Offshoring software development in South America

Offshoring software development in South America

Offshoring software development has been the staple for business from startup, small business, and medium-sized enterprises. Even giant corporations like Google, WhatsApp, Slack, Alibaba, and GitHub offshored their back-end operations from the ground up. There are a variety of reasons behind this decision, but the most one of the most crucial one is to reduce operational costs.

Ever since the offshore software development industry emerged in the tech market, the interest shifted across Asian countries. From India and China to Vietnam, companies in the US availed their services to take advantage of the lower charges.

South America has managed to gradually make its name along with the roster of offshoring destinations. It has recently been preferred by a growing number of businesses when it comes to software development. North American enterprises opt for Latin American developers instead of their in-house teams for projects and several upgrades.

Also on the IT industry’s radar are South American countries such as Mexico, Chile, Argentina, Colombia, Brazil, Uruguay, and Costa Rica. These countries gained a significant role in the software development industry for providing quality work at a low price. Latin Americans’ competitive edge involves real-time collaboration, travel proximity, and cultural similarity, making working relationships easier.

In this article, we shall further discuss the reason behind South America’s popularity for offshoring software development.


What Puts South America in the Eye of Offshoring Software Development?

Asian countries, including India and China, have been the leading countries for offshoring developers for a while now. They have contributed to transforming the business landscape, helping establish some of today’s biggest corporations. They provide lower labor costs and a limitless supply of seasoned software developers.

However, South American has begun to catch up. They were given the spotlight with an increasing number of companies that offer projects to Latin American developers.

Let’s take a look at why South America is a favorite of the job market of today.


Fewer Problems With Time Zone Alignment and Communication

South America offers convenience with its minimal time zone differences. Both parties don’t need to make significant adjustments to be able to work efficiently. For instance, Uruguay and Argentina are only five hours ahead of California. It is in comparison with China and India that have approximately a 13-hour difference from companies around the US.

Consistent communication is crucial, especially during project development and earlier stages of tasks. When teams can communicate with no interruptions, delegation is efficient. The minimal time zone difference fosters effective communication across the software development team.

Even though both parties are miles apart, you can always guarantee to receive a quick response from your offshore developers. This assurance allows you to detect and resolve any conflict that arises with no delay. On top of that, you can also travel to your offshoring team when necessary. Business travels are more cost-effective even if you come from cities like New York, California, and Seattle.

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English Proficiency

The latest studies have found that Latin Americans surpassed the years of stagnation in English proficiency. South American countries like Peru, Uruguay, Argentina, Ecuador, Chile, Brazil, and Mexico drastically improved and recognized the importance of learning English.

With more people invested in English proficiency, there are more job opportunities for Latin American developers. The growing number of fluent English speakers in the region have provided them with more high-paying jobs and opportunities. For this reason, they have established diverse educational programs and initiatives to encourage more people.

Moreover, one of the drawbacks to offshoring rotates around the cultural differences. Latin America and North America are near each other, so it should not be an issue. They share a long history of trade and interaction in comparison to Asian countries and European regions.

Therefore, misunderstandings are less likely to happen. You can expect an Uruguayan software developer to be more proactive than an Indian developer. They have a better understanding of American culture and work ethic, so they understand what’s at stake. Offshoring Asian developers might expect you to guide them throughout the project instead. They also tend to perform beyond your expectations because they assume it’s not what you want.

What is the Hourly Software Development Rate in South America?

The average hourly rate for a majority of South American countries starts at $45. In the leading offshoring software development destination, Brazil, you can expect developers to charge you around $40/hour. It may cost a little more than what Asian software developers offer, but if you are looking for better coordination, project delegation and quality, the price could be worth it.

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