According to Statista, revenue in the LATAM IT services market is projected to expand at a compound annual growth rate (CAGR) of 5.67% by 2029, reaching a market volume of $74.49 billion. This development trajectory represents the region’s emerging potential and readiness to embrace the digital future; it is more than simply a set of statistics. The Latin American IT scene has prospects for innovation, development, and strategic alliances.
Kearney’s Global Services Location Index (GSLI) specifies the most attractive countries for offshoring. In 2023, Brazil and Mexico were in the top 10 countries in the GSLI. Thus, Latin America is a perfect destination for hiring talented specialists. If you are considering partnering with Latin American specialists but have preconceptions, stereotypes, or lack of information regarding Latin America business practices, we can help you. We conducted an informative interview with Workana representatives Guido Battistini, a Sales Development Representative, and Marian, a Talent Team Leader. Workana has been a leading freelance and remote work platform in South America for over 12 years. This company connects high-skilled professionals from LATAM to various companies worldwide.
We discussed Latin America business practices, employment, stereotypes, time zone management, the stages of the recruiting process, and the expertise of tech professionals in Latin American countries. In addition, Qubit Labs, a well-known outstaffing company, shared its experience and discussed the main trends in the hiring process. Read this interview to deeply understand Latin American business culture and its key differences from the US.
Benefits of Hiring in LATAM
Latin America is known for its strong tech potential, qualified workforce, favorable time zones, and cultural diversity. Tech companies in Latin America offer more benefits and better working conditions than non-tech organizations. “I must say that it’s the same as in the US or Europe. Tech companies are here on top of benefits, on top of salary, and on top of a good working environment. And they are innovative,” says Marian, a Talent Team Leader at Workana.
Workana representatives point out the following benefits of outsourcing to Latin America:
- “Outsourcing to Latin America has a lot of benefits like access to a highly skilled and diverse talent pool, the close time zone, especially if you compare to Asia markets, the cost-efficiency, and the cultural alignment with the European and US practices. So I think we are honest and good people to work with,” says Marian.
- “Maybe sometimes you need a different mindset or a different culture perspective. So maybe someone from Argentina or Brazil can provide you with a new idea. That small detail can make a huge impact,” says Guido Battistini, a Sales Development Representative at Workana.
- “We want to create a prosperous relationship with you. We want to make sure that the developer we provide is happy working with you and that you’re happy working with us,” says Guido.
Latin American Business Culture in Tech Companies: Characteristics and Differences Between LATAM and the United States According to Workana
Latin American business culture in tech companies with Guido Battistini, a Sales Development Representative at Workana, and Marian, a Talent Team Leader at Workana. In this interview, we will outline the primary cultural characteristics of tech companies, give you some insights regarding Latin America business practices, collaboration, employment, and business etiquette of LATAM, and debunk stereotypes about Latin American tech companies.
Communication
In business communication, people in Latin America are talkative and expressive and avoid confrontation. Brazilians sometimes interrupt each other, but this is a sign of enthusiasm, not bad manners. Feedback is often expressed indirectly. For example, the positive side of an issue is emphasized first, and then negative feedback is politely expressed.
Interview Insights:
“Maybe in the US, they prefer to go straight to the point. For instance, if a meeting is only supposed to last 10 minutes, it will only last 10 minutes. As for people from LATAM, they prefer to talk about their weekends or kids. However, developers from LATAM demonstrate a high level of adaptability. They always adapt to the requirements of a client and working approaches,” says Guido.
“People here enjoy a little bit more small talk. At least at the beginning of an interview, like a daily call or whatever. However, most of our talents already have previous or current experience working with US or European companies, so they have learned how to deal with this small difference,” says Marian.
Collaboration
According to research, eight of the ten Latin American countries had the highest family collectivistic values in the world. In contrast, the other two (Costa Rica and Brazil) had values that were above average. Also, the culture of Latin America “tends to favor the development of teamwork.” Workers place high importance on interpersonal connections based on empathy and open communication — two qualities critical to collaborative work. As for the organization of the company, there is a clear hierarchical structure. Communication has a vertical structure, and following Latin America business practices, all decisions are made by one manager.
Interview Insights:
“And then regarding family and friends here in Latin America. We like spending time with our friends and with our family. If you have a good relationship with your family, it’s super important to be motivated to do well in your job,” says Guido.
“And regarding holidays. We have plenty of holidays here in Latin America, but at the same time, the professionals we have valued their job. They like freedom, but they are responsible at the same time. They will make sure that they finish their duties for the job first, and then they can enjoy a day with their family,” says Guido.
Business Etiquette
Business practices in Latin America and business etiquette in the USA and Latin America differ in personal space, names and job titles, and the concept of time.
Latin Americans have a significantly lower sense of personal space in corporate partnerships than those in Europe and America. For instance, interlocutors frequently stand near, gaze into each other’s eyes, and occasionally make inconspicuous physical contact (such as a touch on the upper arm). Also, in Spanish-speaking countries, people use less personal space when greeting than in the U.S.
Also, Latin American workplaces have a strong emphasis on status. Latin Americans prefer to be addressed by title first and then by last name. It is a polite way to greet other professionals.
Besides, people in the US, UK, and Europe might be more mindful of time and in sync with the clock. Timekeeping accuracy is less critical in Latin America. Meetings may begin at a different time than the scheduled hour and last longer than expected. However, when working with foreign companies with other cultural peculiarities, LATAM specialists adapt fast to all the necessary changes.
