An End-to-End Overview of Latin American Software Outsourcing

When considering Latin America for outsourcing, companies may wonder why it is advantageous compared to other regions. One of the main advantages is the cost savings that can be achieved by outsourcing to Latin America. Additionally, Latin America has a large pool of talented software developers who are capable of delivering high-quality software solutions. This, coupled with the lower cost of living in Latin America, makes it an attractive region for outsourcing software development. If Latin America had its own software development team, the size of the team would depend on the types of projects the company is looking to outsource. For example, a large company might need a team of hundreds of software developers, while a smaller company might only need a team of 10-20. There are many reasons why an American firm would choose to outsource to Latin America. Firstly, Latin American countries have a strong cultural affinity with the United States, making it easier to build relationships. Secondly, the cost savings offered by outsourcing to Latin America are often a major factor in the decision-making process. Finally, Latin American software developers have a strong reputation for producing high-quality software solutions. When approaching the Latin American software outsourcing market, companies should be aware of the different cultural, legal, and economic considerations that apply in the region. Companies should also be aware of the different types of software development services that are available in Latin America, as well as the cost savings that can be achieved by outsourcing to the region. Additionally, companies should be sure to consult with local experts to ensure that the software development process is conducted in accordance with local regulations and best practices.

Are you trying to find the solutions to such questions? Continue reading!

For organisations in the technology industry of all sizes, from individual entrepreneurs to large corporations, there is one shared objective: to identify and maintain the most talented engineers, while still keeping costs low. In the current market, however, it has become increasingly challenging to source the highest level of talent within the USA due to the talent deficit. As a result, a number of US businesses have moved their operations to Latin America, believing it to be more advantageous.

The reduced time difference between the United States and Latin American countries, the ability to adapt local labour regulations to meet the needs of individual businesses, their geographical proximity, and the lack of language barriers make Latin America an attractive option for software development outsourcing. In addition, many countries in the region have invested significantly in their IT infrastructure, making them well-suited to fulfill this purpose. Consequently, it is worth exploring what potential opportunities exist in this arrangement.

When compared to other regions, why choose Latin America for outsourcing?

  1. Fewer time zone gaps

    Working remotely is easier in LATAM nations than in other parts of Asia and Europe.

    There is a marked disparity between the time difference between the United States and many Latin American countries and the United States and other countries located further afield. Specifically, the time difference between the United States and nations such as Argentina, Costa Rica, Brazil, Colombia, and Mexico is only one to three hours; however, the discrepancy between the United States and countries in more distant regions, such as India, China, Vietnam, Indonesia, Ukraine, and others, is significantly greater at five to ten hours.
  2. Ability to quickly adjust to changing rules and requirements

    Customers in Latin America are interested in three things: those who can speak English well, those who are close by, and those who are affordable.

    When examining India and Poland, two nations that have emerged as global leaders in the area of outsourced and shared services, it is clear that India is subject to a higher rate of wage inflation compared to Poland, which has a more stable economic landscape.
  3. Close proximity to the contracted-out groups

    If you choose to staff up from Latin America, you will find yourself in a highly advantageous position. You will be able to easily and quickly travel by plane to your outsourced team, allowing you to be directly involved in the development process without having to take a circuitous route.

    Outsourcing software development to nations that are proximal to the United States can significantly streamline the process of onboarding, developing, and maintaining software projects. In particular, the time difference between the United States and Mexico is only a few hours, making coordination between the two countries relatively effortless. This proximity allows for increased engagement between the two parties and promotes the success of the software project.
  4. Assistance from across the world and expanding facilities

    Recent research has demonstrated a surge in the number of leading technology organisations setting up operations in Latin America. This trend is driven by the region’s substantial talent pool, and is set to bolster the ongoing advancement and growth of the technology sector.

    Companies like Intel, GM, Genpact, Wipro, American Express, Citibank, and others have set up shop in the Latin American outsourcing market.

    Major corporations are investing heavily in cutting-edge office and factory facilities, in addition to new call centres, offshore delivery centres, Business Process Outsourcing (BPO) services, and Shared Service Centres (SSC). This substantial expenditure is indicative of their commitment to remaining competitive in the modern marketplace.

What sets Latin American civilizations apart from others?

Recruiting and retaining technical talent in Latin America requires tailoring recruitment practices to the local culture. To do this effectively, it is vital to understand the cultural characteristics of the region. Here, we will look at the most important cultural elements of the Latin American nations.

  1. Institutions of higher learning in the area

    If you are looking to recruit junior developers directly from academic institutions, it is important to be aware of the leading learning institutions in your field. QS’s University Rankings recently released a list of the top technical schools in Latin America. These are the following:
    1. Mexico’s National Autonomous University
    2. The State University of Paulo
    3. College of State of Campinas
    4. Chile’s National University
    5. Catholic University of Chile, Pontifical
    6. U.T.N.A.L., or the National University of Technology and Agriculture
    7. Institute of National Technology
    8. It’s the National University of Colombia
  2. Variations in Engineering Experience

    Due to the varied possibilities for training and employment that are available in each area, an engineer in Latin America may have a markedly different career path compared to an engineer in the United States.

