When you think about software outsourcing the destinations that are more likely to come to your mind are countries like Poland, Romania, and Ukraine in Eastern Europe or in Asia like India. Even though these destinations have proven to be a rather reliable source of software development talents, US-based businesses more often consider locations in Latin America because of its proximity to the States.
The demand for software outsourcing and hiring remote software developers is still increasing as companies see the advantages of outsourcing rather than hiring in house-specialists.
Outsourcing used to be synonymous with cost reduction, but today it is becoming a legitimate way to find the right talents to increase the company’s technological capacity while bringing in new development resources on board.
The outsourcing industry is quickly expanding in Latin American countries, making it an attractive option when compared to other remote competitors in Asia and Europe - and not without a reason.
The advantages of software outsourcing in LatAm
Outsourcing in Latin American countries attracted many leading global companies such as Intel, American Express, General Motors, and Citibank. Before, these big players would rather consider going for more conventional outsourcing destinations, however the opportunities in LatAm are now more tempting.
High level of English
With communication being one of the biggest challenges of remote team management, high efficiency in English gives countries in Latin America a significant advantage, eliminating the language barriers and minimizing possible miscommunications.
According to EF English Proﬁciency Index in 2018 Argentina showed a higher level of English than the average in the Asian region, which makes it look very promising for the companies that are looking to hire remote software developers from Latin American region.
Lower cost doesn’t always mean good quality, but outsourcing companies in LatAm can prove you wrong. The tech education is high in Latin American countries and there is plenty of support coming from the local governments. For example, the Argentinian government created Plan 111 mil which aims at educating 100,000 software engineers in the next four years.
Still, you can get fantastic talents for lower cost than in the United States without it affecting the quality of the final product.
Another important reason to draw attention to software outsourcing in Latin America is its geographic position which makes it more convenient for North American companies to collaborate with. It eliminates the waiting time between the different time zone starts to work.
In software development, it is crucial to minimize the time spent on the development process and if you calculate how many hours you need to spend waiting sometimes it does make sense to consider outsourcing in the same (more or less) time zone.
With remote work becoming more and more convenient and accessible every year, these countries are attracting worldwide attention from companies across the globe-especially those in the US that are looking for new opportunities in software development.
There is no surprise that Argentina has been the top choice for software outsourcing in Latin America for many consecutive years - its high level of technical education, proficiency in English and convenient time zones make it an easy choice for the companies that are looking for high-quality software development and for prices that don’t break the bank.
Another reason to pay attention to Argentina is that it is turning into a hub for blockchain and cryptocurrency. Excessive inflation and forex instability created grounds for it and while the majority of Latin American governments have restricted or banned cryptocurrency, Argentinian government introduced the formation of the Federal Blockchain of Argentina (BFA), making it an attractive destination to numerous blockchain-based startups and businesses.
Named Latin America’s largest startup ecosystem by TechCrunch, Brazil is attracting the attention that it deserves thanks to the spirit of innovation and economic environment that benefits the transformation of the country into a tech services powerhouse. It attracts international projects both from the US and European and Asian countries.
Brazil would be a top choice for businesses that are looking to not just find additional workforce for their projects, but committed collaborators that are looking to contribute to the company's growth thanks to their entrepreneurial drive, tech knowledge, and similar work values.
Being a US territory allows American companies to outsource into an onshore location, but that doesn’t outshine the fact that Puerto Rico has attracted many international companies because of its proficiency in English and combination of the best of two worlds - Latin America and the United States.
It allows companies to make significant cuts on the cost of software development while maintaining the quality of the leading technology innovation centers in the US that set the bar high for skilled engineering talents.
Colombia has earned the name of the software development outsourcing hotspot thanks to hiring and investment benefits that the government is actively promoting to attract global IT leaders as their outsourcing destination, but there is more than tax incentives that make Colombia rank high.
Colombian IT companies focus on bringing innovative tech to the market which will help Medellín to join San Francisco (USA), Tokyo (Japan), Beijing (China) and Mumbai (India) to become a headquarter for The Center for the Fourth Industrial Revolution.
Peru has joined the list of top outsourcing destinations in Latin America based on its cost competitiveness and the agility of the labor force. In addition to its developers' technical proficiency, Peru offers a great number of bilingual talents that improve communications and helps access more efficient human capital for optimized results.
There is a huge potential for Latin America to turn into a worldwide leader in software outsourcing with its high tech expertise, favorable location, and competitive prices. The local governments are also supporting IT initiatives making more global companies gravitate towards this market.
The software outsourcing industry in LatAm will continue to grow, largely thanks to the demand from US-based companies for nearshore software developers that can provide high-quality products at a reasonable price. Given the ability of Latin America to provide high-level tech education for its talents, it looks like there's more premises for its steady growth rather than the opposite.
Software engineers from Latin America form a big part of our development team at Trio. Their knowledge of programming and professional skill have proven them to be a fantastic choice for software development projects of any complexity as they deliver unique and opportune solutions for business problems that our clients are facing. If you are looking to expand your software engineering team with LatAm talents, contact us to discuss your project and find the best match among our engineers.