Nearshoring is the practice of outsourcing work to nearby countries. It is a new way of outsourcing work, which differs from farshoring in that it mainly concerns countries that are close, both geographically and in time zone. Getting closer to Ecuador may be just what you need.
Many American companies are engaged in this practice, and Latin America is slowly but surely becoming its projected region. Latino culture is so present in the American mind that the benefits it brings to anyone trying to get a job are obvious. It is not surprising that many companies want to register a company in Ecuador.
One of the best countries for this is Ecuador, located in the heart of Latin America. It is an attractive approach location for businesses in need of IT and software development services. Here are some of the benefits of shortshoring in Ecuador.
- Cost savings
- Geographic proximity
- Skilled workforce
- Cultural compatibility
- Political stability
- Quality of work
Let’s dive into each of these to provide more context.
Advantages of Nearshoring in Ecuador
1. Cost savings
One of the most important advantages of outsourcing in Ecuador, and in any Latin American country for that matter, is the cost savings that businesses can take advantage of.
Compared to other offshore destinations such as India and the Philippines, Ecuador offers lower labor costs, which can result in significant savings for businesses. In addition, the country offers a favorable tax environment for foreign companies with a corporate tax rate of 25%.
2. Geographic proximity
Another advantage of most Latin American stocks. If your business is located in the United States, you are never too far from Latin America. The convergence in Ecuador is particularly good for this because it is located midway between Central and South America. Ecuador can become a major business hub in the region.
The geographic location makes it an attractive destination for companies looking to outsource IT and software development services. With a time zone similar to that of North America, it is easy to maintain communication and collaboration between Ecuadorian businesses and their customers in the United States and Canada. Additionally, Ecuador is a short flight away from major North American cities, making it easy for companies to visit their nearest teams.
3. Skilled workforce
Ecuador has a highly skilled workforce. Many universities in Ecuador are rising in quality and capacity to become some of the best in the region. This means that Ecuadorian professionals are skilled and will fulfill your every need as easily as any other workers from around the world.
With many professionals trained in IT and software development, the country has a growing technology sector with many young professionals looking to work for foreign companies. In addition, many universities in Ecuador offer programs in computer science and related fields, ensuring a steady stream of highly qualified graduates.
4. Cultural compatibility
Cultural compatibility is an essential aspect of successful business relationships. We’ve already talked about cultural differences when doing business in different countries or regions, but it shouldn’t be too much of a problem when you’re nearby in Ecuador.
Ecuador is the only dollarized country in South America, changing the currency is not a problem. It’s also really important to know that Ecuador’s culture is similar to that of North America, which makes it easier for businesses to work with their local teams. The country’s work culture is also similar, focusing on productivity and meeting deadlines.
6. Political stability
Often when we think of Latin America, political instability comes to mind. While this is true in some countries where the political climate is constantly changing and there is uncertainty, Ecuador is relatively stable.
With a democratically elected government and a business-friendly environment. The country is also a member of the World Trade Organization, offering businesses protection for their intellectual property rights.
7. Quality of work
The quality of work produced by IT and software development professionals in Ecuador is of a high standard. Many of these professionals have worked in multinational companies, gaining valuable experience working with international clients. In addition, many Ecuadorian IT companies have obtained certifications such as ISO 9001 and CMMI, demonstrating their commitment to quality.
Getting closer to Ecuador could be the opportunity you’ve been waiting for
Nearshoring in Ecuador offers many advantages for businesses looking to outsource IT and software development services. With cost savings, geographic proximity, a skilled workforce, cultural compatibility, political stability and high employment rates, it’s no wonder Ecuador is becoming an increasingly popular short-shore destination.
Biz Latin Hub can help you with Nearshoring in Ecuador
At Biz Latin Hub, we provide integrated go-to-market and back office services throughout Latin America and the Caribbean, with offices in Quito and Bogotá, as well as over a dozen major cities in the region. We also have trusted partners in many other markets.
Our unrivaled reach means we are ideally placed to support market entries and cross-border operations in multiple jurisdictions.
As well as knowledge of Nearshoring in Ecuador, our service portfolio includes recruitment and PEO accounting and taxation, company formation, bank account opening and corporate legal services.
Contact us today to learn more about how we can help you find top talent or otherwise do business in Latin America and the Caribbean.
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