Top 5 Reasons Why a Startup Ought to Outsource Software Development to Latin America

Outsourcing Opportunities in LatAm

The prevalence of digital hubs across Latin America has made it a highly appealing option for companies to outsource software development. Whilst India and Asia have historically been the most attractive outsourcing destinations, major corporations are starting to explore the benefits of relocating software development to Latin American countries. These benefits include the potential to extend their international presence, reduce costs, achieve a faster time to market and offset natural talent shortages.

Here are some reasons why your startup may want to consider outsourcing software development to Latin America.

1. Reduced prices

Due to the need to reduce operational costs, an increasing number of businesses are relying on outsourcing for software development. According to Mark Growth, almost a quarter of all businesses opt for outsourcing in order to cut down on their expenditure, with 46% of those who fail doing so because of financial constraints.

Accelerance has recently released its 2023 Guide to Global Software Outsourcing Rates, which outlines the average annual salary for IT professionals across a number of countries. It has been noted that the cost of living in Latin America is substantially lower than that of North America.

Latin American software developers are an attractive choice for business owners looking to keep costs at a minimum without sacrificing quality. Their ability to provide high-quality services at a competitive price makes them a great option for those seeking cost-effective solutions.

2. Experience with Agile and Lean Processes

In recent years, numerous business organisations have adopted agile and lean methods as part of their software development project management strategies. This approach has become commonplace in outsourcing centres throughout Latin America, due to the fact that local developers are highly adaptable and willing to collaborate with external firms, thus providing creative solutions to various issues.

Startups are increasingly looking for developers who are capable of taking the initiative and making decisions independently. Compared to in-house programmers, those working remotely are likely to be better suited to being able to work without the need for constant supervision. By constructing a cost-effective and multi-disciplinary team of engineers from Latin America, your startup can benefit from high-quality results with minimal management time.

3. The Latin American region is becoming more attractive to large tech startups.

In recent times, numerous prominent technology companies from across the world have been paying close attention to the Information Technology (IT) professionals in Latin America. Amazon Web Services (AWS) is no exception; following their existing sites in Brazil, Chile, Colombia and Mexico, they have recently opened a new office in Argentina. This demonstrates their commitment to the IT sector in Latin America and a desire to expand their presence in the region.

Wizeline and Facebook, two giants of the startup industry, have established a strong presence in Latin America through their collaborations with software development teams. Since the start of 2023, Wizeline has partnered with over 30 Latin American companies. On the subject of Google’s recent foray into the region, André Barrence, the director of Google’s So Paulo campus, has stated that the goal is to create a supportive environment for innovators to thrive.

These firms are just a handful of the many that are finding success by partnering with Latin America’s impressive pool of technological expertise.

4. Competence in the English Language

Argentina, Chile, Peru, Ecuador, and Mexico are among a range of Latin American nations with some of the highest English-language proficiency rates globally. This is making the region a key area for the outsourcing of software development projects.

An abundance of Latin American countries, including Peru, Chile, Ecuador, Mexico, and Brazil, have surpassed China in their proficiency of the English language, according to the EF English Proficiency Index 2023.

According to the survey, Argentina also has the highest concentration of native English speakers in all of Latin America.

Urban youth in Latin America are starting to acquire the language at a young age. Numerous Latin American specialists are taking advantage of the vast talent pool of programming and IT jobs in the region, allowing them to work remotely for US-based organisations in technical sectors.

5. Instantaneous Teamwork

If you are an entrepreneur in the startup phase, you may wish to consider visiting your outsourcing partner in Latin America. For example, a direct flight from San Francisco to Guadalajara, Mexico, a key hub of technology, takes only four hours. Furthermore, the majority of countries in Latin America share the same time zone as the United States of America, or are just one or two hours ahead of Eastern Standard Time. This makes it a convenient and accessible destination for entrepreneurs.

Eduardo Araujo, Vice President and General Manager of HP Enterprise Services, has noted that there is a highly prosperous market for outsourcing in Latin America, primarily due to its compatible time zone with the rest of the Americas, making it a natural connection.

Latin American developers offer a unique opportunity for American businesses to benefit from 24/7 support and close proximity to their outsourced partners, resulting in a smooth and efficient working relationship.

Latin American outsourcing of software development: a robust and scalable option for young businesses

In recent years, numerous American companies have been collaborating with software development teams based in Latin America, taking advantage of the region’s wealth of talented IT personnel. This part of the world is an attractive prospect for startups looking for help with software development, as it offers competitive prices, a shared language, and is conveniently located in relation to the United States.

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