You’re short on senior devs, and Silicon Valley rates are out of reach. Outsourcing seemed like the answer until time zone gaps and communication delays started killing your momentum.
It’s a common challenge for tech leaders trying to scale without overspending. However, the good news is that nearshore outsourcing in Latin America (LatAm) offers a strategic solution that addresses these exact pain points.
According to Statista, LatAm has emerged as one of the world’s leading tech outsourcing destinations, and for good reason. Thanks to its skilled talent pool, cultural alignment, and overlapping time zones, it’s becoming the top choice for IT outsourcing.
If productivity, quality, and speed are non-negotiables on your next project, you should consider LatAm tech talent nearshoring.
In this article, we’ll show you why Latin American engineers are becoming the go-to choice for companies looking to innovate and collaborate better, and control costs, without compromising on quality or speed.
Why Other Outsourcing Falls Short
Outsourcing is often considered a cost-effective talent sourcing option, especially for companies looking to scale quickly or access specialized tech skills. However, not all outsourcing models are created equal.
There are three primary models:
- Offshore outsourcing involves partnering with teams in distant countries, often across multiple time zones.
- Onshore outsourcing means working with third-party providers within your country.
- Nearshore outsourcing connects companies with talent in neighbouring or nearby countries, offering a middle ground.
While each model can be more affordable than hiring in-house, the difference lies in how they impact collaboration, speed, and quality.
For offshore outsourcing, its significant downsides include communication, delivery quality, cultural alignment, and collaboration.
Communication often breaks down when teams aren’t aligned on language or work culture. Misunderstandings pile up, and collaboration starts to feel clunky instead of seamless.
On top of that, maintaining quality becomes a real challenge because of a lack of project visibility, which makes it challenging to keep everyone on the same page.
It’s no surprise that companies are reevaluating the offshore approach. In a 2022 Clutch survey, more than 21% of small businesses said they planned to explore nearshoring as a way to improve collaboration and boost team efficiency.
Latin America, in particular, is gaining momentum. As of 2024, the region accounted for 9.5% of the global IT services outsourcing market, reflecting a broader shift toward regionally aligned, high-impact talent solutions.
So why are Latin American engineers at the center of this outsourcing shift? We’ll explain that next.
How Latin American Engineering Talent is Becoming the Key to Unparalleled Productivity
Here are the top reasons why productivity-driven companies are increasingly turning to Latin American engineers:
-
Time Zone Alignment & Seamless Collaboration
Countries like Mexico, Colombia, and Argentina share similar time zones with the U.S., making it easier to work in sync. This overlap allows for real-time communication, faster decision-making, and tighter feedback loops, without the lag you’d experience with offshore teams.
It’s the same level of collaboration you’d expect from onshoring, but far more cost-effective. The outcome of working with LatAm tech talents includes speedy project delivery and quicker time to market.
-
Cultural Affinity
Latin American professionals share many cultural and professional traits with U.S. teams, including similar communication styles, business practices, and a strong work ethic. These traits ease smooth collaboration, effective teamwork, and efficient project execution.
Also, Latin American engineers are accustomed to U.S. businesses’ fast-paced, results-oriented nature, making them highly adaptable and responsive to project needs.
-
A Deep Pool of Top-Tier, Agile Talent
Latin America is home to a rapidly growing pool of highly skilled tech professionals; the numbers tell a compelling story. As of 2025, the region boasts more than 2.6 million engineers, with Brazil (760,000), Mexico (569,000), and Argentina (170,000) leading in talent density.
RANK COUNTRY NUMBER OF DEVELOPERS 1 Brazil 759,278 2 Mexico 563,075 3 Argentina 167,414 4 Colombia 85,721 5 Chile 59,111 6 Peru 32,347 7 Ecuador 28,201 8 Costa Rica 16,215 9 Uruguay 16,003 Source: Next Idea Tech
Fueling this growth is a strong educational infrastructure in the region. Across the region, over 1,800 universities graduate, and more than 220,000 STEM professionals graduate each year. Many are trained in high-demand fields like AI, data science, and cloud computing.
Latin American learners also continue to excel in global skill benchmarks. According to the Coursera Global Skills Report, learners in the region rank among the top globally in technology and data science proficiency, demonstrating a commitment to continuous upskilling and technical excellence.
