India vs. Latin America: The Talent Retention Battle in IT Nearshoring

The global race for tech talent puts regions like Latin America and India under the spotlight, but Latin America—particularly Argentina and Colombia—stands out. With stronger scores in openness, social inclusion, and gender equality, these countries provide an environment that fosters talent attraction and retention far better than India. For businesses prioritizing cultural alignment and team integration, Latin America offers an undeniable edge in the nearshoring landscape. Discover why Latin America is becoming the top choice for nearshoring talent. 

The global demand for skilled talent, especially in the technology sector, continues to grow. Companies are exploring regions like Latin America and India for outsourcing and nearshoring opportunities. However, the ability to attract and retain talent is critical for successful business operations and innovation. The ability to foster a culture of openness, gender equality, and social mobility plays a critical role in shaping the future of talent attraction. As companies increasingly look to Latin America for outsourcing, understanding these dynamics is essential for making informed decisions.

External and Internal Openness to Attract Talent. A key factor for any organization considering outsourcing is the external and internal openness of a region, which influences how well they can attract and integrate talent to their teams and project. The research suggests that:

• Argentina and Colombia excel in external openness compared to Mexico and India. Argentina leads with higher openness scores in categories like migrant stock and international students, crucial factors for businesses seeking a diverse workforce.
• However, when it comes to attracting people (talent attraction), all four countries show low scores. Mexico and India rank the lowest, reflecting the challenges these nations face in appealing to international talent.
• Internal openness, which covers aspects such as social inclusion and tolerance of minorities, is where Argentina stands out, with the highest scores. This makes Argentina particularly attractive for businesses seeking seamless integration and long-term retention at international teams.

Social Mobility and Gender Equality: While Argentina and Mexico perform better in gender equality and empowerment, there is room for improvement across all four countries in promoting social mobility. India shows the lowest scores in this area, raising concerns about its capacity to offer upward mobility opportunities for its workforce. Mexico has notable strengths in providing leadership opportunities for women compared to the other countries, which is a factor organizations may consider for promoting gender diversity in leadership roles.

Talent Attraction Overview per Country

Source: INSEAD 2023 Global Talent Competitiveness Index (GTCI)*

Latin American countries, particularly Argentina and Colombia, present significant advantages over India in terms of openness and social inclusivity, which are vital for attracting and retaining talent. For companies in the U.S. or Canada looking to nearshore, these factors create compelling reasons to choose Latin America as a strategic outsourcing partner.

At EvolutionCode.io, we leverage this regional strength, ensuring our partners benefit from not only cost-effective solutions but also high levels of cultural and social competence. By focusing on nearshoring in Latin America, we provide access to a talent pool that is better aligned with the needs of businesses in North America and other world regions.