Why US Companies Are Now Looking Into Latin America
Marketing and Culture
Posted on May 30, 2023
Countries like Colombia, Peru, Argentina and Brazil are catching the attention of US tech companies and startups that want to have accelerated growth due to all the benefits this region offers.
It’s well known that companies in the States have faced numerous challenges in the last years, like tech talent shortage and the rising cost of labor when outsourcing IT jobs to countries in Asia and Europe. As a result, Latin America (including our home, Colombia) has gain popularity as a nearshoring outsourcing destination. Let’s get into the whys because you might want to surf this wave!
Our first factor is Latin America’s proximity to the United States, making it an attractive destination for US companies looking to grow their businesses internationally. With many countries in the region located just a few hours away by plane from major US cities, it is easy for companies to establish a presence in Latin America and maintain close ties with their operations back home. You can visit your team or plan a meetup easily!
Let’s not forget how we share a similar timezone due to the proximity. This will make the journey much more enjoyable!
Another reason US tech companies look into Latin America is the lower business expenses. Many countries in the region offer tax incentives and other benefits to attract foreign investment. In addition, wages and real estate costs are generally lower in Latin America than in the United States. This means that US tech companies can save money by setting up operations in the region while still maintaining high-quality work. Companies like Google and Microsoft have established offices in Latin America to take advantage of these lower costs.
US tech companies are drawn to Latin America because of the region’s tech talent. Many Latin American countries have invested heavily in education and training programs, resulting in a highly skilled workforce proficient in English and other languages, and producing many skilled professionals in fields like engineering, computer science, and mathematics.
Also, many Latin American countries have government initiatives to support the growth of the tech sector, which is also contributing to the development of tech talent in the region.
Another advantage of nearshoring to Latin America is the cultural similarity between the US and these countries. Latin American countries have been heavily influenced by US culture and have adopted similar business practices. This makes it easier for US companies to integrate their teams and collaborate effectively.
10 Big US Companies in Latin America
If you want to grow your team faster, hire more team members and make more profitable use of your capital, you better look at the tech talent Latin America has to offer. It looks like this region is going to be the next Silicon Valley!
You can visit our team on the Colombian coast. We know for sure you will not want to leave once you get here because our essence is a mix between hard work and folklore.
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