In today’s competitive digital landscape, companies are looking beyond U.S. borders to meet their technology demands. The benefits of outsourcing software development are countless – including top-ranked experts, affordable rates, new efficiencies and more!

Specifically, Latin America is well-suited to meet U.S. business demands, given its shared time zones and cultural affinity. Not to mention that talent here is top-ranked globally, offering truly industry-leading skills. 

It’s no wonder that LATAM has the fastest projected technology industry growth in the world! Let’s take a tour of this region’s advantages for offshore software development. We’ll analyze the benefits, challenges and top countries, as well as Nearsure’s strengths in delivering leading Latin America software outsourcing. 

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What are the key advantages of outsourcing to Latin America?  

Latin America unlocks top advantages for businesses looking to build software without breaking the bank. We’ll analyze the key benefits of outsourcing software development below.

#1 Significant cost savings 

Perhaps the most noticeable benefit of Latin America outsourcing is competitive pricing. The Latin American software industry offers lower costs while keeping the same or higher guarantee of quality work. 

This is especially true when compared to outsourcing destinations in Europe and Asia. While rates in these regions may be slightly cheaper, deliverables may not meet quality standards. In addition, working relationships may be compromised by opposite time zones, cultural misunderstandings and overall poor project results. 

Overall, Latin America brings the highest value to the table, enabling businesses to optimize their budgets while still getting top-tier products. 

#2 Access to highly skilled professionals 

The majority of Latin American countries have a wealth of talented and knowledgeable developers. In addition to highly-ranked educational institutions, LATAM governments have promoted tech skills through programming initiatives and eased tech regulations. 

At Nearsure, we’re currently present in 18 countries across Latin America, providing businesses with elite professionals who span technical specializations. From Argentina to Mexico, our vast talent pool in Latin America is getting proven results for U.S. businesses –and only keeps growing! 

#3 Improved operational efficiency 

Software development teams aren’t just 100% dedicated to your project. They also have pre-established workflows in place, allowing for greater efficiency. By choosing IT outsourcing, you can scale up your product as needed to maximize your resources. In sum, you can enable a high level of operational efficiency and avoid stretching your in-house teams too thin. 

At Nearsure, we leverage the agile method to guarantee that the end-to-end development process is efficient, transparent and results-driven. 

#4 Strong English language proficiency 

Outsourcing to South America and other parts of the continent secures English proficiency. This language prowess is vital, as North American companies require a steady line of communication to ensure strong collaboration and product outcomes. 

The vast majority of Latin American tech talent is bilingual. Not only is English a part of mainstream education for career and personal advancement in LATAM, but tech companies tend to further English skills with in-house training.   

At Nearsure, for example, our developers attend private English tutoring and receive quarterly stipends for continuing education. Moreover, we instill our company values of transparent and honest communication in our everyday work. 

#5 Geographical proximity and aligned time zones 

The Latin American region provides the greatest overlap of working hours with the U.S.

IT outsourcing companies in Latin America hold an almost unnoticeable time difference of a mere two to three hours with any North America location. In turn, this eliminates prolonged response times and streamlines regular meetings, feedback sessions and ongoing communication during the workday.  

#6 Robust intellectual property protections 

Latin America software outsourcing is also ideal for protecting your IP, data and more. Partners here have a reputation for tight security protocols and will advise you on how to lockdown IP according to your business location and goals. 

At Nearsure, we leverage only the very best security and data protections to give you peace of mind that you’re staying compliant. We’ll also guarantee IP in our transparent contracts, so that ownership of the software is clear from the get-go. 

What are the potential drawbacks of outsourcing to Latin America?  

As you undergo nearshore outsourcing to Latin America, be aware of common challenges. By knowing the potential cons of outsourcing, you can mitigate these risks and attain first-rate outcomes. 

#1 Cultural gaps 

Engineers from LATAM come from diverse cultural backgrounds. Make an effort to align your teams with American businesses by setting clear expectations from day 1 and scheduling daily check-ins. Model strong communication with an “open door policy” that makes new hires feel comfortable asking questions and communicating any obstacles. 

