Home Top Outsourcing Destinations in Latin America for 2019

Top Outsourcing Destinations in Latin America for 2019

The tech talent in Latin America is capturing the attention of global companies. Government pushes and investments in IT initiatives are paying off, with Amazon, Google, Alibaba, and many other global firms opening offices in the region and hiring local tech talent.

There’s a new wave of excitement about Latin America’s potential to become a global leader in technology. Enterprises around the world are looking to this area to outsource development work to highly-trained, yet affordable, engineers.

For companies seeking to keep costs down without sacrificing the quality of work, hiring development teams in Latin America is an advantageous option. Certain countries in Latin America, such as Mexico and Colombia, are the top choice for IT outsourcing due to their proximity to the U.S. and high levels of English proficiency. However, as it becomes increasingly easier to work remotely with outsourcing teams regardless of proximity, many other Latin American countries are becoming desirable destinations to find high-quality software development teams fluent in the latest technologies.

Here are some of Latin America’s most exciting outsourcing destinations to watch in 2019.


Argentina is well-known for its highly-talented pool of software developers and, according to a World Trade Organization report, it is the eighth-largest exporter of computer services in the world. Argentina invests more in education than almost any other developing country, providing free university education for everyone.

What’s more, it tops the list for English proficiency in Latin America, and cultural similarities between Argentina, the US and many European countries make it easy to collaborate with development teams located here.

Argentina is now becoming a hub for blockchain and cryptocurrency development due to currency instability, high inflation, and exchange controls over the past few years. While most Latin American governments have limited or banned cryptocurrencies, the Argentine Internet Chamber of Commerce (Cabase) recently announced the formation of the Federal Blockchain of Argentina (BFA), a distributed ledger created in conjunction with various government agencies.

Though still in the development stage, the blockchain-based platform aims to improve public processes and standardize private applications of blockchain technology.

With more than 30 registered blockchain-based startups and initiatives like BFA, both Argentine developers and the government understand the technology’s potential, and therefore are laying the groundwork for the country to become a regional – and potentially global – hub for blockchain development.


According to the Brazilian Software Market: Panorama and Trends 2018 report, Brazil ranks 9th in the world for software and services, with a software market worth US$18.6 billion. IT outsourcing accounts for 48.5% of that market.

Following Mexico and Puerto Rico, Brazil is one of the top countries with the most IT service sales in Latin America and is an increasingly attractive option to find talented IT development and engineering services. Brazil’s geographic location also makes it a prime area for outsourcing companies to cater to North American clients.

One sector of Brazil’s IT market that is undergoing hyper-growth is the Internet of Things (IoT). According to an IDC Research study, the IoT market is estimated to generate US$8 billion in Brazil in 2018. The “Action Plan for Brazil” claims that widespread adoption of IoT technology throughout the country could add up to US$200 billion to the Brazilian economy by 2025.

These IoT aspirations will not only improve the lives of the people living in the fifth largest country in the world, but will also enable the export of IoT knowledge. Brazil could potentially become one of the largest exporters of IoT technology while simultaneously using it to increase its own national productivity.

Puerto Rico

Though part of the U.S., Puerto Rico is a popular software development outsourcing hub due to its cultural similarities with both the U.S. and Latin America, its local tax incentives, and its highly-trained workforce. As the island undergoes its recovery from the devastating Hurricane Maria, many technology companies have stepped in with promising ideas to rebuild Puerto Rico and show the world how cities of the future could look like.

The Puerto Rican government is exploring investments and partnerships for 5G networks and IoT technologies that will enable smart cities on the island. Though many tech companies, such as Google, HP, Microsoft, and Tesla have already established software development or manufacturing facilities in Puerto Rico, a new wave of technology startups and entrepreneurs are setting up shop not only to advantage of the aggressive tax benefits but to be a part of Puerto Rico’s future as well. Most notably, the startup accelerator Parallel18 is attracting international tech talent to the island, and a number of blockchain and cryptocurrency companies are moving to Puerto Rico.

These companies are investing in software development and exporting their innovations with Puerto Rico serving as their home base. Though this country is still in the recovery process, it’s likely to continue attracting some of the best tech talent in the world and exporting quality IT services over the years to come.

New opportunities for outsourcing to Latin America

Accelerance recently published its 2018 Guide to Global Software Outsourcing Rates, listing the costs to hire various technology professionals around the world. Compared to North America, rates to hire qualified tech workers in Latin America remain significantly lower.

Affordable rates, English proficiency, and time zone similarities are indeed important when looking for IT partners in Latin America. However, as countries in the region increasingly throw support behind their individual IT industries, new technology hubs are forming and thriving. Today, there are more destinations than ever before to find tech talent in Latin America, and as a result, more opportunities to find the right outsourcing partner.

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

CEO of BairesDev, a technology services company that specializes in software development, software outsourcing, and testing solutions.

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