infrastructure, which accounts for about 70% of residential fixed-broadband connections and almost all business connections. (source)

3) An investment in knowledge pays the best interest – Benjamin Franklin

Uruguay has double down on making ICTs’ accessibility one of its top priorities. 

Created in 2007, Plan Ceibal implements the “One laptop per child” model that aims to include Information and Communication Technologies (ICT) in primary public education. By 2009, 100% of students countrywide were equipped with computers and internet access of course.

In 2017, the program Jóvenes a Programar was launched to teach programming to young adults between the ages of 17 and 26 which helps to create new employment opportunities for them. 

Uruguay has only one public university, UDELAR, which consistently ranks high in Latin America. According to U.S. World News & Report, UDELAR placed as the #20 university in the Best Global Universities in Latin America. 

Because of its population size, Uruguay produces around 1 engineer graduate per 8,000 inhabitants. About 11% of university enrollment is for engineering, but other degrees such as information technology and electronics also account for graduates entering Uruguay software development companies. 

Uruguay’s tech talent is few but strong. Those with engineering degrees have some of the best skills in LATAM.

4) Do you speak English? 

Not only we practice English, but we also test it. Every year, more than 20.000 Uruguayans candidates sit for one of the Cambridge Assesment English international exams. That means 1 every 180 Uruguayans, and it makes us the country with the highest rate of candidates per person! 

But it’s not just Cambridge. According to the 2017 TOEFL Test and Score Data Summary, Uruguay is ranked as number 1 for English skills in Latin America.

5) International Experience

Uruguay has strong compatibility with U.S. work culture. Since the arrival of many foreign tech companies and a boom in outsourcing services, Uruguayan software developers have gotten experience working with global companies. Their strong English skills also help to drive close communication and connection within the workplace. 

6) Professionalism, the best kind of ism

The workforce in Uruguay is highly-qualified and well-educated, showing world-class STEM talent (science, technology, engineering, and mathematics) human resources . And, like other Latin American countries, Uruguay is serious about being a high-tech leader. Engineers in Uruguay demonstrate first-class experience with standard web, desktop and mobile application technologies, such as .NET, Java and Javascript.

7) Overlap in office hours, Isn’t it convenient?

Like all Latin American countries, Uruguay is located within U.S. working hours. Depending on the company, developers here get up to 8 hours of overlap with the U.S. This is significantly different than Eastern Europe (with 3-5 hours of overlap) and Asia (with 0 hours of overlap).

Uruguay is also easily accessible, with one of the world’s top 10 most modern airports. This makes for easy travel if your outsourcing company would like an in-person visit. 

software logos of tools to work remotely

Lithium Software

Lithium Software is a development studio that helps technology companies and startups offering an extra-hand for their dev team with highly-skilled, trusted, nearshore developers and designers. 

We are a team of high-performance professionals focused on developing high-value solutions for our customers to help them achieve their success.

Our team of stellar strategists, researchers, developers, and designers specializes in creating vibrant, game-changing products through Mobile and Web Design & Development.

Services

Staff Augmentation

Think of us as part of your team that just happens to sit in another office. The simple form of software outsourcing where we help you achieve your projects efficiently.

Agile Projects

Our professional staff will work side-by-side with you on the project design and development processes. We provide the work scenario you need to achieve the set goals in due time and manner.

Web & Mobile Development

 

Our web application development team builds jaw-dropping web apps that are visually pleasing and feature-rich at the same time.

Intuitive mobile solutions are today’s business enablers. A mobile presence has become inevitable for businesses to reach a wider audience and engage more customers We ideate, design, and create mobile applications with an emphasis on the latest mobile technologies and trends.

Technologies

We have strong experience in web & mobile development using frameworks like React, React Native, Node and Ruby on Rails. We have also experience with other technologies.

 

Contact us

If you are an independent IT professional, startup or a digital agency looking for an extra-hand on your projects or clients, drop us a line to start a conversation.

We can start a trial hours for you to evaluate our capabilities, communication style, and see if we match your needs.