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Latin America is the next great hope for tech nearshoring

Whether it’s coding in Sao Paolo, platform development in Guadalajara or robotics in Colombia, interesting things are happening across the region.

BOGOTA, COLOMBIA, May 22, 2024 / -- When you think of coders and programmers, most people probably have California’s Silicon Valley in their minds on first thought. Give it a little more consideration and they might mention Bengaluru, Lagos or Shanghai. A region that few will mention is Latin America – but that might be about to change.

The region as a whole has been quietly investing in STEM for years now and the fruits of this are starting to come to the table. Whether it’s coding in Sao Paolo, platform development in Guadalajara or robotics in Colombia, interesting things are happening across the region.

That all dovetails perfectly with the ongoing move away from physical offices – the tech sector is particularly well suited for remote working. Especially with back end processes, it’s not necessary to have someone in the same country as the core business.

As American companies are taking more notice of these developments, it’s not hard to see why an increasing number are either outsourcing work to the region or even looking at company incorporation in Latin America.

After all, there’s a large talent pool that is hungry for opportunities and extremely task-driven. With little-to-no drop off in quality levels, much lower costs and a friendlier business environment that much of Asia, it’s an easy decision to make. Throw in the fact that the region works on the same time zone as the United States and that English language levels are improving to complete the picture.

Argentina stands out as a key area for investment. The country is regionally famous for its quality of education and has few local positions for graduates to move into, especially in a testing economic climate. Although not famous in the English speaking world, unicorns such as OLX, Despegar and MercadoLibre are household names in Latin America.

While much of this is based in the capital, Buenos Aires, other places are also eager to make a statement, such as Mendoza. This provincial city is renowned for engineering talent and boasts an array of universities to build on that reputation.

Brazil is the other giant of South America and famed for its tech start-ups. Its economy has one of the highest number of start-ups in the world with business capital Sao Paolo ranking in the top twenty cities globally. This helps attract billions of dollars annually in investment.
The country shows no sign of slowing down, either, with FinTech and e-commerce among the fields that are predicted to make waves this year. With a robust economy underpinning the start-up success, the country is rapidly becoming a smart place to invest in.

The closest neighbor of the United States, Mexico, is also fertile ground for tech companies. With nearshoring becoming ever more important as global trade tensions rise, US-based companies are looking for friendly markets. With 700,000 developers and tens of thousands more graduating annually, there is plenty of talent in Mexico.

That closeness means that business trips are comparatively easy to make from the United States. The country is another haven for FinTech start-ups, with over 150 finding success in recent years. Regional hub Guadalajara is known as Mexico’s Digital Creative City and fulfils a similar role to Silicon Valley in the States.

With the region continuing to grow impressively, companies are starting to wake up to the fact that Latin America is the next big thing in tech. The world may not have caught up to the fact yet, but that’s simply a matter of time.

Craig Dempsey
Biz Latin Hub
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