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Nearshoring Destinations; 4 Advantages You’re Missing Out on from a Top Player

February 24, 2022
By Adriana Fernández

Panama remains among the best places in the world to live and work. However, its uncontested perks have now given it the upper hand when it comes to nearshore partnering on software development and digital transformation projects.

Yes, partnering with a nearshore firm could be your safest bet in accessing the trained and qualified personnel your company requires for its evolution in the digital era. Even if you’re still on the fence about any type of outsourcing, nearshoring talent and services could solve more problems for your company’s digital presence than you think. But don’t take our word for it. 

Deloitte (one of the world’s top four consulting firms) recently published research supporting numerous outsourcing benefits that go beyond saving costs. According to the report, agility needs, prioritizing quality, speed, and flexibility are now “more important than geography.” As a result, companies will ultimately need to employ outsourcing or nearshoring strategies if they wish to stay ahead in today’s digital world. 

Nonetheless, outsourcing or even nearshoring your company’s operations to any location is not a decision to be taken lightly. So, where can firms successfully trust to relocate their software development needs while keeping a safe balance between onshoring and offshoring work? A small yet ever-growing Latam country with a privileged location comes to mind —Panama. Here’s why.

1. Uncontested Player in the Global Economy: 

Panama has really set itself apart from the rest of its geographical neighbors. Just think about this:

  • Approximately 6% of the entire world trade passes through the recently-expanded Panama Canal.
  • Its free zone is one of the largest worldwide.
  • Its airport and cargo facilities come second to none in the region. 
  • It’s no wonder that hundreds of multinational corporations from various industries have consistently flocked to establish their regional headquarters and critical operations in Panama. Procter & Gamble, Maersk, Pfizer, Exxon, Chevron, Nestle, and even gaming firms have selected Panama as their jurisdiction of choice in Latin America. 

    Regional headquarters and critical operations in Panama.

    In today’s day and age, firms do not need to migrate entire teams and set up shop in the country to leverage Panama’s international business advantages. More so when it comes to software development. Nearshore partnerships are an excellent option for companies to benefit from many of the country’s best perks without the multinational enterprise budget. 

    2. A Place for Doing Serious Business

    Throughout its history, Panama has built a robust financial services sector. One that now boasts a highly developed worldwide business infrastructure strengthened by a neutral yet pro-enterprise. Its stable economy is expected to rebound with a post-pandemic growth of 7.5% in 2022. Panama’s fiscally efficient tax structure also facilitates doing business, but you can add its free-trade agreements and a solid dollarized economy to the mix. 

    The country’s business environment enjoys well-grounded banking, legal, and accounting systems that remain attractive in promoting external investments. Panama hence remains a natural springboard for organizations to easily coordinate and manage critical business operations such as customer service, sales, and marketing. Essential elements of business that are turning almost entirely digital. Many U.S. and Canadian firms searching for digital talent are increasingly discovering Panama as their go-to destination for hiring specialized contractors. A handful of them has been successfully working with BlueTide as their digital transformation partner.

    3. Seamless Communication and Cultural Exchanges 

    The truth is nearshoring destinations require English-speaking teams to succeed. Your company and others wishing to outsource any portion of their business must work alongside those who really get what you mean and need to run your operations smoothly. A clear understanding between team members rings even more true when speaking the code language. Luckily, a large portion of the working Panamanian population is bilingual. Still, more importantly, their English has the highest level of similarity to that of the U.S. compared to other Latin American countries. 

    Nearshore Americas attributes such cultural interrelatedness between the U.S. and Panama to the countries’ long historical ties in global trade collaboration. Additionally, Panamanians have always had substantial exposure and links to the culture, language, and economy of the United States, making the country’s influence in Panama undeniable. 

    “Panamanians, naturally, are more likely to understand certain terms and concepts relevant to the U.S. – something other nations in the region can’t boast,” expressed the leading authority on services exports of Latin America and the Caribbean from Nearshore Americas.

    4.  First-World Professionals in Specialized IT & Software Development

    Speaking of available talent in and through Panama, your company can hire and work with U.S.-educated and English-speaking professionals with expertise in IT and software development. Panama’s indisputably fantastic quality of life accounts for low levels of brain drain. As a result, most of its youth obtaining graduate or undergraduate degrees in the States or from U.S. institutions in Panama usually tend to return to or remain in the country. 

    Nearshoring to Panama means you get to work with highly-capable team members. The opportunity translates to accessibly-priced front and back end web development, UX/UI, website development, and even e-commerce platform solutions. Such partnerships can enable and power more profitable and scalable digital transformations for brands at a lower price. 

    Some predict it won’t be long before more and more firms decide, with good reason, to hire companies like BlueTide for their software development needs and digital transformation strategies. Will yours be one of them?