Your own nearshore PHP development
Better than nearshoring or hiring PHP developersโyour own top-10% nearshore development team
- 10+ elite PHP engineers in 2 months, 100+ in a year
- Up to 40% cost savings
- No-entity compliant employment
- Fully managed back-office: payroll, benefits and more
- No buy-out costs or hidden fees
- Your direct management and corporate culture
Mexico
Colombia
Argentina
Chile
Poland
Romania
Ukraine
BulgariaAlcorโ Your PHP Nearshoring Accelerator
developers in the 1st month
Can a Nearshore Outsourcing Provider Guarantee
Silicon Valley-Caliber 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
Itโs literally your own team
Zero Buyout Cost
Insource your team to your entity at no cost at any timeChoose your stack
Key Things About Nearshoring PHP 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 โ for instance, Latin America alone hosts 1.75 million software engineers.ย
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 โ a whopping 87% of them, in fact!
When should you not choose nearshore PHP 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 โ a providerโs fee may exceed a developerโs salary. And who wants to overpay that much?
You plan to attract investments
If youโre on a mission to get funding, delegating your product development to a nearshore PHP outsourcing partner is a bad idea. Why? Because itโs 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, thatโs 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, youโll 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 PHP development
Mexico
Mexico is one of the most popular destinations for PHP development nearshoring. The countryโs 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 Americaโs best mobile developers and data analysts. Buenos Aires, Cรณrdoba, 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 Bogotรก, Medellรญn, 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, Valparaรญso, and Concepciรณn.ย
Local developersโ 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.ย ย
- Similarly, Chile offers the same remuneration for its AI engineers, also at $5,200 monthly.ย
- Senior AI developers in Colombia and Argentina earn around $5,000 a month.
Blockchainย
- Mexico offers the most generous wages for blockchain developers at $5,700 a month.ย
- Colombia follows with $5,200 monthly.ย
- Chilean blockchain developers earn around $5,100 a month, while their colleagues in Argentina earn $5,000.
Cloudย
- Both Mexico and Argentina provide their cloud developers with $5,700 a month.ย ย
- Chilean developers, in turn, charge around $5,400 monthly for their services.ย
- Colombia has the lowest wages among these countries, with a monthly salary rate of $4,500.ย
Machine Learningย
- Senior ML engineers from Mexico and Colombia earn approximately $5,000 a month.ย
- The Chilean IT market offers its ML talents the same monthly salary rate of $5,000.ย ย
- Argentinianย machine learning engineers charge around $4,700 a month.ย
What is a nearshore development center?
A nearshore PHP 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 โ ask Sift, Ledger, ThredUp, and other companies!ย ย ย
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 partnerโs shoulders, and, thus, scaling in a chosen location faster.
Advantages of hiring nearshore PHP developers
Nearshore PHP development in Latin America is a popular choice among US tech companies due to:
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Skilled talent poolย ย
When seeking nearshore PHP 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, Latin American developers truly offer the full package!
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Slashed costsย
Another advantage of nearshore PHP 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 Latin America typically earn an average of $38K-$42K annually.
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Minor time zone differenceย
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, youโll benefit from prompt answers to your requests and convenient meeting scheduling.
Disadvantages of hiring nearshore PHP developers
However, working with nearshore PHP 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 โ 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.ย
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Data Protection Issuesย
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 PHP Team is Better than Third-party
Alcor is your tech expansion accelerator for global growth
- From 0 to 100+ engineers in one key talent pool
- Employer of recordโno entity compliant employment
- Comprehensive in-country support
- No buy-out or other hidden fees
- Your team from day one. Your management. Your culture.
R&D Center vs Nearshore Software Development
Own R&D center
- Silicon Valley-caliber talent We recruit 30+ elite senior developers in 3 months. All decisions regarding the team are up to you.
- Transparent pricing Detailed invoices help you be in control of your finances. Plus, your tech R&D team is x2 more affordable than an external one.
- Your team & branding You get a tech team with shared values for innovation and growthโ90% retention rate & an average tenure of 2.5 years.
- No setup & buy-out fees No setup fee is needed to start building your software R&D team. Plus, there is no buy-out processโyour team now, free insourcing after.
- Intellectual property under control With direct agreements, you fully own your product and its source code, keeping unique expertise in-house.
Nearshore Outsourcing
- Junior/middle-level talent You can’t control the quality of talent. Plus, with planned moves to new customers after 1 year, your A-players will be snatched away.
- High markups Some providers charge up to 50% of talent compensation to earn more without the client knowing about it.
- Not your brand & practices Developers work under your providerโs brand. Thus, there’s no room for your corporate culture, policies, and direct oversight.
- High setup & buy-out fees Most vendors require contractual & financial obligations first. Then, you pay 20% of a developer’s annual compensation in buy-out fees.
- Intellectual property risks IP rights over your product initially belong to developers of your provider. You get minimum security and a tedious transfer process.
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.
Alcorโs 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.
Alcor closed our 4 QA positions in a month and more than doubled the team in a year! We chose Alcor because of their communication style, cost, scope of services, and ideas to help us be successful.
FAQ
1. Is it cheaper to nearshore PHP development?
Yes, if you nearshore PHP development services, you can save from 30% to 70% while scaling your company at the same time. Hereโs what makes it possible: the difference in salaries & taxes and Alcorโs 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 nearshore PHP developers 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 thatโs yours from day one โ cut costs by not paying buy-out fees. Free insourcing is usually hard to find in other nearshore PHP development partners.
2. What are the benefits of building a nearshore PHP development center with Alcor?
With Alcor’s 360-degree model, there’s no need to engage with multiple nearshore PHP development service companies to establish your R&D office. In one place, without additional vendors, you receive full-cycle tech 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, weโll take care of them all!
3. How fast can Alcor build a nearshore PHP development center?
We can get your software R&D center in Latin America and Eastern Europe up and running within 2-3 months, depending on your engineering 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?
Thatโs an ace up our sleeve. Weโve amassed 8 years of experience in the industry and have access to an internal network of hundreds of thousands of candidates! Thatโs 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 is the average level of experience of nearshore PHP developers Alcor hires?
Alcor’s team of 40 headhunters specializes in hiring Senior and Lead nearshore PHP developers for tech companies in the USA. Typically, our tech recruiters need 2-6 weeks to find and hire perfect fits for client teams.
5. What about payroll, accounting, and office lease?
If you hire nearshore PHP developers with Alcor, thereโs 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 PHP 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 โ 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 Alcorโs nearshore PHP center include?
Apart from full-cycle tech recruitment of nearshore PHP 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.