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Latin America is becoming an increasingly attractive nearshoring option for American multinational companies. However, it is important for them to be aware of the cultural adjustments that they will need to make, especially in e-sourcing practices. Significant cultural differences exist depending on the markets and the size of business being contracted. Companies should:
Build relationships and ensure that business is conducted in a more diplomatic, indirect and non-confrontational manner
Understand and work with the differences in work ethic, style and culture. This can mitigate the challenges and lead to mutually beneficial nearshore partnerships
With the right adjustments to traditional sourcing practices, Latin America can be a valuable nearshore option, despite the cultural differences.