Outsourcing and its benefits Part 2

June 18, 2021

This article is the 2nd part of the Blog "Outsourcing and its benefits", where I will dig deeper on the subject of near-shore subcontracting, specifically in Latin America.

In recent years, outsourcing in Latin America has grown exponentially, especially in countries such as Mexico, Argentina, Colombia, Panama and Peru.

The reason for this trend is due to the proximity of these countries to the US (as near-shore companies) and compete favorably with off-shore companies located in China, India or Eastern Europe.

Another influential factor in the great acceptance of subcontracting in Latin America is the high quality of the developers in the market, thanks to the standards of excellence in universities and regional IT programs.

Although costs are slightly higher in near-shore Vs. off-shore companies, it is still more profitable to outsource in Latin America, due to other key advantages such as:

- Level of Experience

Experience is a key factor in decision making to outsource, since it is precisely decided to outsource not only to lower costs but also to be more productive and efficient.

In Latin America you can outsource companies with vast experience and senior collaborators in your team, for the same (and even lower) costs than a similar on-shore company, with young and inexperienced talents.

- Linguistic knowledge

It is very common to get companies in Latin America that provide Outsourcing services, with an intermediate-advanced level of English. The education, experience and orientation to the achievement of the near-shore companies has promoted the knowledge of the English language and has gone from being a "Want" to a "Must".

- Cultural affinity

With the many similarities that exist within the American continent, it is much easier to get involved, adapt and feel at home when starting any project with a new work group, providing near-shore services. The impact of a culture shock is greatly reduced by finding affinities with the work group.

- Proximity to travel

The geographic location becomes a determining factor if the customer requires a physical presence on the part of the representative or employee of the company that provides the subcontracting service, since it is not the same to catch a direct 3 hour flight to the US , as to have to take at least 3 flights with more than 20 hours of travel accumulated.

- Time zone.

As mentioned in the first part of this article, the time zone can affect the client's development, effectiveness and communication with the subcontracted company, since, for example, if crucial or emergency meetings are to be held at 6pm (EST), it is most probable that if the company is Off-shore, will be very difficult to locate the responsible at 2:00 am.


If after analyzing these factors and those discussed in the previous blog, you decide to outsource to a near-shore company, then the MAJOR question arises:

"With so many near-shore companies, what should I look for as to find the highest added value and the best cost-benefits?"

There are many essential characteristics that a company must have in order to get subcontracted, however, it is essential the trust and knowledge that the near-shore company can transmit in the first meetings.

If the company generates enough confidence but you are not totally convinced, then you must base your decision on the experience, portfolio, knowledge and references that the company can provide. One of the best strategies to verify the effectiveness and knowledge of the supplier, is to request a few days for testing their development team and thus find if it is the ideal company as to start a work relationship.

Take into account that if you get a near-shore company, which fully complies and fits perfectly with your guidelines and objectives, you must do everything possible to make the relationship last in time, getting the maximum benefit from short, medium long term subcontracting.


I also take the time to mention that Rootstack has a vast experience as a local and international development company, with 3 essential pillars:

  • Rootstack Web
  • Rootstack Mobile
  • Rootstack Automate

In addition to being experts and having a team of certified engineers, Rootstack also offers Outsourcing services, based on agile processes and standards of excellence; If you consider that all of the aforementioned benefits/factors are important, then Contact Us to assist you in future projects.