If you're an entrepreneur, C-level executive, or decision maker of a startup or a small or medium-sized business, you've likely considered outsourcing as a way to increase efficiency and reduce costs, and by now, you’re probably pretty familiar with some of the pros, cons, success cases, and horror stories that come from fellow individuals who have ventured into this experience and worked with people from some of the more popular locations like the Middle East, Eastern Europe, and of course, Latin America.
However, outsourcing has its fair share of myths and misconceptions. For now, let’s focus on Latin America. In this blog post, we'll dispel three of the most common myths about outsourcing to Latin America and explain why it's a viable option for businesses of all sizes.
Myth #1: Latin America lacks the infrastructure needed for outsourcing
Let’s face it. Many people still picture Latin America as a place where the streets are lined with banana trees, and the only way to communicate is by sending smoke signals from a treehouse in the jungle. One of the most pervasive myths about outsourcing to Latin America is that the region lacks the necessary infrastructure. However, this is simply not true. Most Latin American countries have invested heavily in their technology and telecommunications infrastructure in the past few decades, with some countries ranking above the global average in broadband speeds and internet penetration. Moreover, many companies in the region have experience working with international clients and use the latest collaboration and project management tools to ensure seamless communication and delivery.
Myth #2: The only benefit of outsourcing to Latin America is timezone overlaps
While timezone overlaps are undoubtedly a significant advantage of outsourcing to Latin America, they are not the only benefit. We could argue that the greatest benefit Latin America can offer is a strong cultural affinity with North America, making it easier for companies to establish effective communication and collaboration. On top of that, the region offers access to a highly skilled and diverse talent pool, with many professionals holding advanced degrees from top universities in the US and Europe. Plus, in the event that you need to mobilize or visit your nearshore team, you may take solace in the fact that several locations are situated only a mere few hours away by air travel.
Myth #3: Outsourcing to Latin America is too expensive
Another common myth about outsourcing to Latin America is that it is too expensive. While we can’t pretend that cost-wise, offshoring might seem like a cheaper alternative at face value, the reality is that outsourcing to the region can be a cost-effective option when you weigh the risk-reward payoffs of nearshoring, particularly for small and medium-sized businesses. The lower cost of living and lower wage rates in many Latin American countries can translate into significant savings, without sacrificing quality or expertise. Additionally, outsourcing to Latin America offers a level of flexibility that may not be available in other regions, allowing businesses to scale up or down operations based on their needs.
Outsourcing to Latin America offers many benefits that are often overlooked due to misconceptions about the region. By dispelling these myths, businesses can explore the opportunities available and make informed decisions about their outsourcing efforts.
