Nearshoring economics beyond the rate card
A total-cost view of nearshore delivery: ramp time, attrition, management overhead and the value of shared working hours.
8 min read
The headline comparison in nearshoring is almost always an hourly rate. It is also the least informative number in the decision.
What the rate card omits
Ramp-up time, the cost of replacing people who leave, the management hours required on the client side, and the latency introduced when questions wait overnight for answers. Each of these can outweigh a rate difference within a single quarter.
Latin American delivery for North American clients wins primarily on the last item: shared working hours reduce cycle time in ways that rarely appear in procurement spreadsheets but show up clearly in delivery velocity.
Measure cost per shipped outcome, not cost per hour.
BRICS Research publishes independent analysis. BRICS Dev is not affiliated with the BRICS intergovernmental grouping.