Ever Considered Why Nearshore is The Best Option for Outsourcing?
Imagine having Top-tier IT talent just a click away and without the hassle of long-distance communication or cultural barriers. PS. The English proficiency of Latin America’s top talent is second to none, making collaboration easy. Nearshoring is the solution: an outsourcing model that involves partnering with companies in nearby countries to provide tailored solutions that complement a company’s core competencies.
Nearshoring offers a practical alternative to offshoring: working with a team or individual in a neighboring country who can collaborate closely and complete tasks more efficiently. Nearshoring is desirable not only for the quality of available talent but also for the cost savings it offers, with reports indicating that companies can reduce labor costs by 60% compared to U.S. hiring.
In recent years, Latin America has become a hot market for companies seeking skilled IT professionals. The region possesses a highly skilled talent pool as Latin America experiences the fastest IT industry growth of any region. According to Statista’s study on outsourcing in Latin America, the IT outsourcing sector is projected to reach $15.92 billion in revenue by 2024.
Nearshore Talent with NearshoreWorks
The software development industry is constantly evolving. NearshoreWorks recruits top-tier talent from leading Latin American outsourcing destinations like Brazil, Colombia, Costa Rica, Mexico, and Peru. This allows us to cost-effective, high-quality solutions while minimizing the challenges of remote collaboration.
We merge U.S. expertise with exceptional nearshore talent to streamline business operations, offering an optimal blend of skilled labor, cost efficiency, and cultural compatibility. Cultural similarities between our teams facilitate easier communication and collaboration. Strategically positioned in these locations, we ensure we consistently exceed client expectations. Our agile, sprint-based recruitment process accelerates iteration and continuous improvement, ensuring a precise talent match that keeps your projects on track for success. This results in high-quality outcomes and strong, enduring partnerships that drive business growth.
Now lets dive into a detailed overview of the primary Latin American countries for nearshoring.
Brazil: A Trusted Partner in IT Outsourcing in Latin America
Brazil is not only the largest country in South America but also a leading destination for nearshore outsourcing companies. The country ranks 124th in the Ease of Doing Business Index. Its IT market is projected to reach $50 billion by 2025, driven mainly by government-led innovation in the technology sector. According to the Brazilian Association of Information Technology and Communication (Brasscom), software development will account for a large share of this growth, emphasizing Brazil’s capability to manage complex projects.
Our talent pool includes over 750,000 skilled tech professionals, with approximately 46,000 Information and Communication Technologies (ICT) graduates joining each year, guaranteeing expert management for your projects. Brazil ranks #9 globally and #2 in Latin America on the Global Innovation Index, solidifying its position as a promising tech hub. The country’s diversified economy drives demand for cutting-edge software solutions, cultivating specialized talent pools equipped to solve specific industry challenges. NearshoreWorks connects your company with Brazil’s experts, delivering solutions that drive your success.
Colombia: Your Strategic Nearshore Partner
Colombia is rapidly becoming a leading nearshore strategic software development center. In 2021, the Colombian IT market’s value rose to $10.2 billion, placing Colombia among the region’s leaders after Mexico and Brazil. This makes Colombia very attractive for businesses in search of an alternative for the best value in IT solutions of the highest quality.
Nearshore software development services offer strategic benefits such as lower labor costs, geographical proximity that facilitates better communication, and access to a pool of specialized talent.
The technology talent pool in Colombia continues to grow, with over 150,000 IT professionals and over 360 software development companies. According to the IMD World Talent Ranking 2022, Colombia’s workforce is growing at the fastest rate of any country in the region, and the training rate is the highest in the continent. Colombia is also in fourth place in Latin America according to the Global Innovation Index and is striving to create an environment that is able to unfold technological development.
In 2021, the Colombian government invested $2.5 million in tech education initiatives, ensuring a constant supply of the best IT talent. With nearly 70% penetration and the third largest fiber optic connectivity in the region, the region has the facilities to nearshore operations. Additionally, the Colombian government’s program “Colombia Very Well” aims to increase the number of students who graduate from high school with an intermediate level of English, with the goal of reaching 186,000 by 2025.
