International investment has found an increasing foothold in LatAm, steadily contributing to improving and advancing local economies. Interest in nearshoring jobs to the region has gained even more momentum as companies realize the significant environmental, economic, and social benefits.
Reduced Carbon Footprint
New research shows that modern offices, virtual and populated by team members in a distributed work model, can foster more environmental sustainability. As the effort to reduce corporate carbon footprints is gaining momentum, so has the popularity of companies implementing hybrid and fully remote models. Reducing fuel used for transportation and onsite consumption of utilities are some ways remote workers can achieve a 54% lower carbon footprint than their onsite counterparts.
Two-Way Economic Gains
The benefits of nearshoring go both ways. US companies get connected to a highly skilled, lower-cost talent pool, while LatAm nations get an influx of investment into their markets and growth in their communities. Brazil’s IT market reached USD 45B in 2022, leading a remarkable period of growth for the region. Development of the local tech sector has been a steady job creator, and hundreds of thousands of LatAm graduates of software engineering programs join the workforce every year.
Economic diversification has become crucial in the modern age. As technology advances and proliferates through LatAm, an increasing percentage of the population is getting access to digital education and remote work opportunities. Diversification of the workforce is woven into the fabric of economic development, and the past decade has been a stellar one for reducing dependency on traditional industries (agriculture and manufacturing) and fostering sustainable economic development.
Next Generation Skills
As new investment flows into the markets, local talent's access to skill development improves. International companies ' training and professional development programs can greatly enhance the local workforce’s capabilities and widen the foundation of a technical talent pool. The caliber of jobs has an impact on improving living standards as well—long-term tech employment can provide sustainable and profound boosts to local economies.
Culturally, nearshoring fosters an exchange between nations, promoting innovation and global collaboration. Our global workforce has not yet had the chance to discover the possibilities behind a wide-scale hybrid or remote model, so there is still much to be learned from exposure to varying business practices. By promoting international professional interactions, nearshoring can set the stage for enriching professional and personal lives.
Successes and Challenges
Companies in every corner of the startup world are investing heavily in LatAm markets, and there have been some incredible success stories — like that of Workrise, listed on Forbes’ “Next Billion Dollar Startups” in 2019. While there is potential for long-term success for many, it’s vital to get a lay of the land before setting up shop internationally.
Infrastructure is constantly being improved upon and expanded in LatAm countries. Big cities have faster, more reliable internet than remote areas, so location has an impact.
Regulatory compliance is necessary to ensure the fair treatment of local employees and adherence to the law. These practices differ from country to country and require some legal research to ensure total compliance.
Cultural integration hinges on effective communication and competent management strategies. Cultural training programs and collaborative tools can help bridge cultural divides and integrate teams more fluidly.
Overall Impact
Nearshoring professional tech services like software development, project management, and UX/UI design greatly benefits employers and employees. LatAm regions involved can benefit from economic booms, a more highly trained workforce, and more environmental sustainability. Companies can realize long-term success and growth by utilizing talented specialists in one of the world’s major tech hubs.
