Why the Latin America Software Industry Is Booming
Growth, education, and more have made the region a software development hotspot.
A 2020 Stack Overflow survey revealed what many business leaders already knew: the Latin America software industry is booming.
Countries like Mexico, Peru, Colombia, Chile, Argentina, and Brazil are home to some of the best companies in Latin America, outpacing even many top American software companies. And well beyond the region, businesses and organizations across industries are taking notice and looking to talent outside of their countries.
“From Mexico to Argentina, Latin America is teeming with bright young web developers, data scientists, and programmers, driving rapid Latin American technology sector growth,” Entrepreneur reports. “Based on the current technological development in Latin America, experts expect the region to continue producing top-notch software development professionals to cater to the growing industry’s needs.”
There is a considerable amount of evidence to support this claim. For example, venture capital activity in the region has reached new heights in recent years, with 23 stable unicorns in the past In the past five years, $4 billion in deals, and startup exits netting $11 billion.
So, why is Latin America such a software development hotspot?
One reason behind the growth in the number of software developers in Latin America is the robust education programs and initiatives in the region. Many countries offer free college education, particularly for computer science, technology, engineering, and related disciplines. In addition, many government and independent programs are also incentivizing tech companies, organizations, and other businesses to hire interns, which further encourages citizens to pursue careers in the field.
In Chile, for example, the Ministry of Education created the National Plan for Digital Languages with the goal of increasing the number of students studying computer science and computational thinking. This education starts early, well before college, with extensive teacher training and schools offering lessons in computer science topics.
Software and IT growth
In part because of education, the Latin American software industry has seen tremendous growth, even beyond the region. Mexico’s IT outsourcing industry, for example, has been growing at a rate of 10-15% every year, making it one of the largest exporters of IT services.
Governments and local infrastructures are incentivizing businesses, organizations, and individuals to keep learning and focusing on computer science to make their countries top providers of IT and software services.
The US and other countries are taking notice of the region’s carefully honed software development process and strong skills.
The Latin America software industry: Key benefits
Partnering with top talent in Latin America offers a number of additional benefits, many of which can lead your organization to tremendous success.
There has been an enormous amount of investment in tech in Latin America in recent years, contributing to its growth and development as a region where tech is booming. Many well-known tech giants and startups alike are choosing to outsource projects to countries in the area, contributing to its reputation as the place for software engineering and IT.
Some premiere companies even have offices in Latin America. Amazon, Airbnb, Google, Netflix, Dell, IBM, HP, GoDaddy, and McKinsey, for example, have locations in Brazil.
2. Tech hubs
Consider, too, the many tech hubs that have cropped up throughout the region. These communities are physical spaces that bring together innovators, leaders, researchers, and technology professionals of all types, encouraging startups to grow and prosper.
These are unique environments that are becoming more ubiquitous throughout the region, allowing them to think and work together, bringing new ideas and concepts into the fold. This means great innovation in Latin America.
Coworking spaces also encourage this kind of thinking and innovation, and they, too, are now easy to find throughout Latin America.
5G has made its way to Latin America already. There have been commercial launches in countries like Brazil, Peru, and Colombia, with more expected in the coming year.
The region is well connected. Governments are investing in initiatives to increase internet speeds and improve bandwidths and latency in many countries in Latin America, allowing tech companies to take hold and thrive. Digital cities are growing, too.
4. English proficiency
According to the 2021 edition of the EF English Proficiency Index (EPI), the world’s largest ranking of countries and regions by English skills, several Latin American countries had optimal positions on the list of 112 countries and regions. Argentina led the region, with “high proficiency” in terms of English competencies.
English proficiency in Latin America is clearly on the rise. Many countries in the region are outpacing competitor outsourcing destinations in Asia. Thanks to strong English skills in the region, communication is streamlined, with fewer hiccups that could lead to errors and problems in collaboration.
Even without the added layer of physical proximity, which, of course, aids the process, communication is generally strong between US businesses and their Latin American partners. And thanks to technologies like videoconferencing and chat platforms, teams can be in constant contact, without anything being lost in translation.
Nearshore outsourcing: The answer to your staff shortage and software development needs
The case for turning to the Latin America software industry for staff augmentation in the software sector is clear. The technical expertise, growth, education, English proficiency, connectivity, and investment in the region are just some of the reasons why LatAm has quickly become a software development hotspot for the US and beyond. And that’s not to mention the cost-effectiveness, cultural affinity, and geographical alignment with North America.
At Nearsure, we have a proven record of bringing the best talent to teams in North America. From software developers to QA automation engineers, web and mobile specialists to machine learning practitioners, and much more, our professionals bring experience and top-level talent to IT businesses of all types.
With a remote-first mindset, our teams are able to bring top expertise to your business, no matter where you’re located or what you do. Our specialists bring unique, hard-to-find skillsets to your organization, helping you fill in the gaps and complete processes more efficiently and productively, and leading you to project — and organization — success.