The ever-growing need for skilled software developers has caused US startups to look for other options. Although India and Eastern Europe have been particularly involved in IT for a long time, there’s a new player in the game. Latin America might be the best option for your outsourcing needs.
Software development companies in Latin America offer benefits virtually no other region can. Latin America has the edge when it comes to cultural similarities and time zone, making it the ideal choice for nearshore outsourcing.
In this article, we will cover everything you need to know about the software development industry in Latin America. Keep reading to have a better understanding of the advantages of this region for US startups!
The software development industry in Latin America
With the growth of the software industry all over the world, Latin America didn’t fall behind. Most countries have developed programs to encourage the development of the industry and be at the forefront of the continent.
Given the closeness and cultural similarities with the United States, many accelerators and mentorship programs have found a home in Latin American countries. Nowadays, you can find extensions of the entrepreneurial world of America all over the continent.
This extension has caused the software development industry to skyrocket and become way more competitive. In a fast-paced industry such as this one, more competition reflects the need to elevate quality to stay relevant.
Countries such as Uruguay, Argentina, Mexico, and Brazil are at the top with top-performing nearshore outsourcing companies serving American startups.
Why Hire Software Development in Latin America
There are many factors that give the edge to Latin America when it comes to software outsourcing. These are the main ones:
- Cultural similarity
- English proficiency
- Time zone
- Bigger talent pool
Globalization has allowed cultures to cross and influence each other. Latin America and the United States have had a long history of cultural exchange due to factors such as geographical location, related interests, and shared history.
Out of the different outsourcing options, Latin American companies are most likely to share cultural similarities with US startups and bigger companies.
This factor allows partnerships to be smoother and communication to flow better. Things such as problem-solving and organization can be simpler when there are no deep cultural differences.
As a part of the cultural similarity, English proficiency in Latin American countries is high. With all the content pouring from the US into the region, most people are in direct contact with the language on a daily basis.
English is part of virtually all syllabi from elementary school to college, and most professionals have English as a required language. According to Statista in collaboration with EF, English proficiency in the region is above a B2 level on average.
Although hiring software developers offshore can be an advantage when it comes to price points, working without overlapping or having a team working late hours can be detrimental.
Latin American countries share time zones with the US or have a little time difference of up to three hours, making it easier to work at the same time. This overlapping makes operations run smoothly and collaboration improves.
Latin American countries have strong engineering programs supported by governments. Many top universities in the region offer free education, making it easier to create a larger workforce.
The variety of studying opportunities also offers a more competitive environment for engineers to develop their skills. Plus, many companies offer internships to start shaping the careers of promising candidates once they have finished their university studies.
Bigger talent pool
Even though we often refer to Latin America as one, we are actually talking about 33 different countries! Many companies leverage the region’s geographical advantages to hire across the continent instead of focusing on candidates from only one country.
The talent pool consists of capable engineers who come from every corner of the continent. Why stick to one country when you can leverage 33?
Nearshore Outsourcing in Latin America
Nearshore outsourcing consists of hiring a software development company located near the United States, having little to no time difference. This outsourcing method is one of the best options for companies that need to lower costs and don’t want to go offshore.
Hiring capable developers in Latin America can help solve problems such as understaffed tech teams and tight deadlines. With its plug-and-play system, software outsourcing is the best option when it comes to making temporary hires.
As you can see, Latin America has positioned itself as one of the best outsourcing options for US companies. India and Eastern Europe have fought over that title for several decades, but the new player may soon be taking the lead! Ready to be an early adopter?
Bixlabs is the perfect partner for your custom software development needs. We have been working with emerging startups for over eight years, taking over their tech needs and working together with an entrepreneurial mindset.
We have a team of senior engineers and creatives ready to take on any project and help your startup reach the next level. Why spend months to find an in-house team when you can have a ready-to-work team in two weeks? Contact us today.