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Why Are Fortune 500 Companies Choosing LATAM for Software Development?

Outsourcing software development is a great strategy when you are looking to develop high-quality products in the most cost-efficient way. Finding the right IT development and outsourcing provider can be complicated for businesses, especially considering that for some time now outsourcing has grown into a huge worldwide market. Many organizations are just now starting to dive into the field of IT outsourcing and have no idea where to begin.

There are several ways to tap into the worldwide software outsourcing market. First, becoming informed about the most popular regions to outsource software development will help your organization to quickly understand the need to narrow searches down to a few technologically-prospering regions. Most American companies, for example, outsource to Latin America. This region offers many benefits to US-based companies.

Latin American Outsourcing

First the facts: Latin America has the fastest software development industry growth of any region, with a revenue growth rate of 5.3% expected for the 2020s, well above the 3.3% global average. At this time, Latin American software development is leading the region’s industry, mainly due to countries like Argentina, Mexico, Colombia, Chile, and Brazil. The region most interested in Latin American software development and outsourcing is, as you probably guessed, North America. The US, for one, has an ever-growing need for skilled IT talent and local developers just can’t meet the demand. In 2021 there will be over 1 million more jobs than candidates in the computer science fields. As a result, the best option to balance out the supply and demand is outsourcing to Latin America.

ARGENTINA, BRAZIL, AND COSTA RICA DRIVE REGIONAL SKILLS GROWTH

Argentina leads the region in tech and data science skills, with notable strengths in data visualization, data management, statistical programming, and software engineering.

9 Reasons To Consider Latin America For Your Software Outsourcing

Very Cost-Effective

Outsourcing development to U.S. Software Engineers and Firms can cost anywhere from $80 to $150 per hour, while outsourcing to Latin America gives you access to top-tier Software Engineers that can cost anywhere between $40 to $70 per hour.

Time Difference

Outsourcing jobs to places like Eastern Europe, India, and China has a huge disadvantage. These regions have a large time change from North America, this makes it difficult to work on real-time projects. In Latin America, there is just a small 1-3 hours difference (ET), so briefings and project management are much faster. Better yet in the case of western states, you can have developers in places like Argentina working hours before your local teams get into the office and they can get right on par with them working together for a large number of hours.

High English Proficiency

According to the EF English Proficiency Index, Latin American countries have overtaken India and China in English language proficiency, and they are getting better, fast, with Argentina and Mexico at the region’s top. Your organization can take advantage of bilingual developers and PMs.

Tech Education

Argentina, Chile, Mexico, and Brazil are the countries with the highest tech-education standards in Latin America. Added to a private and public sector push for policies that will grow the number of people getting into software development as a strategic view for future growth in the region in the next ten years.

IT Talent

By just looking at numbers published by Stack Overflow (using their rating system) we can see that there are more skilled programmers from countries like Peru (+25k), Mexico (+18k), Colombia (+25k), Chile (+20k), Argentina (+20k), and Brazil (+15k) compared to other global IT hotspots like India (+13k) and China (+13k).

Global Proximity

Simply put when you outsource to Latin America, the proximity increases the convenience of the outsourcing industry compared to IT hubs in the Middle East or Asia. This can be important in terms of hosting and server use for real-time development and collaboration, hardware shipments, or personnel travel in case it would be necesary.

Cultural Similarities

Outsourcing to far-away countries like Singapore, India, or China can result in some misunderstandings that might require workarounds, corrections, time loss, more expenses, and an overall worse development experience for your organization. English skills and cultural similarities make Latin American software outsourcing a smart choice for development and outsourcing.

Agile Frameworks

Outsourcing to Latin America has become a very popular choice for agile software development. Latin American developers and firms are well-versed in all the latest agile frameworks, they not only work with them but embrace and thrive with them. Do you work with scrum? So do we.

Big Enterprises Choose LATAM

The Latin American region has quickly become the preference of a huge number of big companies like HP, EA, Danone, Walmart, Dell, Amex, Southwest, Unilever, and IBM, just to name a few. They entrusted Latin American development and saw great results, and they keep coming back.

Conclusion

Software outsourcing to Latin American countries can be a great choice for your organization. Many fortune 500 companies have chosen this route and have not looked back. From costs to talent to English proficiency to time-zones, LATAM is a great place to look if you want to build great software.