As agility and scalability are more crucial than ever, companies must adapt quickly to market demands. What is nearshore staff augmentation, and how can it help scale your teams? Staff augmentation is a service where external professionals join existing teams, allowing businesses to expand or scale their tech capabilities as needed. Nearshoring refers to hiring professionals from nearby countries, which ensures a cultural fit and better alignment in work schedules and time zones. This outsourcing model enhances resource management and allows organizations to quickly fill positions as the need arises.
But how do you choose the destination for nearshore staff augmentation, and what are the best practices when selecting a tech vendor? Let’s explore the top locations in America and Europe and the tips for finding a reliable partner.
Top 3 nearshoring locations: Latin America
Latin America is the classic nearshoring option for companies based in the US and Canada. The region boasts a vast talent pool of over 1M software developers [1], with numerous companies specializing in different staff augmentation models. Proximity in terms of time zones and cultural affinity further streamlines communication and collaboration, making it easier to integrate remote teams into your existing processes. Additionally, competitive pricing combined with high-quality technical expertise positions Latin America as a strategic choice for businesses seeking agile, scalable, and cost-effective nearshoring solutions. Let’s look at the top three countries in the region:
Colombia
Colombia is a rapidly growing player in the nearshore staff augmentation market. The local IT market grew 13% in 2024 and is expected to continue expanding at CAGR 6.2% [2]. With a robust talent pool of over 150K IT experts, Colombia presents a compelling case for nearshore partnerships.
According to Coursera, Colombia ranks first in tech skill proficiency in the region and 19th globally [3].This ranking places Colombian developers in the top 5% for general software development and the top 30% for data analytics. Colombian developers are well-versed in various programming languages and technologies, including Python, PHP, .NET, React, and Angular. They particularly excel in database development, mobile development, and data analytics, showcasing a diverse range of technical skills that can cater to various project needs.
Time zone alignment is another key benefit, with only a two-hour difference from the US West Coast and a one-hour difference from the East Coast, enabling real-time collaboration and Agile project management.
Although the overall average English proficiency in Colombia is relatively low, major IT hubs like Bogota and Medellin significantly outperform the national average, achieving proficiency scores comparable to those in advanced economies such as South Korea and France [4]. These cities are also vibrant centers of technology, hosting over 1,200 startups, with Bogota being recognized as the second-best tech ecosystem in South America, underscoring Colombia’s position as a center for digital innovation [5].
Mexico
Mexico is an attractive destination for nearshore software development, particularly for North American companies looking for a sizable talent pool and cultural alignment. With around 700K software developers, the country offers a wealth of technical expertise to tap into.
The Mexican tech workforce is proficient in a variety of programming languages and technologies. They are particularly adept at mobile development and data analytics, which are crucial for businesses in the digital age. The country ranks second in the Coursera ranking. Unlike Colombia, Mexico places a greater emphasis on data analytics, ranking in the top 10% of expertise, though it has a low business knowledge score.
English proficiency, while below the global average, is continuously improving, with Mexico ranking 87th in global English skills.
Major IT centers in the US are just three to four hours away by plane, making it convenient for companies to visit their nearshore teams or vice versa. The minimal time zone difference—only one hour with the West Coast and two hours with the East Coast—enables synchronous workflows and real-time collaboration, which are vital for Agile and efficient project management.
Mexico's IT hubs, including Guadalajara, Monterrey, and Mexico City, are not only technological hotspots but also vibrant cities with a rich cultural heritage. Mexico City, with a population of 22M, is home to around 550 startups. This environment makes it an attractive nearshoring destination for software development, offering a blend of strong expertise and Agile practices.
Brazil
Brazil is South America's largest country and a choice for many businesses that go for nearshore staff augmentation. With an impressive pool of 500K IT specialists, Brazil is well-equipped to cater to the diverse and complex technological needs of global businesses.
Brazilian developers rank third in tech skills proficiency, with an almost perfect score in Data Science, yet low business knowledge. The staff augmentation market in Brazil has garnered a reputation for excellence in cloud computing and software engineering.
English proficiency in Brazil is lower than in other locations; the country ranks 81st globally. Similar to Colombia, IT hubs like Sao Paulo and Rio de Janeiro exhibit a higher average English proficiency.
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Being just one hour behind the US East Coast and one hour ahead of the West Coast facilitates real-time collaboration and coordination, which are crucial for Agile and responsive project management.
Sao Paulo, a city of 23M, is Latin America’s leading technology hub and ranks 23rd worldwide. The city is home to over 1,500 startups and numerous R&D centers. Brazil's IT hubs attract top-tier talent and foster a dynamic and innovative tech ecosystem.
