Why should tech companies start outsourcing talent to LATAM? The answer really is a no brainer after conducting a bit of research. However, the biggest hurdle a tech company might have is thinking about the language barrier. Once the barrier is surpassed it starts to make sense why more and more tech companies are either outsourcing talent or moving sites nearshore.
First of all, the biggest and most obvious benefit for outsourced talent to latin american countries is the wage difference. Paying an engineer or developer stateside will definitely be more expensive. One example of these salary differences is for a software developer. If the software developer is in latin america they can earn from $1,200 to $3,500 USD a month. That same software developer stateside could expect to earn a yearly salary of about $90 to $100k, which averages to about $8,000 monthly. This pay difference translates to hundreds of thousands in savings for companies with multiple employees, but outsourcing talent to LATAM goes further than that.
The next reason for hiring nearshore talent is because the market is shifting. The new emerging markets for tech are in countries like Colombia, Mexico, and Chile are drawing the attention of technology companies across the world. Latin America is developing rapidly and is quickly adapting to the need for implementing technology within their big cities. Add to that the possibility of working from home and the opportunities for qualified and skilled labor are endless. Some of the sectors of tech that are in LATAM now are video game development, cloud services, and software development.