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Key Takeaways
- Choose the Philippines if cost minimization is your priority and your analytics work can be performed asynchronously; choose Latin America if your data team needs to collaborate closely with US stakeholders and you value real-time communication over maximum cost savings.
- Latin America provides time zone alignment with the US, enabling real-time collaboration, and offers a fast-growing and skilled data analytics talent pool.
- The Philippines offers lower costs and a strong outsourcing ecosystem, making it a great choice for companies prioritizing budget over real-time collaboration.
Skilled analysts who can transform raw data into valuable insights are in increasingly high demand in the US. This has many companies looking beyond US borders to build their data teams.
Latin American countries and the Philippines have become top choices for offshoring data analysis.
The question isn’t usually whether you should offshore—it’s which country makes the most sense for your specific needs.
This guide explores the strengths and challenges of offshoring data analytics to the Philippines versus nearshoring to Latin American countries, helping you decide where to build your remote team.
What Is Offshoring (vs. Nearshoring)?
Before diving into the comparison, let’s clarify what we mean by “offshoring” and then “nearshoring.”
Offshoring means having business processes, services, or tasks performed in a different country. With offshoring, you’re building your own team—they just happen to be based in another country. This differs from outsourcing, where you hand tasks over to a third-party company.
Nearshoring is a specific type of offshoring where you work with talent in nearby countries. For US companies, this typically means Latin American countries, which offer time zone alignment and cultural similarities.
Both approaches provide access to global talent and significant cost savings (due to the lower living costs compared to the US), but they have different advantages depending on your business requirements.
Why Businesses Offshore Their Data Analytics
Data analysis has become central to business strategy, but finding and retaining qualified analysts domestically can be challenging and expensive. Here’s why companies are turning to offshoring:
Cost savings and budget optimization
With data analysts pulling in six-figure salaries in the US, offshoring has become a go-to strategy for businesses looking to scale while keeping hiring costs in check.
Offshoring and nearshoring can reduce labor costs by 30–70%. This isn’t about finding cheap labor—it’s about accessing high-quality, skilled talent at rates that make sense for your business.
These savings can be strategically reinvested in other growth initiatives, whether that’s expanding your product line, increasing your marketing budget, or investing in new technologies.
Access to specialized talent
Beyond the significant savings, offshoring also provides access to highly skilled professionals in data science, AI, and business intelligence that may be scarce locally.
Countries like Brazil, Mexico, Argentina, and Colombia have fast-growing talent pools trained in advanced analytics, machine learning, and predictive modeling. These countries have invested heavily in technical education, creating robust pipelines of analytics talent that US companies can tap into.
Scalability and flexibility
Offshore teams allow you to scale your data operations up or down quickly based on business needs. Need to analyze a large dataset for a one-time project? Want to expand your regular reporting capabilities? With offshoring, you can adjust your team size without the long recruitment cycles typical in the US.
This flexibility is particularly valuable for startups and growing companies that need to remain agile while building their data infrastructure.
Business continuity advantages
Depending on where you offshore, you can create a “follow-the-sun” model for certain analytics functions. This means work continues 24/7, with teams in different time zones handling various aspects of data processing and analysis.
Why Choose the Philippines for Data Analytics?
The Philippines has built a strong reputation in outsourcing, particularly in IT and business process operations. Here’s a closer look at why the Philippines excels in offshore data analytics—and where it faces challenges.
Strong English proficiency
The Philippines ranks among the top countries for English proficiency in Asia, placing 22nd globally, with fluency levels similar to Singapore. This reduces communication barriers and helps increase accuracy in data-driven work, where precision is critical.
Many Filipino data analysts also have experience with US business practices, making it easier to collaborate on analytics dashboards, reports, and strategic insights with minimal onboarding.
Established IT and BPO industry
With over two decades as a global outsourcing hub, the Philippines has a mature IT and analytics sector. The industry has grown from nearly 100 companies in 2014 to over 300 in 2024, with major corporations relying on Filipino talent for business intelligence, data processing, and AI-driven analytics.
This mature infrastructure means you’ll find professionals who already understand how to work with US companies and can adapt quickly to your specific needs.
Highly competitive labor costs
The average monthly salary for data analysts in the Philippines is about $600 per month (Glassdoor) or $7,200 a year.
This makes it one of the most budget-friendly options for companies focused on data-driven growth.
24/7 analysis
Another key advantage of offshoring to a distant country like the Philippines is business continuity. US teams can hand off tasks to their Filipino counterparts at the end of their day and vice versa.
What are the potential downsides of offshoring to the Philippines?
The biggest challenge with offshoring to the Philippines is the time zone difference. Manila is 12–15 hours ahead of the US, which means:
- Real-time collaboration is difficult without someone working odd hours
- Meetings require one team to adjust their schedule significantly
- Feedback loops can be delayed by a full business day
Many Filipino professionals work night shifts to align with US business hours, but this can affect work-life balance and productivity and eventually lead to higher turnover. The Philippines also experiences frequent typhoons and infrastructure challenges that can disrupt work.
