Latin America: Why the region should be the next stop for your business
Nowadays, globalisation means businesses that once operated on a local scale are able to expand their services overseas and reach a wider client base. As well as this, new markets are constantly in the process of emerging and evolving, presenting endless opportunities in all corners of the globe. One region in particular that is presenting itself as a potential hub for business in the near future is Latin America. If you are looking to open a branch of your company overseas, or even to simply outsource some aspects of it, then Latin America is worth considering as a top choice.
Why choose LATAM?
Initially, the outsourcing opportunities are too significant to overlook. Having already published an article about payroll outsourcing on our blog, it is also possible to outsource other roles within a business, whether it is to save money or to make the most of having access to highly developed workforces. Expanding operations to Latin American nations goes hand in hand with outsourcing, as local people are the best employees for businesses operating abroad because of their unmatched knowledge on business operations in their country.
The World Bank noted the top 3 nations with best GDP growth in 2018 in the region as:
1. Chile - 4.0%
2. Colombia - 2.6%
3. El Salvador - 2.5%
It is evident that with continuous growth across the region, opportunities will continue to appear, and with US businesses looking to venture abroad, LATAM nations are not situated in wildly different time zones, making it not only economical, but also ideal for keeping operations in sync. Additionally, similar working hours reduces a need for anti-social shift patterns for anyone, while also promoting productivity as communication is far easier.
Another factor that presents Latin America as an attractive destination for foreign business is the level of English proficiency found in numerous countries. For example, Argentina achieved a 566/800 score on the English Proficiency Index in 2020, the highest in all of LATAM, reinforcing the potential for businesses looking to widen their services within the region. The high level of proficiency also highlights the level of education of the workforce in Latin America, emphasising the advantage of expanding to the area, as English-speaking businesses are afforded access to talented individuals with whom communication is not an issue.
On a different note, the variety of sectors operating in a region as diverse as Latin America is itself an advantage for businesses looking to expand. From legal cannabis and other agriculture to new technology markets, the continent is pioneering numerous initiatives and the world is taking notice. The COVID-19 pandemic has demonstrated a need to adapt, and with digital communication becoming ever more present in Latin American business, increased connectivity improves access to new markets, accelerating development and providing the foundation for further advantages to doing business in the region.
So, if you are tempted by Latin America as a destination for your expanding business, get in touch with the Creimerman team today so we can help you make it a reality.