Having worked in the financial technology industry for over five years, I’ve had the opportunity to observe firsthand the evolving needs and challenges that fintech companies face—particularly in how they manage talent and outsourcing strategies.
For decades, India has been a global leader in outsourcing. European companies, among others, have heavily relied on Indian service providers for a wide range of technical and support functions. However, as India’s economy has grown and wages have risen, the financial appeal of outsourcing to India has gradually declined. In parallel, what was once tolerable in terms of cultural clashes—especially for lower-paying roles with limited interaction with European teams—has become a more significant issue.
As outsourcing moved up the value chain into more complex, white-collar jobs (such as software development, product support, or project management), the friction caused by cultural differences has become harder to overlook. Communication styles, expectations around hierarchy, working hours, and even decision-making processes often differ, creating inefficiencies or tensions when integration with European teams is essential.
In response, many companies have begun exploring alternative outsourcing destinations across East Asia. These countries often offer slightly better cultural alignment and strong technical expertise. However, two main issues persist. First, while the cultural gap may be smaller, it is still present and can impact collaboration. Second—and perhaps more practically—there is the matter of time zones. Countries in East Asia are several hours ahead of Europe, making real-time support, especially during European business hours or for after-hours coverage, more complicated.
To address these challenges, some European companies have started turning to the United States for support services. The overlapping time zones make collaboration and after-hours support easier to manage. Yet, this approach comes with a different tradeoff: cost. U.S.-based providers are significantly more expensive, often putting pressure on already tight operational budgets.
This has led me to notice a largely untapped opportunity: outsourcing to Mexico, Central America, and South America. These regions offer a compelling combination of lower labor costs, good technical talent, and time zones that align closely with Europe—especially when compared to East Asia. In many cases, cultural compatibility is also higher, particularly in countries with strong European influences or bilingual workforces.
As the fintech industry continues to evolve and companies look for smarter ways to scale their operations globally, I believe Latin America represents a valuable and underutilized partner in the future of outsourcing.
