Discover why Uruguay is the ideal destination for business relocation in Latin America

Uruguay is first in a list of the best Latin American countries for nearshoring, a business strategy that involves transferring processes, services, and functions from one country to another with less geographical distance.

According to the ranking prepared by the prestigious independent publication “American Quarterly,” which prepares reports on the economy and politics of Latin America and the Caribbean, respect for property rights, stability of the financial system and politics, investment protection, solid infrastructure, and a skilled labor force are key factors to consider for the prospects of countries suitable for nearshoring.

“American Quarterly compiled a variety of data for its work to quantify which Latin American countries offer the best opportunities, and its input came from publicly available indices and other sources, including the World Bank and the World Justice Project.

To create the ranking, scores for each indicator were standardized, and an average score was calculated for 20 countries in the Americas and the Caribbean. The five indicators used in this analysis were logistical performance, the rule of law index from the World Justice Project, political stability and the absence of violence and terrorism, the international property rights index, and the financial development index.

Based on these indicators, Uruguay scored the best and offered the best opportunities for nearshoring in Latin America and the Caribbean, followed by Chile, Costa Rica, and Brazil.

“While proximity to a major consumer market such as the United States is a significant advantage, it is not the only factor determining a country’s attractiveness for offshoring. Critical elements such as the rule of law, investment protection, strong infrastructure, and a skilled workforce are central to relocation decisions,” the article states.

Uruguay’s advantages

A report conducted by Uruguay XXI’s Competitive Intelligence department surveyed more than 660 companies in the Global Services sector that generate around US$6 billion in exports. These international firms have set up their regional headquarters, shared services centers, trading activities (in many cases linked to regional distribution centers), ICT centers of excellence, and other high-value-added operations in Uruguay.

The primary origin of these operations is the United States (more than 30%), followed by Argentina, Switzerland, Canada and Brazil. More than 95% of the international centers were installed in the last 20 years, with a significant acceleration in the previous decade.

Uruguay’s long history of political, social, and macroeconomic stability and a series of advantages in different business platforms made it an ideal regional hub for the Americas.

This concept encompasses platforms for support services and commercial activities as well as more sophisticated and innovative operations. Uruguay’s strategic location as a gateway to the region, its mid-range time zone, and cultural affinity make it easy to do business with the major global markets.

The country offers first-class logistics infrastructure and state-of-the-art telecommunications technology; it is a regional leader in technological infrastructure, both in terms of connectivity and Internet access and in the ICT development index.

Uruguay is an ideal destination for providing high-quality services as a small, orderly, open, and transparent country with access to advanced technology.

On the other hand, investment in Uruguay, both local and foreign, is declared of national interest. The country guarantees equal treatment for Uruguayan and foreign investors and has a wide range of incentives adapted to different types of activities.

Uruguay provides universal and unrestricted access to all levels of education, which has enabled the training of generations of highly qualified and multilingual talent.

It is a safe country that offers excellent living conditions for executives and their families, with access to first-class health and education services.

Workers can reside and work legally in the country and are assisted in expediting their visa and residency applications.

Learn more about the opportunities that Uruguay offers for global companies.