Debunking Myths Nearshoring IT Talent in Latin America with US Management
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“Invasion of job snatchers!” This and other similar alarmist stories often cloud discussions about US companies hiring nearshore outsourcing IT services. But what if these narratives are more fiction than fact?  

This article aims to debunk such misconceptions, shedding light on the true value of Latin America’s nearshore IT talent for various industries in the US, not just tech companies. In an era in which every sector, from manufacturing to healthcare, is increasingly reliant on IT solutions, understanding the real dynamics of nearshoring is more crucial than ever. 

Debunking the Myths: 

Myth #1: Hiring Nearshored IT Talent Means Job Losses in the US 

This widespread fear is misplaced. In reality, nearshoring IT specialists from Latin America can enhance US operations by allowing companies to allocate more resources to strategic, high-value functions. This not only complements but can also expand the US job market by creating new roles focused on managing and integrating international teams. 

Acquiring nearshore collaborators can also help with the current talent gap crisis in the US: 64% of IT executives from various industries claim that “the ongoing talent shortage is the most significant barrier to the adoption of emerging technologies”, highlighting the boom in AI-related projects and adding that, if this trend doesn’t change by 2024, “more than 85 million jobs might go unfilled.”  

While the reasons behind the overall negative sentiment toward the current economic situation in the US (and its direct impact on the “our jobs are being taken away from us” narrative) are varied, it’s important to note that evidence shows the US economy is actually sturdier than it has been in many years

Myth #2: Cultural Differences as Management Roadblocks 

While cultural differences are real, they can be effectively managed. Many Latin American IT professionals are already experienced in working within diverse international teams and tend to align in terms of shared professional standards, corporate methodologies, and communication approaches

On the topic of communication, it’s important to highlight the region’s overall high proficiency in English as a deciding factor. What’s more, upon analyzing and contrasting the EF’s English Proficiency Indexes from 2022 and 2023, we found an upward trend in the entire region, with Argentina and Brazil among the standout examples of improvement in their English communication skills from one year to the other.  

Myth #3: Quality and Efficiency are Compromised 

The IT sector in Latin America is rapidly advancing, producing highly skilled professionals who are on par with global standards. Nearshoring allows for closer supervision and collaboration, ensuring high-quality outputs and efficient project delivery. 

To further debunk this myth, research shows that there’s been a robust emphasis on STEM education across Latin America, which has cultivated a substantial talent pool of highly skilled IT professionals.  

Additionally, there’s a common misconception that suggests outsourced teams are “hired guns” who rarely uphold a company’s vision. Not only is this not the case, but more and more Latin American teams are aligning with Agile methodologies, which require high levels of commitment and a holistic understanding of the hiring company’s vision, especially for long-term projects.  


The Potential of Nearshoring IT Talent: 

Maximizing value, minimizing cost: The Latin American nearshoring advantage  

The appeal of Latin American nearshore partners for companies is clear, as tapping into its IT talent pool provides significant cost benefits without compromising quality. This is a win-win situation for both parties since for companies in the USA, it means lower salary expenditures, while for talent in Latin America, it often translates to higher-than-average regional salaries

This advantage is underpinned by the lower cost of living in Latin American countries compared to the US and a long history of irregular currency value fluctuations, which translates into cost-effective outsourcing solutions. By choosing nearshoring, companies can effectively reduce their expenditure while providing competitive compensation to their Latin American collaborators, ensuring a balance of affordability and expertise. 

Seamless sync-up: Bridging time zones for efficient management 

The alignment of time zones between Latin America and the US is a key factor in facilitating real-time communication, which is crucial for effective IT project management.  

This potential for seamless collaboration can be seen in countries like Mexico and Honduras, which share the exact same time zones as most regions of the US. Even in countries like Ecuador and Argentina, where the time difference is a mere 1 to 3 hours respectively, there’s a bonus advantage: having a slight time difference allows for easier extension of a business’s operating hours to provide broader coverage. Overall, this close time zone proximity ensures smoother, more synchronous workflows, enhancing productivity and efficiency in nearshore IT-related projects.  

A bonus (and often overlooked) advantage of having a slight time difference is it allows for easier extension of the workday to provide broader coverage, 

Cross-industry innovators: The wide-ranging impact of Latin America’s IT talent 

The increasing integration of technology into various sectors highlights the invaluable role of Latin America’s skilled IT professionals, not just for tech companies but across a wide array of industries.  

This versatility is evident as Latin American IT experts are making significant contributions in fields like healthcare, where they are instrumental in developing telemedicine solutions, and in manufacturing, where their expertise in implementing IoT technologies is leading to smarter and more efficient production processes. This broad spectrum of skills underscores the adaptive and diverse capabilities of Latin America’s IT talent, making them a vital asset in the evolving digital landscape. 


In debunking the myths around nearshoring IT talent from Latin America, we’ve uncovered a landscape rich with opportunities and synergies and made some significant findings: 

The rising demand for IT expertise across various US industries is met by Latin America’s evolving, skilled IT workforce. Plus, the region’s growing proficiency in English, commitment to Agile methodologies, and alignment with global professional standards further reinforce this mutually beneficial relationship. By bridging time zones and cultural gaps, US companies are not just outsourcing; they’re integrating a global perspective that enhances innovation and efficiency

For businesses poised to embrace this opportunity, InclusionCloud offers expert guidance and strategic solutions. Discover more about leveraging nearshore IT talent by following us on LinkedIn, where we share insights and strategies for harnessing the full potential of global IT collaboration. 

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