Latin America has rapidly become a preferred destination for nearshore outsourcing, particularly in the IT and software development industries, and U.S.-based companies are increasingly leveraging the region’s tech talent, cost efficiency, and proximity. As Jens Erik Gould, Founder & CEO of Amalga Group, explains, “Latin America has an untapped reservoir of skilled professionals who are eager to work with U.S. companies, bringing both technical expertise and a deep understanding of Western business cultures to America.”
A Growing Tech Ecosystem
Several factors contribute to Latin America’s rise as a nearshore outsourcing hub. Countries like Mexico, Colombia, Brazil, and Argentina have robust tech ecosystems supported by strong educational systems that produce a steady pipeline of skilled software engineers, developers, and IT professionals. In recent years, the region has made notable strides in areas such as fintech, AI, and cloud computing, providing cutting-edge solutions to global companies.
According to Amalga Group’s Jens Erik Gould, “Latin America’s tech landscape is growing at an unprecedented rate. These countries are producing top-tier talent and fostering innovation in new areas of technology.”
This rise in technical expertise has made the region highly attractive to companies needing tech-driven solutions.
Cost-Efficiency and Proximity
One of the key advantages of nearshoring in Latin America is cost efficiency. Compared to domestic U.S. talent or even outsourced talent in distant countries like India or Eastern Europe, Latin America offers highly competitive rates for tech services. Coupled with similar time zones to the U.S., Latin America’s proximity makes it easier for companies to manage projects without the delays associated with offshore outsourcing.
“By working with professionals from Latin America, U.S. companies can maintain high quality while significantly reducing costs,” says Jens Erik Gould. This financial advantage allows businesses to allocate more resources toward innovation and growth while maintaining operational efficiency.
Cultural Alignment and Language Skills
Another significant advantage is the cultural alignment between Latin America and the U.S. Most professionals in Latin America are familiar with U.S. business practices, which makes collaboration seamless. Additionally, many tech workers in the region speak fluent English. This removes potential language barriers and facilitates smooth communication.
“Working with teams in Latin America means having fewer hurdles when it comes to understanding business expectations and communication,” says Jens Erik Gould. This cultural affinity and linguistic capability make Latin America an ideal outsourcing partner for U.S. companies.
Government Support and Innovation
Another boon is that governments in the region are proactive in fostering a tech-friendly environment. They provide tax incentives, grants, and innovation hubs. Countries like Uruguay and Chile have established tech-friendly policies to attract foreign investment and nurture homegrown tech talent.
As Jens Erik Gould says, “Government support has been crucial in promoting a tech-savvy workforce and attracting international companies. This has enabled Amalga Group and those we work with to tap into a pool of talent that’s ready to innovate and drive growth.”
Latin America’s emergence as a tech hub for nearshore outsourcing is the result of a confluence of factors, including a growing talent pool, cost advantages, cultural alignment, and government support. Jens Erik Gould and Amalga Group exemplify how companies can leverage this opportunity to access high-quality talent while maintaining operational efficiency. By turning to Latin America, U.S. businesses can optimize their staffing and position themselves to take advantage of an increasingly tech-driven global economy.
About Jens Erik Gould
Jens Erik Gould is the Founder & CEO of Amalga Group, a Texas-based nearshore outsourcing company specializing in providing highly qualified talent in IT, software engineering, and contact centers. Previously, Gould spent over a decade as a business, politics, and energy reporter covering the U.S. and Latin America for esteemed media outlets like Bloomberg News, The New York Times, and TIME.
