Top Nearshore Companies for Outsourcing Software Engineering

Published on
Jan 16, 2026
Written by
Juan David Rodríguez
EDITED by
Lisa Dahlgren
Read time
7 Minutes
Category
Talent Insights

Nearshore software engineering outsourcing has become one of the most effective strategies for companies looking to scale development capacity while maintaining close collaboration, cost efficiency, and operational control. By working with nearshore software engineering teams, organizations can access senior talent in nearby regions without the communication and coordination challenges often associated with offshore models.

However, outsourcing software engineering nearshore is not only a technical decision. Companies must also consider how partners handle HR, payroll, and legal compliance, especially when building long-term development teams. This guide explores what nearshore software engineering outsourcing really involves, how to evaluate providers, and which nearshore software development companies are commonly chosen by U.S.-based teams.

What Nearshore Software Engineering Outsourcing Really Means

Nearshore software engineering outsourcing refers to partnering with software development teams located in countries that share similar or overlapping time zones with the client company. For U.S. organizations, this often includes Latin America and, in some cases, parts of Europe.

In practice, nearshore software engineering outsourcing can take several forms. Some companies work with fully embedded nearshore software engineering teams that operate as an extension of their internal staff. Others rely on managed delivery teams or project-based engagements. The level of integration, compliance responsibility, and long-term commitment varies significantly depending on the provider model.

The growth of nearshore software engineering outsourcing is closely tied to broader shifts in global services and workforce distribution. Insights from World Bank development data help explain how emerging regions have become key hubs for technology and digital services.

Why Companies Choose Nearshore Software Engineering Teams

Companies that outsource software engineering nearshore typically do so for a combination of operational and strategic reasons.

Access to skilled engineering talent is a major driver behind nearshore software engineering outsourcing. Data from the Stack Overflow Developer Survey highlights global trends in developer skills, experience levels, and technology adoption, helping companies understand where high-quality engineering talent is concentrated.

Time zone alignment is one of the most cited advantages. Nearshore software engineering teams can collaborate in real time with U.S.-based product managers, designers, and engineers, enabling faster feedback loops and smoother Agile workflows.

Cost efficiency is another factor. Nearshore software development outsourcing often provides meaningful savings compared to domestic hiring, while maintaining higher alignment and stability than offshore alternatives.

Finally, nearshore outsourcing partners often support long-term team models. This allows companies to retain institutional knowledge, reduce turnover, and build engineering teams that evolve alongside the product rather than resetting with each new project.

Key Criteria for Evaluating Nearshore Software Outsourcing Partners

When assessing nearshore software engineering outsourcing companies, technical expertise alone is not enough. Key evaluation criteria include:

  • Team integration: Whether engineers work as embedded members of the client’s internal team

  • Compliance ownership: Clear responsibility for contracts, payroll, and local labor regulations. Labor standards and employment obligations vary significantly by country, and reference frameworks such as OECD employment data help contextualize how nearshore labor markets differ across regions.
  • Engagement model: Full-time dedication versus project-based delivery

  • Transparency: Clarity around pricing, roles, and long-term expectations

  • Scalability: Ability to grow or adjust teams without operational disruption

Nearshore software development outsourcing is most effective when the provider aligns not only with technical requirements, but also with operational and organizational goals.

Toptal vs Teilur Talent Comparison
Concept Toptal Teilur Talent
Transparency Pricing details are not publicly disclosed. Clients see a blended hourly rate that includes both Toptal’s fee and the freelancer’s pay. Fully transparent rate breakdown. Clients see exactly how much goes to the talent and how much is retained by Teilur as a service fee.
Commission / Markup Estimated at up to ~50% based on third-party reports and client testimonials. The exact markup percentage is not officially stated. Capped at 20%, ensuring that at least 80% of the client’s payment goes directly to the developer.
Monthly Subscription Fee $79/month, non-optional, grants access to Toptal’s vetted talent network. (Source: Toptal website). No subscription fees. Clients only pay when hiring or engaging talent.
Initial Deposit $500 refundable deposit required to begin a talent search. No upfront deposit required to start the matching process.
Trial Policy Two-week no-risk trial. Clients are billed only if satisfied with the match. N/A (direct matching) – Teilur focuses on pre-vetted, long-term placements with transparent trial terms discussed case by case.
Pricing Range (Developers) $60–$200+ per hour depending on experience and project complexity (includes platform markup). $6,000–$7,000/month for senior LATAM developers, equivalent to ~$35–$45/hour — transparent, with no hidden markups.
Payment Structure Bi-monthly invoices; payment terms like Net 10. Includes blended rate. Monthly invoices with clear cost breakdown (talent pay + Teilur fee).

Top Nearshore Companies for Outsourcing Software Engineering

Teilur Talent

Teilur Talent is a nearshore software engineering outsourcing partner focused on building long-term, fully embedded senior development teams in Latin America. Its model is designed for U.S. and Canadian companies that want nearshore engineers integrated directly into their internal workflows.

