October 13, 2020

Pros and Cons of Outsourcing to Latin America

While outsourcing halfway across the world has been a trademark of many US companies for decades, a number are starting to rethink operations and look for talent a little closer to home. 

Latin America is quickly gaining a reputation as a hub of rising tech talent. This new hive of developers provides US companies access to highly knowledgeable IT teams at a closer proximity without paying domestic IT firms’ steep cost.  

For some, initializing staff-augmentation involving offshore teams may sound complicated and risky from a business perspective. Still, modern outsourcing presents far more benefits for many companies than drawbacks, especially when outsourcing to Latin America. 

Rootstrap is here with a comprehensive outline of the pros and cons to weigh when considering outsourcing to Latin America. Let’s start with the drawbacks of Latin America IT outsourcing.

Cons of IT Outsourcing to Latin America 

Before committing to IT outsourcing to Latin America, think about the following drawbacks to see whether it’s a good fit for your company.

More Expensive than Outsourcing Further Offshore

If tight budgeting is your primary reason for outsourcing IT work, Latin America may not be the right fit. Of course, talent thrives in every corner of the world, but to find the cheapest offshore rates, you’ll likely need to hire IT help from further away. 

Remember, though, one of the benefits of outsourcing to Latin America is the smaller time difference. Outsourcing further offshores means complicating communications with a more significant time difference. 

Additionally, while fostering successful business relationships is possible between any two cultures, Latin America’s geographic proximity lends to potentially more cultural overlap. 

If these considerations are priorities for your business over budget, you may find outsourcing to Latin America worth the added cost.

Navigating Legalities

All offshore outsourcing destinations have laws regulating the business sector that differ from the US. Given these legalities, navigating through the red tape and keeping everything on the up-and-up presents a challenge for companies wishing to outsource. 

However, this potential downside does not affect companies that outsource through Rootstrap’s staff augmentation services. 

Here at Rootstrap, we carry all legal responsibility and handle all the paperwork that would typically settle on your shoulders when hiring an offshores employee. We operate as the official employer, saving you the headache of figuring out how to compute payroll, taxes, employee benefits, and other technicalities. 

All of our employees sign a handbook, and we expect them to follow policies outlined on best practices, especially regarding interacting professionally with other team members and clients. 

Pros of IT Outsourcing to Latin America

Now that you’re aware of the potential drawbacks of outsourcing take a look at just a few of the benefits. If your company is anything like ours, you’ll likely find that outsourcing to Latin America is a fantastic business solution.

Saves Resources Spent on Recruiting

The dreaded hiring process can quickly drain companies of precious time and resources. The search for qualified talent can be grueling. Even a candidate with a soaring resume and outstanding qualifications can disappoint on attitude and reliability. 

Enlisting the help of an IT staff augmentation service provider eliminates the need for spending resources on recruiting. 

At Rootstrap, we find the talent - whether domestic or international - and do all the hiring. That way, you can count on top-quality IT support to be there when you need it. 

Access to a Thriving Pool of IT Talent

Talented developers, coders, and programmers are in high demand in today’s increasingly digitized market. Many companies are struggling to find and keep domestic talent in the competitive tech industry and have started searching beyond US borders to fill IT needs. 

In recent decades, Latin America has begun to earn a reputation as a talented outsourcing destination, capturing the attention of US-based startups and tech giants alike. 

“Latin America has a vibrant higher education community and continues to increase the number of computer science and engineering degree offerings in order to keep up with private sector demand,” explains VentureLab, adding, “This allows offshore development services to source experienced programmers quickly–allowing companies to start a development project on-cue.”

Outsourcing to Latin America allows businesses to tap into a pool of highly-qualified programmers.

High-Quality Development at Less Cost

Since the cost of living in Latin America remains lower than in the United States, talented developers from countries like Uruguay and Argentina can deliver technical services for less without compromising quality. 

Hiring offsite developers also reduces operational costs and is cheaper than hiring full-time employees. Since outsourced teams operate remotely, your company will not need to acquire extra office space or hardware, thus keeping overheads to a minimum. 

Our qualified teams have worked along with big names, like Disney and Google, to create top-of-the-line tech products, all the while reducing development costs. 

IT Help That Adapts with Your Company

As your company develops, so do your ideas and deliverables. To properly execute an idea, you’ll need a dynamic team of programmers and developers on call. 

However, keeping a full-time, IT crew may not be financially feasible for your company or even suit your growing company’s needs. At times, you’ll likely need the help of a specialist or someone with an area of expertise that does not yet exist within your in-house team.