Stereotypes of Latin America Business Practices in Tech Companies
The most common stereotypes about tech companies in Latin America include a lack of innovation and cultural and language barriers.
Interview Insights:
“Each country is different. We have some countries that may be more emotional or may have more attachment to a family and values. If we have to say in a ranking, maybe Uruguay, Chile, and Argentina are those countries that are very similar to the US and Europe. And then, we have another category, including Brazil, Mexico, and Colombia. They may be more religious,” says Marian.
“I would say that there is the stereotype that we have a lot of holidays here or vacations or like paid holidays, which differs from country to country. For instance, Uruguay has almost no paid holidays during the year, but it is one of the most expensive countries in South America. Then we have Brazil, which has an infinite talent pool because of its size, and they have more paid holidays during the year, but this can be arranged,” explains Marian.
“Some companies respect their (*developers’) paid holidays during the year; some other companies can only pay for ten holidays per year or something like that. Try to reach a middle point, basically,” says Marian.
“English is not our mother tongue. Maybe in the interviews, the person cannot really show what they know because they have a language barrier, although they speak fluently. So, we always recommend our clients to try working with specialists to see how they perform their work,” says Marian.
Employment
Based on Qubit Labs’ experience, most tech companies sign B2B contracts in Europe. In Latin America, this is also a common practice.
Interview Insights:
“People here are used to working as full-time contractors. Companies usually give them some extras to make a company competitive against another for the same talent. These extras can include paid time off (10-15 days a year) in terms of long-term contracts or providing the employee with the necessary hardware for work (e.g., a laptop). But they (*developers) are used to receiving a monthly rate and no other benefits regarding law attachments,” says Marian.
Expertise in Certain LATAM Regions
Qubit Labs’ experience proves that certain European countries have extensive expertise in specific industries. For instance, the Scandinavian region is robust in fintech, and Spain is very strong in game development. In LATAM, the situation is different.
Interview Insights:
“Country regions differ in terms of technologies. Some countries are stronger or have more talents for a specific technology stack due to universities focusing more on a specific tech stack. So I would categorize it not by industry but by tech stack,” says Marian.
Time Zone Management
Qubit Labs has customers from the USA and Australia. They usually expect workers to work close to their business hours. Does this apply to Latin America? How is this situation handled?
Interview Insights:
“They used to work asynchronously but also tried to overlap some hours per day. We have had clients demanding exact overlaps in time zones. Some companies work with the European Time Zone; others agree with two or three hours of overlapping as long as the person can work independently. Speaking about the US, it’s usually easier, especially if companies are located in Central Mountain or Eastern time. They work most of the day together, and if they’re on the West Coast, they demand the person to be working California time zone, or they can overlap some hours per day,” says Marian.
Stages of the Hiring Process
Qubit Labs states that the hiring process has changed and is more complex today. Usually, it features from three to more than five stages. Our experience shows that some candidates, especially seniors, reject a position from scratch because the process is too long.
Interview Insights:
“Now it has gone back forwards to the long processes, especially in the US. I wouldn’t say that it has to do with the region of Latin America because I have been recruiting in the US, Europe, and Asia. This is a common thing that I don’t think has to do with the number of stages but the type of project. I mean, what’s been offered versus what’s been demanded in terms of stages. If the project or the company is perfect for this person, he will be ready to make more sacrifices,” says Marian.
Business Practices in Latin America: Specific ‘Good-to-Know’ Rules
Here are some rules regarding Latin America business practices.
- The “okay” gesture, made with your thumb and forefinger, is considered rude in Brazil or Colombia.
- Warm hugs and embraces, called “abrazo,” are common in the local business environment when two people are already acquainted; this behavior is appropriate everywhere except Costa Rica.
- Slamming your right fist against your left palm in Chile is offensive.
- When communicating by email, be aware that jargon or colloquialisms might lead to misunderstandings and misinterpretation of your tone.
- Setting up business meetings two to four weeks in advance is a brilliant idea.
- In Latin America, it is customary to inquire about your associate’s family.
- There is a misconception that shaking hands is not appropriate for a business setting in Latin America. In a business setting, a handshake is appropriate.
Bottom Line
Thereby, here are some takeaways from our interview regarding Latin American business culture and Latin America business practices:
- Employees in Latin America have distinct communication styles that can be adjusted to the client’s requirements;
- Latin American culture facts: A good relationship with a family is significant for succeeding in their jobs.
- Employees in tech companies value freedom, but they are very responsible. They never go on a holiday until they’ve done their job.
- Latin American workplaces have a strong emphasis on status.
- The number of holidays and vacations differs from country to country. In most cases, their number can be arranged within a company.
- Most employees in LATAM work as full-time contractors.
- Latin Americans are flexible regarding time zone management and adjusting to the multi-stage hiring process.
Are you interested in doing business in Latin America? Do you want to hire exceptional Latin American tech professionals? Do you need a reliable Latin American IT staffing partner who will leverage the best Latin America business practices? Qubit Labs has extensive experience sourcing the best talents in Mexico and Brazil. In 4-6 weeks, we can find a perfect match to ensure your business success. You are in complete control of the workflow, and we handle recruitment, hiring, onboarding, HR management, payroll and taxes, retention, and replacement. Schedule a free consultation call, and let’s explore the tech landscape in Latin America together.
