Why Outsourcing Software Development to Latin America Makes Operational Sense

Global spending on outsourcing activities reached an all-time high of over $731 billion USD in 2023. Everyone from small startup companies just getting operational control out of their garage to larger G2000 enterprises requiring flexibility seeks international outsourcing. The benefits of adapting and growing without onboarding massive amounts of new staff are undeniable.

The only challenge isn’t whether or not to outsource departments like accounting, IT, human resources, and customer support but where to get the all-in-one services a business needs to thrive. While some prefer seeking help from China or the Philippines, one of the quickest rising geographic regions for finding safe, secure, and well-trained outsourced support is Latin America.

Why Outsourcing is Popular with Growing Businesses

Companies in the U.S., U.K., and across Europe all need qualified workers. The rapid growth in outsourcing these openings is largely due to the adoption of remote workforces during the global pandemic and the acceleration of all sorts of digital transformation. When it is easier to hire a freelancer via an online service like Zoom to manage your hotel bookings, it provides you with a wealth of benefits like:

• Operational Flexibility: A business is more empowered to increase or decrease operational needs with a flexible workforce that can be minimized or maximized whenever needed.

• Cost Efficiency: It is far more cost-proactive to use a service that oversees all the management and hiring of Latin American workers instead of onboarding new staff and paying high salaries, bonuses, and benefits.

• Access to Expertise: When you outsource, you begin to find companies specializing in specific needs like IT or customer support. These are dedicated providers who may unlock new opportunities for your business interests.

With so many benefits, it only makes sense to seek Latin American companies offering outsourcing services for your unique niche market or industry.

Latin America Outsourcing Offers Competitive Pricing

The cost of outsourcing is one of the major advantages of pursuing this line of operational efficiency. Across all industries, you can find expert help at lower prices in Latin America than in U.S. markets.

Look at software development. The average cost of hiring US-based engineers ranges anywhere from $120 to $210 per hour. Then you have the expense of hiring, onboarding, training, and integrating these professionals so they align with your company culture and current project goals.

When you outsource software development to Latin America, you receive nearshore developer rates ranging between $50 and $95 per hour. That is around half the expense, providing you with way more funding resources for new product development, marketing, and anything else your business may require.

Technical Expertise and Talent Pool

Countries like Argentina, Brazil, and Colombia are rapidly growing new developer talent pools. The close proximity of countries allows for the sharing of resources to increase educational opportunities for those interested in high-paying careers in their local regions, which are equally lower-priced workforces for countries like the U.S. and U.K.

In 2022 alone, around 500,000 software developers were involved in offshore development in Brazil. Argentina boasts well over 100,000. The numbers are only growing because such professional careers are a welcome change for middle to high-income earners.

What this means for businesses looking to outsource is a sudden influx of highly trained and capable talent willing to go the extra mile. They are educated and fluent in most of the current and emerging tech stacks used by leading IT companies around the globe. Everything from AI integration to cloud computing to blockchain development is possible when outsourcing to Latin America.

Time Zone and Geographic Proximity

It certainly doesn’t hurt that Latin America is in the same time zone mobility as the rest of North America. Instead of trying to navigate complex time zones when outsourcing to Asia or Eastern European countries, you get a workforce in a similar zone for greater collaboration.

Argentina, for example, is only a few hours ahead of Eastern U.S. time, where massive cities like Boston, New York, or Washington, D.C. all operate. Plus, you don’t need a full day of travel to get from North America to Latin America. The average trip to Colombia from Boston is only around 6-7 hours. Such proximity makes face-to-face interactions much more straightforward to achieve so you can cultivate the relationships you desire without sacrificing too much time.

Cultural Similarities and Language Proficiency

Are you worried about language proficiency? Take a look at Argentina. While Spanish is the primary language, over 2.8 million people in the country speak fluent English, especially when that language is related to previous educational study or future career development.

The same is true in the rest of Latin America. Countries widely recognize that international business is typically completed in English, with as many as 1.6 billion people using it fluently. Any business offering outsourcing services in Latin America will do everything possible to familiarize its workforce with the English language and cultural norms of North America. These are the methods used to grow and expand operations to better support the needs of SMEs.

Challenges of Outsourcing to Latin America

Even with all these advantages of outsourcing, there are concerns about working with countries outside a business’s original development center. Regulatory differences, expectations about quality, and the risks of regional economic stability are sometimes mentioned.

You will get supportive workarounds and legal protections if you have a partner seeking qualified and dependable outsourcing in Latin America. Seeking outsourcing providers like ScienceSoft that guarantee service quality backed by ISO 9001 certainly minimizes economic risks to any company.

Final Thoughts

The IBM Global AI Adoption Index lists that the top barrier to AI adoption inside any business operation is directly related to talent retention and acquisition. Becoming or remaining a competitive advantage in today’s challenging market requires finding qualified and eager talent.

Focusing on Latin America as a resource for outsourcing software development only makes sense. A business will save time, money, and effort – all without sacrificing the quality needed to succeed with any upcoming or ongoing project.

Considering the proximity and cultural ties bridging North America and the U.K. with Latin America, it is exciting to see how these relationships will continue to grow. Companies in the states get the much-needed support to grow, and emerging markets like Brazil, Argentina, and Colombia receive economic boosts from international workforce investment. Outsourcing to Latin America is a win-win!