Home » The reasons why Latin America has gone on to emerge as a hotspot for US companies

The reasons why Latin America has gone on to emerge as a hotspot for US companies

by Jason
Latin America

The talent group all over the world has escalated due to the impact of the great attrition and the prevailing health crises. Most of the organizations are keen to tap on skilled resources along with software development teams. This would go a long way to pursuing their business goals. A lot of the companies have gone on to realize that software development suits them the better. But the questions and possibilities, of when and where to develop many.

Most organizations are shifting towards hybrid or remote work modules. Numerous US companies are not that keen to outsource their requirements to countries on the other side of the globe and the main reason is to reduce the dependency levels. There are looking for countries that are near to their home and reducing their language and location barriers. It is an attractive and a significant reason for a business, in opting for outsourcing due to its cost- effectiveness. This is one of the main reasons why nearshore Mexico companies have mushroomed of late at a considerable level. A recent survey that most of the IT companies resorted to this option for the precise reason that it reduced costs. No surprises to the fact that industry predictions estimate the global outsourcing market to touch new heights in the coming three years.

One of the key trends that has emerged due to the pandemic is outsourcing to Latin America. Since the business goes on to adopt a decentralized module of working and plan to expand overseas to cash in on the cost advantages that every country has to offer. Latin America is known to provide a wealth of strategic opportunities, for an enterprise who is looking for a right destination to outsource. It is not only the cost- effectiveness but near to the US market and the growing talent pool are some of the reasons. Thus with the growing talent crunch especially in the US market, Latin America is in  a better position to collaborate with the tech firms and it is not going to show any visible signs of slowing down soon.

Near shoring to Latin America turns out to be a perfect talent acquisition, as the business strategy to the organizations in UK have been crippled, due to shortage of IT talent, that ensures flexibility in times of digital disruption.

To some degree budgeting has an important role to play in near shore recruiting service in Mexico, some other factors also hold relevance.

  • An evergreen increasing talent pool- For example Latin America countries like Mexico and Brazil have gone on to invest heavily in their talent pool. This allows the software professionals to gain additional skills and familiarize with the niche and emerging technologies. There has also been a rise in the number of innovation programs with the rise of a number of universities in Latin America. It has led to a steady creation of developers along with engineers. Recent research indicates that there are around 1 million software engineers in this region, whereby a large number of people have already the experience of working with remote companies in the US.
  • Time alignment in a better way- Latin America has better time compatibility with US in comparison to the outsourcing destinations of US. It leads to enhanced communication, real time problem solving with productivity levels improving leading to successful outcomes on a project.
  • Tech resources that are multi- lingual- The Latin America tech resources mainly from the Mexico and Brazil tend to be multi- lingual and are fluent in English. It is due to the close proximity to the US eradicating language barriers and communication protocols. Even it goes on to foster better collaboration.
  • Close proximity to US- Being close proximity to US would facilitate an easy time zone but ensures easily travel along with communication. This is in stark contrast when you outsource teams to Asia and other countries of Europe. The work disruptions are minimum and the possibility of missing deadlines already arises. This ease of work with a highly qualified talent pool would make outsourcing in Latin America a new form of standard for companies to look around.
  • Protecting IPR- One of the major issues with business of all sizes is software development would be the protection of intellectual property for the solutions that is being developed. The moment proximity goes on to increase, the development teams of the Latin American countries would be having a better idea about the IPR laws of the US. They would be aware on how to navigate them as it prevents them from derailing the operations
  • An increased investment in infrastructure, development and operations- A lot of the Latin American countries have gone on to invest heavily in infrastructure, education and development, to develop the right type of infrastructure. It goes on to develop quality resources which may be a part of the rich talent pool in the world.
  • Cost savings- One of the key advantages of outsourcing to LATAM, is sigfnicant savings on the cost front. Even the operational costs turns out to be a priority issue for most of the companies. For this reason Latin America has gone on to become a hub spot for quality professionals in comparison to Europe and Asian countries. This prevents the elimination of perks, benefits and costly bonuses that is being provided to internal teams.

It is better to capitalize on the enlarged IT pool and your main aim is to reduce costs by opting for software development to Latin American countries. They are going to empower your business and provides it with the full scale operations by building, developing and managing the remote teams once they are in Latin America. The process is undertaken by remote staffing along with placements, they make sure that the business is in a position to retain high quality talent. It develops the technological teams and addresses the gaps that is bound to arise.

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