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Thinking About Outsourcing to Latin America? Here Are The Pros & Cons

  • 27 Mar • 2020

For many companies in the US and Canada, hiring remote developers based in Latin America is a great option for keeping development lean, code quality high, and costs low. If you’re considering taking the leap but still have some questions, read on for more information on the pros (and a few potential downsides) to keep in mind as you make your decision.

Let’s start with the potential cons or downside

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Rates aren’t as low as Eastern Europe or India.

There’s a reason that India and Eastern Europe are known as outsourcing hubs – their main benefit (and the deciding factor for many companies) is their low cost. There are some situations in which low rates and quick turnaround time might be your company’s top priority – like urgently getting a product to market, or having a small budget to begin with and needing to develop your project in order to begin testing and validating. If you are in this situation, it could be worth looking into India or Eastern Europe as an outsourcing option. However, the adage “you get what you pay for” unfortunately can apply here. If you need something developed right the first time, it may be worth investing a bit more in a nearshore option to ensure high code quality and less back-and-forth.

You may need to wait a bit longer to find the right fit for your development needs.

As opposed to some other offshore outsourcing locations, Latin America tends not to have massive “coding factories” where you show up with your project and are matched with the first available developer(s), no matter how good (or bad) a fit for your project they may be. Many firms in Latin America take the time to pair you with the right developers for what you’re looking for, taking into account cultural and work fit as well as technical fit, so you may need to wait a bit longer to get your project started.

While rate and quick turnaround time may be top priority for some companies, if you have the flexibility to find the best fit for your team and project needs, and if you need your project developed right the first time, it may be worth looking into Latin America for your development needs. 

Let's look at the pros or upside

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High-quality code at reasonable prices.

Latin America has established itself as a hub for programming in recent years, and Latin American devs closely follow coding standards and best practices used by North American companies. This means that you can expect the same high-quality code that you’d get when hiring a local developer in the US or Canada, but at far lower rates.

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Timezone overlap with the US and Canada.

Naturally, one of the biggest potential issues working with remote developers is the potential for late-night calls or work being delayed by up to a day due to fragmented communication and no overlap in working hours. When working with developers in Latin America, this is a non-issue, as Latin America spans all US timezones. This means you can work (virtually) alongside your development team, if desired, resulting in a closer working relationship and quicker results and troubleshooting.

Cultural and work culture fit.

Latin America is steeped in North American culture, both from a popular culture standpoint and also from a work standpoint. This means that much of the top development talent in Latin America already has experience working with international clients, many of which are in the US and Canada, giving them crucial experience working in a North American environment. Similarly, there is cultural overlap between the two, meaning that developers from Latin America can more readily integrate into North American teams, ensuring a smooth working relationship that may be difficult to find in other outsourcing hubs.

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