One of the new names evolving in the outsourcing business is Latin America. Owing to time-zone
compatibility, cultural similarities, and a tech-savvy demographic, Latin America offers high-quality
development services to the companies outsourcing in the region.
Innumerable trends in the continent of Latin America
have created an ever-growing pool of IT talent which can then be deployed by companies to achieve low-cost
development services.
Today, many top US based companies, including Globant, Toptal, Scalable path and
many more are progressively looking at Latin America as a potential offshore center for their future
development projects.
Suitable Business Environment
Most Latin American countries are developing state-of-the-art IT and business hubs and are giving companies
worldwide a plethora of reasons to outsource their services.
With favorable business policies and political stability, these countries can be chosen as your next
offshoring option to gain further business benefits.
Cost-effectiveness
Although many believe that while outsourcing projects, cost should not be the only factor, nobody would deny
that it plays a pivotal role. Cost-effectiveness is among the top aspects one considers while deciding about
their outsourcing partner and Latin American countries are quite cost-efficient when it comes to outsourcing
development projects.
The hiring rates for quality developers and other similar professionals are much lower
than the USA
, a factor which plays as a strong point for Latin American countries.
Similar Time Zones
One of the biggest disadvantages that firms in the USA experience while outsourcing the development work to
India and China is the large time zone difference.
On the flip side, when the time zone difference between
USA and Latin American countries is calculated, its negligible.
This significantly reduced time difference
allows mush lesser response times between the teams and highly synchronous communication, enabling the
resolution of issues quickly. Communication is one factor which tends to suffer due to large differences in
time zones and outsourcing to Latin American countries eradicates this issue completely.
Abundance of Technical Talent
Most Latin American countries boast abundant tech talent as the number of qualified and experienced
developers is on the rise in such countries. Even when browsing through online freelancing websites for
programmers, one can find thousands of high quality programmers from the countries subsuming Peru, Uruguay,
Argentina, Brazil, Chile, Colombia and many more. The technical workforce in these countries is growing
steadily & will continue to grow, and this is one of the most prominent reasons for outsourcing to Latin
America.
Innovation Oriented Approach
Latin America has been known as a growing hub for advanced agile development for quite long. Furthermore,
the time zone alignment with the North American companies makes it an ideal destination for the agile
partnerships with a variety of staff solutions. This time zone alignment is enhanced and complemented by the
strengths offered by the Latin American workforce. It has been attested by the panelists that Latin American
professionals tend to communicate more openly and directly and have a creative approach towards
problem-solving.
English Proficiency
Being primarily comprised of English speaking nations, it has been established that several Latin American
countries surpass India and China when it comes to English proficiency, and is one of the main reasons to
outsource to Latin America.
Cultural Similarities
The culture of the United States of America and Latin America, both have been strongly influenced by
European civilizations. Furthermore, while these two have a lot of cultural differences, there are certain
similarities which extend into identical business approach and work styles, making it easier for
professionals from both the places to collaborate.
The Latin American developers seem to be more creative and assertive, viewing the business relationships
more as the partnerships instead of hierarchical worker/client relationships. On the other hand, the Asian
countries work in an opposite manner. Thus, it is beneficial for businesses to consider Latin America as
the place to outsource their development projects for achieving better results and developing sustainable
relationships.
Fast Growing Outsourcing Market
As the global marketplace for outsourcing services is expanding, Latin America is evolving more rapidly.
With countries like Brazil, Chile and Colombia taking the lead, there are several other Latin American
countries which are gradually making their place in the offshoring landscape.
Investments on the Rise
For a long time, IBM and HP were the only major names who had made investment in Latin America. Accenture
also made a significant investment, but at the same time, it was following a country specific strategy.
However, the scenario has completely changed now. Many other companies have started making major investments
in the region, including Cognizant, Capegemini, TCS, Infosys, HCL, Wipro, US Global etc.
Free Trade Is Encouraged
Why do companies outsource? Well, because they seek cost savings and cost-efficiency and Latin America
offers this advantage.
The biggest economic success stories in Latin America have been those companies which have leveraged the
power of free trade. While Latin America is expected to remain more economically volatile than most other
markets due to the lack of a central bank coordinating monetary policies across the continent, the companies
which invest in the region have more options and more confidence owing to a slew of free trade agreements
which have been signed in the last decade.