Table of Contents
Latin America is a top global destination for outsourcing software development. Although most US companies tend to look toward Asia for their outsourcing needs, the truth is that Latin America offers a lot of benefits that can’t be matched by other regions.
Nearshore software development offers many advantages in Latin America
In Latin America, you get all of the same advantages of nearshore software development, but with a much smaller time zone difference. You can communicate with your team in English, have them working on similar business hours as you do, and have a very similar cultural background.
It’s important to note that time zones are critical for communicating with customers and partners. It’s equally important for agile software development, where real-time communication is vital to developing a product quickly.
For example, it’s virtually impossible to work in real time from the US with India; they’re 10 hours apart and the difference between them means they often have different business hours. Also, many companies require their developers stay up late or wake up early depending on their location (i.e., working through the night). This impacts either the quality of the talent you are getting from India or the ability to retain good talent when they are offered something else in their same time zone.
But with Latin America, there’s no such problem: all of these countries are within an hour of each other! You can actually have a real-time chat with your team member from Latin America at 2pm on a Monday—just like you would if you both were in New York City or Chicago.
Latin American countries are quite accessible. Most of them have direct flights to the U.S., and a good number also have direct connections with each other.
- In this region, you can travel between countries without jet lag because they all share the same time zone. This means that when you visit a development site in another country, there’s no need for extra time off work—you can just jump on a flight and arrive ready to go!
- The shared cultural aspects between North America and Latin America aid in smooth collaborations.
- A large part of Latin America shares cultural commonalities with the United States, simplifying the process for your team and other involved parties to work well together. The widespread use of English guarantees easy communication amongst team members.
- Business practices such as accounting and finance are similar across the region, making it easy to implement best practices from your home country into those used locally.
Companies have a lot of options on where to locate their software development teams in Latin America
There are many countries to consider in Latin America. The top 10 countries with the most software industry jobs in 2016 were:
- Brazil (1)
- Argentina (2)
- Mexico (3)
- Chile (4)
- Peru (5)
- Colombia (6)
Guatemala & Venezuela tied for 7th place, with 8% each.
Strong Tech Programs and Deep Talent Pool
Latin America’s tech industry is booming. The region has a strong talent pool and excellent educational programs that are producing top-notch software engineers. The following countries have particularly strong tech programs:
- Colombia
- Chile
- Peru
Large technology anchors
Large technology anchors are substantial tech firms with many employees and a significant footprint in a specific region. These are usually multinational corporations found in major cities with a pronounced influence in the area.
In Latin America, such powerhouses include Google, Microsoft, and Facebook. These companies have numerous offices across the continent, with a special focus on places like Brazil’s Brasilia, Argentina’s Buenos Aires, Bogotá in Colombia, and Mexico City. This presence has fostered a robust software development workforce in Latin America.
Latin America has produced a strong software development workforce
Latin America has produced a strong software development workforce, which is now in high demand by clients around the world. In fact, this region boasts one of the strongest IT industries and technical talent pools in the world.
To find out why it’s such an ideal location for software development outsourcing, let’s take a quick look at some key statistics:
- It provides plenty of opportunity for growth and career advancement through its established tech industry.
- Companies can also benefit from its deep pool of developer candidates who have been trained within Latin American universities and colleges, which are known for their high standards of teaching quality.
- Many companies in the region have proven experience delivering complex technology projects to US clients.
Software outsourcing costs are lower in Latin American countries than the United States
Living costs in Latin America are generally lower than in the United States. This allows for the hiring of skilled software developers capable of delivering quality work at a more affordable cost.
Latin America is full of talented, creative and professional people. With the right planning, any company can save time and money while developing quality products in Latin America. If you are interested in exploring in more depth in a call, let´s talk!