Top 3 nearshoring locations: Central and Eastern Europe (CEE)
Unlike onshore outsourcing (within the same country) and offshore outsourcing (from distant locations), nearshore staff augmentation for Western European companies involves sourcing developers from countries with a lower cost of living. CEE countries like Poland, Ukraine, and Romania are the leading destinations for nearshoring due to their robust technical education systems, high proficiency in English, and competitive pricing. Let’s now take a look at them in more detail.
Poland
Poland offers a robust ecosystem for businesses seeking to expand their development teams or access specialized technical skills. With a talent pool of over 525K professionals, Poland makes the process of filling tech positions easy. The universities of the country annually graduate around 16K ICT students, providing a steady influx of talent.
Read more about IT outsourcing to Poland: Top reasons for software nearshoring to Poland
Poland's thriving tech scene comprises over 60K IT businesses, highlighting its status as a tech hub. Major cities such as Warsaw, Krakow, Wroclaw, Poznan, Lodz, and the Tri-city area are key local IT hubs. Warsaw boasts over 450 startups, R&D centres of the biggest tech enterprises, and a prominent Warsaw University of Technology with over 20K students. According to SkillValue, one in three of the best developers worldwide comes from Poland. The country's IT export market is expected to reach $13B by 2026, underlining its competitiveness on the global stage.
Moreover, Poland ranks 15th out of 111 countries in global English proficiency, just below Finland and Belgium. However, major IT hubs such as Warsaw and Krakow score closer to Stockholm and Munich.
Ukraine
Despite the Russian invasion of Ukraine, the country remains a top nearshoring location. Since the start of the war, 90% of employees in the industry have kept their jobs. The work culture has shifted, with companies investing heavily in the necessary infrastructure to allow employees to continue working.
Ukraine boasts an impressive talent pool of 363K IT professionals. Each year, the country's higher education system, with 300 institutions and 11 ranking in the QS World University Rankings, adds 27K new ICT graduates to this workforce.
There are 5,600 tech businesses spread across major IT hubs such as Kyiv, Lviv, Odesa, Dnipro, and Kharkiv. These cities are not only known for their vibrant tech scenes but also for their contribution to an IT exports market that is expected to reach $5.49B by 2028.
Ukrainian developers rank 15th most skilled in the world according to Co Regarding English proficiency, Ukraine ranks 35th out of 111 countries globally.
Romania
Romania has a robust talent pool of approximately 202K professionals. Additionally, there are over 10K ICT students graduating annually, ensuring a consistent supply of fresh talent in the market. Romania's IT exports are projected to reach $1,576M by 2028, growing at an average annual rate of 9.1%. At this rate, the value will double in seven years. The local tech job market is extremely favorable for quick staff augmentation; with the unemployment rate of around 6%, the vacancy rate in the tech industry is below 1% [7].
This growth is bolstered by a workforce with highly sought-after tech skills, including proficiency in JavaScript, Java, PHP, C#, Python, React, Angular, HTML, and CSS. Romania ranks 54th in the Global Skills report, with roughly equal scores in tech knowledge, Data Science, and business understanding.
One key advantage of hiring teams in Romania for nearshore staff augmentation is high English proficiency. The country is 12th in the ranking, just below South Africa and Germany. Most Romanian developers are fluent in English and will have no issue communicating with international teams.
Bucharest is home to over 250 startups and many notable R&D centres. Since joining the EU in 2007, the country's IT sector has thrived, attracting global companies like Huawei, HP, and Adobe.
How to choose a nearshoring partner?
Choosing a nearshoring partner means looking for a company with a proven track record of long-lasting, strategic partnerships and an extensive talent pool. For example, N-iX has cultivated lasting relationships with various businesses, including industry leaders and Fortune 500 companies.
Our presence in Europe, India, and Latin America ensures that you have access to over 8.8M professionals, which means you can find the perfect fit if you're going for nearshore staff augmentation.
Additionally, a top-tier partner should have global recognition that attests to their commitment and expertise. N-iX’s standing on esteemed platforms like Clutch and their inclusion in the Global Outsourcing 100 by IAOP demonstrate that they are trusted and respected in the tech market. This level of validation assures you that your partner is not only capable of delivering quality work but is also continuously innovating and maintaining high standards in their services.
Wrap-up
Nearshore staff augmentation with N-iX presents a strategic solution for businesses looking to efficiently expand their teams, access specialized skills, and uphold cost-effectiveness, with key hubs in both the Americas and CEE supplying diverse talent pools and favorable collaboration conditions.
References
- Statista
- IT services - Colombia, Statista
- Global skills Coursera Report
- EF EPI
- Startupblink
- European Commission
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