In 2026, enterprise leadership is rethinking global operating models at a fundamental level.
For over two decades, delivery footprints followed a straightforward logic: place engineering centers, analytics teams, AI programs, and shared services wherever cost efficiency and scale were maximized. Distance was an acceptable trade-off in a world where trade routes were stable, communication technologies were advancing, and geopolitical conditions were largely predictable.
That assumption no longer holds. Recent geopolitical instability, from the Middle East to critical global trade corridors, has exposed a structural vulnerability in the distribution of global capabilities. Organizations have seen how quickly disruption translates into coordination delays, restricted travel, governance gaps, and operational risk, especially when critical work is concentrated in distant offshore hubs.
At the leadership level, the conversation has shifted. Geography is no longer a procurement variable; it is a strategic lever tied directly to resilience, visibility, and operational control. When disruption occurs, the binding constraint is rarely labor cost. It is the ability to collaborate in real time, maintain oversight, and sustain execution across time zones and geopolitical fault lines.
For GCC enterprises, this has triggered a reassessment of where critical digital capability should reside. Nearshore regions have moved from secondary consideration to boardroom priority, and Latin America is central to that shift.
Geography Is Now a Governance Decision
Recent disruptions around key logistical and energy corridors have brought geopolitical risk directly into operating model design. The Strait of Hormuz, for example, carries nearly 20% of global oil and gas consumption, making it a critical pressure point for global trade and economic stability.
Analysis from Deloitte highlights how disruptions across these corridors are contributing to inflationary pressure, trade uncertainty, and operational risk; factors that now directly influence how enterprises distribute global capability.
At the same time, research from Tholons projects that 50% of global enterprises will adopt hybrid sourcing models, including nearshoring, by 2026. Perspectives from the Forbes Technology Council further emphasize why: nearshore regions enable real-time collaboration, tighter decision loops, and stronger leadership visibility into execution.
The INSEAD Global Talent Competitiveness Index, endorsed by the World Economic Forum, reinforces this shift. Leading nearshore markets are now outperforming many traditional offshore destinations in overall talent competitiveness, giving enterprises greater confidence in placing high-value work closer to where leadership oversight resides.
The question for enterprises is no longer whether Latin America belongs in the operating model. It is whether their partner there is already established and ready to scale.
Latin America’s Structural Momentum
Analysis from McKinsey & Company points to a critical inflection point. With sustained annual productivity growth of 1.7 to 2.6%, the region’s GDP could expand to between $8.9 trillion and $10.3 trillion by 2040, driven in large part by accelerating digital adoption.
Advances in AI, cloud computing, cybersecurity, and software engineering could unlock a $100 billion export opportunity in knowledge-based services. This comes as global revenues across AI and cloud ecosystems are projected to approach $8 trillion over the same period.
Infrastructure is scaling in parallel. Global data center capacity is expected to grow rapidly through 2030, increasing demand not just for physical infrastructure but for the engineering, DevOps, data, and cybersecurity talent required to operate it.
Across the region, this momentum is already visible:
- Costa Rica supports operations for dozens of Fortune 500 companies and hosts development centers for leading global IT firms
- Uruguay has built a strong base of export-oriented technology companies
- Chile ranks among the region’s most digitally advanced economies
For GCC leaders designing operating models that must perform through 2040, Latin America’s alignment with global digital demand is not incidental but foundational.
Already Established, Already Scaling
Enterprise movement toward Latin America is no longer emerging; it is well underway. Joint research by the Shared Services & Outsourcing Network and Auxis shows that 90% of enterprise and global business services leaders are already operating in the region or planning to establish a presence within the next three years.
The shift is even more striking over time. In 2016, only 44% of Latin American shared services supported North America. Today, that figure has reached 84% – reflecting a transition from peripheral support to primary execution partner.
Operational outcomes reinforce this trajectory. Shared services satisfaction levels in Latin America reach 87%, significantly higher than in Asia and Europe. These results reflect not just cost efficiency, but operational maturity, cultural alignment, and the ability to support increasingly complex work.
Our own trajectory reflects this shift. We have established and scaled delivery across key Latin American markets, building engineering, data, and shared services teams that operate as embedded extensions of enterprise organizations, not external vendors.
Talent as the Defining Advantage
Cost is no longer Latin America’s primary differentiator – talent is. Research from the Shared Services & Outsourcing Network and Auxis shows that 87% of enterprise leaders rank talent quality as central to the region’s value proposition. Innovation capability, problem-solving ability, and readiness for complex roles consistently rank among the top drivers.
The INSEAD Global Talent Competitiveness Index further confirms that leading markets such as Costa Rica, Colombia, and Mexico outperform many traditional offshore locations.
At the same time, enterprises continue to face talent constraints in saturated Asia-based hubs, accelerating the redistribution of strategic work toward nearshore regions.
For organizations expanding AI, cloud engineering, cybersecurity, and digital product development, this shift is decisive. These initiatives require advanced critical thinking, strong English proficiency, and real-time collaboration with headquarters; capabilities that align naturally with Latin America’s workforce and time zone overlap with North America.
Built for the Next Wave of AI and Automation
Latin America’s readiness for AI and automation is already measurable. Organizations in the region demonstrate higher adoption of advanced technologies, including analytics, robotic process automation, and intelligent document processing.
Nearly 80% of organizations are actively evaluating or implementing generative AI initiatives, reflecting a technology culture that keeps pace with enterprise demand. This directly addresses a critical constraint in global capability planning. While a majority of enterprise leaders in other regions report concerns about AI and automation talent availability, significantly fewer express the same concern in Latin America.
In practice, this enables teams across the region to support the full AI lifecycle, from data engineering and model development to deployment, operations, and governance. The impact is tangible. Organizations operating nearshore centers report productivity gains exceeding 20% through automation, with savings reinvested into innovation and digital transformation.
Just as importantly, enterprises are expanding the scope of work delivered from the region, across finance, IT, HR, software engineering, and supply chain, reflecting growing trust in its ability to support high-value, decision-driven functions.
Why This Moment Matters-and Why It Favors Latin America
For GCC leaders, the operating model question is no longer where work can be done most cheaply. It is where it can be executed with the greatest resilience, visibility, and speed.
Latin America meets these requirements in combination:
- Geographic distance from major conflict zones
- Alignment with Western business practices
- Overlapping working hours with North American headquarters
- Deep and scalable digital talent pools
- Proven operational maturity
This combination positions the region not as an outsourcing destination, but as an extension geography for Global Capability Centers.
Organizations that recognize this shift early are not simply diversifying delivery; they are redesigning their global footprint for continuity and long-term performance.
For us, this is not a new direction. It is how we already operate. We have built and scaled teams across Latin America that function as integrated extensions of enterprise operating models, spanning engineering, AI, digital transformation, and shared services. That foundation allows GCC organizations to accelerate capability build-out, rather than start from scratch.
