For over 25 years, companies have been expanding their IT and software development teams by hiring skilled professionals through onshore, nearshore, or offshore staffing models. Each approach has distinct advantages and challenges, so understanding these options can help you make the best choice for your company.

Here’s a breakdown of each model:

• Onshore: With this model, you add professionals from within your own country to your team. For example, a company based in New York may hire IT support located in Arizona.
• Nearshore: This model brings talent from nearby countries to support your company, often in the same or a close time zone. For U.S. companies, this could include professionals in Mexico, Canada, or Puerto Rico.
• Offshore: In this model, you are engaging with teams from countries further away, often in different time zones, such as India or Eastern Europe.

While offshore expansion is popular, especially in Asia, this model can introduce challenges, including time zone differences, cultural gaps, intellectual property risks, and potential project delays, which can be counterproductive, increasing costs and complexity.

Puerto Rico offers a unique nearshore solution that overcomes many of these obstacles, making it an ideal location for expanding IT and software development teams.

Why Choose Puerto Rico for Expanding Your Software Development Team?

Access to Top Talent

Puerto Rico is home to a skilled workforce with extensive training in engineering and software development. Many professionals on the island attend top U.S. universities, and Puerto Rico hosts highly regarded institutions like the University of Puerto Rico’s Mayagüez campus, known for its strong engineering programs. Companies like Lockheed Martin, Boeing, and Procter & Gamble recruit talent directly from these universities, ensuring a high standard of expertise and a deep understanding of U.S. industry standards and best practices.

Significant Cost Savings

Puerto Rico offers a financial advantage compared to hiring in many U.S. tech hubs. The cost of living is lower, which allows for competitive pricing while maintaining quality. For U.S. companies, Puerto Rico’s professional rates often present a 20% to 40% savings over average U.S. salaries, which range from $130,000 to $180,000 for software engineers. This makes Puerto Rico a cost-effective choice for accessing quality talent without the high expenses associated with other regions.

Convenient Time Zone Alignment

Unlike offshore locations with significant time zone differences, Puerto Rico aligns with the East Coast Time Zone, making real-time collaboration easy and efficient. This compatibility simplifies scheduling, supports quicker turnaround times, and allows teams to work together seamlessly throughout the day, unlike offshore models that often create communication lags.

Reliable Business Continuity and Infrastructure

Puerto Rico benefits from strong infrastructure and stable telecommunications, which align with U.S. standards. This ensures continuous, high-quality service and minimal disruptions, supporting long-term projects and business continuity. This infrastructure is particularly valuable for companies seeking reliable support and maintenance over extended periods.

Cultural Compatibility for Seamless Collaboration

Puerto Rico’s unique blend of Latin American and American cultural influences makes it an ideal choice for companies looking to expand their teams. English is widely spoken, and professionals on the island are culturally aligned with both the U.S. and Latin American markets. This shared culture not only reduces potential misunderstandings but also supports smooth collaboration, making Puerto Rico an excellent location for long-term, mutually beneficial partnerships.

Stable Political Environment

As a U.S. territory, Puerto Rico operates under the same federal regulations and laws as the mainland, providing a stable political environment that many other nearshore and offshore locations cannot guarantee. This stability fosters business confidence, and U.S. companies can work with peace of mind, knowing that their assets, contracts, and intellectual property are secure.

U.S. Dollar and Banking Systems

Puerto Rico uses the U.S. dollar and operates within the U.S. banking and financial systems, eliminating the complexities of currency exchange and making financial transactions straightforward.

Intellectual Property Protections under Federal Law

As a U.S. territory, Puerto Rico adheres to the same intellectual property laws as the mainland, ensuring that innovations are protected under U.S. copyright and patent laws. For companies in tech and software development, this is crucial in safeguarding intellectual property and maintaining compliance.

Beneficial Tax Incentives with Act 60

Puerto Rico’s Act 60 offers attractive tax incentives for companies looking to acquire technology and software development services. These benefits include reduced corporate tax rates and tax exemptions, which make Puerto Rico a competitive option for companies looking to grow their teams without sacrificing quality or security.

Building a Lasting Partnership

Choosing Puerto Rico for your IT and software development expansion is more than a smart financial decision—it’s an opportunity to establish a strong, long-term partnership with a talented and dedicated team. With a shared culture, solid infrastructure, and alignment with U.S. standards, Puerto Rico offers the stability and reliability that help you scale confidently.

Ready to Make Puerto Rico Your Development Hub?

Outsourcing your software development to Puerto Rico combines the advantages of a skilled workforce, cost savings, cultural alignment, and secure protections under U.S. law. Interested in learning more about what Puerto Rico has to offer? Contact us today to explore how we at INVID can support your IT and software development needs.