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Near-shoring has become an increasingly popular strategy for companies looking to expand their talent pool, reduce costs, and improve efficiency. However, success in near-shoring isn’t guaranteed. To maximize the benefits and avoid potential pitfalls, it’s crucial to approach near-shoring strategically. Below are six key considerations to ensure your near-shoring journey is a success:


1. Define Your Objectives

Near-shoring is not an end goal but a means to achieve broader business objectives. Before embarking on this path, ask yourself: Why are we near-shoring?

  • Are you looking to broaden your access to talent?

  • Are you aiming to reduce operational costs?

  • Do you want to improve business continuity?

Clarity on your objectives will help shape your strategy, measure success, and communicate your goals to stakeholders.


2. Test Before You Invest

Near-shoring doesn’t have to be an all-or-nothing decision. Taking a gradual approach allows you to:

  • Learn as you go and adapt based on real-world experience.

  • Deliver value incrementally rather than betting everything upfront.

  • Course-correct and improve your processes to align with your goals.

Start with a smaller team or pilot project to validate your assumptions and refine your approach.


3. Pick a Good Partner

Near-shoring often involves navigating unfamiliar territory—both literally and figuratively. A trusted partner with expertise in the region can:

  • Guide you through compliance and legal requirements.

  • Help you navigate cultural nuances.

  • Provide ongoing support to address challenges as they arise.

Choosing a partner who knows the space and has a proven track record can make a significant difference.


4. Pick the Right Model for Your Needs

Not all near-shoring models are created equal. Selecting the right model depends on your specific requirements:

  • Consulting Model: Ideal for short-term projects or when you need temporary workers who don’t require extensive training or specialization.

  • Employer of Record (EOR): Better suited for long-term engagements, such as developing software products, where training, specialization, and employee retention are critical.

Consider your goals, timelines, and the nature of the work to choose the best-fit model.


5. Pick a Good Region

The region you choose can significantly impact your success. Key factors to evaluate include:

  • Talent Pool: Some regions have deeper talent pools but may also have more competition.

  • Time Zones: Collaboration is easier when your team operates in the same or similar time zones.

  • Language and Culture: Effective communication and cultural compatibility can improve team cohesion and productivity.

Every region has tradeoffs. Assess your priorities to find the best fit for your organization.


6. Pick a Partner That Will Help Where You Need Them

Even in a fully remote setup, near-shoring requires more than just hiring and paying employees. Your partner should:

  • Help you find and vet qualified talent.

  • Conduct thorough background checks.

  • Can help if/when you need them.

Look for a partner with in-depth knowledge of the target country and your industry. Their expertise can help you address challenges proactively and build a strong, successful near-shore team and handle contingencies as they arise


By carefully considering these six factors, you can set your near-shoring initiative up for success. At ChapinTech, we specialize in helping businesses navigate the complexities of near-shoring in Guatemala. With our deep knowledge of the local market and U.S.-based technology operations, we’re here to support you every step of the way.

Guatemala is not just a great place to visit with beautiful volcanoes, lakes, and rich history. It is also emerging as a premier nearshoring destination for hiring software engineers, and several factors contribute to this trend. The country has produced notable figures in the field of computer science, such as Luis von Ahn and Andrés Monroy-Hernández. Luis von Ahn, a pioneer in human computation, co-created CAPTCHA and reCAPTCHA and founded the highly successful language-learning platform Duolingo. Andrés Monroy-Hernández, known for his work on social computing and online communities, co-founded the Scratch programming language, which is instrumental in teaching children coding worldwide.

Guatemala's educational institutions are at the forefront of cultivating tech talent.



Universities like Universidad del Valle de Guatemala, Universidad Francisco Marroquín, and Universidad Galileo have excellent computer science departments. These institutions offer robust programs that not only cover the fundamentals of computer science but also delve into major technological advancements such as artificial intelligence, data science, and modern software engineering practices. As a result, they are producing a growing number of highly skilled graduates ready to tackle complex technological challenges.


Moreover, Guatemala is home to a burgeoning tech ecosystem supported by technology hubs like Tec.gt. These hubs foster innovation and provide a collaborative environment for both emerging and established technology companies. They play a crucial role in creating a dynamic technological landscape, encouraging startups, and facilitating networking opportunities for tech professionals.


Guatemala tends to have a very entrepreneurial culture, which is highly beneficial for the field of software engineering. Employees in this environment are often more resourceful, innovative, and positive, bringing a proactive approach to problem-solving and project development. This entrepreneurial spirit helps drive continuous improvement and creativity, essential qualities in the fast-paced tech industry.


The combination of high-quality education, a growing number of skilled graduates, and a supportive tech ecosystem makes Guatemala an ideal nearshoring location. The country's proximity to the United States, similar time zones, and strong cultural affinity further enhance its appeal. Businesses can leverage these advantages to access cost-effective, high-quality software engineering talent while ensuring seamless communication and collaboration.


In summary, Guatemala's significant contributions to computer science, excellent educational institutions, and thriving tech hubs position it as a top nearshoring destination for hiring software engineers. The country's strategic location and cultural alignment with the U.S. make it an attractive choice for businesses looking to expand their tech teams efficiently and effectively.

Updated: Jun 3, 2024

The rapid growth of remote work has significantly reduced the key costs associated with near-shoring. Traditionally, much of the communication within teams occurred face-to-face, whether it was next to a whiteboard or casually over the water cooler. Team members who couldn't participate in these conversations often faced reduced productivity and increased frustration due to a two-tiered communication system that was both inefficient and error-prone. However, as companies have increasingly embraced remote work, we've grown more adept at operating efficiently in distributed environments, phasing out the outdated two-tiered system. This evolution has opened the door to tapping into a broader talent pool by hiring engineers from across the country, and near-shoring is a logical extension of this practice.





Near-shoring offers an effective strategy to enhance a software engineering organization. It allows companies to expand their recruitment efforts further afield, enhancing workforce diversity and accessing skilled and motivated team members at a lower cost. While salary differentials within a country can be significant, the disparities between countries are often significantly bigger. Furthermore, near-shoring can be particularly advantageous for companies in search of specific expertise. For instance, certain regions may boast a higher concentration of engineers with IoT expertise, likely influenced by the academic focus of local universities.


In summary, near-shoring can significantly bolster an organization's engineering capabilities by reducing costs, broadening the talent pool, and enhancing workforce diversity. The major obstacle to its effective adoption—the need for face-to-face interaction—has been largely overcome with the widespread acceptance of remote work. However, several other challenges remain, which we will explore in the next post.

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