Best Countries for Nearshore Outsourcing in LATAM in 2025

Finding the right outsourcing destination isn’t just about cutting costs—it’s about finding talent that fits your company’s culture, time zone, and technical needs. LATAM has become a top region for nearshore outsourcing, not just because of its affordability but because of its growing tech talent, business-friendly policies, and strong English proficiency in key countries.

With major tech hubs emerging and government-backed digital initiatives on the rise, companies are looking to LATAM for software development, IT support, and back-office operations. But where exactly should you set up shop? Some countries stand out more than others.

Why LATAM? More Than Just Cost Savings

Outsourcing isn’t a new concept, but nearshoring—outsourcing to a neighboring or nearby country—has been gaining serious traction. LATAM offers key advantages over offshore options like India or the Philippines, including:

• Similar time zones to North America, allowing for real-time collaboration.
• Skilled workforce with strong tech expertise and increasing English proficiency.
• Cultural alignment, making communication smoother than with distant offshore teams.
• Government incentives that make hiring in LATAM even more attractive.

According to a Deloitte Global Outsourcing Survey, over 70% of companies outsource to reduce costs, but many now prioritize access to skilled talent and operational flexibility—two areas where LATAM shines.

So, which countries stand out in 2025?

Mexico: North America’s Nearshore Powerhouse

Mexico has become a go-to destination for nearshore outsourcing, especially for U.S. companies. Its proximity to the U.S. allows for almost seamless collaboration, and its expanding tech ecosystem makes it a prime choice for software development, IT support, and engineering roles.

Why Mexico?

• Large bilingual workforce with over 700,000 software developers.
• Thriving tech hubs like Mexico City, Monterrey, and Guadalajara.
• Government-backed STEM education and investment in AI development.
• Trade agreements (USMCA) that make business operations smoother for U.S. companies.

Mexico’s IT outsourcing industry is expected to grow rapidly—check out the latest stats from the World Economic Forum.

Brazil: LATAM’s Tech Giant

Brazil has the largest economy in Latin America and a booming tech industry. It’s home to over 500,000 developers, with strong expertise in AI, fintech, and cloud computing.

Why Brazil?

• São Paulo: The “Silicon Valley of LATAM”—a major hub for software engineers.
• Strong government support for digital transformation and innovation.
• Well-developed infrastructure for IT and call center services.
• Largest English-speaking workforce in LATAM, after Mexico and Argentina.

Brazil is the #1 country in LATAM for AI research and development, according to a Stanford AI Index Report.

Argentina: A Rising Star in Software Development

Argentina’s reputation as a tech talent hotspot is well-earned. The country has one of the highest English proficiency levels in LATAM and a strong culture of remote work.

Why Argentina?

• Over 115,000 IT professionals, with expertise in software engineering, DevOps, and cloud computing.
• Buenos Aires: A leading tech hub with a high density of software companies.
• Government-funded tech education programs, producing top-tier developers.
• Great outsourcing rates—one of the most cost-effective nearshore options.

Argentina ranks #1 in LATAM for English proficiency, according to the EF English Proficiency Index.

Colombia: A Fast-Growing Tech Ecosystem

Colombia has emerged as a serious competitor in the outsourcing space, thanks to its focus on innovation and tech education. The government has invested heavily in STEM programs, making it a great choice for companies that need skilled developers, cybersecurity specialists, and IT support teams.

Why Colombia?

• Medellín and Bogotá are rising tech hubs with strong digital infrastructure.
• Fast-growing fintech and AI industries—Colombia leads the region in AI startups.
• Strong U.S. business ties, ensuring smooth legal and trade agreements.
• English proficiency improving yearly, making communication easier.

Colombia is one of the fastest-growing IT outsourcing markets in LATAM, with a tech industry projected to grow by 20% by 2025 (Statista).

Other Noteworthy Nearshore Destinations

• Chile – High economic stability and top-ranked digital infrastructure.
• Uruguay – A small but skilled workforce, known for its cybersecurity expertise.
• Costa Rica – A green tech hub with strong outsourcing potential in IT and customer service.
• Peru – Growing software development sector, especially in Lima.

Final Thoughts: Which Country Is Right for You?

Choosing the right nearshore outsourcing destination depends on your company’s needs. If you want proximity and bilingual talent, Mexico is an easy choice. Need AI and fintech expertise? Brazil is leading the way. If cost is a major factor, Argentina and Colombia offer top-tier talent at competitive rates.

Want to build your nearshore team without the hassle? Plugg Technologies specializes in matching U.S. companies with top LATAM talent—so you can scale quickly and efficiently.

📩 Let’s talk. Your next great hire might be just a time zone away.