The company handles local HR, payroll, and legal compliance, allowing clients to scale teams without managing cross-border employment structures. A transparent pricing model supports predictable costs and long-term collaboration.

Best fit: Companies seeking compliant nearshore software engineering teams with full-time integration and clear pricing structures.

Gorilla Logic

Gorilla Logic provides nearshore software engineering teams across Costa Rica, Colombia, and Mexico. The company is known for its Agile delivery approach and strong emphasis on product engineering.

Its nearshore model supports close collaboration with U.S. product teams, making it suitable for organizations that prioritize iterative development and real-time communication.

Best fit: Product-driven companies looking for Agile nearshore software engineering outsourcing in Latin America.

Softtek

Softtek is one of the earliest pioneers of nearshore software development outsourcing. With a broad portfolio of IT and software services, it supports enterprises across multiple industries.

The company operates at scale and offers structured delivery models, making it a common choice for large organizations with complex or multi-system environments.

Best fit: Enterprises seeking established nearshore software outsourcing partners with broad service coverage.

Azumo

Azumo provides nearshore software engineering teams aligned with U.S. time zones, with a focus on AI, data engineering, and web development. Its teams are designed to integrate closely with client organizations.

Azumo emphasizes flexibility and technical specialization, particularly for companies building data-driven or AI-enabled products.

Best fit: Companies needing nearshore software engineering teams with expertise in AI, data, or modern web stacks.

10Pearls

10Pearls delivers full-cycle software development and digital transformation services. Its nearshore and global delivery model supports a wide range of industries and project scopes.

The company combines engineering services with consulting capabilities, which can be valuable for organizations undergoing broader digital initiatives.

Best fit: Organizations looking for nearshore software development outsourcing combined with digital transformation support.

Sonatafy Technology

Sonatafy Technology focuses on embedding Latin American software engineers directly into U.S.-based product teams. Its nearshore model emphasizes real-time collaboration and cultural alignment.

By prioritizing full-time team integration, Sonatafy supports continuity and long-term development efforts.

Best fit: Companies that want nearshore software engineering teams working closely with internal stakeholders on an ongoing basis.

Globant

Globant operates globally and delivers nearshore and international software engineering through cross-functional Agile Pods. Its services span cloud, AI, and large-scale digital platforms.

The company is widely used by enterprises managing complex, multi-region digital initiatives.

Best fit: Large organizations seeking nearshore software engineering outsourcing at global scale.

How to Choose the Right Nearshore Software Engineering Partner

Choosing among nearshore software engineering outsourcing companies depends on how closely teams need to integrate with internal operations and how much operational responsibility a company wants to retain.

Key questions to ask include:

  • Are nearshore engineers dedicated full time to one client?

  • Who manages HR, payroll, and legal compliance?

  • How transparent is the pricing and engagement structure?

  • Does the model support long-term team stability?

Clear answers to these questions help ensure that nearshore software development outsourcing supports sustainable growth rather than short-term delivery alone.

Toptal vs Teilur Talent Comparison
Concept Toptal Teilur Talent
Business Model Global freelance marketplace connecting clients with vetted professionals in software, design, and finance. LATAM-focused recruitment company connecting businesses with full-time remote developers and tech professionals.
Selectivity Claim Claims to accept less than 3% of applicants, based on its internal screening process. Works only with pre-vetted, bilingual professionals in LATAM, selected for technical and communication skills.
Recruitment Process Multi-stage: timed skills test → English interview → real-world project → live screen evaluation. Direct evaluation of experience, portfolio, and communication ability. Matches candidates by vertical (QA, Software, Cybersecurity, Data & BI) and company culture.
Trial or Test Period Offers a two-week trial, refundable if client isn’t satisfied. No fixed trial period — focuses on long-term retention and transparent onboarding.
Contract Type Typically weekly contracts (20 or 40 hours) with limited flexibility for short-term projects. Flexible monthly agreements, allowing scalability per project scope and company needs.
Transparency Pricing details not publicly disclosed. Clients see a blended hourly rate including Toptal’s markup. Fully transparent pricing model. Clients see how much goes to the developer and how much is Teilur’s service fee.
Commission / Markup Estimated around 40–50%, based on user reports and external reviews. Capped at 20%. At least 80% of client payment goes directly to the developer.
Initial Deposit Requires a $500 refundable deposit to start the search process. No upfront deposit required.
Client Support Account managers available during hiring and engagement. Support quality varies by project. Personalized support from start to finish, ensuring alignment for both client and talent.
Developer Pay Transparency Developers are contractually restricted from disclosing their actual pay rates. Developers know their full compensation and see transparent rate breakdowns.
Geographic Focus Global, with talent from Eastern Europe, Asia, and LATAM. Exclusive to Latin America, optimizing time-zone alignment and cultural fit.
Turnover Rate Not publicly disclosed. Reported below 15%, reflecting strong retention and satisfaction.
Best For Large enterprises or teams needing globally distributed freelance specialists. U.S. and international companies seeking transparent, long-term partnerships with vetted LATAM developers.

