Number of IT Specialists in LatAm is Sky Rocketing
It is true that there are plenty of accomplished developers in Latin America and the number of IT professionals keeps significantly rising. However, due to the large numbers, it becomes very difficult to select candidates thoroughly and accurately determine their level of expertise. As a consequence, you could make a mistake and hire the wrong candidate that would provide you with a low-quality code that can impact the overall working process of an organization or a business.
Lower Costs in Latin America
Companies and businesses are willing to hire developers from Latin America to lower their expenses. It requires $80 to $150 per hour to hire a qualified developer in the United States. In comparison, in Latin America costs are more reasonable, so companies can hire a professional here for $40 to $70 per hour. International companies are already investing heavily in the region.
Over the past years, Latin America has introduced a series of reforms to strengthen and modernize its tax system. Different tax policies, double taxation treaties, and free trade zones can significantly hinder the process of outsourcing to Latin America. And thus, become a major challenge for companies willing to outsource to one of the countries in the region. For example, if you consider permanent collaboration with the Latin American outsourcing team you are fully taxed as if your company had a branch there. Despite the fact that Brazil doesn’t have permanent establishment taxes, the country imposes foreign companies with indirect taxation. Source: Offshore Software Development in Latin America 2021, published by YouTeam Editorial Team.
All major elements described above indicate that Latin America has excellent possibilities of becoming a new frontier for digital technology and talents. Major companies are already investing heavily in this region.
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