Best Tips to Software Outsourcing in Latin America
Outsourcing applications’ development to Latin America becomes a more and more popular solution by the day. For a number of reasons, this region is coming in high demand, and you will want to jump on this train early. But, if this is your first time outsourcing software development to LATAM, you will need some tips to help you choose the best hiring destination, vendor, and individual employees for successful cooperation.
Obviously, one of the main reasons to outsource software development is to cut costs down. In Latin American countries, skilled IT professionals will charge you considerably less than their US or Western European counterparts, but you will still need to try and get a better deal. Yes, LATAM software engineers have lower salaries, but in Eastern Europe and South Asia, you can find an even cheaper workforce. A lot of people still choose Latin America because of the high level of technical education, geographical proximity, cultural similarities, and English knowledge level, but you will need to choose according to your budget restraints. Also, compare salaries from country to country, because they may vary due to different national currencies and costs of living.
Choose country wisely
Not all LATAM countries are alike. Some of them have great IT infrastructure, an enormous number of tech startups, and a massive skilled workforce, others are still only aspiring to be there. Don’t forget about differences in the average salaries, the history of political instability, the current regime in power in a particular country, and always study the labor and tax laws of your future outsourcing destination. Countries with a great talent pool and affordable salaries can have hidden double taxation or overly strict laws for foreign businesses, so you have to choose wisely and take everything into consideration.
Be aware of laws
As we mentioned earlier, laws can be a tricky aspect of Latin America outsourcing. Many of the region’s countries made their priority attracting foreign businesses and opening up tech startups, but still, tax and work laws can be confusing for newcomers, and can’t be changed that easily. To avoid double taxation or the need for opening an office in your hiring destination, always make sure early on that the outsourcing vendor provides professional law consulting. Even if this service will cost you extra, it is better to not be greedy in this situation.
Data security is extremely important when you outsource your business app development abroad. Most of the North American and European countries have the same international security protocols, but LATAM countries are not implementing them in their IT sector right now. Instead, they each have their own data protection protocol, which can be troublesome in the future. To avoid data theft, always ask outsourcing vendors about security measures they adopt, sign NDA with both the agency and development team, and register an app as your intellectual property. If you choose an outsourcing company right, their specialists will be able to help you with all the legalities of this process.
It is true that most of the LATAM countries have a great level of English proficiency among the adult population. But still, you will need to insist on participating in the interviewing process, in part, to make sure that your potential employees do not have any issues with communicating in English. Language barriers can be a really frustrating aspect of offshore outsourcing, so don’t be afraid to double-check. After all, the level of school education and English knowledge may be different from country to country.
Time zones differences
When choosing an outsourcing destination, one of the main things to consider is time zones difference and business day overlapping. Scheduling a work call in the middle of the night or waiting for a simple answer to a text message for 12 hours is a real headache. For companies from North America, LATAM is a great choice to avoid all these unpleasantries. Time zones are not that different, but remember, that this is a big region, and depending on your location, the difference may be bigger than you expected. Always research this online before choosing a vendor who works in one particular country. For business owners from Europe, Latin America might not be the most convenient choice.
Like similar time zones, geographical proximity is pretty important for successful cooperation too. Of course, outsourcing usually means that software development will be remote, but in case of an emergency, you may have an urgent trip. A flight from the USA to most of the LATAM countries will take you only a couple of hours while traveling to Eastern Europe can take up to 12 hours easily. This may never come in handy, but you will have to take everything into consideration while choosing an outsourcing destination.
You will always have to worry about software developers’ soft skills and how they will fit into your existing team. Before you start the hiring process, it is recommended to compose a list of necessary soft skills and at least some description of team culture. LATAM tech talent has proven to be pretty similar to Europeans and Americans, so this will unlikely to become a problem. But remember, that every country has its own traditions and working conditions, so always try to participate in the interviewing process to communicate with every single developer personally. Interpersonal conflicts and troubles with basic communication can turn Latin American software development outsourcing into an unpleasant experience for all parties involved.
Outsourcing your app development to Latin America can be a great experience with an excellent talent pool of skilled software engineers. Of course, every hiring destination has its own little problems that might really confuse newcomers, but with tips from this guide and thorough research of every single country beforehand, you will be able to choose wisely, and successfully cooperate with IT professionals from one of the fastest-growing tech markets in the world right now.