Your own nearshore Microsoft Azure development
Better than nearshoring or hiring Microsoft Azure developers — build your own nearshore development center with Alcor and get:
- Valley-grade team of 20+ senior Microsoft Azure developers in 3 months
- Up to 40% cost savings compared to traditional outsourcers
- Employer of Record service – our compliant employment solution
- Zero buy-out cost — it’s your own software team
- No intermediary in Microsoft Azure development management
Mexico
Colombia
Argentina
Chile
Poland
Romania
Ukraine
BulgariaYour Own Up and Running Nearshore Microsoft Azure Development of
Can a Nearshore Outsourcing Partner Offer
Silicon Valley-Like Talent
Hire top 10% of local software developers
2.5 years
Average tenure of developers
Zero Launch Cost & Risk
No setup fees, no legal entity needed, liability shield
Full Integration
Your team, your culture, your practices
Exceptional dedication
It’s literally your own team
Zero Buyout Cost
Insource your team to your entity at no cost at any timeWe hire any nearshore experts
Key Things About Nearshoring Microsoft Azure Development
Nearshore vs onshore model comparison
When it comes to expanding your team, choosing between onshoring vs nearshoring boils down to two key factors: talent availability and cost efficiency.
Finding the right people onshore can be a bit of a hunt. Reports show that about 70% of American employers struggle to fill roles. As of March 2024, there were 438,000 active tech job postings, making it tough to hire top talent at home. This is where nearshoring becomes advantageous, opening doors to bigger talent pools abroad — for instance, Latin America alone hosts 1.75 million software engineers.
Onshoring, while great for keeping control over the team, can often be the priciest option. Think of high rent, taxes, and hefty developer salaries, especially in tech hubs like Silicon Valley. For instance, a Middle JS Developer in the States commands a salary of around $105,000 a year. Compare that to their counterparts in Latin America, who often charge 3-4 times less for the same services. It’s no wonder many IT businesses eye nearshoring as a way to trim costs — a whopping 87% of them, in fact!
When should you not choose nearshore Microsoft Azure development outsourcing?
Here are a few signs that indicate that:
You want to scale your product on a foreign tech market and save costs
The first mistake of tech companies is to think that IT outsourcing agencies will quickly develop or improve their products at a fraction of the price. While in reality, the situation is the opposite. First of all, this strategy presupposes that you will neither have direct access to your team nor control over the development process. The result? Poor communication with developers and below-expected quality of end software due to the lack of feedback. Plus, with IT outsourcing agencies you never know the true price composition — a provider’s fee may exceed a developer’s salary. And who wants to overpay that much?
You plan to attract investments
If you’re on a mission to get funding, delegating your product development to a nearshore Microsoft Azure outsourcing partner is a bad idea. Why? Because it’s a signal to investors that you lack in-house expertise and resources to develop this product, which will negatively affect their funding decision since they prioritize not only teh product but also the team that developed it. So, it makes more sense to invest in your own or a software R&D team.
You want to keep core operations in-house
No one wants their source code and sensitive data to be leaked and their IP rights compromised, that’s for sure. And this might happen if you work with IT outsourcing agencies. Plus, if you choose your own in-house or R&D team over an outsourced one, you’ll be able to promote your corporate culture, align all processes, and eventually grow a strong crew filled with driven like-minded software developers who are ready to go to lengths for your company and product.
Top countries for nearshore Microsoft Azure development
Mexico
Mexico is one of the most popular destinations for Microsoft Azure development nearshoring. The country’s talent pool amounts to over 700,000 software developers who excel in various technologies and programming languages, including JavaScript, Python, SQL, C#, React.js, and Angular. Mexico’s IT infrastructure is flourishing, with 38 IT clusters, over 400 service companies, and more than 450 startups spread across three major tech hubs: Mexico City, Monterrey, and Guadalajara, often referred to as the Silicon Valley of Latin America.
Argentina
The Argentinian tech scene is home to over 115,000 tech talents who stand out in the region for their most robust English command. Local tech wizards shine in Python, Cloud APIs, TensorFlow, SQL, and rank among South America’s best mobile developers and data analysts. Buenos Aires, Córdoba, and Mendoza are focal points for Argentina’s tech scene, boasting 11 unicorns and over 17 IT clusters.
Colombia
Colombia is home to a thriving tech ecosystem, boasting a talent pool of over 150,000 software developers. Annually, it adds around 13,000 tech graduates to its workforce. Colombian software engineers are highly skilled in programming, specializing in Java, Python, C#, SQL, and Ruby. The country’s ICT market is vibrant, with over 1,300 startups spanning 31 distinct sectors. The country hosts three dynamic tech hubs located in Bogotá, Medellín, and Cali.
Chile
Chile boasts a talent pool of 61,000 software developers, with 5,000 ICT graduates joining the workforce each year. IT experts in Chile rank #1 in Latin America for digital skills, and showcase strong expertise in Java, Python, and PHP, as well as proficiency in data analytics, mobile development, and statistical programming. Around 303 startups and 122 software and data sectors call Chile its home. The country’s tech landscape includes three active tech hotspots: Santiago, Valparaíso, and Concepción.
