best staff augmentation country in LatAm

Best Staff Augmentation Country in Latin America: Why Uruguay Stands Out

Latin America has compelling qualities that make the continent an ideal hub for effective staff augmentation. By opting for outsourcing in the region, you gain access to cost-effective labor, a diverse talent pool, and streamlined communication due to the time zone alignment between Latin America and North America. But what truly distinguishes the region is its cultural parallels with the USA. This shared foundation of values and understanding fosters seamless collaboration between US businesses and Latin American nearshore developers.

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In the last decades, it has been challenging to find bilingual communication skills. However, nations such as Mexico and Colombia come with many bilingual, highly qualified, or multilingual professionals. Companies that aim to stay ahead of their competitors need to consider hiring Latin American staffing firms that offer staff augmentation solutions. Taking this opportunity allows them to scale up. When you partner with reliable developers, you get a team of experts with a proven track record.

For companies striving to maintain a competitive edge, exploring partnerships with Latin American staffing firms specializing in staff augmentation solutions is a tried and tested strategy. Tapping into the expertise of reliable nearshore companies that curate teams of talented developers from nations across the continent not only facilitates scaling up but also ensures collaboration with reliable developers, equipping you with a team of seasoned experts with a proven track record.

Recognizing the challenges of pinpointing the best staff augmentation country in Latin America, we’ve crafted a comprehensive guide to simplify your decision-making process. Keep reading to uncover the key insights that will help you identify the optimal destination for staff augmentation in Latin America.

Why is Latin America the Best Region for Staff Augmentation? 

North American firms are increasingly enlisting the services of staff augmentation firms that provide Latin American nearshore developers. What makes these agencies appealing is not only their talented developers but also the innovation and cultural richness that South America has to offer. For any company seeking quality and efficiency in their software development projects, Latin America is a great destination that provides a blend of affordability, expertise, and diverse creativity.

Some of the other reasons that make Latin America so popular as a nearshore software development hub are:

  • Availability of a large pool of experienced and skilled developers 
  • Cost-efficient labor
  • Reduced cultural and language barriers
  • Shared time-zones 
  • Top skills and education levels of the majority of the population 
  • Tech-savvy population

Crucial factors when choosing a Country for Staff augmentation

We’ve curated two main factors that you should consider when choosing a LatAm nation for staff augmentation.

Time Zone is Important for Team Integration

When choosing the ideal country for staff augmentation, it’s always tempting to choose a nation where the cost is lowest. However, considering cost only can push your business many time zones away from your time zone. We recommend finding a nearshore company. The aim is to find an augmented team within 3 time zones of yours. Moreover, you will also benefit from cultural familiarity between your remote team and the in-office team – this can enhance natural conversations.

Although the cost of talent is an added advantage, it shouldn’t be the only factor

One of the main advantages of nearshore talent outsourcing is that you will get affordable top-tier talent in that region thanks to the cost of living and currency differences. Tech companies in the United States aiming to outsource to Latin America will save approximately 50% on IT talent. Unfortunately, most businesses only focus on cheap labor and will go straight to hiring the companies offering the cheapest prices. It’s worth noting that cheaper developers (depending on the market/country) often charge reduced prices for a reason: reduced output quality and lower experience.

Remember the money and time you’ll spend trying to clean up the mess if the project doesn’t meet the standards you want or those of your client. 

Engineering Education Pipeline 

In tech, Moore’s law is a constant rule which means that businesses need a fresh and skilled workforce that stays up-to-date with the latest technologies and trends. Businesses need to find a country that has skilled talent but is stocked with skills and talent in the future. It means that you need to select a country with a great education system for STEM and IT skills, meaning they will constantly have new skilled developers entering the system.

Staff Augmentation Countries in Latin America

Companies based in the United States often look for IT outsourcing and IT team augmentation in Eastern Europe. However, this trend is changing and they are now looking to Latin America. One of the reasons is cultural similarities and friendly time zones while getting top quality at an affordable cost.

When it comes to IT team augmentation, the time zone is crucial because the Nearshore developers will be working closely with the in-house team during the project. Because of this, countries in Latin America are the best nations in most instances. Some of the top countries for staff augmentation are Argentina, Mexico, Uruguay, and Brazil. When you consider the population of a country, Argentina and Brazil tend to be the major nations of interest for staff augmentation. The assumption is that the larger the talent base, the better the odds of finding skilled developers that suit your needs. 

What if we told you there are less popular countries with top-tier tech talent for staff augmentation in South America? For instance, Colombia has greatly improved in terms of development talent. Others include Chile and Ecuador. However, the focus of this blog post is Uruguay. The country tends to go unnoticed although they are a superior nation when it comes to technological talent. We have discussed more below.

Uruguay |The Best Staff Augmentation Country in Latin America 

Sandwiched between Brazil and Argentina, the IT outsourcing market in Uruguay is not huge. However, it goes above expectations in terms of staff augmentation for a unique reason: they’ve highly invested in Information Technology education.

In the ‘70s and ‘80s, there was a huge shift in Uruguay from agrarian to technological. After this shift, a policy with the colloquial name “Laptops in Cribs” was implemented. The policy involved issuing laptops to children which enabled them to learn programming languages early enough to get used to software development. When you combine this with top college education (computer science), Uruguay has emerged to be one of the leading nations when it comes to IT talent for such a tiny country.

Moreover, Uruguay is known to be a close-knit society – this is important because the lack of much global attention means you’ll get greater value in terms of price and quality. Developers might be more costly than in neighboring Argentina and Brazil, but this is because it’s easier to hire a more talented developer in Uruguay than in the two nations.

The talent in Uruguay cannot only be attributed to their education system. For instance, in the United States, someone can attend a general assembly, or study a 10-week course, and if they pass, they can instantly start referring to themselves as a developer and are even eligible for a job in one of the best companies in the nation. However, the truth is, that 10 weeks are hardly enough to learn developing skills. Moreover, North Americans are accustomed to a 4-year study course to attain a degree. In Uruguay, students have to study for six years to become developers. Such a level of education and training is highly beneficial – and they’re not learning from a typical academic but from a senior developer with impeccable skills they’ve learned on the job. 

Final Thoughts

There’s no doubt that Latin America and Uruguay are the locations to turn to for businesses searching for staff augmentation. There’s a vast range of skilled professionals in the region who are ready to work at an affordable rate. Thanks to the massive amount of talented developers there, it’s easy for companies to find tech experts that suit their needs. Moreover, Uruguay loves innovation and new tech. These two factors are highly appealing to foreign investors, plus the locals are bilingual and understand the English language well. All this puts the nation in a great position to establish productive partnerships with nations across the globe.

The region shares cultural similarities with North America which creates a great bond between the two regions. Cultural similarities make the transition easy for US-based companies aiming to expand to South America. For instance, Uber has massively benefited from working with staffing firms in Latin America. By taking advantage of local skills, the company has managed to provide 24/7 customer support in Portuguese and Spanish while reducing costs by 33%.

To conclude, Uruguay is the best country for staff augmentation because of the vast range of highly-skilled tech professionals, top English proficiency, love for innovation, and cultural similarities with the United States.


Posted on

January 19, 2024