Recently there has been a new development in the American outsourcing business. Instead of taking offshore outsourcing partners into consideration they rather resort to nearshore companies in Mexico and Latin America. 

This new trend is based on a number of factors. Some of them include cheaper wages in the IT service outsourcing sector, greater proximity between client and provider, implying shorter travel time and expenses and less cultural differences. 

Not too long ago HfS published a research called “How Latin America Powers Global IT Delivery” and this article described the three main reasons why nearshoring from the United States to South and Central America is becoming so popular and what should be considered before doing so.

1) The total costs of ownership, including direct and indirect costs, should be calculated.

2)  Skills and experience of the prospective outsourcing partner should be checked thoroughly.

3) The resources at hand should be calculated since it depends on them how much money can be invested in the outsourcing program. 

Experts claim that there are many undiscovered nearshore outsourcing opportunities in Latin America for IT services, including Colombia. Colombia is considered to have a high potential because the government puts a lot of emphasis on a good education among the approximately 46 million people inhabiting the country. 

Many companies do not consider moving their business to Latin America as a shift, but rather as an expansion of their business. In times of globalization and the Internet the borders between countries have blurred and the time and effort it took even ten years ago to do business across the globe has almost disappeared. 

The plan to outsource has to be thought through and the most helpful mean to find out where to move the project is comparing the providers. For some companies it might prove to work the best to contact partners in the Asian-Pacific due to their well-established and hard-working reputation.

Even though Indian and Chinese outsourcing companies rank fairly high, American companies start to take Central and Latin American partners into closer consideration for their projects and the rates are considered to increase even more within the next couple of years.