Local developers’ salaries
What about the salary rates? Here is what Senior engineers with 5+ years of experience earn in different domains:
AI
- Artificial intelligence engineers in Mexico have some of the highest wages in the region, earning $5,200 a month on average.
- Similarly, Chile offers the same remuneration for its AI engineers, also at $5,200 monthly.
- Senior AI developers in Colombia and Argentina earn around $5,000 a month.
Blockchain
- Mexico offers the most generous wages for blockchain developers at $5,700 a month.
- Colombia follows with $5,200 monthly.
- Chilean blockchain developers earn around $5,100 a month, while their colleagues in Argentina earn $5,000.
Cloud
- Both Mexico and Argentina provide their cloud developers with $5,700 a month.
- Chilean developers, in turn, charge around $5,400 monthly for their services.
- Colombia has the lowest wages among these countries, with a monthly salary rate of $4,500.
Machine Learning
- Senior ML engineers from Mexico and Colombia earn approximately $5,000 a month.
- The Chilean IT market offers its ML talents the same monthly salary rate of $5,000.
- Argentinian machine learning engineers charge around $4,700 a month.
What is a nearshore development center?
A nearshore Microsoft Azure development center is your dedicated remote office with a team of software engineers. Usually, tech product companies establish such centers in foreign locations with an abundance of talent and lower labor costs. Imagine it as an extended piece of your in-house puzzle: a reliable nearshore software development company that offers software development center solutions helps you with attracting, hiring, and employing Senior, Lead, and C-level developers, dealing with payroll, accounting, and taxes, finding and leasing office space, procuring tech equipment, and providing benefits for your team. All this is possible without setting up your legal entity abroad — ask Sift, Ledger, ThredUp, and other companies!
In comparison with IT outsourcing, where you completely delegate your product development to a third-party team and have no direct control over it, your own nearshore development center presupposes the hiring and retaining of the right talent without any buy-out fees, forgetting about operational functions that fall on your partner’s shoulders, and, thus, scaling in a chosen location faster.
Advantages of hiring nearshore Microsoft Azure developers
Nearshore Microsoft Azure development in LATAM is a popular choice among US tech companies due to:
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Skilled talent pool
When seeking nearshore Microsoft Azure developers for hire in Latin America, rest assured you’ll discover the gems you’re looking for. These software developers aren’t just proficient in cutting-edge technologies like .Net, Java, Ruby, Python, C++, C#, React, and Node.js. They’re also experts in mobile development, data analytics, cloud computing, database development, and operating systems. When it comes to tech talent, LATAM developers truly offer the full package!
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Slashed costs
Another advantage of nearshore Microsoft Azure development solutions is cost efficiency. Software engineers from Mexico, Colombia, Argentina, and other Latin American countries charge significantly less for their services. Let’s put annual salaries side by side: A Full-Stack developer in the US can rake in up to $104K, whereas their counterparts in LATAM typically earn an average of $38K-$42K annually.
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Minor time zone difference
The time gap between the US West Coast and Mexico is merely an hour, while it extends to two hours with Colombia. Further south, there’s a three-hour difference with Chile and four with Argentina. Uruguay also has a four-hour difference from the US West Coast. Long story short, you’ll benefit from prompt answers to your requests and convenient meeting scheduling.
Disadvantages of hiring nearshore Microsoft Azure developers
However, working with nearshore Microsoft Azure programmers may pose certain disadvantages, such as:
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Complex Labor Laws
Each country in Latin America has its own labor laws that impact business operations. In Colombia, Mexico, and Argentina, the workweek is 48 hours, while in Chile, it’s 45. Overtime pay also varies: Mexico requires employers to pay double for work performed after official working hours (triple after nine hours), Argentina — 150% (200% on holidays), and Colombia permits 12 hours of overtime weekly at 25% extra pay. Public holidays also differ, ranging from 8 to 18 days across these countries, not to mention the differences in employment and taxation. Yet with proper guidance from professional lawyers, tech companies navigate these legal complexities without any problems.
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Data Protection Issues
1 in 5 companies is susceptible to data breaches from remote work vulnerabilities. Weak security protocols, accessing data from unauthorized networks, or lacking cybersecurity awareness can endanger any business. However, if you consider Latin America for software nearshoring, prioritize safeguarding your digital assets from the start. For example, a professional software R&D center partner will provide you with IT infrastructure setup and cybersecurity services.
Your Own Microsoft Azure Team is Better than Third-party
Alcor is an all-in-one place to establish and run a turnkey software R&D center:
- Employer of Record support — no need to set up your legal entity
- From 0 to 100 software developers in one key talent pool
- Establish your corporate culture with your own team. No intermediary
- No buy-out or other hidden fees
Own R&D Center vs Nearshore Software Development
Nearshore outsourcing
- Cloudy pricing With outsourcers, the markup for your vendor’s service might exceed a Microsoft Azure developer’s salary by 50%.
- Temporary fix Nearshore Microsoft Azure development services teams are loyal as long as the contract lasts and won’t go the extra mile to ensure your product’s long-term success.
