Red Pill Revelations: Discovering Latin America's Nearshoring Potential in 2023..

My journey began way more than, half a decade ago when I netted a cool $70k in placements and decided to bounce from Australia ????.

And, decided to make life even more interesting and took my firm internationally remote before it was a thing.

In taking the red pill I found myself in a Mexican hotel just 48 hours after walking into an STA Travel Agency in Sydney.

As an adventurous rooster, I left Australia and dove into the digital recruitment world for software development in Latin America and the US.

Did you know according to Forbes, in Mexico over 130,000 software engineers graduate each year and has a talent pool of 700,000.

Playa Del Carmen, Quintana Roo, Mexico ????.

But, this wasn't my first rodeo, though; I briefly worked with an offshoring Microsoft Gold Partner Consultancy in Vietnam.

Some basic Business truths attracted me to the nearshore model:

• Nearshore profit margins are significantly higher than onshore.
• Nearshore has more scalability, despite higher onshore revenue (firm dep).
• Onsite offshore project management matters for successful engagements.
• Took price out of the conversation with clients.
• Client selection is crucial.

Investmentmonitor, mentioned Costa Rica ranked number one in LATAM for (TOEFL) English test scores.

Barrio Escalante, San Jose, Costa Rica ????.

Then I discovered why companies nearshore to LATAM here and the top five countries for successful projects.

Mexico ????

Brazil ????

Argentina ????

Chile ????

Colombia ????

Having lived and worked in each of them, I can vouch for the advantages:

• A talented pool of recruiters and developers
• Cultural and linguistic similarities
• Timezone is big selling point
• Easy communication
• Cost savings, obvious win there
• Fun-loving workforce

Shout out LATAM folks! ??

My learnings encompassed:

• Choosing the right partner is crucial.
• Engagement is expensive.
• Staying current with programming language trends isn't everything; legacy tech and infrastructure is in demand.
• Effective communication with teams is key, and people are generally friendlier down here, general comment.
• Transparent committed hard working relationships are here; less likely to have to deal with prima-donna′s. ??
• But, working abroad with any remote team is never easy - why would expect it to be easy in the first place..

Nearsourcing, nearshoring, outsourcing, or offshoring—whatever you call it—can be beneficial if done right.

My official take: Access skilled talent, build strong relationships, and save costs while achieving recruiting or software development goals.

That's where nearshoring comes in.

These LATAM countries offer prominent tech hubs, emerging ecosystems, skilled workers, cultural and language similarities, time zone advantages, and cost-effective value-added approaches.

In 2023, many companies in USA are actively seeking cost-effective hiring options, and online remote work has become increasingly popular and even preferred.

With advancements in technology and the growing availability of highly skilled professionals worldwide, remote work has proven to be a viable and cost-effective alternative to traditional in-person hiring practices.

Another good one, Colombia. Boasting one the most thriving technology and entrepreneurship ecosystems in the region. Local spending on software (US$1.6b according to IDC and Gartner).

Poblado, Medellin, Colombia ????

If you're considering nearshoring, here are some essential tips for success.

• First, select the right partner by researching and vetting potential service providers.
• Second, develop effective communication strategies online.
• Third, focus on building relationships with workers.
• Finally, establish clear expectations regarding deadlines, progress updates, and project completion issues.

What about Argentina - Software development makes up 58% of foreign investment and 33% of the local market in Argentina, with the remaining 66% being telecommunications (OPSSI most recent annual report).

Palermo, Buenos Aires, Argentina ????

By following these simple strategies, recruiting will become easier and more efficient, even for the most challenging positions in a highly-competitive market.

If you found this information helpful, make sure to like and follow our page to receive new content straight into your inbox.