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Outsourcing to Chile: Tips and Benefits

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Outsourcing is nothing new. The idea that moving business practices from inside national borders to less expensive and often more efficient international locations has obvious appeal ... and Latin America as a whole offers several popular outsourcing destinations.

Among the many options in this part of the world are Chile, Argentina, Mexico, Costa Rica, and Colombia. Startups and other companies with IT infrastructure – even a minimal amount of it – benefit greatly from conducting part of their operations with the help of foreign companies. And outsourcing to Chile is one of the most beneficial ways to go about it.

Not only does Chile have a lot to offer in terms of advanced infrastructure, its business culture is also very favorable to those looking to offshore or nearshore their tasks. Their business-oriented environment means that any business will find a great number of talented remote candidates for HR, IT, telecommunications, and software and app development.

So if you’re looking for an outsourcing partner in LatAm, look no further than the nation of poets. In this post, we’ll tell you all about the benefits of outsourcing to Chile, what you can expect when you do so, and what kinds of help you can get there.

Benefits of Outsourcing to Chile

The benefits of offshoring – or nearshoring, which is when you outsource to companies that are closer to your own – are myriad. For instance, you can:

  • Benefit from favorable tax structures
  • Leverage lower costs for operational work due to the culture’s lower cost of living)
  • Wear fewer hats at home and focus on core business operations
  • Contract expert work in the areas in which your company doesn’t excel
  • Access technologies you don’t have yourself, but which your service provider does
  • Expand the field of talented labor through telecommuting
  • Increase your company’s reach

Outsourcing to Chile gives the parent company a much greater ability to focus on what truly matters to them. The following list, which is far from comprehensive, offers a few more aspects of Chile business culture that make offshoring such a good idea.

Ideal Time Zone Location

Time zone is a big deal. Sure, you can find good help with your business process in many parts of the world. However, if those countries are sleeping while you’re awake, you’ll really need to train —or trust— your outsourcing company to operate on their own while you and your local team snooze.

High among the incentives for offshoring to Chilean cities such as Concepción or Valparaiso, therefore, is that they are awake and residing in the same time zone as you and your clients or customers. Even if you do want midnight customer service access, you can work with call centers in Chile that are open 24/7, negating the need to look elsewhere.

Cost-Effective Operations

The cost of living in Chile is inarguably cheaper than in the United States and many other developed countries. According to statistics, “The average [monthly] cost of living in Chile ($1028 USD) is 54% less expensive than in the United States ($2213 USD).” In a ranking of the most expensive countries in the world, Chile ranked 66th vs the United States’ spot in 5th.

Because of this cost-of-living difference, Chilean workers don’t need as high a salary to have a good standard of living. That means their services cost less, saving you money.

Highly Educated Workforce

Chile has a long history of education. Starting with the founding of the University of Chile in 1842, it has established a significant number of institutions of higher learning. Today, Chile has a highly trained population capable of providing global services in almost every niche.

That emphasis on education has translated to the Chilean business culture. Much like US companies, Chilean organizations prioritize intelligent workers with good resumes, a priority that will translate to the quality of their output.

Advanced Technologies and Connectivity

Chile is no slouch when it comes to technology. Back in the 1930s, the country’s leadership made a dedicated effort to ensure that the Chilean economy would remain robust and competitive over time. CORFO – known in English as the Production Development Corporation – is motivated to invest in high-quality global offerings.

Therefore, if you need real-time help from a services company of any kind, Chile is a safe bet. From IT companies to telecommunications providers to software developers, your outsourcing partner will have the technological ingredients to make it work.

Experienced Tech Talent Pool

Due to its history of education as well as the grand investment in technology and economic success over the last century, Chile business culture prizes STEAM experience and training in the fields of science, technology, engineering, the arts, and mathematics. Together, these subjects contribute to a tech-forward workforce that gives you tons of options.

Software development companies, for instance, can find programmers at only a fraction of the price they’d have to pay in the United States. IT companies can get the help they need without blowing their budget on just a team member or two. And so on.

Business-Friendly Governmental Policies

Of all the Latin American countries, Chile is one of the friendliest toward international companies when it comes to outsourcing. They directly encourage countries such as the United States to provide work to Chilean businesses. Favorable policies, combined with the strength of the USD, mean there are few better places in the world to send your work.

Reduced At-Home Management Load

Outsourced staff in Chile can solve a great deal of problems for you at home. These include:

  • Paying extra workspace rent for in-person workers
  • Spending on expensive insurance and benefits packages
  • Managing full-time teams
  • Having to learn and strategize on activities that aren’t your specialty

Taken together, the benefits of outsourcing to Chile are hard to overstate. Now let’s take a closer look at the financial side of outsourcing to Chile, what types of services you might send there, and what you ought to know before you do so.

Average Salaries for Outsourced Chilean Workers

Chile’s economy, while a robust one that takes care of its citizens, is not the powerhouse that America’s is. There is a distinct (and for your purposes, favorable) difference in the average salaries of a Chilean and an American worker.

