Debunking Myths About Outsourcing to Latin America

Despite being close to the U.S., extremely talented, and improving its English, Latin America is still overlooked by companies outsourcing to India or China. These are the five myths about outsourcing to Latin America – and why they are inaccurate.

Debunking Myths About Outsourcing to Latin America

Myth 1 - Outsourcing is sending U.S. jobs abroad.

Reality – America's tech companies have no problem finding highly skilled software developers in the U.S. This is not to say that there are no opportunities for outsourced U.S. IT jobs – some companies are currently working with Latin American companies to develop software and other products to be sold in the North American market.

However, the vast majority of Latin American IT outsourcing is to other Latin American companies. Latin America can be used as a base of operations for expanding into other South American countries while avoiding the high office rent and potentially costly labor laws in large U.S. cities.

Myth 2 - Latin American developers are not as technically advanced as Indian or Chinese developers.

Reality – While some Latin American developers have less experience, many of the best work in just as efficient a way as their Indian counterparts. And English is the predominant language in the IT industry, which negates any language barrier.

Myth 3 - Latin American developers are cheaper and don't produce the same quality of work as Indian or Chinese workers.

Reality - While developers in Latin America do command lower wages, high-quality developers there can be just as successful as their counterparts in India. The industry is no longer as segmented as it once was, and now Indian, Chinese, and Latin American developers all have access to the same industry tools, software, and business intelligence.

Myth 4 - Latin America is too far away to work with.

Reality - While it may not be as close to the U.S. as India or China, the geographic proximity to the U.S., combined with the use of the English language, and a faster Internet connection, make it just as viable a location for software development as the Far East.

Myth 5 - Latin America does not have the workforce to fill the demand for high-tech jobs.

Reality – While the current Latin American workforce may not be as plentiful, there is a high demand for educated workers. Additionally, the high cost of living in large U.S. cities creates a movement of highly skilled workers to Latin American countries.

Myth 6 - Cultural differences will pose a barrier.

Reality - While there are cultural differences, Latin American companies have more experience working with U.S. companies than their counterparts in India or China.

Myth 7 - There is not enough tech knowledge in Latin America.

Reality - The industry in Latin America is very young and growing. With lower wages, the region is ripe for tech companies looking to cut costs while still maintaining quality output.

Conclusion

The Latin American market is growing, and it is only a matter of time before the U.S. and other countries take advantage of this industry. Even if companies don't run their entire operation out of Latin America, Latin America can be an efficient way of handling overflow work or providing outsourced IT projects.

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