Latin America: Software development nearshoring, the next big thing?
A little while ago we looked into nearshoring, a concept related closely to outsourcing but with geographical advantages that enhance the pull factors to it.
One of the main sectors this idea has the potential to cause explosive growth in is software development, especially as foreign businesses look to increase their digital presence following the pandemic. This all comes back to one key idea, connectivity, where increased satellite coverage and cost-effective innovative measures designed to widen the net of people able to expand theirdigital footprint present a landscape where development companies can thrive.
Latin America is one example of this, as the region has seen an influx of foreign investment as well as already possessing an extremely high-quality workforce in the IT industry, the two of which combine to create a development hub in a geographically strategic location for businesses both in Europe and the United States looking to develop software overseas.
It is clear that each business looking to develop their own software will have their own specific requirements and needs, making this industry extremely dynamic as well as also presenting unique challenges to the companies creating the programs.
Specifically, software development is the writing of computer programs for a client in order to assist their business operations and facilitate growth.
There are three kinds of software development, system software, application software and programming languages. Application development is the chosen one for us to explore in more detail today. Basically, it is the creation of software for computers and phones, apps, which we are all familiar with.
With regards to the numbers and the scalability of this market, it will come as no surprise
that it is already massive. If we look at the application development side of things on a global level, in 2020 the market value was US$130.29 billion, an impressive figure which by 2025 is set to increase to over US$199.75 billion, up almost US$70 billion in only 5 years and having more than doubled in value since 2016. It is clear that there is market potential to be explored and made the most of by foreign businesses looking to outsource their software development, but the largest part of the process is finding the right place to do so, which is where Latin America comes into the picture.
While many nations in the region are possible candidates, there are some that stand out
above the rest as exhibiting the perfect environment for software development for your
business. One of these is Argentina, and for those of you who read our blog you will
remember we did a country specific post on outsourcing tech services to Argentina a little while ago, so we will not be covering it again here, though it is worth taking into account the endless opportunities on offer in Argentina and if you are interested you can find the article on our blog. The other countries to consider are Brazil and Panama, who each have their own stand out factors for you to decide between when making your final judgement.
Brazil: Number one in Latin America and number thirteen overall globally for software development outsourcing, it is clear that we had to include Brazil in this article. One of the most interconnected nations in the region, Brazil is only ever a direct flight away from the US and Europe, making outsourcing not only convenient, but also a necessity. It is also said that there are over 400,000 software developers in the nation, and so the idea we mentioned earlier of each client having their own specific requirements, it is likely that a business of any size involved in any market would be able to find someone capable of assisting them.
Panama: Our other example of Latin American software development is Panama, a smaller nation than Brazil but with other characteristics that make it stand out, like the economic growth unmatched by other nations in the region or the developing IT sector. Now, one key to outsourcing is the cost, as this is one of the underlying reasons to outsource in the first place, and Panama has some of the lowest in the region relative to the quality of the service, as well as also being conveniently close for nearshoring with the US.
So, if you are interested in finding out more, contact us today! Below this article you will find a link to set up a free fifteen-minute consultation with us to discuss your options further. Also, if you want to access our other great content, subscribe to our YouTube channel!.
At Creimerman, our team of professional global citizens would be happy to help you with your personal or professional cross-border ventures and help make them to success.