In Chile, for instance, the average take-home pay is about $1175.86 USD per month, with highly skilled workers earning $1406.88, on average. In the United States, however, “the median American worker brings home an estimated $54,132 a year,” which translates to $4,511 per month. That means the average American wage of any labor level is more than three times what a skilled worker makes in Chile.

When you combine that with the respective values of the currency – one US dollar equals more than 811 Chilean pesos – you have an unbeatable recipe for offshoring. Because Chilean companies are tied to a lower GDP, the savings for you will remain significant as long as the US has a competitive economic advantage over Chile.

Commonly Outsourced Services to Chile

Chile’s significant investment in an outsourcing culture, plus its governmental enthusiasm and highly educated workforce, make it the perfect destination for your business needs. Among the most common operational tasks businesses benefit from assigning internationally are telecommunications, IT, payroll, and software development.

Again, note that the following list does not represent every potential service you could outsource, of which there exists a nearly endless list. However, it includes the most popular forms of assistance you can get from offshoring partners – and the ones that, if you’re just beginning, you might consider first for your own company.

Telecommunications Services

Although most Chileans speak Spanish from birth, English proficiency in the country is very high. Many people have soft accents that make it easy for other English speakers to understand them, which suits them to telecommunications.

In recent years, call centers have become more popular and common in Chile. Due to the bilingual nature of its population, it is a fantastic place to locate outsourced services if you are a country that has both Spanish- and English-speaking citizens.

IT Services

Companies have practiced IT outsourcing for decades and has built up an impressive array of expert services. From general IT support assistance, to data storage, data monitoring, and data security services, the IT outsourcing teams in Chile can handle your needs.

Plus, Chile is an amazing place to outsource IT because of its ongoing investment in infrastructure and technological training. Their information technology curriculums, available as early as primary and secondary school students, and university-based concentrations result in a well-trained, tech-forward youth population that constantly replenishes retiring workers.

Payroll Outsourcing

Payroll outsourcing to Chile is another popular approach. Payroll is a monstrous beast even for small companies. It’s more than just cutting paychecks or direct depositing them into employee accounts. Payroll also involves:

  • Tax reporting and filing
  • Compliance with rules and regulations
  • Unemployment claims
  • Security of employee data

You need a technologically advanced workforce to help address all of these needs. But while most people assume they must – especially for purposes of data security – fulfill these services in-house or at least in-country, that’s not true. Data security is just as strong or weak in Chile as in the United States; it comes down to what a particular company can offer, not a national benchmark of any kind.

Software Development

Software development outsourcing is another great way Chile can help you. Chilean developers and programmers, highly trained in computer science, make an excellent addition to your team if you’re looking to develop apps and software quickly.

The challenge, when looking into software outsourcing in any country, is to be wholly confident that the software engineers you find have the specific skill set you’re looking for, as there are sure to be lots of different outsourcing partners of varying quality.

What to be Aware of When Outsourcing to Chile

As with any business or employment situation, laws and regulations rule the day. Whether you’re sending work abroad to Brazil or Santiago, here are a few things to be aware of when partnering with an outsourcing organization in from Chile. Remember to stay informed about tax details, government legislation, processing of personal data, cybersecurity, and so forth.

For instance, if your company is sending out marketing emails, then you are responsible for ensuring that missives under your company banner comply with GDPR (General Data Protection Regulation). Just because those emails are sent from Chile does not absolve you.

In addition, you should also be aware of laws relating to:

  • Outsourcing Contracts: If you’re going to nearshore your tasks to South America, remember that your contracts will be governed by the laws of your country and the outsourcing partner’s.
  • Personal Data Processing: If you are sending personal data to a company in Chile, be sure you choose one with years of experience in the business and proof that they know how to handle it. Otherwise, your good name is on the line.
  • Employee Transfer: When moving tasks or people from one place or the other, apprise yourself of all the applicable laws in both places.

If you feel a little nervous reading this, that’s a good thing. It’s difficult to ensure you’re always above board when you’re working out of more than one country. It takes a good deal of oversight to avoid legal difficulties and develop a streamlined outsourcing routine, and you’re right to focus on these legal requirements. Of course, that’s where professional help comes in.

How To Find a Trusted Outsourcing Company

If you’ve never outsourced anything before, chances are good you’re a little lost. Not only is it important that you choose the right company to help you, you also need to remain aware of legal pitfalls, cultural disjuncture, and the general processes required for starting a new outsourced relationship.

That’s why it’s so important to work with a trusted company that can handle the outsourcing process on behalf of your business. Here at TDSGS, we can assist you in finding the ideal outsourcing partner anywhere in the world, for any industry. We like to think of ourselves as matchmakers, helping you find the right solution for your business at a price you can afford, all while ensuring your company’s reputation remains strong and unblemished.

If you’re ready to learn more about the outsourcing process, we encourage you to get in touch with us today. Our friendly team is standing by to answer your questions and point you in the right direction to meet your workload.

Get ready to do less and profit more!

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