Beyond Borders: Why US Businesses are Choosing Latin America for Tech Nearshoring

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By Armin Gebauer

June 16, 2023

Latin America has emerged in the past decade as a dominant force in the tech nearshoring landscape, offering a compelling value proposition from multiple angles. When it comes to talent availability, skills, efficiencies, and capabilities, the region has cemented its position as a powerhouse that demands attention.

At Arionkoder, we understand the depth of Latin America’s rich talent pool, innovative mindset, and supportive ecosystem. With years of experience in the region, we’ve witnessed firsthand the transformative power it holds for businesses seeking operational optimization. In this article, we delve into how Latin America has undergone a remarkable tech revolution.

It’s important to note that Latin America encompasses diverse countries with unique perspectives. However, we will focus on the region as a whole.

A well-educated workforce

One of the region’s key strengths lies in its knowledgeable workforce. Through substantial investments in technology education, Latin America produces an impressive annual number of tech graduates—750,000—across various domains like software development, data analytics, and cybersecurity. This abundant talent pool offers a wide range of skills and specializations, allowing companies to find the perfect match for their specific tech requirements. These capable professionals are the backbone of your projects, constantly evolving and honing their expertise.

Fiscal and Financial Incentives

Fiscal and financial incentives further bolster Latin America’s allure. The region has implemented various initiatives to promote investment from both local and international players. Tax benefits, deductions, and capital gains incentives attract multinational tech companies, fostering their presence in the region. Additionally, schemes benefiting workers in the tech field, expedited visas for tech professionals, and other perks contribute to a favorable environment. Subsidies, grants, and funding opportunities further support investment, including reduced VAT rates and tax credits earmarked for research and development activities.

An influx of Prominent Companies

The arrival of major global companies like Amazon, Google, Microsoft, IBM, Intel, and Oracle speaks volumes about Latin America’s capabilities. These industry giants have established operations in the region, placing their trust in the local talent and contributing to a transformative revolution. By hiring locally, these companies leave a lasting impact as their employees disseminate cutting-edge technologies, best practices, and valuable knowledge. This reinforces an already robust workforce, setting the stage for ongoing success.

A prepared region

Latin America’s infrastructure and sophistication are on par with global standards. Internet access, flight connectivity, and general infrastructure ensure seamless work and business operations. Decades of proactive planning have led to this level of preparation, demonstrating the region’s forward-thinking approach. The presence of business-forward institutions, such as venture capital funds and incubators, further enhances Latin America’s connectivity and attractiveness as a business destination.

Efficiency and Closeness

Efficiency and time zone availability are additional advantages Latin America offers. Competitive salaries in the region are a fraction of what similarly qualified talent demands elsewhere, such as in the United States. This allows companies to hire larger teams, ensuring timely and effective achievement of their goals. Furthermore, Latin America’s time zone closely aligns with that of the US, enabling synchronous work, enhancing communication, and optimizing results.

While location choices should be made holistically, the combination of these factors makes Latin America an exceptional region for nearshoring. It stands as an enticing, dynamic, and business-friendly destination, delivering abundant talent, innovation, cost-effectiveness, and a supportive ecosystem. By embracing Latin America for tech nearshoring, companies unlock new opportunities, drive innovation, optimize costs, and gain a competitive edge in the global marketplace.

At Arionkoder, our Nearshoring by Design framework is executed from Latin America, mitigating project risks and generating value through its adaptable nature. By collaborating with our top, pre-vetted talent, you can swiftly and efficiently achieve your business objectives. To learn more about Nearshoring by Design and how we can assist you, reach out to us at Let us be your partner in success!