As a technology leader, every budget dollar is under scrutiny. You're pressured to accelerate your product roadmap, but the staggering cost and scarcity of elite U.S.-based engineering talent create a significant roadblock. This forces a critical question: how do you scale your team without breaking the bank?
While many consider nearshore development, they often miss the complete picture of its return on investment. This article provides a clear, data-driven framework for calculating the true ROI, revealing how a strategic partnership can deliver far more than just cost savings. The core tension is clear: you can't afford to compromise on talent, but you can't ignore the budget. Howdy.com was built to resolve this conflict.
Beyond salary: unpacking the fully loaded cost of a U.S. hire
The sticker price of a U.S. developer’s salary is only the beginning. True costs often exceed the base salary by 30–50% when you add:
- Recruitment fees
- Benefits and insurance
- Payroll taxes
- Office overhead
- Equipment
The nearshore advantage: a strategic financial model
A nearshore model with a trusted partner changes the equation. Instead of a dozen variable line items, you get a single, transparent rate. That predictability makes financial planning far easier.
The benefits don’t stop there:
- Time-to-hire is reduced from months to weeks.
- Teams start delivering value almost immediately.
- Faster speed-to-market becomes a direct driver of ROI.
Calculating your nearshore ROI: a comparative framework
To understand the real financial impact, compare traditional U.S. hiring with Howdy’s nearshore model across the key business drivers:
- Talent cost
- U.S. model: high base salary plus 30–50% overhead
- Howdy: transparent, all-inclusive rate
- Impact: direct cost savings
- Time-to-hire
- U.S. model: three to six months
- Howdy: two to three weeks
- Impact: faster time-to-market
- Recruitment fees
- U.S. model: 20–25% of first-year salary
- Howdy: $0
- Impact: eliminated expense
- Retention and attrition
- U.S. model: high attrition due to market competition
- Howdy: high retention from quality vetting and long-term fit
- Impact: reduced churn costs
- Productivity
- U.S. model: slowed by lengthy onboarding
- Howdy: seamless integration, immediate impact
- Impact: accelerated value delivery
Conclusion
The ROI of nearshore development isn’t just about lower hourly rates. It’s a strategic calculation based on speed, quality, retention, and predictability. For leaders who need to justify every headcount, the ability to deploy elite, vetted engineers in weeks—not months—at a clear, predictable cost is a game-changer.
Howdy.com was built on this principle. We connect you with the top 1% of LATAM engineers who deliver immediate value. Stop compromising between cost and quality. Invest in a model that delivers both.