Top 7 Benefits of Latin America Outsourcing

latin america outsourcing team working

TL; DR: This blog details the top 7 benefits of Latin America outsourcing. It compares the geographical, political, financial, cultural and work considerations of Latin American-based nearshore providers in relation to the global landscape to outline how time zones, cultural affinity, language, and education impact the current offer Latin America nearshoring companies can provide US-based clients.  

With the world going increasingly digital nowadays, tech companies are hunting top tech talent however they can to meet a rising demand while cutting back on operational costs. Particular to the United States, and especially in terms of software development, US-based companies find themselves in a growing need for reliable partners who can help them increase market share. In an attempt to accomplish those goals, they’ve long started to look beyond US borders.  

Latin America has already become a popular outsourcing destination for U.S. companies as LATAM IT vendors are able to offer a wide range of benefits that would otherwise be quite difficult to secure. Here are the top seven benefits Latin America outsourcing is currently offering the US. 

#1 Competitive Rates Are Commonly Seen as A Great Financial Benefit of Latin America Outsourcing 

 Perhaps the most noticeable benefit of outsourcing in this region is competitive pricing. Anyone in the software development vending scene is commonly aware how much the Latin American software industry can lower costs while keeping the same or higher guarantee of quality work; especially when compared to many outsourcing destinations in Europe and Asia.  

Glassdoor’s 2022 study of senior software developer salaries has shed great light on pay variance for senior IT positions across the globe. Being strategic in how professional talent is compensated along with the diverse work models on which companies can rely can certainly help many businesses optimize budgets, also freeing resources for investment in other business areas, such as product development. Low costs in terms of labor aren’t everything, however. Outsourcing to Latin America makes great sense beyond lower wages. 

#2 A Highly-Qualified Talent Pool is Part of LATAM Outsourcing 

The majority of Latin American countries have a wealth of talented and knowledgeable developers, a trend that spreads throughout the region. With highly-ranked official, private, and technical colleges, universities, and a broad number of specialized institutes, qualified tech talent spreads out all over the 33 countries that make up Latin America and the Caribbean. At Nearsure, we’re currently present in 18 of that total country count for the region. 

From Mexico to Brazil, Colombia, and Argentina without forgetting Costa Rica, Peru, Uruguay, and Chile, our vast talent pool is scattered throughout all of Latin America, and our extensive network only keeps growing — quick! 

#3 Being Able to Upkeep Communication Flow 

Outsourcing to South America and other parts of the continent secures English proficiency. This language dominance is vital for operation outsource with US-based clients as any offshore company needs to keep a steady line of communication between merging teams for collaborative work and feedback.  

In addition to Spanish and Portuguese as predominant native languages in the region, the vast majority of Latin American tech talent learns their mastery as bilinguals. From elementary school to post-graduate degrees, English is part of mainstream education for career and personal advancement in LATAM. Tech companies today moreover and quite commonly include further language education to allow teams to improve their English skills.   

At Nearsure, for example, talent have private English tutoring in-house while they also receive quarterly stipends for continuing education, all the while being stimulated internally to upkeep close, transparent, and honest communication as part of our company values.  

#4 A Time Zone that Feels Close to Home when Outsourcing 

Considering major outsourcing destinations around the globe outside of LATAM comes with an inclusion of large time zone gaps. A 13-hour time difference between the USA and China or India, for example, constantly impacts U.S. tech companies in terms of schedules and team availability. Meanwhile, IT outsourcing companies in Latin America hold a valuable and reduced, almost unnoticeable time difference of a mere two to three hours with any U.S. location. 

Outsourcing to Latin America, then, means removing prolonged response times and waiting until midnight or getting up early hours to hold meetings, discuss projects and needs with team leads, account managers, and other corporate members.  

#5 Above All, Consider A Fitting Culture: Matches that Matter 

What benefits us at Nearsure the most around our wide geographical operation is a sense of mutual cultural understanding with US clients. With shared historical and geographic conditions, we’ve simply found a genuine cultural and background match that allows us to share meaningful personal commonalities with US-based companies.  

The above makes a very positive difference when bringing teams from different parts of the region together. Interaction starts off smoothly for us and continues to strengthen as our teams come into contact with one another.  

Developers in Latin America are proactive and innovative, and see the working relationship as a collaboration rather than a hierarchical imposition between client and contractor. Cultural affinity allows parties to keep constant and easy communication, which includes a quick pace at voicing needs and concerns without an added risk of misunderstanding or possibly even offending one another. 

#6 A Solid Infrastructure As the Backbone of Latin America Outsourcing 

Since Latin American countries realized the number of benefits outsourcing services provide the region, they’ve constantly invested in infrastructure to up their digital game. Brazil, Chile, and Colombia have tripled their investments in IT over the past five years. Governments have taken a number of measures to encourage industry expansion and attract additional foreign businesses. Argentina’s software legislation, for example, provides an incentive framework for companies in the knowledge-based sector, which includes software development. Finally, Uruguay’s tax reduction initiatives are making it easier for international companies to establish operations in the country, just to mention a few key examples. 

Latin America is well aware of its economic relation to an increasing amount of IT company involvement in the global landscape. At Nearsure, we seize this opportunity to give high-performing Latin American tech talent unique projects and professional opportunities in which they can make a valuable difference for extended periods in meaningful long-term business relations of double-sided value.  

#7 Agile Software Development is Key in LATAM 

Finally, we need to consider just how much the Latin American software industry follows the agile software development standard. It does so more than many other outsourcing destinations in the world when collaborating with US-based clients precisely due to time zone and location considerations as mentioned earlier. Counterpart companies must more commonly follow traditional working approaches for software development, usually simply to make up for time differences and other related challenges. 

Due to the above, Latin American outsourcing providers can easily achieve quick delivery, reduced time-to-market, and cost efficiencies for US clients.   

Top Benefits of Collaborating with LATAM Nearshoring Companies 

For so long, U.S.-based companies had to partner with vendors on the other side of the world to drive down costs and add agility to their core business. However, those benefits did not come without tradeoffs such as time-zone differences and language barriers.  

Now, the advantages of outsourcing to Latin America have shown the U.S. tech sector they can have the best talent assisting their goals and metrics with teams that feel close to home. For us, remote talent truly never felt so close.  

Reliable and highly skilled tech teams in Latin America are constantly providing high-class solutions and ongoing support to US-based companies with a long track record of satisfied relations. 

Nearsure is part of a group of companies that has been in this industry for 15 years. With presence in 18 countries, as we’ve detailed, we count on 20000+ Latin American developers in-network with over 250+ successful projects. Our combined benefits are constantly putting us in a position to offer valuable solutions with meaningful, human-centric scaling — in no time.  

If investing in Latin American outsourcing sounds like an option you’d like to explore, let us know how we can help. We’ll be glad to look into our potential collaboration opportunities.