What You Need to Know About Software Outsourcing to Latin America

Software Outsourcing in Latam Software outsourcing is not a new trend. For years, organizations and technology companies have maintained development teams overseas in Asia to…

February 14, 2018
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Software Outsourcing in Latam

Software outsourcing is not a new trend. For years, organizations and technology companies have maintained development teams overseas in Asia to save on the expenses of hiring an in-house developer in the U.S. But the pattern is shifting now, as companies are taking notice of Latin America’s growing reputation for producing top tech talent. Mexico, Chile, Argentina, and Colombia are all top strategic locations for a development team in Latin America.

A combination of highly-skilled workers, close geographic location, and English language ability has helped Latin America become one of the leading software outsourcing hubs over the years. Here’s why your organization should consider outsourcing your software development to Latin America.


Mexico has become a hub for talented developers

As the Trump administration has cracked down on H-1B visas that are often used to bring skilled workers to the United States, Mexico has begun creating initiatives for its talented programmers in-country. Programs like StartupGDL and the debut of Mexico’s Tech Visa are meant to attract talented workers – who would otherwise be in the U.S. – to develop their careers in Mexico.

StartupGDL has already made it possible for seven American and Mexican startups to set up offices in Guadalajara, bringing tech jobs to this growing city. Certainly, many others will follow. Mexico’s top universities, namely Tecnologico de Monterrey and Universidad de Guadalajara, have long been producing high caliber developers who are now finding work in these Silicon Valley back offices.


Software outsourcing to Latin America cuts down on costs

Beyond the favorable business climate that Mexico is creating, organizations are looking to Latin America for developers to save on costs. According to VentureBeat, it costs US$40-$70 per hour to hire a skilled developer in Latin America; in the U.S., a developer costs anywhere from US$80-$150 an hour and up. This affordable talent pool is a huge draw for cash-strapped startups or organizations on a budget.


Latin America is geographically close to the U.S. and mostly in the same time zone

There is a significant advantage to having your development team close by. Most major Latin American cities are in the same time zone as the U.S. East Coast, meaning no midnight meetings for you or your team. Your Latin American developers will likely be in the office at the same time as you, so you can easily contact them if a project requires any last minute collaboration.

Furthermore, many cities offer nonstop flights to major U.S. hubs, like New York, Houston, Chicago, and San Francisco. Getting to Mexico City from the East Coast can take as little as two hours, making business travel simple and affordable.


English language proficiency is high

Many countries in Latin America have recently become global leaders in English proficiency, including Argentina, Chile, Peru, Ecuador, and Mexico. This is helping the region beat out India to become the main hub for software outsourcing.

In 2011, the CEO of Zagada Markets, Philip Peters, noted that only about 30% of Indian web developers were proficient in English. Being able to communicate easily with your development team abroad streamlines your business processes and allows you to build an international team more easily. With the Obama Foundation’s 100,000 Strong for the Americas campaign, many Latin American countries are seeing English proficiency skyrocket, opening their borders for business.

Latin America’s high-caliber tech talent is attracting many U.S. organizations to work with development teams abroad. While India still holds a portion of the IT outsourcing market, Latin America has become a major destination for outsourcing due to an ideal combination of high English proficiency and similar time zones that make collaboration simple. For companies looking for highly-skilled developers to build their next product, the perfect team might be just across the border.


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