For Australian and Japanese businesses, for example, the Philippines is an ideal nearshore destination. However, for US-based companies, the geographical distance may make nearshoring to Latin America a more practical alternative.
Why Choose Latin America for Data Analytics?
Latin America offers a nearshore alternative that addresses many of the challenges associated with traditional offshore locations like the Philippines.
Here’s what makes it increasingly attractive for US companies building data teams.
Better time zone compatibility with the US
This is Latin America’s biggest advantage. Most countries in the region operate within 0–3 hours of US time zones, with no location having more than a 5-hour difference.
This means:
- Your data analysts work during your business hours
- You can have impromptu calls to discuss findings without scheduling in advance
- Questions get answered the same day, not the next morning
- Collaborative analysis and problem-solving happen in real time
For data analytics—where clarifying requirements and discussing insights is critical—this time zone alignment can significantly improve project outcomes and team integration.
Cultural and business affinity
Latin America shares a similar work culture with the US, making it easier for teams to integrate and collaborate. Many professionals in the region are accustomed to US business operations, regulatory requirements, and corporate structures.
Additionally, free trade agreements (FTAs) like NAFTA, USMCA, and CAFTA-DR have strengthened economic ties between the US and Latin America, leading to a higher volume of cross-border business partnerships.
In terms of English proficiency, Argentina, Honduras, and Costa Rica lead the region, with Uruguay, Chile, and Peru ranking close behind.
Growing tech and data talent pool
Latin America is rapidly expanding its data analytics workforce, with major talent hubs in Mexico, Brazil, Colombia, and Argentina. The region now accounts for 10% of the global data analytics market, with Brazil as a key player.
The industry is on a rapid growth trajectory, with projected revenue expected to reach $26 million by 2030. Universities across the region are also expanding their AI, machine learning, and business intelligence programs, meaning there’s a steady pipeline of skilled professionals.
Competitive wages and operational efficiency
While salaries in Latin America are higher than in the Philippines, businesses often find that the efficiency and productivity gains offset the cost difference.
For example, entry-level data analysts in Latin America earn around $30,000 per year, while senior analysts can make up to $60,000. In comparison, US-based analysts earn between $49,000 and $106,000 annually.
This represents savings of approximately 42% for US companies while providing access to professionals who can collaborate in real-time and integrate seamlessly with US-based teams.
The higher productivity and reduced friction in workflows often offset the higher cost compared to more distant offshoring locations, creating better overall value in many cases and making companies reconsider hiring in the Philippines.
What are the potential downsides of nearshoring to LatAm?
Latin America isn’t without its own challenges. English proficiency varies significantly between countries and individuals, making proper vetting crucial. Political and economic volatility in certain countries can also create uncertainty.
Using a recruitment company can help mitigate these risks as they pre-screen candidates and navigate local market conditions.
Salaries can also fluctuate significantly depending on location and the type of data analyst your business needs.
Which Is Right for Your Business?
When deciding between the Philippines and Latin America for offshoring data analytics, consider these key factors:
Work model and collaboration needs
Choose the Philippines if:
- Your analytics work is primarily independent and asynchronous
- You need 24/7 monitoring or processing of data
- Your team can function effectively with limited real-time interaction
- You’re comfortable managing a team across a significant time difference
Choose Latin America if:
- Your data analysts need to collaborate closely with US-based teams
- You value being able to hop on quick calls to discuss findings
- Your analytics work requires frequent iteration and feedback
Budget considerations
Choose the Philippines if:
- Maximizing cost savings is your top priority
- You need entry-level data processing at the lowest possible cost
Choose Latin America if:
- You’re willing to pay somewhat more for real-time collaboration
- You value the efficiency gains of working in the same time zone
- You’re looking for the best balance of cost and quality
Factor comparison at a glance:
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Final Thoughts
The Philippines and Latin American countries offer strong options for offshoring data analytics, but they serve different business needs.
The Philippines makes sense if your primary goal is cost reduction and your analytics work doesn’t require constant real-time interaction. The significant savings can be compelling, especially for startups or companies with limited budgets.
Latin America is the better choice if you value collaboration, want analytics professionals who can integrate seamlessly with your US teams, and prefer the efficiency of real-time communication. The somewhat higher cost is often offset by improved productivity and better alignment with US business practices.
The best approach depends entirely on your specific requirements, budget constraints, and how your data team needs to function within your organization.
If you’re still weighing your options about where to build your offshore data analytics team, let’s talk. Near specializes in connecting US companies with top Latin American talent, and we can help you determine if nearshoring is the right approach for your data needs.
Book a free consultation call today.
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