New analysis of 500+ LATAM placements finds budget overruns and failed vendor transitions trace back to contract gaps, not developer performance.
DALLAS, TX, UNITED STATES, February 24, 2026 /EINPresswire.com/ — Seventy percent of software projects exceed their initial budgets by 27-45%, according to industry research. Companies underestimate total outsourcing costs by 20-30% when planning offshore or nearshore work. The root cause is rarely talent quality. It is poor partner vetting, weak contract terms, and hidden cost structures. Nearshore Business Solutions tracked failure patterns across 500+ placements since 2018 and published a three-part due diligence series addressing the most common causes.
Failed vendor transitions alone cost $100,000 to $500,000 in lost productivity and rework. A $25/hour offshore developer requiring three rounds of async clarification costs more than a $60/hour Colombian developer on your schedule. Yet most companies still evaluate nearshore partners on hourly rate alone. The developer vetting nearshore guide details the multi-step screening process that maintains a 16% candidate acceptance rate. It covers technical assessments, English proficiency testing, and security compliance checks. Companies that vet partners on total cost of ownership rather than hourly rate avoid the most expensive mistakes.
The Bureau of Labor Statistics projects 15% employment growth for software developers through 2034. About 129,200 openings are projected each year. Median US developer salary hit $133,080 in 2024. That figure exceeds $200,000 in major metros like San Francisco and New York. Meanwhile, 80% of North American companies now explore nearshore development teams. The vendor lock-in risk guide explains contract red flags, IP ownership pitfalls, and exit clause requirements that protect companies as they scale. Hidden costs not going nearshore quantifies what delayed adoption actually costs in competitive hiring markets.
“The biggest risk in nearshore hiring is not the developer. It is the contract,” said Eric Tabone, CEO of Nearshore Business Solutions. “Companies sign agreements with vague exit terms, no IP protections, and inflexible pricing. Then they blame nearshoring itself when the partnership fails. The model works. The due diligence often does not.”
NBS recruits from top engineering programs across Latin America. These include Universidad de los Andes and EAFIT in Colombia, UBA and ITBA in Argentina, and Tecnologico de Monterrey and UNAM in Mexico. Latin America produces 124,000 STEM graduates annually. Tech hubs like Medellin’s Ruta N, Buenos Aires Distrito Tecnologico, and Guadalajara drive talent density. Government programs support the sector: Argentina’s Knowledge Economy Law, Colombia’s INNpulsa innovation program, and Mexico’s IMMEX manufacturing framework. Time zones range from UTC-5 to UTC-3, giving US teams full workday overlap. NBS places candidates in 2-4 weeks and backs every placement with a 90-day replacement guarantee.
The developer vetting nearshore guide, vendor lock-in risk assessment, and hidden costs not going nearshore analysis are available at nearshorebusinesssolutions.com. CTOs and engineering leaders can access all three resources for free.
About Nearshore Business Solutions Nearshore Business Solutions sources and vets software developers from Latin America for US companies. Based in Dallas, Texas, NBS specializes in Argentina, Colombia, and Mexico. The company offers staff augmentation, dedicated teams, and direct hire services with a 90-day replacement guarantee. For more information, visit nearshorebusinesssolutions.com.
Eric Tabone
Nearshore Business Solutions
+1 817-918-4824
email us here
Visit us on social media:
LinkedIn
Instagram
YouTube
Legal Disclaimer:
EIN Presswire provides this news content “as is” without warranty of any kind. We do not accept any responsibility or liability
for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this
article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
