There are many advantages of outsourcing development to Latin American. The region is a hotspot for tech talent that US based companies can take advantage of. This is partly due to the increase in internet coverage and usage, meaning more of the 652 million population is becoming tech savvy.
There is an impressive amount of technology start-ups in the region and also many Latin American governments investing heavily in the industry. This growing number of talented IT specialists are creating technology hubs in places like Costa Rica.
The increase in American firms outsourcing IT tasks and development projects to nearshore companies is also due to a number of advantages that Latin America has over traditional outsourcing locations such as South Asia and Eastern Europe.
Let’s take a look at the advantages of outsourcing development to Latin America.
Similar Time Zones to the U.S.A When Outsourcing Development to Latin America
Offshore outsourcing firms in Europe or Asia have massively different time zones which lead to communication problems. Latin American firms do not have this issue as the time zones match-up well with those across North America. This means the working days of your in-house team and that of the outsourced firm will overlap to make communication easy.
English Language Fluency
Speaking English is a valued skill among Latin American people, and English proficiency is especially valued among those interested in IT careers. This means the IT specialists you hire in Latin American countries will be proficient in English, which is not something you can promise about firms from other continents (including Eastern Europe).
Similar Cultural Identities
Another advantage of outsourcing development to Latin American is the similarity in culture that it shares with North America. This is especially true in terms of work styles and their approach to business. Certain business culture differences with faraway offshore firms can cause a number of difficulties which are not a problem when you nearshore to Latin America.
Healthy Business Environment
Latin America features many countries that are considered financially attractive according to the business environment and workers’ skill levels. As with every continent, there are a couple of countries experiencing some political instability. However, the majority have been benefitting from consistent political stability and favorable business policies for a long time.
Growing Talent Pool of Tech Specialists
The talent pool for IT specialists in Latin America has been booming in recent years. The influx of American firms outsourcing their IT tasks and projects has only helped encourage this boom in Latin American tech talent. The growth rate of the outsourcing market in countries like Costa Rica, Peru and Colombia has made it one of the fastest growing markets in the world over the last decade and beyond.
Reduced Costs When Outsourcing Development to Latin American
The advantage Latin America has, as an alternative to hiring US-based IT specialists is the cost, is that it is much more expensive to hire within the United States. Equivalent or even superior talent from Latin America will achieve your IT goals without breaking your budget.
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