#2 Differences in skill levels across regions 

Every region in LATAM has unique talent available. Do your due diligence to understand the best outsourcing destination for your specific tech stack and seniority requirements. Often this is difficult for an outsider to research, which is why it’s worth working with a local talent partner like us. Plus, if you want to double-check specialized abilities, consider conducting a skills test during the hiring process. 

#3 Regulatory and legal complexities 

Tax and labor regulations vary widely from country to country. Many Latin American destinations have pro-business policies for companies seeking to hire tech talent, but you’ll likely need an expert to help you navigate these complexities. Or you can hand off compliance completely by choosing a talent partner with deep experience in LATAM regulations. 

#4 Technological and infrastructure limitations 

Latin America is an incredibly diverse region, with infrastructure development that ranges from upcoming to state-of-the-art. Before undertaking software development outsourcing, get a sense of which region may be the right fit for your technical and infrastructure expectations. For example, Colombia has a reputation for cutting-edge infrastructure, but other Latin American countries may still be in the advancement phase. 

Which Latin American countries are best for outsourcing?  

Tech talent across Latin America is truly world-class. Let’s explore the best countries in this region for offshore software development. Keep in mind that the right outsourcing destination is the one that meets your specific goals, tech stack and company culture.  

Mexico: A thriving hub for IT and tech talent 

Mexico is a well-established tech hub with a thriving business scene, hosting one of the largest GDPs in Latin America. It boasts of a big pool of 225,000+ developers, who tend to be highly educated and skilled. Given Mexico’s proximity to North America, professionals are also attuned to U.S. workplace practices and culture. 

Argentina: A top destination for software development 

Argentina has a strong tech presence with the fast-growing talent pool of 115,000+ professionals and counting. Despite suffering from inflation, this country is known for its thriving startup scene and software engineers with some of the highest-ranked technical and communication skills. As a bonus, Argentina is rated #1 in English proficiency in LATAM. 

Colombia: Rising as a key outsourcing player 

Colombia has a reputation as a rising star in software outsourcing. Not only does this country have a wealth of talent – with 62,000+ developers – it also has rapidly advancing infrastructure. Just consider that Medellín is often called the “Silicon Valley of Latin America.” In particular, Colombia has a strong IT outsourcing market, catering to clients worldwide. 

Chile: Renowned for its skilled workforce 

Chile is a superb software outsourcing destination due to its business-friendly landscape. It makes it easy for outside companies to hire talent without much red tape. Additionally, the 61,000+ developers here are well-educated, English-savvy and technically experienced, making Chile one of the most renowned locations due to its skilled workforce. 

Peru: Emerging opportunities in tech outsourcing 

Peru is a promising country for tech outsourcing. Despite some economic and political fluctuations, this country has only grown its IT outsourcing market. In particular, Lima is a hotspot for startups and entrepreneurship. While the talent pool is somewhat smaller at around 50,000, developers here have a reputation for excellent skills and reliable working relationships. 

Brazil: The giant of Latin American outsourcing 

Brazil is the tech giant of the region, with the largest GDP and highest number of developers at 500,000+. It also has 28 cities ranked as top startup cities, showcasing its huge presence in technology and innovation. Here you’ll have a wide range of technical experience levels and specializations to choose from. 

Uruguay: A hidden gem for IT outsourcing 

Uruguay may be small, but it has a dynamic technology scene. In fact, it was chosen as the first Digital Nation in Latin America. This country has about 15,000+ software engineers, who are well-educated, English proficient and keen to build long-term relationships. 

Panama: A strategic gateway for nearshoring 

Panama has a historic reputation as a gateway – and its IT industry is no different. Panama is an up-and-coming software outsourcing destination currently advancing its economy and free trade zones. Developers here have a reputation for solid technical skills and close cultural proximity to the U.S.  

Ecuador: Growing potential in outsourcing services 

Ecuador is another country steadily expanding its IT outsourcing services. Across the board, it has been growing its technical talent, English readiness and business environment. To this end, Ecuador has passed regulations for tax breaks and educational programs, joining other LatAm countries in its advancement initiatives. 

Costa Rica: Known for high-quality outsourcing solutions 

Costa Rica is another small, but specialized outsourcing hub. It offers 70,000 professionals who are technically skilled and career-driven. This country also has some of the best infrastructure in Central America, with state-of-the-art tech parks and a focus on new technologies. 

