Will AI Reshape Latin America's Nearshoring Software Model?

Nearshoring has long been a lucrative arrangement for Latin American software engineers, who are typically hired by US companies and paid in dollars based on headcount or hours. The article argues that AI agents complete work far faster, which could reduce the number of engineers clients need and undercut hourly billing models. It outlines possible outcomes, including clients cutting contractors, a return to fixed-price, results-based delivery, or simply rising demand as cheaper software fuels more projects. The author concludes that engineers offering judgment and business understanding are likely to remain valuable, while those acting as interchangeable hands face greater risk.