North American companies today whose business model relies on the rapid production of high quality software are increasingly turning to South America’s tech talent to bridge the gaps in their development processes without slowing down projects and inflating costs. Traditionally, India and Eastern Europe have been the major players in the global software outsourcing market, but technology professionals have not been able to ignore the benefits of working with South American developers. Excellent quality work, cultural affinity, and convenient time zones are just a few of the major contributing factors.
In this post we’ll look at why South America is on the rise in software development outsourcing.
Disruption and Entrepreneurialism
The South American technology industry is just as innovative and cognizant of the vast opportunities that disruptive technologies can provide—and seek to capitalize on them.
In particular, Argentina is one of the most fanatical countries about bitcoin (a high proportion of citizens use it for daily purchases) and blockchain technology. Recently, Buenos Aires hosted an Ethereum Hackathon lead by the ETHGlobal community, drawing in participants from Silicon Valley, New York, Chile, Costa Rica, and more with judges and speakers from the most important startups in this exploding market.
In Uruguay, notable startups are making waves for being pioneers in the development of apps using artificial intelligence and machine learning. And then of course, there is Chile’s vibrant startup scene with the program, Start-Up Chile at the forefront, which attracts entrepreneurs from all over the world hoping to launch the next unicorn. To date, over 1000 startups have joined.
No technical challenge is too great for South America’s most senior developers.
Highly Educated Software Dev Talent Pool
In most South American countries, students have access to a free college education with several governmental programs in place to stimulate higher enrollment rates in fields like computer science. In line with that, there are also incentives for companies to hire interns, be involved in the community, and influence more young people to pursue technical careers.
When compared with India, one of the most popular outsourcing regions, the quality of education is greater with stricter standards of excellence. In India there are larger volumes of talent but often with a questionable level of aptitude. According to Stack Overflow, a website used by over 4.7 million developers, the average reputation of top users is higher for Latin American countries than for India.
Last but not least, English proficiency is on the rise, with most students in high school and university enrolled in courses to learn the language. In fact, according to the EF English Proficiency Index, in 2015, South America surpassed China in English proficiency with Peru, Ecuador, Argentina, Mexico, and Brazil leading the way.
Effortless, Real Time Communication
North and South America benefit from overlapping workdays with Costa Rica being one hour ahead of California, Colombia two hours ahead, and Buenos Aires just one hour ahead of New York. Companies that work with developers in Latin America enjoy negligible lag time when communicating with one another, enabling them to resolve issues faster. Calls can also be held at a reasonable hour, making life easier on everybody. Working with developers in a similar time zone is a clear boon for Agile development and Scrum teams.
Furthermore, business trips to South America are much more convenient as flights are shorter, less expensive, and the probability of experiencing heavy jet lag is low (as opposed to flying to Asia or Eastern Europe). Thus, it’s much less of a hassle to make the effort to establish a real connection face to face, which is always a good idea for building trusting and lasting relationships.
Like North America, South American culture is also westernized with a heavy European influence. There aren’t any huge taboos in South America that do not exist in the north and vice versa, so you don’t have to fear any unfortunate mishaps due to cultural differences when interacting with a South American.
In a work environment, adherence to deadlines, open communication and attentiveness are just as strongly valued as they are in the United States. Optimism and a can-do attitude permeate the region. Most importantly, South American developers will be likely to voice their opinions instead of being passive members of a team. Instead of being “yes men” (and women), they are comfortable with saying something if they see a red flag, which could save time and prevent costly mistakes down the road.
One of the most compelling reasons for outsourcing is to reduce costs. In 2017, Accelerance published its 2017 Guide to Global Software Outsourcing Rates revealing how outsourcing to South America may come with a higher price tag than Asia or Eastern Europe, but still presents tremendous cost savings compared to hiring developers in the United States. The report even provides several comparisons of rates by position. For example, an average junior developer in the US earns $95–$101 USD per hour while the equivalent in Latin America earns $25–$35 USD per hour—a difference of 73%.
Consider Outsourcing to South America
A burgeoning hub of innovation, any company looking to scale its software development team or outsource entire projects should strongly consider South America. At Nearsure, we are dedicated to making the process painless, connecting companies with the right talent they are searching for in South America while taking care of the entire recruitment process, payroll, and other concerns.
Learn more about how you can connect with your new team member today!