Why do clients still undervalue nearshore tech talent from LATAM?
We recently received a list of 225 tech roles from a major U.S. retailer looking to nearshore/offshore their entire technology team to Latin America. The catch? In nearly every case, the proposed rates were 30% below the going market for LATAM.
Now, defining “market rate” in Latin America isn’t as simple as it sounds. We’re talking about a region comprising multiple countries, each with different currencies, inflation rates, and economic dynamics. What’s considered "competitive" (relative to the USD) in Colombia may not be so attractive to candidates in Argentina or Mexico. But one thing is consistent: talent knows its value, and the general rule is that you get what you pay for, in terms of talent.
Offshoring/Nearshoring has traditionally been driven by cost savings. That’s the reality. But saving money shouldn't come at the expense of effectiveness and stability. Going too low has real costs:
- You’ll lose out on the top-tier professionals who won’t even consider the offer.
- Those who do accept a lower (than expected) rate may leave the moment something better comes along.
- And worst of all, it burns time and energy for everyone involved.
There’s this outdated perception that offshoring/nearshoring means compromising on quality. But the truth is, LATAM is full of world-class software and data engineers - the kind of professionals who have worked with global teams, speak fluent English, and thrive in agile environments. And yes, they deserve to be paid accordingly.
We get it - budgets are tight, and companies are looking to stretch every dollar. But going too low doesn't buy you efficiency; it buys instability. The sweet spot is competitive rates that attract strong, committed professionals without creating constant turnover.
We’re committed to educating clients on this reality. Because at the end of the day, a well-informed client makes better decisions, builds stronger teams, and gets better outcomes.
If you’re thinking long-term, then invest in stability. That starts with valuing the talent you’re bringing in - no matter where they’re based.