    With the rise of accessible online courses and increasing access to higher education, Latin American countries now have a wealth of talent available to them. Graduates of traditional universities, coding boot camps, and other specialised programming schools are all contributing to this talent pool. Companies can then choose to hire talent full-time or to outsource their projects to contractors. Therefore, Latin American countries are now well-positioned to meet the demands of the tech industry and benefit from the associated economic growth.
  3. Divergences in Application Forms

    Review all resumes carefully while interviewing candidates from Latin America.

    Latin American candidates tend to present themselves in a modest manner on their resumes, as they may have a preference for working collectively rather than to focus on individual accomplishments. As such, their resumes may lack emphasis on the individual achievements of the candidate.

    Also, remember that in certain countries, CV stands for “resume” (Curriculum Vitae).

    A developer in Latin America may choose to include a photograph and a large amount of additional personal information on their resume. On average, resumes in Latin America tend to be more comprehensive than the typical one-page resume commonly seen in the United States.

Leading South American locations for software outsourcing

  1. Argentina

    Due to the fact that the majority of software engineers in Argentina are proficient in English, the country has a distinct advantage in the software development industry.

    The Argentinian population has the highest average score in South America on the EF Education First worldwide exam.

    The government is cognizant of the importance of Information Technology (IT) outsourcing and is continually evaluating labour regulations to ensure they are in harmony with the activities within this sector. Furthermore, the government is proactively making concerted efforts to attract foreign investors.
    1. Capital: Argentina’s Argentine Capital of Buenos Aires
    2. Language: Spanish
    3. “Well-Known For” Everything about tango, steak, wine, and football
  2. Bolivia

    Bolivia stands out among offshore operations for its cultural similarities to the United States. This similarity eliminates the need for businesses to expend a significant amount of effort on acclimating to the culture of their outsourced personnel, enabling them to start utilising their skill sets with minimal delay.

    When compared to other LATAM nations, Bolivia’s economy is more efficient, meaning that it can afford to hire top people.

    In recent years, Bolivia has experienced tremendous growth in its technology sector, establishing itself as a major centre of innovation within South America. This remarkable development has further propelled the country’s economy and has had a positive impact on its citizens.
    1. Capital: Sucre
    2. Language: Spanish is the most widely spoken of the 37 official languages.
    3. “Well-Known For” Pans of melted salt
  3. Brazil

    The Brazilian economy is the largest in South America, and it is a major hub for the outsourcing of IT services. It is also the home of numerous Fortune 500 companies, such as IBM and HP, who have their headquarters in Brazil. Brazil’s economic and technological capabilities make it an ideal location for businesses to set up shop and access a large, skilled workforce.

    Brazil is an ideal location to source software engineers due to its expansive IT workforce of more than 500,000 people, as well as the annual influx of new graduates numbering 23,000.

    Brazil is an attractive option for software outsourcing when compared to Argentina due to its superior technical knowledge and impressive command of the English language. The nation has established itself as a leader in the software development space, boasting a highly qualified workforce and a strong grasp of the English language. These factors make Brazil an ideal destination for businesses seeking to outsource software development.
    1. Capital: Brasilia
    2. Language: Portuguese
    3. “Well-Known For” Acclaimed football players, a wild carnival, and the Amazonian jungle
  4. Chile

    Chile is become one of South America’s leading destinations for software outsourcing because to its thriving economy and pro-business climate.

    In recent years, Chile has seen an increase in interest from multinational firms due to its strong reputation and flourishing economy. Chilean software developers have been praised for their contributions to various domains, including security systems, mobile banking, data processing, web design, and green technology. As a result, Chile has become a major hub for technological innovation and economic growth.

    The nation of South America is renowned for its cutting-edge telecommunications infrastructure, boasting some of the highest mobile phone and internet penetration rates in the region. This advanced technology landscape has enabled the expansion of various services, from traditional communication methods to the latest applications, allowing people to stay connected and informed. As a result, citizens of the country can enjoy a high-quality telecommunications experience that is not only reliable but also efficient and cost-effective.
    1. Capital: Santiago
    2. Language: Spanish
    3. “Well-Known For” poetry, wine, and Easter Island
  5. Peru

    After Brazil and Argentina, Peru is Latin America’s third biggest nation in terms of land area.

    Peruvians possess a wealth of knowledge and experience in the arena of computer programming. Numerous Peruvian programmers have prior experience collaborating with or researching the techniques utilised by sizeable corporations.

    Peru is considered one of LATAM’s best outsourcing locations because of how well its workforce culture meshes with that of the West.
    1. Capital: Lima
    2. Language: The Inca Languages of Aymara, Quechua, and Spanish
    3. “Well-Known For” Cuzco, Machu Picchu, and Alpacas
  6. Uruguay

    Uruguay is renowned for its progressive and advanced educational system, which provides students with the highest quality of education. Furthermore, the country is highly embracing of new technologies, enabling the educational system to leverage the latest advancements to ensure that students are provided with the best possible learning experience. It is this combination of innovative and high-quality education, as well as the eagerness to adopt new technologies, that truly sets Uruguay apart from other nations.

