Why Is Latin America Best For Nearshore Outsourcing?

When services are delivered from a close location, generally within the same continent or time zone, it is referred to as nearshore outsourcing. It is increasingly getting popular as an alternative to offshore outsourcing. When a company outsources nearshore work, it contracts a third party to complete contractual work in a neighboring country rather than offshore. Because it allows for improved communication and integration, nearshore Latin America outsourcing is an excellent choice for call center outsourcing.

Many American corporations are opting for nearshore outsourcing in Latin America, where staff are familiar with American culture and speak English well. 68% of companies in the US love to outsource their business operations to other countries.

Is Nearshore Outsourcing a Good Fit for Your Company?

Latam Nearshore outsourcing may be the ideal answer for a company looking to save expenses while improving the quality of its call center. The ideal nearshore call center will provide you with engaged, skilled personnel that will proudly represent your company. 

The Additional Money Is Well Spent in Latin America

Latin America’s blended rates are 10-20% higher on average than India or China. However, the sticker price isn’t what it appears to be. If you compare the costs of larger, more experienced organizations in Asia to those in Latin America, you might be surprised to learn that the prices in Asia are lower! Furthermore, when you examine the following reasons to pick Latin America as your nearshore choice, the true value becomes clear. In 2022, almost 65% of organizations have outsourced their processes to others.

  • The significance of Latin America resides in its closeness to other time zones

You’re probably thinking about agile or scrum approaches when thinking of IT outsourcing initiatives. Agile software is delivered faster because textual communication is replaced by talks about needs, which you can’t conduct with a team that is sleeping while you’re awake. When is agile the most effective? You need an outsourced team that is close to your time zone when both teams can operate in real-time or near real-time.

  • Latin America is a cultural match made in heaven.

Culture may be difficult to manage, especially when there are considerable differences. Latin America’s culture is significantly closer to that of the United States, allowing for greater collaboration. Workers in Latin America are confident enough to speak up or raise red flags when things aren’t going well, confess mistakes and resolve problems before they spiral out of control, and disagree or offer adjustments as they see appropriate. The United States earns more than $113 million only by outsourcing to BPOs.

  • Flight times are shorter in Latin America.

In terms of culture, nothing, in our experience, does a better job of bridging the gap between an in-house and an outsourced staff than site visits. However, flying for up to 18 hours is not only highly exhausting but also quite expensive! Visiting a software development partner in Latin America takes no more than one day (back and forth) and is far less expensive than flying halfway across the world.

  • Latin America’s culture of innovation

North and Latin America share a lot in terms of aesthetics, culture, and even taste in movies, music, and art because they are neighbors. These are undoubtedly reflected in UI and UX designs, and they blend in easily with American products. Colombia and Argentina, for example, are noted for their creative skills in advertising, game design, and other creative activities.

  • Latin America’s software development experience

Learning to develop good software has been a difficult path for Latin American organizations. Large enterprises had to design their own banking cores, ERPs, CRMs, and any other product they required to run a business for many years because the region was blocked to software imports. This led to a greater understanding of client demands and experiences, as well as customer-focused software products.

  • Latin America is a dynamic region

Nothing surpasses agile software delivery when it comes to speed, cost, and risk. Latin America has adopted agile software development more than any other area outside of the United States, making it a powerful contender in the IT outsourcing sector. Furthermore, because of the proximity, Latin American colleges have been impacted academically by the United States, promoting agile as the preferred technique of software development.

  • Latin America’s turnover rates are substantially lower

The issue with attrition is that you’ll have to hire and train additional staff when others go. This is not only time demanding, but it also adds to the expense of replacing a team member. However, because Latin America has a lower labor turnover rate, an outsourced project in the area might benefit from increased stability, productivity, and cost savings.

  • Latin America is safer

Thinking about outsourcing to Latin America would not have been sensible a few decades ago. However, the political scene in Latin America is today considerably more stable and secure. Colombia, for example, has progressed from a widely recognized period of drug violence to a rising star in Latin America and an innovation hotspot. While basic safety precautions against petty theft must still be taken, the only significant risk you face is “wanting to remain.”

  • Latin Americans are known for their work ethic.

Although we’ve already discussed the value of culture, Latin Americans’ tremendous work ethic cannot be understated. Yes, they have a lot of fun but also work really hard. Because having a strong feeling of commitment, purpose, and pride in work as part of their culture, it’s not uncommon to see a deployed team working late to achieve a client deadline.


These are some reasons that prove that Latin America is the right choice for nearshore outsourcing. All you need to do now is to start making plans and then look for the right place to set up your company. This will prove to be the best decision as Latin America needs good companies for the people looking for jobs there who cannot get.



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