Need a good reason to outsource your software development project to Latin America? We'll give you 10! Latin America's broad landscape of opportunities for nearshore outsourcing brings with it a multitude of benefits beyond just price and proximity.
With over 30 years of experience in the tech space, PSL knows a thing or two about outsourcing and nearshoring software development projects. We know that choosing where to outsource your IT software projects is definitely a decision that requires quite a bit of consideration. That's why we're more than happy to help you spot a few aspects that might've flown under your radar.Here are 10 reasons why Latin America is the place to go when it comes to outsourcing software development.
On average, blended rates in Latin America are 10-20% higher than India or China. But as we've mentioned, the sticker price isn't all it's cracked up to be. If you were to compare the cost of larger, more experienced firms in Asia to those in Latin America, you might find that the rates are actually lower! Besides, the real value becomes more obvious when you consider the next 9 reasons to choose Latin America as your nearshore option.
When you think of IT outsourcing projects, you're probably thinking about agile or scrum methodologies. Agile delivers software faster, in part, because written communication tends to be replaced by conversations about requirements—conversations you can't have with a team that's asleep while you're awake. When does agile work best? When both teams can work in real-time or near real-time, so you need an outsourced team close to your time zone.
Culture is a tricky thing to navigate, especially when the difference is significant. As opposed to vendors in Asia, Latin America's culture is much closer to that of the US and enables better collaboration. Workers in Latin America feel confident enough to push back or raise flags when something isn't going well, admit mistakes and address issues before they get out of hand, as well as disagree or propose improvements as they see fit.
[READ MORE: Intercultural Communications: How Does Culture Complicate Communication?]
Speaking of culture, in our experience, nothing helps bridge the gap between an in-house and an outsourced team better than on site visits. However, if you have to fly for up to 18 hours, it's not only an incredibly tiring experience but a costly one too! Visiting a software development partner in Latin America can take one day (back and forth) at most and is much more affordable than going halfway around the world.
As neighbors, North and Latin America share a lot in terms of aesthetics, culture and even taste in movies, music and art. These, no doubt, manifest in our GUI and UX designs, and fit in with American products seamlessly. Additionally, countries like Colombia and Argentina are known for their creative prowess in advertisement, game design and other creative endeavors.
When it comes to fast, cheaper and lower risk software delivery, nothing beats agile. Latin America, more than any other region outside the US, has adopted agile software development which makes it a strong competitor in the IT outsourcing world. Additionally, due to our proximity, Latin American universities have been influenced academically by the US and push agile as the preferred method to develop software.
It's been a trying journey for Latin American companies to learn to make good software. For many years, the region was closed off to software imports, which meant that large companies had to develop their own banking cores, ERPs, CRMs, and any other product they needed to run a business. This resulted in a heightened awareness of customer needs and experience, and, consequently, customer-oriented software products
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The problem with attrition is you face having to recruit and train more people as others move on. This is not only time-consuming but elevates costs every time a team member needs to be replaced. But, because Latin America has a significantly lower employee churn rate (11-16% a year to India's 25-30%), an outsourced project in the region could benefit from greater stability, productivity and savings.
A couple of decades ago, thinking twice about outsourcing Latin America might've been reasonable. But nowadays, Latin America's political landscape is much more stable and safer. Colombia, for instance, rose from a highly publicized era of drug violence to a rising star in Latin America, as well as an innovation hub. While basic safety precautions still need to be taken against petty theft, the only real risk you run is "wanting to stay."
We've mentioned the importance of culture before, but Latin Americans' strong work ethic can't be overstated. Yes, we party hard, but we also work very hard. It's part of our culture to have a strong sense of loyalty, purpose, and pride in our work, so it's not uncommon to see a deployed team burning the midnight oil to meet a deadline for their client.