The Benefits of Nearshoring to a Latin American Firm

The Benefits of Nearshoring to a Latin American Firm

Latin America is quickly climbing the ranks as a key region for outsourcing. Check out the benefits of nearshoring to a Latin American firm. 

While many organizations have relied on outsourcing halfway around the world for ages, an increasing number are rethinking their strategies and looking for talent closer to home. Latin America is gradually establishing a recognition as a hotspot for emerging tech talent. This hive gives businesses access to highly experienced technical teams in a more convenient location without having to pay the hefty costs associated with domestic organizations.

Starting with offshore teams may appear complex and dangerous from a commercial standpoint to some. Nonetheless, contemporary outsourcing provides considerably more advantages than drawbacks for many businesses, particularly when outsourcing to Latin America. We wanted to dive deeper into it and came up with a bunch of benefits of having a team scattered across this part of the world. 

Kicking it off with Argentina

It’s been in the making for many years

latin american

Argentina began developing its tech skills more than 20 years ago, during the dot-com era of the 1990s, and has not stopped since. Nowadays, the country has a plethora of highly-rated B2B companies ready to tackle all sorts of outsourcing projects. To add to the mix, the Argentine government has undertaken many measures in recent years to encourage businesses to grow and ensure compliance with international standards in respect of regulatory requirements. One of the chief factors why outsourcing to Argentina is a good decision is that it has a huge, technically knowledgeable, and highly trained pool of software developers.

Argentina is making a tangible impact on the global economy. Throughout the years, large cities such as Buenos Aires and Bahía Blanca have evolved into expansive metropolitan economic centers. What’s more significant is that they have all of the facilities and capital required to allow cross-border software development. 

Argentina is the Nº1 in the region when it comes to English proficiency

The primary language in Argentina is Spanish. Nevertheless, most people in the nation are bilingual, particularly those with a higher degree. Argentineans have the highest level of English proficiency in Latin America. This was last reported by EF EPI (Education First English Proficiency Index) in 2021, an international rating that analyzes English proficiency and ranks the country first in the area. Argentina maintained its strong average and was rated 30th in the worldwide index, between Nigeria and France. Another noteworthy example is our team at Hexacta, where 90% of our employees are multilingual.

This considerably simplifies the process of sourcing software professionals. It’s quite easy to discover an external worker who can converse with your team, given the abundance of English-speaking Argentinians and Spanish-speaking Americans. This contrasts with other typical outsourcing regions where English is less comprehended, and the native language is not widely spoken in the United States.


Excellent infrastructure, cost-effective, and a similar working environment.

Several IT centers have popped up and developed dramatically over the years to meet global demands, and Brazil is an excellent illustration of this. Brazil is a terrific resource for firms searching for offshore software development. Given the enormous and flourishing population of qualified and aspiring software engineers, excellent infrastructure, low attrition rates, and cost-effective service prices, hiring offshore developers from Brazil is a solid decision.

Assume that these aren’t significant indications of the type of competent personnel produced in Brazil’s software development business. In that scenario, US organizations should be aware that aspiring Brazilian developers are trained and taught such that their working environment is very comparable to that of the US, with an emphasis on creativity and innovation, which only serves to hone the industry’s already brilliant and competent abilities. 

Time difference is non-existent

latin american

Although software engineers are widely available in many Asian nations, contracting them has become a less preferable option for US-based organizations due to a crucial issue that does not work out – Timing.  A time zone gap of 10-12 hours is required and might make coordinated tasks difficult. However, because the time difference between Brazil and the US East Coast is only one hour, this issue is almost non-existent.

Recruiting Brazilian developers to work remotely with your firm makes the process flawless in areas such as communication and meeting deadlines. Everybody likes speedy replies and a seamless and straightforward process. These are just a standard with just an hour of time difference between the firm and the outsourcing company.

Brazilians are fluent in English and Portuguese

The language will not be an issue in this relationship because speaking and interacting well in English is becoming significantly important when schooling Brazilian students, particularly software engineers, whose skills are in high demand worldwide.

Working with Brazilians allows a company to communicate in another language, as Portuguese is the official language spoken throughout the country.


Similar time zone

Uruguay, home of the delectable chivito and one of South America’s top five wine producers, is now also recognized for producing exceptional software developers. The country is almost in the same time zone as the United States, making it a logical and excellent choice for organizations looking to outsource their software development. Because its working hours match those of the United States, it provides real-time communication, improved cooperation, and faster reaction. It makes a significant difference to always feel close and present as though the two firms were operating physically beside each other. 

Ease of travel

Certain firms like to keep close contact with their outsourcing partners. More often than not, long-term outsourcing projects make it essential for representatives to physically meet each other in order to ensure high-quality software and app development solutions. 

Visiting the outsourced company’s headquarters allows firms to maintain contact with their staff, provide guidance, and resolve specific issues face to face. This improves the team’s professional relationship. One may also assess whether they have the appropriate resources to satisfy the demands of the project even before firms initiate the collaboration.

Because of its closeness, corporations in the United States may easily outsource to Uruguay. When contrasted with the time and costs of traveling from the United States to Asian nations, traveling between the United States and Uruguay makes it by far the easiest and wisest choice. 


Outsourcing to Colombia is an appealing option for future-oriented firms looking to gain a competitive edge. Companies choose to outsource to Colombia because the teams are based in the same or nearby time zones, speak the same language, and have cultural correlations. Reduced overhead and cheaper service costs that result in cost savings are just an extra plus.

An education system aimed toward IT and software development

Many firms struggle to equip software projects with the necessary expertise because they lack access to a large pool of reasonably priced, qualified engineers. Colombia is a force of skilled, high-tech personnel that is perfect for outsourcing software development, with the highest amount of IT and engineering graduates in Latin America.

Colombia’s ambition of becoming a worldwide technological leader begins with education. The country invests 4.4% of its GDP on education, which is greater than many other countries. Colombia’s higher education system has a robust technological concentration, with over 30 award-winning institutions and prominent technology centers. With its highly competent and educated workforce, it’s clear to see why firms all over the globe choose to outsource software development projects to Colombia.

A stable and business-friendly country that is ready to support software development outsourcing

Colombia, one of Latin America’s oldest democracies, is passionately devoted to maintaining safety, stability, and democratic government. As a result, Colombia’s economy is one of the healthiest in Latin America. It’s an excellent place for organizations wishing to subcontract development in a stable nation with a strong economic climate.

Colombia also aggressively seeks international investments, giving tax benefits, Free Trade Zones, and other employment and investment perks to entice major corporations from across the world. Over 200 international firms (excluding franchisees) have present operations in Colombia, including big players such as HP and UPS. When outsourcing software development projects, you can rely on our development center in Bogotá to achieve the business outcomes you require.


Multinational corporations contemplating the strategic plan for offshore outsourcing must analyze all areas and locales, weigh their advantages and drawbacks, and choose the one that best matches their company strategy and provides the most significant long-term benefits. 

Working with a company that has offices in the previously mentioned hubs in Latin America comes with heaps of perks. At Hexacta, we made sure to be smartly distributed across the region and tick all the boxes of a leading outsourcing firm. On top of that, we also added a base in Seattle, being strategically closer to our clients and the U.S. market.

White Paper

Comments?  Contact us for more information. We’ll quickly get back to you with the information you need.