How to Reduce Software Development Costs: TurnKey’s Story
Want to peek through the lens of one of our tenacious founders in the throes of helping a thriving tech company that grappled with tremendous growth challenges? The following post is not fiction, but a real-life account. It’s a tale whispered into my ears. So, sit tight as I unfold the remarkable story of one of TurnKey’s most transformative collaborations.
It was a sultry afternoon, the kind where even the air conditioners struggle to keep up, when my phone buzzed on my desk. The message was from our client, a Project Manager at a fast growing tech company in Silicon Valley. “Help! We’re in a crunch. Is this a good time to chat?” Little did I know, this desperate message would kickstart one of the most transformative collaborations TurnKey has ever embarked on.
His voice trembled slightly as he laid out the intricacies of his situation. His company was facing escalating software development costs that had begun to eat into their budget like a termite into wood. He had a team of brilliant in-house developers, but the overhead was just too much. “We can’t keep up with the quality we are known for if we’re constantly stressed about the financial drain,” he lamented.
I definitely knew a solution that might be precisely what he’s looking for. How about considering nearshoring some of your development tasks to Latin America?
The Pitch: Reducing Development Cost with Nearshoring to Latin America
You see, Latin America has a burgeoning tech industry, brimming with untapped talent. And the best part? You can maintain high-quality standards while significantly reducing your development costs. The impressive expansion of nearshoring to Latam can be attributed to a compelling mix of proficient talent, state-of-the-art technology, and significant cost benefits that enterprises stand to gain by relocating projects to Latin America.
Additionally, projections suggest that by the year 2025, there could be as many as 10 million new tech job openings in Latin America. Much of this expansion is driven by American companies who are turning to more budget-friendly talent situated within similar time zones, utilizing nearshoring.
Here are some more benefits of nearshoring to Latam I shared with our client:
1. Cost-Effectiveness Without Compromise
I’ll admit, when people first think about nearshoring, they’re pretty skeptical. But when I show them the numbers in black and white, their eyes widen in disbelief. From our own experience, offshoring and nearshoring can reduce the operational costs by up to 40%, all while maintaining the high-quality standards that we pride ourselves on. The rates in Latin America are competitive, but the skill level is on par with developers anywhere in the world. Moreover,
thanks to the hard work of our Human Resources team, we’ve developed the TurnKey Retention System, a strategy that not only helps you save money but also tackles the hidden expenses associated with employee turnover.
2. Time Zone Synergy
One of the major drawbacks companies usually experience with offshoring to far-off locations is the time difference. It’s not just about scheduling meetings at odd hours; it’s about losing valuable time. Nearshoring to Latin America changed that. Suddenly, real-time communication was a reality. With just a couple of hours difference at most, it feels like the nearshore team is right next door, even if they are thousands of miles away.
3. Language and Cultural Alignment
Language barriers can turn any project into a game of broken telephone, where messages get distorted as they pass down the line. But Latin American developers we hire for our clients speak fluent English and even understand the subtle nuances of our business culture in San Francisco. It makes conversations flow effortlessly and ensures that everyone is on the same page, which is invaluable in offshore software development.
TurnKey’s boots-on-the-ground presence along with decades of experience building and scaling teams, mitigates against most of the cons people typically associate with offshore development (lack of transparency and high churn), while offering most of the pros (similar if not better quality of talent than in the US at a lower cost). That’s the Yourshore difference.
4. Access to Untapped Talent Pool
Whether it is front-end development or complex back-end architectures, we can hire the best experts for everything. It is like walking into a tech supermarket with an unlimited budget, picking the brightest and the best for your business needs.
TurnKey’s people professionalized our company from the processes they’ve implemented to the product features they’ve developed. TurnKey has the uncanny ability to recruit top professionals to our cause who don’t churn. They are critical to Diib’s core culture.
5. Agility and Flexibility
In a hyper-growth environment, agility is not just a buzzword; it’s a necessity. With our Latin American nearshore software developers, we can quickly scale your team up or down depending on business requirements. For example, R1, a leading company in healthcare automation, saw this firsthand when they used TurnKey’s offshore engineering services. They needed to quickly grow their development team because of rising customer demand, and we provided an affordable and effective solution.
The result, a big boost in productivity, averaging 51 software updates per year, which means they were able to update almost weekly. Plus, R1 has had an extremely low turnover rate—under 5% annually for the last three years—ensuring consistent engineering support. But don’t just take our word for it; here’s what R1 has to say about working with us:
TurnKey’s YourShore model allows us to easily integrate developers directly into our organization so that they are truly my team. I honestly forget most of the time that they aren’t working in the same building as me.
If You're Grappling With High Development Costs and Pondering Over Potential Solutions, Let TurnKey Hire the Best Nearshore Developers for You.
The Shift to Reducing Software Development Cost
The client was intrigued but skeptical. After all, shifting from an in-house team to a nearshore model is a big leap. We spent the next few hours discussing the logistics—time zones, language barriers, skill sets, you name it.
“Here’s how it will work,” I explained. “Our developers in Latin America are in a time zone that’s close to yours, which will make real-time collaboration much easier. They’re proficient in English, and we’ll facilitate constant communication to ensure that everyone is on the same page. Think of it as an extension of your in-house team, just situated in a different location.”
Over the next few weeks, we carefully transitioned some of their business initiatives to our nearshore team. The results were nothing short of remarkable. Not only did the company reduce their operational costs by nearly 40%, but they also noticed an improvement in the quality of work.
Fast forward six months, and our client’s initiatives have been sailing smoother than ever. His engineers now work synergistically with the nearshore team we hired, creating a well-oiled machine that delivers impeccable quality without breaking the bank. He called me last week, his voice bubbling with excitement, “You won’t believe how stress-free life has been since we teamed up with TurnKey. We should have done this years ago!“
The Happy Ending: Achieving Cost Efficiency Without Compromising Quality
The tech industry is a playground where costs can skyrocket as fast as innovations. But with the right strategies and partnerships, you can achieve the seemingly impossible—cutting costs without compromising quality. This story is a testament to the power of nearshoring, a solution that saves not just dollars but the integrity of a company striving for excellence.
So, If You Find Yourself in a Similar Quandary, Why Not Give TurnKey a Call? We Might Just Have the Perfect Solution Waiting for You.
Nearshoring to Latin America typically results in fewer time zone challenges and often includes English-speaking teams, thus enhancing real-time communication and collaboration.
Absolutely. Latin America has a burgeoning tech scene, and you can find highly skilled developers capable of handling complex projects across a variety of domains.
Cultural similarities and widespread English proficiency in the tech industry generally make for a smooth transition and easy collaboration with Latin American teams.
TurnKey Staffing provides information for general guidance only and does not offer legal, tax, or accounting advice. We encourage you to consult with professional advisors before making any decision or taking any action that may affect your business or legal rights.
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