This way, this country establishes itself as a powerhouse with highly skilled professionals, promising English proficiency, and the ideal culture alignment for nearshoring operations.
Costa Rica: A Great Choice for Nearshore Software Development
Costa Rica is a prime nearshore software development destination. Globally, it ranks #3 in the Latin America and Caribbean region on the Global Innovation Index, with 22% of the country’s ICT firms working on Industry 4.0 technologies. Costa Rica stands out among nearshore destinations due to its unique combination of talent, cost competitiveness, and cultural compatibility. NearshoreWorks leverages these advantages to drive your business forward. Nearshore software development destinations like Costa Rica, Mexico, and Canada are increasingly preferred by US companies for their rich talent pools and ability to adapt to changing user demands.
Costa Rica’s strong focus on education has produced over 45,000 skilled professionals, with tech talent growing at a compound annual rate of 17%. The country is also deeply committed to technological development, evidenced by its #3 ranking in innovation among Latin American countries. Costa Rica excels in software engineering, supported by its political stability, highly educated workforce, and specialized talent. Costa Rica has made significant investments in ICT infrastructure, achieving an internet penetration rate of 81.6% and connecting to four submarine cable systems, ensuring robust connectivity.
PS. NearshoreWorks Latin American HQ is located in Costa Rica. It is not only a beautiful country, but also a great destination for nearshoring.
Mexico: A Top-Rising Nearshore Partner
Mexico stands out as a popular destination for nearshore software development, offering a compelling combination of talent, cost efficiency, and cultural alignment. As a premier nearshore software development company, Mexico plays a strategic role in the technology sector. As the second-largest technology market in Latin America, Mexico’s IT industry is driven by a vast pool of over 700,000 software engineers and IT professionals. With a strong emphasis on software development, in industries like fintech and e-commerce, Mexico is rapidly becoming a global tech hub.
The country has a favorable business climate, a growing middle class, along with significantly lower living costs compared to the U.S. The cultural similarity and high level of English proficiency of tech professionals further enhance communication and collaboration. Partnering with NearshoreWorks provides you with teams who understand your business and help you deliver successful projects.
Mexican software developers offer a cost-effective and skilled alternative to onshore and offshore options, meeting the growing demand for software development talent. NearshoreWorks connects you with the best talent in Mexico to ensure outstanding execution of your technology projects.
Peru: Emerging Excellence in Nearshore Outsourcing Services
Peru is gaining traction as a prime destination for software development outsourcing, with a unique combination of affordable talent and high-quality work. Outsourcing to Latin America, particularly Peru, is becoming increasingly popular due to its strategic advantages. The country is home to over 38,000 developers and 77 software development companies and is gaining a strong reputation in business intelligence (BI) and big data consulting.
Peru is cultivating a tech ecosystem driven by a strong emphasis on education and infrastructure development. Lima’s PUCP University, ranked 10th in Latin America, educates over 31,000 students as of 2024. Approximately 30% of Peru’s graduates specialize in STEM fields (science, technology, engineering, and mathematics).
Software outsourcing in Peru offers numerous benefits, including access to a diverse talent pool, cost savings, and operational efficiencies.
Cultural alignment and effective collaboration are key in outsourcing, and Peru offers a favorable environment. English proficiency in Peru is promising, with the country ranking 51st out of 113 countries in the EF English Proficiency Index. Strategically located in the Americas, Peru offers a cost-effective talent pool and a growing tech ecosystem, making it a compelling choice for businesses seeking to outsource IT operations.
High-valuable talent joining your team through nearshore.
As Latin America’s talent pool grows within the IT sector, there is great potential for access to the best available professionals while generating great job opportunities in the region.
At NearshoreWorks, we are committed to delivering companies high-value talent through nearshore outsourcing. We’ve dedicated our team to sourcing and selecting the best technologists and software developers, finding the perfect fit for your business or project needs.
Looking for a nearshore partner? Contact us to discuss specific needs and see how we can work together to achieve your goals.