IT in emerging markets isn’t just about cost savings – it’s reshaping global tech power. Here’s a stat that doesn’t get enough airtime: Over 70% of US businesses outsource at least one IT function to an emerging market. Not for cheaper labor. For speed. For innovation. For skills that aren’t bound by zip codes anymore.
Your alarm clock jolts you awake at 6 AM. As you scroll through emails, you’re interacting with code written by developers around the world. The app tracking your morning run, the payment system you use for coffee, the analytics powering your workday dashboard—behind each of these technologies might be IT professionals from Medellín, Bucharest or Bangkok.
This isn’t future talk – it’s today’s reality. The global IT landscape has undergone a massive shift, with talent and innovation distributed across continents not just in traditional tech hubs.
Sometimes it’s not the tools you lack – it’s understanding how to work across cultures, infrastructures and expectations. Misstep once and you’re not just off course, you’re out of sync with a fast moving digital rhythm. One wrong vendor choice, or one compliance rule overlooked? That’s how scaling turns into scrambling.
So what works? What fails quietly? What looks good on a slide deck but fails at execution?
This guide covers the practical dos and don’ts – the kind no one tells you in those glossy IT brochures. Let’s talk trust gaps, timeline traps and talent misalignments. And more importantly, how to bridge them.
Because unlocking the full potential of IT outsourcing in global development zones means playing smarter, not louder.
The Rise of IT Outsourcing in Emerging Markets
The technology talent map has been redrawn, with regions previously known for manufacturing or resources now hosting sophisticated technology sectors due to:
- Expanded digital infrastructure investment
- Technology-focused education systems
- Supportive government policies
- Flourishing startup ecosystems
These factors have made IT outsourcing in Latin America attractive for North American companies, with similar trends in Eastern Europe and Southeast Asia. The IT outsourcing market now offers global options with distinct advantages in specialization, cost, cultural alignment, and time zones.
Success requires more than finding the lowest rates—it demands strategic approaches to both opportunities and challenges.
Do’s for Leveraging IT Opportunities in Emerging Markets
1. Do Thorough Research on Local Tech Ecosystems
Different regions have developed distinct specializations, strengths, and limitations. Successful engagements begin with thorough research to understand these nuances:
- Identify regional specializations that align with your technical needs
- Evaluate education systems to understand typical skill profiles
- Understand the competitive landscape affecting talent retention
- Explore ecosystem maturity to set appropriate expectations
The goal isn’t to eliminate all uncertainty but to make informed choices with realistic expectations about both opportunities and challenges.
2. Do Establish Clear Communication and Collaboration Practices
Even with the best technical talent, partnerships falter without effective communication frameworks:
- Establish communication protocols for different types of interactions
- Create documentation standards to prevent misunderstandings
- Schedule regular synchronization during overlapping working hours
- Invest in relationship building beyond purely technical interactions
- Provide language support for technical terminology when needed
These practices should be established at project initiation but remain flexible enough to evolve as the team identifies what works best.
3. Do Consider the Long-Term Relationship
The most successful engagements with emerging IT markets transcend transactional project-based thinking:
- Invest in knowledge transfer to reduce dependency on specific individuals
- Create career development paths to reduce turnover and build expertise
- Build institutional relationships at multiple levels for stability
- Align incentives to reward outcomes that benefit both parties
- Plan for evolution as markets mature and capabilities develop
This long-term orientation doesn’t preclude starting with smaller engagements to build familiarity and trust.
4. Do Focus on Quality Control and Regular Audits
Quality assurance becomes particularly important when working with distributed teams:
- Implement clear quality standards for all deliverables
- Establish automated verification wherever possible
- Conduct regular code and architecture reviews
- Perform security and compliance audits
- Solicit end-user feedback to ensure solutions address business needs
These quality control measures should be implemented collaboratively rather than imposed unilaterally.
5. Do Leverage Cost Advantages Without Sacrificing Talent
Successful organizations find the sweet spot between cost advantage and talent quality:
- Establish realistic compensation models based on market research
- Look beyond hourly rates to consider total value
- Consider specialized expertise where premium rates deliver significant value
- Focus on productivity enablement through tools and training
- Build balanced teams mixing seniority levels for efficiency
The goal should be optimizing value rather than minimizing cost.
Don’ts for Leveraging IT Opportunities in Emerging Markets
1. Don’t Overlook Local Laws and Regulations
Legal and regulatory considerations vary significantly across different markets:
- Understand employment and contractor regulations
- Implement appropriate intellectual property protections
- Address data protection and privacy law compliance
- Consider tax implications of cross-border services
- Navigate export controls for sensitive technologies
These legal considerations should be addressed proactively with appropriate expertise.
2. Don’t Underestimate Cultural and Language Differences
Subtle cultural and communication differences can significantly impact collaboration:
- Don’t assume identical interpretation of requirements
- Recognize communication style differences
- Understand hierarchy and decision-making variations
- Account for local holidays and work patterns
- Interpret feedback and conflict resolution approaches appropriately
Cross-cultural training, explicit discussion of working norms, and creating psychological safety for clarifying questions all help bridge potential gaps.
3. Don’t Focus Solely on Cost Savings
Organizations that focus exclusively on cost reduction often fail to realize the full potential of these engagements:
- Avoid selecting partners based solely on hourly rates
- Consider the total cost of engagement beyond base rates
- Invest appropriately in onboarding and enablement
- Resist applying excessive cost pressure that compromises quality
- Don’t overlook innovation opportunities from diverse perspectives
Successful organizations view emerging market engagements as strategic partnerships providing multiple forms of value.
4. Don’t Ignore Security and Data Protection Risks
Security considerations have become critical in any IT engagement:
- Thoroughly assess security practices and compliance certifications
- Consider physical security at offshore locations
- Establish clear data handling policies
- Implement appropriate access controls
- Maintain continuous security monitoring
Implementing appropriate safeguards based on your specific risk profile allows safe engagement while protecting sensitive assets.
5. Don’t Rush the Onboarding Process
Organizations that rush this critical phase often create problems that persist throughout the relationship:
- Ensure adequate knowledge transfer of systems and context
- Provide proper tool access and training
- Clarify expectations and processes from the start
- Build understanding of broader business context
- Allow time for relationship building and trust development
Effective onboarding requires deliberate planning and appropriate time investment from both organizations.
Final Thoughts: Embracing IT Opportunities in Emerging IT Markets
The global talent pool creates unprecedented opportunities for those who look beyond the boundaries. Companies that thoughtfully engage with emerging markets get access to skills, capacity, diversity of thought and often significant cost savings.
The future of technology development is global. Companies that can leverage talent across emerging markets will be sustained competitive advantage in a digital business world. Those that stick to local development models will find themselves at a disadvantage as competitors tap into the innovation of a global talent pool.
By following the dos and don’ts in this article you can navigate the complexities of emerging market engagement and get the benefits. The question is not whether to engage with these markets but how to do so strategically, respectfully and effectively.