Many startups in the world are re-evaluating practices they use to stay competitive such as outsourcing and offshoring, both of which have generated a range of challenges. To this we say, "Have you considered Nearshoring?"
Sticking to your global vicinity (for cultural and time zone reasons alone) takes some of the burdens away and helps optimize structure and workflow. Nearshoring gives startups the opportunity to strengthen internal operations by allowing them to focus on innovation and disruption.
For startups in the United States and Europe, the growing demand of IT services can be satisfied by nearshoring the work to Latin American tech companies. Not only does it generate opportunities for the innovative startups but also for the partner companies. The region has a large young educated workforce of professinals.
For example, let's emphasize the role played by Argentina in the framework of Latin American companies with experience in outsourcing. Not only is the country in a time zone only one hour ahead of New York, it has a a thriving IT industry.
According to research at State of the Internet by Internet Society and Latin America Digital Future by ComScore, Argentina ranks among the most important countries in the region. In fact, the technology industry in Argentina is growing at an fast clip, generating innovation centers, technology parks and technopoles. According to figures published by the Chamber of Software and Computer Services (CESSI) in Argentina, by 2015 ‘the software industry had a total sale of USD $3.5 million and USD $1 million in exports of outsourced IT services.
But the data isn’t the only way to explain the demand for startups in the world - especially in the United States - that makes Nearshoring something usual in Argentina. There are other determining factors that have an impact on this:
Compatibility in business cultures - and popular culture in general - makes Argentina very tuned in with the needs of North American customers. According to a study published by the Swedish company Education First, “Argentina has the best level of English among Spanish-speaking countries and stands out for good pronunciation.” This ability to speak the language, ensures that there won’t be any misunderstanding arising from the cultural gap.
Simultaneity in Time Zones Argentina GMT(-4) has a similar time zone to the USA's major cities, such as Seattle (-8), San Francisco (-8), Denver (-7), Austin (-6), Chicago (-6), Boston (-5) and New York (-5). This presents an enormous advantage in terms of productivity, since it allows teams in both Argentina and the USA to communicate during normal business hours.
Value for Money In terms of value for money, Argentina is one of the most requested countries in Latin America, mainly because of the growing interest of companies from different countries in acquiring national technology. This is reflected in the USD $3.5 million of sales recorded by the CESSI. Even when one of the characteristics of this trend is the exchange benefit, the most notable …is the quality of the result and the additional services that companies typically give their customers. Nearshoring helps startups in search of innovation, focus on their own efforts aimed at this purpose, without losing focus on their business model by delegating operational challenges among creative and multidisciplinary teams.