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Latin America vs. Eastern Europe: Which one to Choose for Offshoring?

You might be searching for a web or mobile application development vendor or want to hire offshore development team! Many tech firms prefer talented teams from other nations for outsourcing their development work.

After all, there are various factors to consider before choosing a team of offshore software developers. It includes English Proficiency, Convenience of Traveling, and Rate. Not to forget Time Zones also matter the most!

By the way, IT companies do not prefer to reach US talents for their outsourcing needs, the reason might be the lack of economic developers! Two popular destinations preferable for outsourcing IT work are Eastern Europe and Latin America.

They have a great amount of talented professionals available with competitive pricing. If we compare the general life/work culture or hiring needs, there are notable differences among these two regions.

Let us look at their characteristics for offshoring one by one to find the highly suitable offshoring destination;

Eastern Europe

This IT development location is known for reasonable quality services per price. Eastern Europe includes almost all developing nations! So, many investors are attracted to this region due to its potential business climate. The main countries for offshoring are Belarus, Bulgaria, Romania, Hungary, Poland, and Moldova. The list also includes the Czech Republic and Ukraine!

Latin America

During the past few years, the IT sector has shown tremendous growth in the region of Latin America. One big reason might be that it is near North America. By the way, it also has a great pool of talented IT personnel, mainly from locations like Chile, Colombia, Argentina, Brazil, and Mexico.

Eastern Europe vs. Latin America: A Faceoff for the Best Region for Offshoring

Below is a detailed comparison of notable factors among EE and LA especially for US-based IT companies. Those who are looking for offshoring opportunities in software product development;

1) Time Zone

There is a difference of about 5-12 hours on average between Eastern Europe and North America. Hence, there is a strong possibility of real-time communication among the developers in this region. Consider a case when both the local and offshoring teams are working on a project for some hours each. In this situation, both the working hours will contribute to building a software product in a timeline of 24 hours.

Yes, there is no point in calculating the difference in time zones among Latin and Northern America since it is negligible. The developers at both these regions can be working during the same business hours. However, it adds to a disadvantage! It limits the time of continuous work on a project for the day, not like that in the case of offshoring with Eastern Europe.

2) Literacy

If we consider the level of education then we can predict the driving force behind its boost in the IT sector. It is a fact that more than 50 out of about 450 universities in Europe lie here. Due to higher possibilities to avail, advanced education Eastern Europe has a solid system of IT education. You can easily find a high number of university degree holders here. They are well enough to handle the programming or software development of any offshoring clients.

It is a fact that around 100 of Top on average 450 universities in the globe belong to the Latin American nations. Argentina is well known for its top-class education system. No doubt, many educational institutions in this region are offering loads of IT courses to nurture their talents. There are many investments by foreigners in recent years. Thus, the cost of living among developers belonging to Latin America has also improved a lot due to the improvement in their salary figures.

3) Proficiency in English

All the IT tech hubs in Eastern Europe are having either advanced or full proficiency to work in English. They can easily communicate with their international offshoring clients. After all, a successful offshore development setup is one where all its team members can speak English confidently.

There was a survey to check the English proficiency index among adults in Latin America. As per its result, only Chile and Argentina are known to have advanced skills in English. Yet, other nations either offer intermediate or pre-intermediate proficiency. So if you want fluent English speakers in your offshoring software programming team, you can hardly find many options at this place.

4) Price

There are nations in EE like Bulgaria, Moldova, and Ukraine offering more affordable software programming services. It is due to the lower cost of living of natives at these places. The results of many studies depict the cost of outsourcing the software development services to a team belonging to any of these locations. It ranges between $25-50 as a per-hour average rate in Romania, Bulgaria, Czech Republic, Moldova, and Ukraine. However, if we look at these figures of Hungary and Poland, it ranges amid $50-100 per hour of a developer’s effort.

If you want to offshore the software development task in Latin America, it will cost you $25-$110 per hour. As per a survey result, the cost of offshore software development services with fees and taxes is higher in Brazil ($50-$100) than in other countries ($25-$50).

5) Availability of Programmers

As per some survey results, EE consists of more than 1 million software developers. Poland and Ukraine are on top of the list of the countries with the highest number of developers i.e. more than 2 lacs. Most of these IT professionals have the experience of offering their service to their international clients.

According to some surveys, the average number of IT developers in the Latin America area is nearly 1 million. The maximum of those belongs to Brazil with around 5 lacs developers. No doubt, it is one of the countries with a vast pool of tech professionals.

6) Comfort of Travel

There are many options of flight connections among Major North American regions to Eastern Europe. It would take 10-12 hours from EE to reach the US east coast and around 15 hours to arrive on the west coast in the US. Some places in EE like Warsaw and Kyiv are well known for their striking tourism infrastructure and historic ambiance.

Latin American countries are a good choice for North American firms due to their geographical proximity. It hardly takes a few hours to move between these regions for the most part. There are still some countries in North America from where it might take around 12 hours to visit an outsourcing team destined in Latin America.

7) Cultural Compatibility

The culture and lifestyle of Eastern Europe match most to that of Western Europe and North America. A software development outsourcing company in this region could match well up to the needs of the offshoring clients in work ethics. It is also for convenience in innovative thinking and communication.

Most people in Latin America maintain a strict workplace and social hierarchy. They depend on implicit message and context when it is about communication. So people of other regions need to adjust a bit while working with a software development offshoring vendor in this place.

Final Thoughts

Offshoring software product development should have the support of proper and strong management. The region of an IT company or team that one chooses for outsourcing needs matters the most while searching for the top tech talents!

Overall, Ukraine is one of the top destinations to choose for offshoring. It has a large pool of talented software engineers. Hence, contributes to building a strong software development market in the country. You can go with a reliable offshore outsourcing firm like GBKSOFT for the following reasons;

– It has a team of talented developers. They ensure productive collaboration with western countries due to cultural compatibility.

– They are operating in the Kyiv office, one of the largest tech hubs in Eastern Europe.

– Their offshoring clients can contact them face-to-face. It is for necessary communication at convenient time zones.

– The professionals have a high level of English skills for better communicability with clients of any nation.

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