Table of contents
- 11 Best Nearshore Software Development Companies 2026 for Austin Startups
- Key takeaways
- What is nearshore software development?
- What to look for in a nearshore software development company
- 11 best nearshore software development companies in 2026
- Nearshore vs. offshore vs. onshore: Which is best for startups?
- Average costs of nearshore software development in 2026
- Choosing the right nearshore partner
- Why Austin-based startups are turning to LatAm talent
- Howdy’s approach
- Conclusion
Quick answer: For Austin startups, the best nearshore software development companies in 2026 include Howdy, BairesDev, and Near. Howdy is best for full-time, embedded hires with Employer of Record (EOR) support, while BairesDev focuses on managed delivery and Near operates as a recruiting platform. Nearshore hiring typically costs 60–65% less than hiring in Austin, with senior Latin American engineers earning $55,000–$70,000 USD annually compared to $150,000–$180,000 for equivalent local roles.
Nearshore software development has become a practical way for Austin and Silicon Valley startups to scale engineering teams without sacrificing quality, speed, or collaboration.
In this guide, we explain what nearshore software development is, how it compares to offshore and onshore models, what it costs in 2026 using verified payroll data, and the 11 best nearshore software development companies for US startups. If you’re evaluating nearshore software development services or planning to hire nearshore developers, this article is designed to help you choose the right partner.
Key takeaways
- A nearshore software development company hires or provides developers in nearby countries, most often Latin America for US startups.
- Nearshore software development services enable real-time collaboration through overlapping time zones.
- Verified 2025 data shows average Latin American developer salaries range from $53,000–$63,000 USD.
- Total employer cost for nearshore developers averages ~$65,000 USD, including benefits and taxes.
- The biggest difference between nearshore providers is whether developers are treated as temporary resources or hired as long-term, embedded team members.
What is nearshore software development?
Nearshore software development is a hiring or delivery model where US companies work with software engineers in nearby countries, typically within one to three time zones.
For Austin- and Silicon Valley–based companies, nearshore software development usually means hiring developers in Latin America (LatAm), including Mexico, Brazil, Colombia, Argentina, Chile, Peru, and Uruguay.
Nearshore software development typically includes:
- Engineers working US business hours
- English-forward communication
- Cultural alignment with US startups
- Faster feedback loops than offshore models
What to look for in a nearshore software development company
Not all nearshore software development services operate the same way. Before signing a contract, evaluate providers across the criteria below.
Talent quality
Strong nearshore teams start with rigorous vetting. Look for senior engineers with real startup experience, proven depth in your stack, and clear English communication, backed by practical technical assessments.
Hiring speed
Top providers can place vetted engineers within two to four weeks by running sourcing, vetting, and compliance in parallel. If a provider cites legal setup or entity delays, hiring speed is likely to suffer.
Overlapping time zones
Time zone overlap should enable real-time collaboration, not just availability on paper. Nearshore engineers should join daily standups during US hours, participate in live code reviews, and respond quickly to blockers.
Cost transparency
Nearshore pricing varies widely, so clarity matters. You should understand what the developer earns, what the provider charges, and whether any onboarding, replacement, or termination fees apply.
Integration with startup workflows
Nearshore engineers should work directly inside your existing tools, including GitHub, CI/CD pipelines, sprint trackers, and internal communication systems. If the provider manages engineers day to day, you are likely buying a managed service rather than expanding your internal team.
Howdy’s perspective: Culturally aligned, long-term hires
Nearshore works best when engineers feel like part of the company. Many startups prefer full-time, exclusive hires embedded in their teams over rotating contractors.
Howdy focuses on long-term nearshore hires who integrate into your culture and workflows from day one. To learn more, book a free demo.
11 best nearshore software development companies in 2026
This list includes embedded-hire partners, managed development firms, and recruiting and freelance platforms. The right option depends on whether you are building a product team or outsourcing delivery.
#1 Howdy
Howdy helps US startups hire elite, full-time software engineers across Latin America who work as permanent members of their teams.
Services offered
- Nearshore software developers
- Technical recruiting with psychologist-led vetting
- Employer of Record (EOR) services
- Payroll, compliance, and local HR support
- Physical office infrastructure across 10 Latin American cities
Strengths
- Full-time, exclusive hires
- Strong cultural alignment with US startups
- Austin-based leadership
- On-the-ground operations across Mexico, Brazil, Colombia, Chile, Argentina, Peru, and Uruguay
- Transparent, pass-through pricing
Weaknesses
- Not designed for short-term project outsourcing
Best for
Austin and Silicon Valley startups building long-term product teams that require ownership and retention.
Pricing transparency
Pass-through salary plus a flat management fee. No markup on developer compensation.
#2 BairesDev
A large nearshore software development company offering managed delivery and end-to-end project services.
