Why Is Latin America a Hub for IT Outsourcing?

For decades, US businesses have been outsourcing various customer support and accounting services to teams based in other countries. With the rise of the Internet and digital tech, information technology is now one of the top outsourced services in the world. 

Let’s go over why you might want to consider IT outsourcing in Latin America, perhaps specifically in Costa Rica.

First Things First: What Is IT Outsourcing?

Information technology outsourcing or ITO is the practice of contracting with a local or foreign company that provides IT-related business processes. Some services these third-party teams provide include software development and support, network infrastructure, and data security. 

Why Do Companies Outsource IT?

Many businesses today opt for outsourcing parts of their IT team to reduce operating costs and focus on core activities. Partnering with a third party managed IT staff provider can save time and money since you don’t have to set up a foreign corporation, hire long-term employees, pay for dedicated HR managers and HRIS software, set up and manage benefits, or operate facilities in another country.. Partnering with a managed IT staffing vendor also allows you and your employees focus on core activities and improve your business. 

Nearshore vs. Offshore Outsourcing: What’s the Difference?

Nearshore and offshore outsourcing are similar in that they both refer to outsourcing in other countries. However, offshore is when you hire teams from a distant country with a significant time zone difference, such as a US business outsourcing to an Indian or Philippine company. 

Meanwhile, nearshore outsourcing is when a business partners with a team based in a nearby country in the same time zone or at least one with a negligible difference. An example would be if you outsourced to Latin American countries like Costa Rica. 

latin america it outsourcing

Why Outsource Your IT to Latin America?

While many think of Asian countries in offshore outsourcing, Latin America has huge potential as a nearshoring destination for various services, including IT, thanks to growing support for the technology industry. Here are some of the main advantages of outsourcing to nearshore IT services in Latin American hotspots like Costa Rica. 

Benefits of Outsourcing to Latin America

  • Significant Cost Reduction: Hiring teams from Latin America can help you cut costs. According to SHRM, US businesses can spend around $4,000 to hire just one employee. Some estimate the average US developer can cost around $150 an hour. A developer in Latin America will cost less than a developer in the US due to a lower cost of living and lower demand. Long-term managed IT staffing partnerships provide annual savings of 30-50% and are sustainable.  
  • Professionalism and Scalability: IT outsourcing businesses already have professionals and team members on hand to get the job done properly and scale operations up or down as needed. 

Additional Benefits of IT Outsourcing to Costa Rica

Here are a few specific perks of outsourcing nearshore IT services in Costa Rica:

  • Shared Time Zone: Working together with a nearshore Costa Rica team means sharing time zones, eliminating the need for employees to adapt to various time zone differences. 
  • English Proficiency: Costa Rica outranks many Latin American countries in their English language proficiency. This reduces the risk of miscommunications if you decide to pursue nearshore outsourcing in Costa Rica.

Contact Us for IT Outsourcing in Costa Rica Today

IT outsourcing in Latin America definitely has its advantages for US businesses regarding cost-efficiency and sharing time zones. Interested in partnering with a professional IT team from Costa Rica? Get in touch with us, and let’s discuss how we can help your business grow!

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