Learn about our business-forward software development. 

An overview of IT outsourcing in Latin America  

Latin America is a hotspot for IT outsourcing and often cited as the #1 in-demand region today. While every business has its unique reasons for selecting the Latin America region, here are top factors. 

#1 Expanding and skilled talent pool 

LatAm has a wealth of software talent, reaching close to two million by some accounts. And these talent pools just keep expanding, with some of the highest growth rates worldwide. Most importantly, developers here are highly skilled and educated, so you can find the exact specialization and experience level that you require. 

#2 A flourishing tech ecosystem 

Latin American countries have upped their digital game with hefty investments in technology infrastructure and education. Just consider that Brazil, Chile, Colombia and Mexico tripled the number of tech startups in recent years. Other initiatives in LatAm include:

  • High foreign and startup investment 
  • New tech parks 
  • Pro-technology tax breaks
  • Remote work incentives 
  • Government-sponsored coding programs 

#3 Expertise across diverse tech fields 

Latin America has a wide range of tech specializations for hire, including diverse technologies, languages, frameworks and tooling. In comparison, this level of expertise is difficult to capture in the U.S., which is facing a massive developer shortage and inflated rates. 

#4 Strong governmental incentives for outsourcing 

Latin American governments are poised to take advantage of their rich talent ecosystems. Many have passed laws specifically designed to make it easy for foreign companies to hire local software engineers – through visa waivers, tax breaks, remote work protections and more. Additionally, Latin American countries have set up robust coding programs and/or tech education to churn out even more technical talent. 

What are the most common services outsourced to Latin America?  


(Source: Deloitte’s 2022 Global Outsourcing Survey)

Essentially, this region delivers all the main technology sector services – everything from cybersecurity to customer support and business process outsourcing. Let’s go over what the Latin American outsourcing industry has to offer. 

#1 Software development and engineering 

Software development is perhaps the most in-demand outsourcing area for Latin America. Businesses tend to hire front-, back- and full-stack software engineers to meet their KPIs. Whether for customer-facing products or internal systems, software engineering is a bridge to better user and employee experiences. 

#2 Customer support services 

Customer service today can benefit from outsourced developers who know how to develop chatbots and other AI-powered operations. It’s also common to hire support services in Latin America for data and insights, so businesses can make more informed decisions. 

#3 IT infrastructure and support 

77% of companies outsource IT infrastructure needs today. This leading outsourcing service often involves cloud-based systems, which businesses are leveraging for interconnected delivery and cost savings. In addition, data security and backup plans are major areas for LatAm software development teams. 

#4 Digital marketing and content creation 

Given the importance of digital products, marketing has become a main service line as well. Digital marketing – involving web, mobile, blog, social media, SEO, email and more – can be well-handled by outsourced tech experts, especially if you require multilingual or locally targeted content. 

Successful companies leveraging Latin America outsourcing

Successful companies are leveraging Latin America software outsourcing, including Fortune 500s, startups, SMEs and more. This includes American companies from diverse industries – from technology to manufacturing and healthcare. 

Household names like Microsoft, Netflix and General Motors are just the tip of the iceberg. Some big brands working with Latin American talent include:

  • Disney
  • Dropbox
  • eBay
  • Expedia
  • Google
  • Groupon
  • Intel
  • Johnson & Johnson
  • MasterClass
  • Nike
  • Shopify
  • Siemens
  • Sony
  • Walmart

For a full list of U.S.-based clients, check out testimonials from these top IT outsourcing partners in LatAm. The list goes on and on!

Choose Nearsure for top Latin America software outsourcing

It’s no longer a secret that outsourcing to Latin America is a reliable and affordable method for achieving more with your software. As we’ve discussed above, this region has important advantages for North American businesses, including top talent, cost savings and shared time zones. 

Remote talent has never felt so close to home! At Nearsure, we’ve fulfilled 250+ successful projects by counting on our bank of 20,000+ Latin American developers from 18+ countries. Our bottom line is to offer valuable talent solutions with meaningful, human-centric scaling. 

Discuss your offshore software needs with us! 

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