According to the Deloitte Global Outsourcing Survey, 42% of organizations cite improved access to talent as the primary reason for outsourcing. With a combined talent pool of 1.3M skilled tech professionals, Latin America offers just that—along with the added benefits of cost savings and geographic proximity. As businesses look for efficient ways to scale their operations, IT outsourcing to Latin America emerges as a strategic choice. The region combines qualified talent, competitive rates, and nearshore advantages for seamless collaboration.
What else makes outsourcing or extending your team in Latin America such a compelling choice? We’ll explore the current state of the region’s tech market, its key advantages, and take a closer look at the top outsourcing destinations in LatAm.
IT outsourcing in Latin America: Industry snapshot
IT outsourcing vendors in the region have become trusted tech partners for software development and hiring engineers in Latin America for many businesses worldwide. Let’s now break down the key reasons why you should consider outsourcing in Latin America as a way to scale your engineering capacity.
A strong and growing talent pool
The talent capacity of your potential outsourcing destination is a crucial aspect to consider. In these terms, Latin America is an attractive option—the region is home to an extensive talent pool of 1.3M ICT specialists. With over 750,000 of them residing in Brazil, the country is the LatAm leader in terms of talent working in the IT industry. Other prominent locations where you can outsource to Latin America are Mexico (700,000 tech experts), Colombia (150,000), Argentina (115,000), and Chile (61,000).
Consistent economic progress and improving social standards are driving significant transformation of LatAm IT markets. Modernized infrastructures and a growing community of skilled tech professionals are fueling new opportunities across the region. Many local companies are now formalizing outsourcing strategies, signaling Latin America’s shift from a cost-competitive location to a mature technology partner in the global market.
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A vast network of tech companies
The number of tech companies in a country correlates with its population. So, Mexico, Argentina, Colombia, and Brazil are home to the most significant number of top IT outsourcing companies in Latin America. Here’s the number of companies that can help you outsource to Latin America in each of the region’s key outsourcing destinations:
- Mexico—510 vendors;
- Argentina—464 companies;
- Colombia—426 tech firms;
- Brazil—338 companies;
- Chile—165 vendors;
- Costa Rica—56 companies;
- Peru—85 IT firms.
Furthermore, the region attracts US-based tech giants like Apple, Google, Amazon, and Microsoft. European companies have also established their presence in Latin America. For instance, N-iX, a global software development company, has established an R&D center in Medellin, Colombia, and plans to expand its presence across the LatAm region. With an extended talent network, we can help our clients access highly skilled talent with the right expertise.
Broad tech expertise
According to LinkedIn, the most popular tech specializations in Latin America are JavaScript (71,600 job postings), Python (64,000), HTML (63,800), and C++ (51,700). Increasing demand for the IoT and embedded solutions also drives more tech talent to connected infrastructure tech. All in all, tech experts in Latin America cover every possible area of expertise, making it easy to find the best-suited professionals for your project in the region.
Governmental support
Kearney Global Services Location Index places Brazil, Mexico, and Colombia 4th, 10th, and 11th based on their business environment, financial attractiveness, experts' skills and availability, and the new digital resonance. One of the key factors contributing to high positions in this ranking is the strong governmental support for the tech sector.
Governments across the region work to attract foreign capital and expand the digital sector. Due to these initiatives, combined digital export in Colombia, Argentina, Brazil, Chile, Mexico, and Uruguay is expected to generate over $140B annually by 2030, compared to $34B in 2022. The initiatives targeted at digital export have made Latin America a trusted destination for North American businesses.
All these factors make outsourcing to Latin America a viable choice for your business. Take a look at the image that shows how well-suited different countries of Latin America are for outsourcing.
Read more about nearshoring to Latin America
Top locations for IT outsourcing to Latin America
In this section, we will provide an overview of LatAm IT outsourcing destinations with the most developed tech markets and countries that are home to the best outsourcing companies. Let’s take a closer look.
Colombia
Colombia has emerged as a dynamic hub for outsourcing in Latin America, driven by its robust pool of tech talent and government-backed initiatives. With the largest share of tech graduates in the region, Colombia annually produces 13,000 ICT graduates. This, in turn, enriches the job market with qualified talent. Local software developers are consistently ranked among the top 5% globally for engineering skills, according to Coursera. The Colombian government further supports the growth of the ICT sector with initiatives like VAT exemptions, ICT investment promotion programs, and more. This thriving ecosystem is attracting global investments, making outsourcing software development to Colombia an increasingly popular choice for businesses.
Mexico
Mexico stands out as the LatAm outsourcing destination with the largest concentration of IT companies. With over 700,000 developers, second only to Brazil, Mexico is a powerhouse for tech talent in the region. As the world’s third-largest IT services exporter, Mexico generated $21B in exports. The country also ranks 10th among 36 upper-middle-income economies on the Global Innovation Index (GII), showcasing its growing technological prowess. Government programs, such as Fondo Nacional Emprendedor, along with over 20 tech parks and startup investments, play a key role in driving Mexico’s thriving tech ecosystem.
