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In the past, U.S.-based companies outsourced to countries such as China and India to expand their business. Today, though, some of the top options for American companies are nearshore outsourcing relationships with an entity located closer to home. Here are five of the best countries to expand your business today.
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Expand your business in Argentina
Argentina is a highly-educated country. It consistently ranks among the most educated in all of Latin America, and it has even made its way onto the list of most educated in the world. The country has worked hard in recent years to boost education, offering free education to everyone. Part of this focus on education has resulted in a large portion of the population speaking English fluently. English is taught to children from a young age, and the educated population speaks it well. This reduces the typical communication barriers when outsourcing to a foreign country.
Argentina is also a technology-advanced country, with a metropolitan capital in Buenos Aires, which is home to almost 45 million people. The country is on the cutting-edge of new technologies with many successful startup companies and excellent workers in the IT field.
All of this also comes with a significant cost-savings for American companies outsourcing to the country. The median worker salary in Argentina, for instance, is $41,500 ARS per month. This equates to only roughly $439 USD per month, or $5,268 annually.
Growth your business in Brazil
Brazil is home to the most software engineers in the entire South American region. The country is experiencing some of the biggest growth in the IT industry, rivaling countries such as Russia and China.
Brazil has a massive economy. It ranks fifth in the world and first in all of South America. Some Fortune 500 companies even outsource their work here, including HP and IBM.
Brazilians are also highly educated, reducing the communication and cultural barriers that can exist in outsourcing relationships. Plus, because it is located in similar time zones to the U.S., working hour obstacles are eliminated—as compared to outsourcing to Asian countries like China and India.
Globalization and business in Chile
Chile may be a small country in terms of population, but it is thriving. Known for being business-friendly, the country offers many tax incentives for both corporations and individuals. In fact, many people consider Chile to be the most pro-business country in all of South America.
Chile has invested heavily in its IT infrastructure and the education of its people. Residents speak English well and are entering IT and advanced technology fields at increasing rates.
Another major factor that makes Chile one of the best countries to expand a business is its political stability. You typically don't have to worry about a change in government leadership resulting in negative effects on your business. This is an often-overlooked but very important aspect of outsourcing.
The cost of hiring Chilean workers is a little higher than some other South American countries, but it is still very affordable compared to U.S. wages. For example, a software developer in Chile earns an average of $28,480 per year. In the United States, this same worker would earn an average of $74,532 per year.
Business benefits in Mexico
Mexico is a great country to expand your business, thanks to its proximity to the United States. As a direct neighbor to the south, there are many advantages Mexico has over other countries for outsourcing.
First, the cultural and language similarities are a major draw. Many people who live in Mexico are very familiar with American culture, and vice versa. This familiarity is a huge benefit when it comes to communication and getting everybody on the same page as you work toward a common goal.
The physical proximity is also beneficial if you need to ship items or travel to the site of your outsourcing company for onboarding, training, or meeting with representatives.
Mexico is also enhancing its education and technology infrastructure. The country has more than 13,000 computer science graduates each year, ranking them sixth overall in the world. There are also 120 universities in the country—and 65,000 students graduate with an IT degree every year.
The cost-savings can also be significant when outsourcing to Mexico. Per-hour wages in the IT field, for instance, can range from $21 to $50 in Mexico. In America, these rates range from $33 to $62—providing companies with an average savings of anywhere from 16% to 50%, depending on the particular position.
Business and culture in Peru
Peru may not be one of the first countries that comes to your mind for outsourcing, but it should be. The country has increased its investment in technology infrastructure and education throughout the country over the last 20 years. This has led to a booming economy with strong GDP growth for more than 10 years.
The country is very attractive for outsourcing thanks to its political and financial stability, diverse economy, and desire to advance its people and businesses. Peru offers a business-friendly environment with an added cost-savings benefit. In the IT field, a typical Peruvian worker will earn 90,00 PEN ($23,439 USD) per year.
Expand Your Business Internationally
SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization. Contact us today to learn more about how you can expand your business in South America and Latin America.