- Your provider comes first An external Microsoft Azure development team will report only to your vendor, treating you as the “secondary” employer.
- IP rights transfer complexities When you engage a nearshore Microsoft Azure development service company, the IP rights of your product initially belong to the outsourcing team. So think ahead about the safe transferring of them to you later.
- Barrier to investment attraction Engaging with a nearshore Microsoft Azure development partner means that you delegate your core competencies to developers who will leave your team for good. Not exactly the investor’s dream.
Own R&D center
- Maximized cost savings Your own Microsoft Azure developers cost 40% less than an outsourced software team. Because you get no buy-out fees & markups.
- Long-term commitment Product development and a sense of ownership attract professional developers as bees to honey. Hence, more loyalty.
- Direct control over development You get your team of nearshore Microsoft Azure developers for ideation, innovation, and growth—without intermediaries.
- Intellectual property under control With direct agreements, you fully own your product and its source code, keeping unique engineering expertise in-house.
- Easy investment attraction After establishing your own R&D center, you will boost your internal software development capabilities and become more attractive to investors.
Companies Scaling with Alcor
Alcor is a reliable partner that meets our hiring needs. We finally hired experienced software engineers in Eastern Europe with strong tech skills and business acumen. Account Managers are awesome!
With Alcor’s all-in-one solution, we got a software R&D office with 15 senior PHP devs and a compliant operational coverage. I really appreciated their transparent pricing structure and deep expertise.
We interviewed a lot of EoR platforms and companies, but Alcor was the only one that provides a combo package of EoR and Recruting offerings. Alcor helped us build a full stack team in 1.5 month.
We wanted to switch from our outsourcing provider, and Alcor has become really game-changing for us. Within a mere 6 months, we got a fully-fledged team of 30 engineers in our own R&D office.
Alcor’s R&D solution eclipses full-cycle recruitment, EOR service, and operational support for our offshore team. Their ‘all-in-one place’ approach is far more cost-effective than I could’ve imagined.
I value their commitment to going the extra mile. We evolved from an outstaff project into an independent company, and Alcor’s support was crucial. They hired and ondoarded 15+ professionals for us.
Thanks to Alcor, we hired four engineers and a designer that strengthened our team. Beside stellar recruitment, Alcor flawlessly handled our payroll. Their approach was seamless and swift.
FAQ
1. Is it cheaper to nearshore Microsoft Azure development?
Yes, you can save from 30% to 70%, while scaling your company at the same time. Here’s what makes it possible: the difference in salaries & taxes and Alcor’s comprehensive all-in-one-place software R&D center solution without buy-out fees. In the US, a senior software developer earns up to $180,000 a year, while software engineering experts from Latin America make, on average, $42,500. The regional taxation policies also offer lower tax rates. Lastly, our approach goes beyond finding nearshore developers. We get you a software team that’s yours from day one — cut costs by not paying buy-out fees!
2. What are the benefits of building a nearshore Microsoft Azure development center with Alcor?
With Alcor’s 360-degree model, there’s no need to engage with multiple vendors to establish your R&D office offshore or nearshore. In one place without additional intermediaries, you receive full-cycle IT recruitment services alongside effective Employer of Record support that eliminates the need to establish your legal entity in the target location. Additionally, we assist in leasing office space, providing employee benefits, procuring laptops and other equipment for your team, and much more. Just share your needs, we’ll take care of them all!
3. How fast can Alcor build a nearshore Microsoft Azure development company?
We can get your software R&D center in Latin America and Eastern Europe up and running within 2-3 months, depending on your tech talent hiring needs. But hey, here’s the kicker: we guarantee to hire 5 Senior, Lead, and higher-level software engineers within a month, 20 in 3 months, and up 100 within a year.
4. Can you headhunt C-level management?
That’s an ace up our sleeve. We’ve amassed 8 years of experience in the industry and have access to an internal network of hundreds of thousands of candidates! That’s why, C-level management positions, such as CTO, CIO, CMO, CFO, and others, come to our recruiters as easy as pie. Our clients attest to it: we hired the Head of R&D for Sift, an online fraud detection application development firm, from the second CV. Other successful cases include the Director of Engineering for Dotmatics and the Deployment Lead for Ledger.
5. What about payroll, accounting, and office lease?
If you hire nearshore Microsoft Azure developers with Alcor, there’s no need to establish your legal entity in a target location. With our comprehensive EoR support, we take care of all the nuts and bolts for your nearshore Microsoft Azure development team. It includes the employment of software engineers, monthly payroll management, tax payments, compliance with all local laws, and even more. With our turnkey solution, you can be assured — we guarantee 100% compliance while handling all the paperwork.
Finally, if you want to pump it up, opt for our R&D services with full operational support, office lease, and equipment procurement.
6. What else does Alcor’s nearshore Microsoft Azure center include?
Apart from full-cycle tech recruitment of nearshore Microsoft Azure programmers and EoR support, we offer a more comprehensive range of additional services, including IT infrastructure setup, procurement management, employer branding, and other back-office assistance. Alcor is like your personal team builder: you choose the services to build your software R&D center from 0 to 100 people in 12 months.