Nearshore to EU, UK and US
In modern remote work, most of it is done autonomously. However, synchronous communication is sometimes useful. In order for this to take place, similar timezones are important. For instance, Brazil is only 3 hours behind the UK and 4 hours behind Central Europe, and only 2 hours ahead of New York.
Broad talent pool
Latin America is home for 670 million people, which is equivalent to 2x US population or 1.5x EU population. Although the most spoken language is Spanish and Portuguese, all South America countries surpass countries such as China, Japan, Indonesia and Egypt, and have a similar or higher score to India and United Arab Emirates in English proficiency according to EF EPI 2025.
Same price for more seniority
LatAm living costs are so cheap. While € 2,000 is the average monthly salary of a Junior developer in countries such as Portugal, Spain and Italy, this is equivalent to a Senior developer salary of R$ 13,000 in Brazil. Senior level developers usually have a decent English proficiency for technical-related vocabulary.
Latin America culture is rich and promotes simplicity in every corner literally, such as the corner convenience stores. No complex business plan, just a small margin over the products. No taking high risks by guessing what the customer wants, informal conversation to just ask what he needs. No fixed price, some negotiation, informal discount and even haggle. Recurrent selling over high profit. They are all over the place, but they are all different and authentic. Some sell a category of products such as produce, some sell a bit of everything, some have a consumption area, some have a kitchen, some have waiters, some have live music (sometimes is even a group of customers that play for fun). All they have in common is simplicity and the aim of simplifying the customer life.
For a Small or Medium Business, this approach of simplifying things can fit well with technology. Instead of overcomplicating things, look for a simplified way of doing it. Maybe it won't look fancy, maybe it will feel vintage, maybe it won't work for very specific cases, maybe the scope will be smaller than the initial request. But it won't be insanely expensive at the point that only will make sense for a BigTech to build it and distribute worldwide. Instead, it will focus on the convenience for a niche of users. It can start small and improve over time. Let the customers ask what they need and provide it as they pay for it.
Latinos in general are passionate. Passionate in the way of painting houses colorful, passionate in the way of dressing, passionate when speaking or listening to music, and passionate when picking colorful flowers and fruits as decoration. This normally is associated with a warm and friendly personality, but it is actually a trait of simplicity. For instance, instead of paying someone to greet the customer and explain the brand values, instead of promoting a complex advertising strategy, the business owner decides to paint his business facade a vibrant red. Or maybe a cold blue. The point is by choosing the right configuration he can achieve a variety of outcomes with no sweat.
For a SMB company, this can be interpreted as the principle of configuration and customization over tuning. It can be the configuration of the website background color, it can be the number of columns in one table, it can be the HTTP headers configuration. By only changing the configuration, you can have a different behavior, no need to customize it from scratch and to deal with the complex maintenance afterwards. This descriptive way of thinking is the simplest way of using technology, which reduces the dependability costs and the technical debt, making it affordable.