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Main Advantages of Outsourcing Coders from LATAM

Outsourcing offshore is one of the most popular hiring options for IT specialists today and for a reason. It’s extremely cost-effective and allows you to reach a wider pool of talent. Eastern Europe and South Asia became popular destinations for outsourcing a long time ago, but Latin America quickly catches up and in this post, we will talk about some of the biggest reasons why.

Lower costs

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Cutting some spending on developers’ salaries is probably the main reason to turn your head to outsourcing abroad at all. Coders from LATAM countries will usually charge you more than their Eastern European or South Asian colleagues, but still considerably lower than specialists from the USA and Western Europe. According to the latest market research, an app developer from Latin America will ask for a two-three times lower salary than a coder with all the same skills from the United States. It is possible due to the lower costs of life per average and the difference in the exchange rate. LATAM coders in their mass are pretty skilled and you can be sure about the quality of the final product. But be careful when hiring a specialist who asks less than approximately 30 dollars per hour if you decide to hire directly through job-finding sites.

Government support

Economic growth in the region wasn’t as steady and reliable as in Europe or North America, which in some way incentivized governments to rely on IT-related businesses as a stable and lucrative way to bring money into the budget. Besides, a great number of LATAM countries are overall extremely business-friendly. Brazilian startups raised more than 5 billion dollars last year, and Argentina in recent years became home to new tech teams by Google, IBM, and Oracle among others. But don’t think that local officials are only interested in bringing international businesses. There are a great number of initiatives for helping young IT startups and governmental grants for the higher education of future programming engineers and other tech specialists. Mexico even signed an official agreement with the United States about relocating its IT professionals on a special visa. Don’t forget that a lot of LATAM countries have flexible tax laws with possible write-offs and other benefits. An outsourcing agency will gladly consult you on the legal side of doing business with local coders.

Great English

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Quality communication is crucial in your working relationships with web developers. Although most specialists in the world realize the role of the English language in their careers and try to perfect it, Latin America is miles ahead of some popular outsourcing destinations. In most countries, children learn English as the main foreign language from an early age and the relatively well-developed system of government-funded higher education in LATAM also provides some good learning opportunities. A lot of software development companies in the region offer their employees free English courses too. All those factors guarantee that you will have no problem communicating during coders outsourcing to Latin America.

Impressive IT infrastructure

It may vary from country to country, but Argentina, Brazil, Costa Rica, Colombia, and Chile have pretty impressive IT infrastructure even judging by the highest standards. Those five countries are among the 20 most popular destinations for outsourcing according to research by A.T. Kearney Global Services Location Index. A great number of government-funded colleges and universities that provide hundreds of IT specialists ready for work every year, private academies and intensive few-month-long courses, and coding boot camps, all of which provides a region with an unbelievable amount of qualified workforce. A lot of local companies have partnerships with US IT giants and that also helps to ensure the development of infrastructure on the continent.

Geographical proximity

When you outsource an app’s development to Europe or Asia, differences in time zones can become a real problem. Zoom meetings, calls about urgent updates or simple text messaging can take hours to set up. Maintaining close control of the development process will cost you or your project manager a good night’s sleep and a lot of headaches. Due to geographical proximity, you won’t have the same problem with LATAM coders. Workday mostly overlaps and if you will need an urgent visit for some face-to-face with the development team, it is also easy to arrange since it’s only a few hours flight. For example, it will take you between ten to sixteen hours to visit some of the more popular countries for outsourcing like Hungary or Malaysia. Of course, in case of emergency, it’s manageable, but it’s still easier to travel to LATAM countries.

Cultural similarities

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The United States and Latin America have a long and sometimes difficult history together but all of this amounts to relatively similar cultures. A lot of American tech professionals tend to think that LATAM coders are more eager to communicate, open to constructive criticism, and overall more proactive. Due to cultural differences, developers from a lot of Asian countries behave in almost the opposite way, which can throw off some clients from the USA.

Potential for growth

Companies who analyze the market for IT specialists regularly, often report that due to different factors some popular Eastern European destinations for outsourcing have already reached their maximum potential in terms of the number of a qualified workforce. Latin America still shows stable growth of around ten percent every year and with all learning opportunities and government initiatives it is safe to say that it is going to be the case in the future. So, creating a strong partnership with one of LATAM’s software development companies is really more of an investment.

Final thoughts

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Latin American countries realized the need for qualified tech specialists a long time ago and implemented some really great initiatives to develop great IT infrastructure and make outsourcing from the USA a great way to bring more workplaces. At this point, LATAM is still holding a third place among the most popular offshore outsourcing destinations due to slightly higher average salaries and a lack of knowledge among business owners about all advantages of hiring region’s coders. But if nothing changes, in the near future Latin America has a great opportunity to solidify its position and attract new businesses.


Ricardo is a freelance writer specialized in politics. He is with foreignpolicyi.org from the beginning and helps it grow. Email: richardorland4[at]gmai.com