Welcome to The Nearshoring Playbook—a podcast dedicated to decoding the forces shaping the future of global operations. Hosted by Arjun, with insights from Malay Verma and Rajeshwar Mitra, co‑founders of Greymatter Innovationz, this episode dives deep into one of the fastest‑rising global shifts: the rise of Latin America (LATAM) as a nearshoring powerhouse.
Nearshoring has become a strategic move for businesses looking to scale operations closer to the U.S. while balancing cost, speed, and access to skilled talent. But which LATAM regions stand out, and why?
Mexico: Scale and Strategic Advantage
When it comes to scale and proximity, Mexico often tops the list. Thanks to the USMCA (formerly NAFTA), Mexico offers unmatched geographical closeness to the U.S., shared time zones, and ease of travel.
Cities like Guadalajara, famously known as the Silicon Valley of Latin America or the Bangalore of Latin America, host major players such as Ford, Oracle, and AstraZeneca. This makes Mexico a prime destination for companies needing large‑scale operations and deep exposure to nearshoring ecosystems.
Colombia: Cost Advantage and Skilled Workforce
For organizations prioritizing cost efficiency without compromising on quality, Colombia stands out. The country offers a 20–30% cost advantage compared to other Latin American destinations.
Cities like Bogotá and Medellín have transformed into thriving technology centers, fueled by a growing base of STEM graduates and strong capabilities in AI, data engineering, and fintech—making Colombia a cost‑smart yet technically capable hub for expansion.
Brazil: Scale and Enterprise Readiness
Brazil continues to anchor itself as one of the region’s most dynamic economies, serving as a core hub for enterprises focusing on ERP, enterprise tech, and broad‑based product engineering. With a robust market size and infrastructure readiness, it stands as a top pick for CEOs seeking scale and diversity in technical skillsets across large sectors.
Costa Rica: High‑Value Depth in Tech Talent
For those looking for depth over scale, Costa Rica is a hidden gem. The country has a strong reputation for high‑value technical support and cybersecurity expertise. Major corporations like IBM run their global security operations from Costa Rica, showcasing its credibility as a deep‑tech destination in the nearshoring landscape.
Argentina: Engineering Excellence
When the focus shifts toward engineering and product development, Argentina becomes impossible to ignore. Its strong academic foundations and robust engineering talent pool have made it an emerging favorite for companies building embedded systems and product engineering divisions.
The Takeaway: Matching Business Needs to Locations
As Malay Verma and Rajeshwar Mitra emphasize, there’s no one‑size‑fits‑all answer to the nearshoring equation. The ideal LATAM location depends on what the business values most—scale, cost, or technical depth.
- Mexico and Brazil excel in scale and strength.
- Colombia wins on cost advantage.
- Costa Rica offers specialized depth.
- Argentina brings engineering rigor.
Each hub contributes uniquely to the evolution of global operations, collectively forming the backbone of LATAM’s growing nearshoring ecosystem.
