When it comes to outsourcing, IT services and software programming top the lists of companies looking for top talent. Outsourcing alone comes with its fair share of benefits – starting projects faster, reducing salary costs, and increased productivity being a few notable positives.
However, it’s essential to find the right places to hire when it comes to outsourcing. More so than simply finding the right talent, it’s about finding a cost-effective solution that will allow your organization to grow quickly. And as the cost of tech talent continues to grow in the U.S. and other Western countries, the need for outsourcing has also increased.
One of your best options? Hiring in Latin America. With the average salary ranging from $25 – $50, depending on the country, Latin America is becoming the preferred spot for many U.S. and Canada-based companies. There are many reasons why Latin America has become a hotspot for hiring, which we detail below.
Take a look at why this ever-growing region is an innovative, strategic option for your business’s outsourcing needs.
Highly Skilled Talent
Hiring skilled software developers is a top priority for companies looking to expand their reach and make a more significant impact. And luckily, the software developers in Latin America are known for doing good work. Many Latin American countries have invested big in developing their tech talent, allowing for developers to get comfortable with their skills and have a more robust understanding of the industry as a whole.
With an increase in national and local innovation programs and growth in technical universities, Latin America has a growing and capable pool of talent for recruitment. If you’re going to be outsourcing, you want to tap into a region that won’t struggle to accumulate hard workers. In this case, Latin America will always come out on top.
Proximity to North America
The time zone difference between Latin America and North America averages less than two hours, making it easy for companies to hire developers that can work on a similar timeline to their own. This allows for prompt communication and a lower risk of missing deadlines.
On top of shared timezones, this proximity allows for easy travel to and from Latin American destinations. Should your developer need to meet with you in person, their time spent traveling will be greatly reduced compared to outsourcing in regions such as Europe and Asia. This ease of travel coupled with highly skilled talent makes outsourcing in Latin America a new standard for companies looking to expand.
Fewer Language Barriers
Due to its proximity to North America, many Latin American software developers are already fluent in English. Plus, many Americans have an adequate understanding of Spanish, the most common language in Latin America. This makes it easier for both English and Spanish speakers to converse.
Babbel notes that English is the third most spoken language in Latin America, with about 5.4 million speakers. Fewer languages barriers make it easier for companies to collaborate with outsourced developers, ensuring they’re both on the same page when it comes to projects and responsibilities.
A Growing Tech Industry
With almost one million tech graduates per year in Latin America, the tech industry isn’t slowing down anytime soon. Latin American governments continuously invest in technical education, laying the groundwork for a talented, growing group of software developers.
Though cost is another positive factor when it comes to outsourcing in Latin America, it’s important to note the value in hiring team members who are passionate about their work and eager to enter the U.S. tech market. These all-time high graduation rates allow companies to rest easy knowing they have their pick when it comes to proactive, educated tech talent.
Reducing hiring and operating costs is at the forefront of all growing companies’ wants. Fortunately, cost-effectiveness is a key reason why Latin America has become a hot spot for hiring. This is because Latin America has low labor costs overall, especially compared to Europe and the U.S.
The cost of this labor is also at a high value, as salaries are low on average, but companies are matched with highly-skilled developers. The talent in Latin America provides quality work for less than their North American counterparts. Outsourcing in this region reduces overall salary costs and additional compensation costs as well. Think: benefits, paid vacations, and other perks you offer to in-house employees. Outsourcing in Latin America eliminates the need for a handful of costly bonuses.
Though there are a handful of notable cultural contrasts between Latin America and North America, their similarities outweigh the differences here, especially if considering outsourcing in Asian countries. These regions share many commonalities, including a strong work ethic, workplace hierarchies, and a deep understanding of the technological landscape. These cultural similarities make it easier for your company to work with developers who will fit naturally into your team.
Ready to build your software development team in Latin America? There are three main ways you can get started:
- Software Outsourcing – For companies with development needs but not a tech focus, outsourcing part or all of their IT and Development needs to a Latin American-based company is the best choice.
- Staff Augmentation – This is an excellent option for growing companies who want to find quality talent at a much lower cost. These companies can hire employees to work remotely while integrating them into their core operations.
- BOT (Build, Operate, Transfer) – Great for companies that want to build a new office or an offshore team but do not have the bandwidth or the necessary know-how to do it without risk. The BOT model allows companies to partner with a local agency to hire and operate the staff until it reaches a sustainable point to be transferred entirely to the company.
Capitalize on top talent without increasing costs by outsourcing in Latin America. Regardless of the option you move forward with, CodersLink can help. We empower scaling companies to build, grow, and manage remote tech teams in Latin America. Through remote staffing and direct placements, we ensure the best companies find first-rate talent to continue developing their technology teams, fill skill gaps, and respond to scaling needs. Contact us to get started!