- Engagement model: Agency-managed teams and project outsourcing.
- Pricing model: Bundled agency rates.
- Best for: Companies that prefer managed delivery over direct team integration.
- Key limitation: Developers are typically not exclusive or embedded long term.
#3 Near
A recruiting-focused platform that helps US companies hire software engineers in Latin America.
- Engagement model: Direct hiring with recruiting support.
- Pricing model: Placement fees.
- Best for: Teams with existing international payroll and compliance infrastructure.
- Key limitation: Limited ongoing support after placement.
#4 Arc
A platform offering freelance and contract developers across Latin America and globally.
- Engagement model: Freelance and contract-based hiring.
- Pricing model: Hourly rates.
- Best for: Short-term work, specific sprint needs, or fractional roles.
- Key limitation: Non-exclusive developers and higher management overhead.
#5 ScienceSoft
A Texas-based firm with nearshore delivery centers and a strong enterprise focus.
- Engagement model: Managed services and project-based delivery.
- Pricing model: Project-based or managed services pricing.
- Best for: Regulated industries and companies with structured delivery requirements.
- Key limitation: Less flexibility for embedded, startup-style teams.
#6 TECLA
A recruiting and staffing firm focused on placing Latin American engineers with strong English proficiency.
- Engagement model: Direct hiring with recruiting support.
- Pricing model: Recruiting and placement fees.
- Best for: Companies prioritizing communication and English fluency.
- Key limitation: Limited infrastructure beyond recruiting.
#7 TopTal
- Engagement model: Freelance and contract-based engagements.
- Pricing model: Premium hourly rates.
- Best for: Short-term specialized expertise or consulting roles.
- Key limitation: Higher cost and limited long-term retention.
#8 RailsCarma
A niche nearshore firm focused on Ruby on Rails development.
- Engagement model: Project-based work or staff augmentation.
- Pricing model: Project or monthly rates.
- Best for: Teams with Rails-specific development needs.
- Key limitation: Limited flexibility outside the Rails ecosystem.
#9 Asymm
A nearshore development firm offering flexible staff augmentation and delivery models.
- Engagement model: Staff augmentation and project support.
- Pricing model: Monthly fees.
- Best for: Teams that need flexible scaling as priorities change.
- Key limitation: Less emphasis on long-term, exclusive placement.
#10 Innowise
A global software development company providing full-cycle delivery services.
- Engagement model: Managed development and project delivery.
- Pricing model: Bundled project pricing.
- Best for: End-to-end software development projects.
- Key limitation: Limited transparency into individual developer compensation.
#11 Upwork
A freelance marketplace where companies can hire developers directly.
- Engagement model: Freelance and contract hiring.
- Pricing model: Hourly or fixed-price contracts plus platform fees.
- Best for: Quick freelance hires when internal management capacity exists.
Key limitation: Requires significant vetting, onboarding, and ongoing management.
| Company | Engagement model | Best for | Pricing transparency | Developer exclusivity |
| Howdy | Full-time, embedded hires | Startups building long-term product teams | Pass-through salary + flat fee | Yes (full time) |
| BairesDev | Managed delivery | Project outsourcing | Bundled agency rates | No |
| Near | Recruiting platform | Teams with payroll infrastructure | Placement fees | Yes (company-managed) |
| Arc | Freelance / contract | Short-term or fractional needs | Hourly rates | No |
| ScienceSoft | Managed services | Regulated industries | Project-based pricing | No |
| TECLA | Recruiting and staffing | English-forward hiring | Placement fees | Yes (company-managed) |
| TopTal | Freelance network | Specialized consulting | Premium hourly rates | No |
| RailsCarma | Niche development firm | Rails projects | Project or monthly rates | No |
| Asymm | Staff augmentation | Flexible scaling | Monthly fees | Partial |
| Innowise | Managed delivery | End-to-end projects | Bundled project pricing | No |
| Upwork | Freelance marketplace | Quick freelance hires | Hourly / fixed-price + fees | No |
Average costs of nearshore software development in 2026
The figures below reflect verified 2025 payroll data from Howdy’s network of 12,500+ developers across Latin America.
Salary ranges by experience (USD)
- Junior developers: $18,000–$28,000
- Mid-level developers: $35,000–$48,000
- Senior developers: $55,000–$70,000
Average developer compensation
- Average gross salary: ~$57,200 USD
- Average total employer cost: ~$65,000 USD (salary + benefits + taxes)
Country-level averages (2025)
- Argentina: $63,163
- Uruguay: $61,732
- Chile: $61,266
- Peru: $61,265
- Mexico: $55,894
- Colombia: $55,894
- Brazil: $53,253
US comparison
- Average US engineer cost: ~$160,000 fully loaded
- Average savings with nearshore: ~60–65%
Agency markup vs. Howdy’s pass-through model
Traditional agencies often bundle salary, overhead, and profit into opaque rates. That can work for managed delivery but makes long-term cost planning difficult.