Keep reading about software development outsourcing to Mexico
Brazil
Brazil stands as the largest destination for IT outsourcing in Latin America, with a talent pool exceeding 750,000 tech professionals. Brazilian software developers rank 14th in the global TopCoder Country Ranking, reflecting their strong expertise across various tech domains. The country's tech talent continues to grow, with over 46,000 ICT experts graduating each year. Globally recognized Brazilian innovation hub, Florianopolis, has earned the nickname "Brazil’s Silicon Valley", thanks to its high concentration of universities and research institutes.
Argentina
This country houses the region's second-largest number of tech companies. Moreover, Argentina is home to the fourth-largest tech talent pool in the whole region. According to the Global Innovation Index (GII), Argentina ranks 7th among the 21 economies in Latin America and the Caribbean, which highlights the country’s growing innovation capacity. As a result of government-supported free higher-education programs, the country also consistently ranks among the most educated ones, with high rates of literacy and English proficiency.
Read more about outsourcing software development to Argentina
Chile
By 2026, Chile's ICT market is projected to reach $13.93B by 2026. The country is home to more than 61,000 tech professionals employed in the IT sector. Ranked 1st among the 21 economies in Latin America and the Caribbean on the 2025 Global Innovation Index, Chile stands out for its innovative capabilities and thriving tech ecosystem.
More on the topic: Outsourcing software development to Chile
Costa Rica
Costa Rica is another top choice for outsourcing in Latin America. The English proficiency of local developers is ranked 5th regionally in the EF Index, making communication seamless for global collaborations. With over 2,400 ICT graduates entering the talent pool each year, the country ranks 5th in Latin America for the number of engineering graduates. Costa Rica's government-backed initiatives, along with organizations like CONICIT and CINDE, fuel its innovation-driven tech ecosystem, making it an attractive destination for outsourcing in LatAm.
Peru
The relatively low cost of living in Peru results in competitive labor costs for outsourcing software development. The country boasts a strong education system and a skilled workforce of over 45,000 software developers, making it a solid choice for businesses seeking qualified talent. Additionally, the Peruvian government supports the tech sector with tax incentives and investments in infrastructure and education. Located in the same time zone as the East Coast of the United States, Peru ensures seamless communication with US-based development teams.
Key benefits of outsourcing to Latin America
While outsourcing to Latin America has long been a viable option, many North American businesses have traditionally favored destinations like China and India. However, in terms of IT outsourcing, Latin America offers unique advantages that are increasingly making it a top choice for IT outsourcing.
1. Full workday overlap with US time zones to facilitate real-time collaboration
Outsourcing to distant locations has often been linked to communication delays due to significant time zone differences. For over two decades, partnering with tech experts in Asia has been a popular cost-saving strategy. However, this often comes at the expense of seamless, real-time communication. On the contrary, in Latin America, outsourcing will help businesses overcome this challenge, as the region's time zones align closely with those of North America, ensuring timely and efficient collaboration.
2. Cost-effectiveness without compromising quality
In the context of IT outsourcing, Latin America offers North American businesses cost advantages with the added benefit of closer proximity and cultural alignment. Though the costs are competitive, the quality of work is high, making it an attractive option for businesses seeking a compromise between price and quality. By outsourcing to Latin America, businesses can reduce operational costs without sacrificing the quality or expertise required for their projects.
3. Faster project launches with quick access to skilled talent
Outsourcing to Latin America enables businesses to accelerate project launches by tapping into a ready and highly skilled talent pool. The region’s rapid availability of qualified professionals allows companies to quickly find and hire even niche experts, reducing recruitment time and speeding up the development process. With a continuous flow of talent and the ability to scale teams on demand, businesses can reduce time to market and maintain a competitive edge.
Why choose N-iX as your IT outsourcing company in Latin America?
- For US-based companies, N-iX leverages the nearshore advantage, ensuring real-time collaboration with minimal time-zone differences for faster delivery and enhanced communication.
- N-iX has launched its first development center in Colombia, with ambitious plans for further expansion across Latin America. By tapping into the region’s rich talent pool, we help businesses in North America and worldwide find the right professionals for their projects.
- Our team of over 2,400 skilled tech professionals specializes in end-to-end software development, AI/ML, Big Data and analytics, cloud solutions, IoT and embedded systems, software modernization, ERP and CRM solutions, digital twins, AR/VR, and more.
- We have more than 23 years of experience delivering projects in a diverse range of industries, including finance, retail, healthcare, manufacturing, supply chain, and telecom, among others.
- N-iX adheres to international data protection standards, including GDPR, ISO/IEC 27001, ISO/IEC 27701, and more.
- With flexible cooperation models, N-iX enables businesses to choose the most suitable approach based on their specific project needs.
- Recognized for excellence, N-iX has earned a spot in leading industry rankings, including the CRN Fast Growth 150 and the IAOP Global Outsourcing 100, further solidifying our reputation as a trusted engineering provider.
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