Conclusion

Nearshore software engineering outsourcing offers companies a practical way to scale development teams while maintaining collaboration, compliance, and control. By working with nearshore software engineering teams in aligned time zones, organizations can reduce friction and build more resilient engineering operations.

The best nearshore software outsourcing partners combine technical expertise with clear engagement models, compliance support, and long-term team integration. By understanding how different nearshore software development companies operate, decision-makers can choose partners that align with both product goals and operational priorities.

Looking to build your remote team in Latin America without hidden fees or inflated markups?

At Teilur Talent, our Transparent Rate Pricing model ensures you know exactly where every dollar goes — with at least 80% of the rate going directly to the talent. This means fair pay, full visibility, and stronger long-term partnerships that drive real growth. We connect you with vetted, English-proficient professionals in tech, marketing and business ops who are ready to scale your operations seamlessly and cost-effectively.

If you’re ready to experience a smarter way to hire, click here to schedule a free consultation with us.

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Client Reviews

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Teilur Talent featured in...

"Argentina offers highly competitive labor costs compared to other nearshoring destinations. With a strong focus on software and IT services, Argentina's tech talent pool is growing, and the country is already a resource for tech giants like Google."

Teilur Talent featured in...

"Brazil offers an attractive combination of cost-effectiveness and high-quality talent. With reportedly more than 500,000 software developers and an impressive annual growth rate, Brazil boasts the largest tech talent pool in LATAM."

Teilur Talent featured in...

"Teilur Talent recognized as the top IT Recruiting & Staffing firm in Latin America, Teilur Talent has made valuable contributions towards making the IT workspace more efficient and streamlined."

Teilur Talent featured in...

"Teilur Talent is the world’s first talent development network connecting U.S. tech startups and remote developers from Latin America!"

At Teilur, Inc, we are committed to accuracy and fairness in all our content. Our discussions and comparisons, particularly those concerning other businesses in the recruitment industry, are grounded in the best interpretations made by our dedicated staff, based on publicly available information. We hold a deep respect for the unique qualities of each organization within our field and strive to offer valuable insights rooted in our core beliefs about the recruitment industry's workings. If you encounter any factual inaccuracies in our content, we encourage you to reach out to us at content-research@teilurtalent.com with the specific URL in question. Your feedback is invaluable, and we are committed to reviewing and addressing your concerns.

Got questions? We've got answers.

1

How is Teilur Talent different from other tech recruiting companies in LATAM?

At Teilur Talent, we take a mission-focused approach to recruiting, ensuring that our candidates are aligned with your company's vision and goals. Unlike other tech recruiting companies in LATAM, who may focus solely on technical skills, we prioritize the cultural fit and dedication of our team members to your company. For this reason, we do not support project contractor or freelancer roles. Instead, we focus on fully devoted team members who will help you achieve long-term success.

2

How does Teilur Talent attract and retain the best talent compared to other companies?

At Teilur Talent, we offer our candidates competitive salaries that are 2x to 3x higher than what tech companies would pay locally. This allows us to attract top talent and retain highly motivated and loyal team members. Additionally, we focus on finding candidates whose values align with the purpose, vision, and mission of our clients. This approach ensures that our engineers and tech talent are not just coding and completing task rather, they become part of a greater purpose, which gives them meaning and helps us attract and retain the best talent.

3

What are the typical tech roles that Teilur Talent recruits for?

At Teilur Talent, we specialize in recruiting for a wide range of tech roles that are typically in high demand. These include positions such as DevOps engineers, AI Developers, QA analysts and engineers, back-end and front-end developers, data scientists, product managers, business developers, and technical sales positions. Essentially, we recruit for most roles that are needed in B2B and B2C tech-focused businesses.

4

What are Teilur Talent's fees and pricing structure?

At Teilur Talent, we believe in transparency. We charge a flat rate fee of 20% of what the client pays. This way, our clients know exactly what they are paying for and how much the candidate gets. As an example: If a client hires a software engineer for $60,000 per year ($5,000 per month), Teilur's monthly fee would be $1,000 (20% of $5,000). We don't believe in hidden fees or unwanted surprises, so we disclose all costs upfront to both candidates hired and companies. When exploring other alternatives, make sure they are transparent about their pricing. We believe this is paramount for the benefit of all parties involved in this new era of remote work.

5

What is the candidate screening process at Teilur Talent, and how do you ensure a good fit for my company?

At Teilur Talent, we take candidate screening very seriously. We use a multi-layered approach to find the best candidates for our clients, starting with screening thousands of candidates from our internal and proprietary networks. We leverage AI technology to assess whether a candidate matches the technical skills required for a given job opening. We also perform additional personal evaluations to ensure that the candidate has the soft skills, culture fit, and English language skills required to excel in their new role. Our rigorous screening process ensures that only the best candidates make it through to our clients, saving them time and helping them find the best talent for their teams.