Rootstrap’s staff augmentation services can keep you from hiring and training a specialist every time a new need arises. Instead, you’ll have gifted specialists on tap for as long or as often as you need them. This method of outsourcing saves both time and money. 

Boosts Efficiency and Productivity

Instead of hiring additional help, many companies simply demand more from current staff. Still, studies have shown that asking employees to multitask is not in your company’s best interests. 

The American Psychological Association says, “Doing more than one task at a time, especially more than one complex task, takes a toll on productivity,” further explaining that “multitasking may seem efficient on the surface but may actually take more time in the end and involve more error.”

While it may sound backward, lightening the load on your staff can boost efficiency. A practical solution is outsourcing. 

With Rootstrap’s IT staff augmentation services, you can leave taxing programming and development to our skilled team members. We can help you significantly increase output for less than the cost of hiring new employees and without putting an unnecessary burden on your existing team.

Rootstrap’s IT Staff Augmentation Service

In the fast-paced tech industry, you need quick access to developers with the talent to match your best ideas as they pop up. 

Staff augmentation services from Rootstrap provide your company with IT support as you need it. Our full-stack engineers are at your disposal to develop your ideas into tangible products.

Whether you need an app built from scratch or simply a couple of extra coding experts to temporarily supplement your capable crew, we can seamlessly work with your company to deliver the custom services you need. 

How Does Staff Augmentation Work?

First off, we consult with you and discuss the needs of your company. What are your goals, and what do you need to accomplish them? Then, we fill those needs with our talented team. 

We find candidates for the job with both the skill and attitude it takes to get the project done right. Once we find the right fit for you, we provide the continual support needed to ensure our specialists succeed in working with your company for the project’s duration.

We’re ready to provide as much - or as little - help as you need to help your company reach its goals. Our experts work with your in-house team to provide the extra IT muscle required to meet deadlines and code your next product line. 

No matter the location of our IT specialists, they will adapt to fit your company’s needs. This includes cooperating with your policies, protocols, and procedures. 

Where do Our IT Experts Operate? 

Rootstrap’s ever-expanding team of talented developers, programmers, and other IT specialists operates from many strategic locations. 

While our headquarters is rooted in Los Angeles, California, we have a globalized team, with offices in Montevideo, Uruguay, and Buenos Aires, Argentina. Additional domestic offices are located in New York and San Francisco. 

Named in 2019 as the top staff augmentation company by Clutch, Rootstrap’s world-class team of development continues to curate a team of some of the best IT minds in the industry.

How do You Start IT Outsourcing to Latin America? 

Since Rootstrap has valuable experience working with all sizes and types of companies, we have all the know-how it takes to help you get started with IT outsourcing to Latin America. 

Our innovative procedures make the transition as smooth as possible, helping you onboard offshore staff quickly and efficiently. With our staff augmentation services, your in-house team will enjoy quick integration with our top-quality specialists and be ready to establish a good workflow as soon as possible.

Get started by reaching out for a consultation. We look forward to hearing about your project and finding out how our staff augmentation services can help you reach your company’s goals.

Frequently Asked Questions

How to outsource in Latin America To successfully outsource in Latin America, you will need the services of an experienced U.S. and South America based software development agency. By outsourcing to Latin America with a reputable agency, you will avoid legalities and going through the hiring process, while getting talented developers at a lower rate than in the U.S. See how Tony Robbins successfully outsourced to Latin America when developing his ‘Breakthrough App’.

Is Latin America good for outsourcing? There are many benefits to outsourcing in Latin America, as it is producing high-quality tech talent at more affordable rates than the U.S. Cities such as Argentina’s, Buenos Aires, and Uruguay’s Montevideo, are prospering as ‘tech hubs’, with some of the finest talents in the IT industry. See how tech giants like Google are using IT staff augmentation to outsource in Latin America.

How is technology growing in Latin America? The growth of the IT industry combined with the large number of companies exporting software in over 50 markets, has led to the substantial growth of technology in Latin America. This is most notable in Uruguay’s Montevideo, which is now the number one software exporter in South America, and the third globally. See how MasterClass successfully outsourced to Latin America when building its EdTech app.

Why is Latin America the next big technology background? Latin America is producing high-quality tech talent at more affordable rates than the predominant U.S. tech cities, such as San Francisco, Los Angeles, and New York City. The smaller time difference, geographic proximity, and lower costs have proved popular among U.S. tech companies and startups. See how companies are effectively utilizing IT staff augmentation to outsource in Latin America.