Howdy uses a pass-through salary model with a flat management fee. Clients see exactly what developers earn and pay transparent overhead for EOR services, payroll, compliance, and local support.
Choosing the right nearshore partner
Red flags to avoid
- Pricing that does not separate salary from fees
- Developers shared across multiple clients
- High or undisclosed turnover
- Limited visibility into vetting or performance management
- No local presence in Latin America
Questions to ask providers
- Are engineers full-time and exclusive?
- What is your typical hiring timeline?
- What does the developer earn, and what is your fee?
- What happens if a hire does not work out?
- Who manages performance day to day?
Why Austin-based startups are turning to LatAm talent
Austin is one of the most competitive hiring markets in the US. Senior engineers routinely command $150,000–$180,000 in total compensation, and time-to-hire can stretch for months.
Nearshore hiring helps startups:
- Hire faster by expanding beyond local markets
- Reduce burn without lowering quality
- Maintain real-time collaboration
- Scale product teams without overextending runway
Case studies: How Austin startups scale with nearshore teams
Workrise: Building a high-retention engineering team
Company: Workrise
Industry: Energy technology
HQ: Austin, Texas
Workrise, a workforce management platform for skilled labor industries, turned to nearshore hiring as it scaled rapidly following strong growth. The company wanted to diversify its hiring pipeline while maintaining strong collaboration across teams.
By partnering with Howdy, Workrise embedded nearshore engineers directly into its existing engineering teams rather than treating them as external contractors. Over time, Workrise grew its nearshore team to 17 engineers, many of whom are still with the company nearly four years later.
According to Workrise’s Senior Director of Data & Analytics, the biggest impact came from team connectivity and retention. Nearshore engineers integrated into day-to-day workflows, improved cross-team coordination, and reduced churn compared to other staffing models Workrise had tried.
Outcome:
- 17 long-term nearshore engineers
- High retention over multiple years
- Improved communication and coordination across teams
OJO: Turning remote skepticism into team trust
Company: OJO
Industry: Real estate technology
HQ: Austin, Texas
OJO initially approached nearshore hiring cautiously. Leadership was concerned that remote developers might feel disconnected or operate more like contractors than team members.
Howdy addressed those concerns by sourcing and onboarding Latin American engineers specifically for cultural fit and long-term integration. Within weeks, OJO’s engineering leadership saw a clear shift: nearshore engineers participated fully in team workflows, collaborated closely with US-based staff, and demonstrated strong ownership of their work.
OJO’s CTO noted that ongoing support for engineers played a major role in building trust and morale, helping the team move past earlier hesitations about remote collaboration.
Outcome:
- Fully integrated nearshore engineers
- Strong team morale and engagement
- Increased confidence in remote-first hiring
Prism.fm: Scaling fast without headhunting overhead
Company: Prism.fm
Industry: Entertainment software
HQ: Austin, Texas
Prism.fm needed to scale its engineering team quickly but did not want to divert leadership time into headhunting or lengthy hiring cycles. The company also wanted engineers who felt like true teammates, not short-term contractors.
Through Howdy, Prism hired six nearshore engineers across backend and frontend roles, embedding them into the same onboarding, sprint cycles, and meetings as local employees. Over time, those engineers took ownership of core projects, contributed to architectural discussions, and participated fully in company culture.
Two years later, Prism’s engineering leadership cited nearshore hires as instrumental contributors who helped the team move faster without sacrificing quality or cohesion.
Outcome:
- Faster hiring without internal recruiting overhead
- Nearshore engineers owning production systems
- Strong cultural and workflow integration
What these case studies show
Across industries and growth stages, Austin-based startups use nearshore hiring to:
- Scale engineering teams faster after funding or growth spikes
- Maintain real-time collaboration through time zone alignment
- Build long-term teams with strong retention
- Reduce hiring friction without lowering technical standards
Rather than outsourcing delivery, these companies embedded nearshore engineers into their core product teams — the model that tends to deliver the strongest results over time.
Howdy’s approach
Howdy helps startups hire nearshore developers as long-term team members, not short-term contractors.
Engineers are:
- Full time and exclusive
- Embedded in your workflows
- Supported locally through compliant EOR infrastructure
This approach drives higher retention, better velocity, and stronger ownership.
Build a long-term team with Howdy
Nearshore software development is a proven strategy for Austin and Silicon Valley startups that need to scale engineering teams efficiently.
The key decision is whether you want to rent development capacity or build a long-term team. Howdy specializes in full-time, embedded nearshore hires with transparent pricing.
If you’re ready to hire nearshore developers who feel like part of your team, book a demo.