    Due to the progressive educational system in Uruguay, students are presented with the opportunity to gain valuable professional experience while still in school. Moreover, Uruguay is ahead of the curve in terms of introducing children to technology at an early age and equipping them with the necessary skills to thrive in the digital age.

    Companies like IBM, Kraft, BBVA, HBO, and others have shown interest in Uruguay by opening offices and forming partnerships there.
    1. Capital: Montevideo
    2. Language: Spanish
    3. “Well-Known For” Punta Ballena, tango, wine, and mate

Five simple approaches to recruiting talented Latin American software engineers

  1. You only have to look in the correct country

    Finding a programmer in one of Latin America’s thirty-three countries may be the ideal solution, but it presents a challenging task. Therefore, it is recommended that you select a country that is better suited to your requirements.

    When selecting a country to fulfill your needs, consider researching those that are known for specific qualities. For example, Panama is renowned for its cutting-edge software technology, while Chile is known for its highly-regarded developers. Taking the time to assess the options available to you can help ensure that you choose a country that can best provide for your needs.

    Get it down to just one or two countries. You’ll be able to find the best candidate faster if you do this first.
  2. Analyse the available talent in each nation.

    Consequently, this is congruent with the preceding dialogue. It is important to be aware that despite the fact that Latin America does have a sizable software engineering sector, these experts may specialise in a broad selection of disciplines.

    There is a sizable population of mobile developers, data administrators, data or business analysts, and quality assurance specialists in Latin America, yet the majority of them concentrate on back-end development.

    In conclusion, those who are seeking professionals proficient in back-end software development should consider Argentina, Chile, Mexico, Colombia, and Uruguay as viable options, while individuals looking for gaming, visual, and DevOps professionals should explore Brazil as an option.
  3. Keeping the cost in mind is essential.

    StackOverflow found that software engineers in Chile, Argentina, and Brazil make the most money (above $10,000 annually).

    Therefore, if you require software expertise for a little project at a lower cost, you should go to other countries.

    Instead of looking for the cheapest option, focus on finding a software development specialist who can meet your needs without breaking the bank.
  4. Challenge their technological savvy

    A recent Stack Overflow survey revealed that Latin American developers have a clear preference for certain programming languages over others. HTML, Java, and Python have emerged as the most popular choices among Latin American coders. Furthermore, the survey indicates that these developers tend to show a particularly strong aversion to certain technologies.

    In order to assess their knowledge of technology, programming languages, and other related topics, we should administer both online and in-person examinations and assessments. This will allow us to evaluate their understanding and capacity to solve problems.
  5. Solicit their opinion by inquiring about their past encounters.

    Ultimately, it is essential to evaluate their level of expertise. Inquire about similar projects they have been involved with in the past, their role and responsibilities, and how they managed to achieve such impressive results.

    If you opt to hire a software developer with less experience, they should still be able to provide you with an outline of the steps they will take to bring your project to fruition.

Finally, the bottom line

Outsourcing to countries in Latin America can offer numerous advantages to businesses. It is important to remember that the opportunities associated with outsourcing to Latin America are not limited to cost-savings alone. This type of outsourcing can also provide a significant boost in productivity, as well as the potential to develop strong and long-lasting partnerships.

Go to Works if you need to find and recruit skilled programmers in Latin America but don’t want to deal with the associated administrative burdens.

The Works Intelligent Talent Cloud harnesses the power of Artificial Intelligence (AI) to assist businesses in sourcing, assessing, onboarding, and managing a global pool of outstanding software developers. This comprehensive solution provides a comprehensive suite of tools to help companies manage their entire hiring process from start to finish. Through the use of AI-driven analytics, the Intelligent Talent Cloud offers businesses a more efficient and cost-effective way to identify, hire, and manage the most talented software developers available.

FAQs

  1. When compared to other regions, why choose Latin America for outsourcing?

    It is possible to acquire highly qualified information technology (IT) personnel from Latin American countries at a fraction of the cost of hiring in the United States. Furthermore, technology hubs, such as those located in Buenos Aires, Uruguay, and Bogota, Colombia, are witnessing a period of rapid growth and advancement.
  2. If Latin America had its own software development team, how many people would it have?

    In 2021, the outsourcing market had access to a total of around 9,63,000 programmers in Brazil, Chile, Argentina, Colombia, and Mexico.
  3. For what reasons may a US firm go to Latin America for offshore workers?

    Here are four arguments in favour of American businesses bringing in workers from Latin America:
    1. Fewer time zone gaps
    2. Ability to quickly adjust to changing rules and requirements
    3. Close proximity to the contracted-out groups
    4. The availability of resources on a global scale and the encouragement of new infrastructure

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