Regional Skill Proficiencies
GLOBAL RANK COUNTRY NAME BUSINESS | 20%* TECHNOLOGY | 75%* DATA SCIENCE | 69%* 19 Colombia 38% 95% 68% 25 Mexico 6% 97% 90% 28 Brazil 3% 87% 99% 30 Argentina 8% 93% 96% 38 Peru 13% 81% 86% 42 Costa Rica 88% 60% 37% 43 Chile 9% 89% 62% 45 Ecuador 20% 72% 59% 47 Uruguay 19% 73% 57% 62 Bolivia 4% 50% 80% 63 Dominican Republic 28% 55% 44% 85 Venezuela 2% 44% 54% *Average regional scores
Source: Coursera
This blend of depth, agility, and specialization makes Latin America stand out for companies seeking high-performing engineering teams that can drive innovation and accelerate digital transformation.
-
Cost-Effectiveness Without Compromise on Quality
One of the most compelling reasons businesses turn to Latin American engineering talent is the significant cost savings that don’t sacrifice quality.
Labor costs in Latin America are typically lower than in North America, with highly skilled professionals available at competitive rates.
Minimum wage in Latin America per month: Costa Rica leads the region with the highest minimum wage, approximately $7.26/hour based on a 100-hour monthly work estimate.
Minimum wage in the US per hour
Despite the lower costs, Latin American tech professionals are strongly committed to delivering high-quality work. The region’s emphasis on continuous education and professional development ensures that talent remains at the forefront of technological advancements.
-
Innovation & Access to Advanced Tools (Including AI)
Latin America is emerging as a vibrant hub for tech innovation, with significant investments in digital infrastructure and a growing culture of experimentation.
Engineering teams across the region are skilled in cutting-edge technologies like AI, machine learning, cloud computing, and blockchain. These capabilities make them valuable partners for businesses looking to build more innovative, scalable solutions.
GAP’s Engineering Team Approach to Productivity
As a software development company with deep expertise in emerging technologies such as AI, machine learning, and data analysis, we bring all the standout qualities that Latin American talent is known for.
But what truly sets us apart is how we build and empower our teams. Here are some of our unique traits:
Our “Core” Pillar of Investing in People, Empowering Talent
At GAP, we’re home to over 600 top-tier tech professionals, with some of our best engineers in Latin America, skilled across software engineering, AI, machine learning, data engineering, and more.
Our approach centers on people. We focus on rigorous recruitment, continuous learning, and fostering a culture grounded in strong values and diverse perspectives. This fuels innovation, drives agility, and creates an environment where our engineers, known as GAPsters, choose to stay and grow with us for the long term.
By offering ongoing upskilling, mentorship, and a supportive workplace, we ensure our team stays ahead of the curve and delivers impactful, forward-thinking solutions.
Agility, Communication, and Innovation as Core Values
For us, productivity means more than just deliverables. It’s about having a team that’s agile, forward-thinking, and committed to innovation.
We’re built on agile principles, allowing us to adapt quickly to change, respond to new challenges easily, and keep projects moving smoothly. With these principles, we’re able to create a work culture where collaboration thrives, communication is seamless, and teams stay aligned.
A Strategic Partnership that Goes Beyond Outsourcing
We’ve worked with over 1,000 clients across 21 countries, and our goal is always the same: to build strong, strategic partnerships.
While writing code is part of our technical expertise, we take it further by working closely with our clients to understand their unique goals and align our engineering efforts accordingly. This hands-on, collaborative approach has consistently earned us trust, delivered measurable results, and helped companies tap into the full strength of our talent.
Our clients’ success stories say it all.
Now what’s next?
Innovate Smartly with GAP’s Latin American Talent
Latin America is home to a thriving community of skilled engineers, ready to deliver exceptional quality, drive innovation, and help your business scale efficiently. At GAP, we connect you to this talent with clarity and purpose.
With over 18 years of experience and deep expertise across AI, data engineering, software development, and more, we’ve built a reputation for blending technical excellence with a people-first approach.
Our commitment goes beyond project delivery. We build long-term partnerships that create value, fuel innovation, and support business growth at every stage.
Ready to move forward?
Let’s turn your ideas into lasting solutions. Book a free consultation today.
