4 benefits of nearshore software development in Latin America

Over the past years, nearshore development in Latin America (LATAM) has become a strategic advantage for companies in the US and Europe. LATAM is a leading global tech talent hub, with over 1 million technology professionals across the region and thriving tech ecosystems in many countries, among which Argentina and Colombia stand out.

Additionally, the global race for Generative AI expertise is requiring global talent, and Latin America is rising to the challenge. According to the Coursera Global Skills Report 2025, GenAI course enrollments in LATAM have surged by 425% year-over-year, reflecting both employer demand and a strong appetite for upskilling among professionals. Argentina and Colombia, where CloudX has its main hubs, are at the forefront of this transformation, producing highly skilled talent equipped to drive AI-powered business innovation.

Let’s review some of the benefits this talented region can provide for your business.

#1: Innovation

Latin America is a fertile ground for technological advancement, where innovation thrives and unicorns are born. More than 43 unicorns have emerged from this region as of 2025. LATAM is recognized for its vibrant startup communities and world-class R&D centers, attracting global leaders like Oracle, IBM, Boeing, Siemens, Samsung, and many more. This environment continually sparks new breakthroughs, positioning LATAM as a key player in the global technology ecosystem.

The region is also experiencing a significant rise in Generative AI upskilling, making it one of the fastest-growing AI talent hubs globally. In Colombia, for example, every organization surveyed by Coursera is running AI programs, and 82% plan to increase AI budgets in the next two years (the highest in the region). Meanwhile, Argentina’s tech sector is actively experimenting with and implementing AI, laying the groundwork for future transformative growth. This rapid adoption and investment in AI, combined with a culture that values continuous learning, ensures that LATAM’s tech workforce is future-ready and leading the way.

#2: World-class education

LATAM’s tech talent pipeline is fueled by top-ranked universities, free or affordable tuition, and a surge in digital education. Argentina and Colombia together have over 100 universities, with several ranked among the top 50 in Latin America. Both countries alone produce over 50,000 STEM graduates annually. According to Coursera, almost 10 million LATAM learners already hold at least one microcredential. It’s not uncommon to meet engineers here who are pursuing advanced certifications while working full-time, which demonstrates the high value LATAM professionals place on education and their strong commitment to job readiness and lifelong learning.

#3: Time zone alignment

One of LATAM’s most practical advantages is its alignment with US business hours (UTC-3 to UTC-7). This overlap means teams can participate in real-time meetings, daily standups and other Agile ceremonies, ensuring rapid response and efficient project execution.

LATAM teams offer a clear advantage compared to other popular tech hubs such as Eastern Europe or India, where time differences with the US can range from 5 to even 12 hours. This means fewer delays, faster feedback loops, and the ability to resolve issues or make decisions within the same business day. For US-based companies, nearshoring to LATAM minimizes the hidden costs of asynchronous collaboration, achieving significant cost savings by avoiding the inefficiencies that often come with offshore models.

#4: Cost-effectiveness

Nearshore development in LATAM delivers significant cost savings. Senior and leadership IT roles cost 50–70% less than in the US or Western Europe, with no compromise on quality. These savings can be reinvested into other areas of your business such as innovation, R&D, growth, or other strategic initiatives. Many companies find that LATAM teams integrate seamlessly with their own, reducing the need for additional recruiting or infrastructure investments.

Wrapping up

Nearshore development in Latin America offers a powerful combination of qualities that make it an excellent choice for businesses located in the US and Europe.As the region continues to invest in digital skills and education, LATAM stands out as a premier destination for global technology partnerships. For organizations seeking a growing AI-driven workforce, LATAM is uniquely positioned to deliver both immediate results and long-term value.