Why Private Equity–Backed Companies Are Rethinking How They Hire Software Developers

87% of technology leaders say they experience difficulty finding skilled professionals, according to a 2025 Robert Half report. And private equity-backed companies face unique pressures when it comes to hiring software engineers, including faster timelines and the need for flexibility and scalability.

With the tech talent shortage impacting practically any business in need of developers—and that’s most businesses today—how do you find the best professionals without breaking the bank? It’s time to rethink how you hire.

Why Hiring Looks Different in PE-Backed Companies

Deloitte reports that the demand for tech talent will reach 7.1 million jobs by 2034 in the United States. PE-backed companies face particular pressures, given that they usually have tighter budgets and want to scale fast, all while innovating with top talent on hand. Software engineers are a critical and core investment for these companies.

US developers tend to be costlier than those in other countries, often exceeding portfolio companies’ budgets. Moreover, PE-backed organizations need to hire engineers quickly. It is often difficult to adhere to common (and lengthy) tech hiring timelines. These businesses are under pressure to deliver outcomes fast so they can grow fast.

They also demand flexibility. There may be periods when they require larger or smaller teams, as well as times when they need certain specialized skills. 

What does it all mean?

Traditional and standard hiring approaches don’t work for PE-backed companies. They need a different way to attract and onboard top talent.

Challenges in Hiring Software Developers

As a portfolio company, you face some unique and some common challenges. These are the most prevalent.

Cost

You need to stay cost-efficient while generating value and achieving a strong ROI with a short timeline. But in-demand tech talent, particularly in the US, is expensive. And hiring developers without the requisite skills will cost you more in the long run. 

Competition for Talent

According to the Deloitte report, 70% of technical workers had secured multiple job offers when they accepted their most recent role. It can be difficult to stand out and compete against companies with bigger hiring budgets and incentives to attract top talent. Portfolio companies need a clear path to value creation, and that requires the best of the best employees.

Hiring Timelines

Tech leaders say it takes an average of five weeks to fill permanent roles, a Robert Half report finds. Moreover, 65% cite evaluating applications and deciding which candidates to interview as their biggest hiring challenges. What if you need to fill tech talent gaps faster? PE-backed businesses almost always do.

Scalability

Meeting ambitious growth and revenue goals demands scalability. PE-backed businesses need to scale their systems and teams quickly and efficiently. However, it can be challenging to do this when you’re also facing tight budgets.

Skills Gaps

According to Robert Half, 76% of tech leaders say they have skills gaps in their departments. These include niches like:

• AI, machine learning, and data science
• Cybersecurity and privacy
• Technology process automation
• Cloud architecture and operations

An increasing need for specialized expertise is also driving up the value of professionals who have these skills. Strong, niche skills allow portfolio companies to expand their reach and achieve greater profitability.

Why Hiring Nearshore Is the Solution

Grappling with these challenges is driving many PE-backed organizations to rethink their hiring strategies. Here’s why partnering with nearshore developers is a natural solution.

Access to Top Talent and Hard-to-Find Skills

From modernizing and migrating legacy systems to automating repetitive processes and leveraging AI and machine learning, the qualifications and skills you need are increasingly niche and specialized. But engineers with top skills in these niches are not always readily available. By casting a wider net and looking globally, you can access a larger pool of talent and find these qualifications at a lower cost.

Lower Costs

In Latin America, the median salary hovers around $99,300 across countries like Chile, Colombia, Costa Rica, and Mexico, according to Terminal’s Remote Software Engineer Salary Insights tool. That’s 46% lower than the median US salary of $182,500. With significant cost savings, organizations don’t have to strain their resources to access top developers.

Greater Profitability

By hiring nearshore developers, you can not only save on costs, but you can also make your organization more profitable. Because you can scale your development team more quickly, you can reach market faster. You can also enter new markets quickly—markets that nearshore developers may understand better than you do—and gain new perspectives. This allows you to stay competitive in a fast-moving environment.

Cultural Alignment

Nearshore developers are both time zone and culturally aligned with you. This allows you to communicate and collaborate with greater ease. These professionals work in familiar environments and have similar business norms, leading to less friction.

Alignment is especially important for PE-backed companies, which can’t afford to be held back by miscommunication or misunderstandings. Moreover, nearshore developers demand less managerial oversight and offer greater predictability—both necessary for keeping up your pace and making important decisions quickly.

Faster Hiring and Onboarding

Portfolio companies need to move quickly. Marketplaces like Terminal shorten recruitment, hiring, and onboarding timelines by pre-screening candidates and matching them to your organization, helping ensure both qualifications and fit.

Whether you’re looking for contract or full-time engineers, you can secure talent in a matter of weeks or less. That means your new hires can get to work and deliver results sooner. This supports the aggressive goals that are often critical to the missions of private equity-backed organizations.

Flexibility

Plans and priorities can change quickly. Market conditions, customer or client needs, and other factors can shift dramatically. You need to be ready to pivot when they do. Perhaps you must scale your team up or down or reprioritize product development. Or maybe you’re looking for specialized skills temporarily.  By hiring nearshore engineers, you reduce risk and attain greater flexibility.

Conclusion: Why Nearshore Developers Are the Right Fit for PE Portfolio Companies

Traditional hiring doesn’t fit the mold for every company. Portfolio companies need to rethink how they recruit top tech talent. Nearshore is a natural fit. 

By tapping into Latin American and other nearshore markets, you can move more quickly and flexibly. You are better equipped to adjust your team size fast, cope with fluctuating periods of demand, make decisions more easily, control costs, and reduce risks.

The bottom line: Nearshore is the more cost-effective and resilient approach to hiring software engineers.