Looking back, the tech industry has always looked to other markets for investment and outsourcing. Take Apple, for instance, time and time again the company has outsourced significant pieces of work to Indian IT services companies such as Wipro and Infosys.
Similarly, Google outsources its work to companies such as Cognizant, which though US-based, have most of its employees residing in India. As tech companies continue to outsource, so too do the regions they are outsourcing to expand.
Currents trends indicate that Latin America has the potential to be the next global hotspot for innovation and tech talent. To prove how true this is, consider the four Latin America countries discussed below.
For a considerable while, Brazil’s has been under a recession. However, the country’s tech scene is experiencing a resurgence and experts predict rapid expansion in the next few years.
The IoT initiative by the government largely fuels the growth. The initiative aims to encourage talented people to develop IoT, Artificial intelligence and Blockchain projects. Big data is catching on as well with a growth of 18% in 2018 in comparison to 2017.
Note that at the moment, statistics indicate Brazil has over 250 health-focused startups. The startups aim to use the technologies mentioned above to come up with sophisticated solutions. With that in mind, it is clear Brazil is an exciting option for investors and entrepreneurs.
The Mexican government is at the forefront coming up with initiatives that will help entrepreneurs. These initiatives received a significant boost when the North American Free Trade agreement was updated recently.
Thanks to the update, there are new protections on trademarks and patents which make it a little easier for entrepreneurs.
Note that Mexico City alone boasts of over 170 startups and some of them have notable investors,e.g., Y-Combinator. With such statistics, one can only conclude that the rest of the country has an equally high number of startups. Consequently, companies looking to expand can easily find a profitable home in Mexico.
Economic problems have prevented Argentina from becoming a significant power in Latin America. However, despite these issues, the country has persevered,and currently, Argentina is one of three Latin America countries in the G20—the other two being Mexico and Brazil.
The tech scene in Argentina is vibrant,and some startups have succeeded, case in point, MercadoLibre, an e-commerce retailer. Moreover, the government is also trying its level best to promote and provide an environment for innovation.
Back in 2013, Colombia’s government committed $389 million to fund innovation and tech. Over the years, the government has continued pushing for innovation.
Admittedly, Colombia is still not at the level of Brazil or even Mexico, but the current startups and the passion of tech-savvy Colombians indicate that it is just a matter of time.
Colombia might be a relatively new market when it comes to innovation and tech, but that makes it the perfect place for entrepreneurs because they can get in the action and be part of the foundation for Colombia’s tech scene.
Now that you know this, what should you do?
Be daring and get in before others discover the region and the market floods. Note that you will undoubtedly experience hurdles. However, you can overcome these hurdles.
One hurdle to consider is the culture difference. Cultural integration might take time,but a good place to start is learning the language, which for most Latin American countries is Spanish.
Another hurdle might be digital security or rather digital insecurity. Again, you can overcome this by utilizing appropriate tools. Such tools include VPNs and good firewalls. Free tools are notoriously invasive when it comes to user privacy, but paid ones are no guarantee either. The sensible thing to do would be to give the app a spin using their trial. 1 in 4 internet users use a VPN these days, so just ask around for free VPN trial recommendations.
Another hurdle might be logistics. With enough brainstorming, you can solve this as well. Essentially, realize that the mentioned countries offer incredible prospects for any US-based or UK-based tech company or entrepreneur. As such, any hurdles are just slight inconveniences that one can easily scale.
Moreover, remember that these countries will also facilitate cost saving thanks to a low-cost labor market.