D Why ‘Time and Materials’ with LATAM Talent is a Smart Move for Agile Teams
Por Redacción Aguayo
In fast-moving product teams, flexibility isn’t a luxury — it’s a requirement. The Time and Materials (T&M) model offers precisely that: a framework where scope can adapt as priorities shift. When this model is paired with nearshore LATAM talent, the result is an agile powerhouse. 🌎
Agility requires adaptability, not fixed plans
Agile is not a buzzword — it’s a philosophy grounded in continuous learning, quick feedback loops, and the ability to change direction without derailing the whole operation. However, many organizations still try to fit agile practices into legacy contracting models, especially fixed-price agreements. This creates an inherent contradiction: you want your team to be nimble, but you lock them into static scopes, rigid deliverables, and predefined timelines.
Time and Materials solves this mismatch. Instead of pretending to know everything from day one, T&M embraces the truth: priorities evolve. Requirements shift. Discoveries happen. Under this model, you pay for actual work delivered, usually by the hour or day. This means your team can adjust its trajectory as new information comes in, whether it’s from user testing, analytics, or changing business needs.
- Fixed-price = predictability, but rigidity
• Time & Materials = responsiveness and continuous refinement
This flexibility becomes even more crucial in environments where product-market fit is still being validated or where user needs are still being discovered. T&M unlocks the ability to pause, pivot, or double down without renegotiating entire contracts or triggering costly change orders.
Why LATAM talent fits like a glove
When North American companies consider expanding their product capabilities, they often look offshore — but “offshore” doesn’t have to mean “far away.” LATAM (Latin America) offers a unique combination of geographic proximity, cultural alignment, and cost efficiency that makes it especially attractive for agile, high-growth teams.
- Time zone overlap: Teams in Mexico, Colombia, or Argentina can attend your morning standups, answer Slack messages in real-time, and participate in sprint planning without timezone gymnastics. This real-time collaboration drastically improves speed of iteration and team cohesion.
- High English proficiency: Particularly in the tech hubs of the region, English isn’t a barrier. Engineers, designers, and PMs in LATAM are increasingly fluent — not just in language, but in the cultural nuances of global tech organizations.
- Cost efficiency: You can expect competitive rates compared to US or Canadian teams, often with equal or higher output. This makes it easier to staff full squads instead of relying on a few overloaded resources.
- Cultural affinity: LATAM professionals share many work values with North American teams — like initiative, ownership, and the ability to thrive in ambiguity. The result is smoother onboarding and quicker integration into existing workflows.
Unlike other nearshore options, LATAM teams often bring a startup mentality — resourceful, creative, and ready to grow with you.
Don’t fall for the ‘fixed scope trap’
Fixed-scope contracts often masquerade as safe, but in practice, they tend to create friction and frustration:
- Endless change requests: Every new insight or feature requires a formal process, slowing down momentum.
• Delays and blockers: If initial assumptions were wrong (as they often are), teams either get stuck or have to cut corners.
• Misaligned incentives: Vendors are incentivized to stick to what’s in scope, not what actually drives value.
• Team burnout: Teams working under rigid scopes are often forced to deliver “on time” even if the direction no longer makes sense.
With Time and Materials, your team works on what matters most today — not what was written in a spec doc three months ago. You avoid the political tug-of-war of renegotiation and focus instead on user value, iteration, and learning.
Visibility > Illusion of control
A common objection to T&M is that it feels unpredictable. And it can be — if managed poorly. But with the right cadence and transparency, it can actually provide more control than fixed-scope engagements.
Here’s how:
- Burn rate tracking: Know exactly how much you’re spending each week and on what.
• Time-tracking tools: See how time is being allocated across design, development, QA, etc.
• Sprint reviews and retrospectives: These agile ceremonies double as checkpoints — what’s working, what’s blocked, and what’s next.
• Prioritization sessions: Stakeholders can continually weigh in on what’s most valuable, and shift the backlog accordingly.
In other words, control doesn’t come from guessing up front — it comes from staying close to the work as it happens.
When Time and Materials is the right fit
Not every project should be T&M. But for many product orgs — especially those navigating high uncertainty, changing requirements, or new opportunities — it’s the smartest way to build. Here are some scenarios where T&M shines:
- Early-stage products: When you're still testing hypotheses or figuring out what users want.
• Feature experiments: A/B tests, MVPs, and pilot programs need flexibility to iterate quickly.
• System redesigns: Legacy modernization or UX/UI overhauls often reveal unknown complexities.
• Ongoing product support: Keep a lean team available for continuous improvements, bug fixes, and optimizations. - You can start small and scale as needed
• You can reprioritize work with minimal friction
• You can pull the plug early if the opportunity changes
• You won’t overpay for deliverables that don’t move the needle
T&M is not anti-planning — it’s pro-adaptability.
Look for partners, not vendors
There’s a difference between an outsourcing vendor and a strategic partner. T&M works best when the LATAM team doesn’t just show up to complete tickets — they show up with questions, insights, and accountability.
Great partners:
- Co-own the product goals, not just the backlog
• Integrate into your rituals: standups, retros, demos
• Raise red flags early and often
• Push back with respect when something doesn’t make sense
• Bring full-stack value: strategy, UX, dev, QA, and PM
In this model, success is mutual. You’re not just buying hours — you’re investing in momentum.
What to look for in a LATAM T&M partner
If you're exploring this model, filter for teams that demonstrate:
- Multidisciplinary squads that can flex as your needs evolve
• Clarity on billing and time tracking, with no hidden fees
• Proactive and transparent communication
• Strong agile maturity, with emphasis on value delivery
• Product fluency, not just technical chops
Ask to sit in on one of their sprint demos. Look at how they document their work. Talk to their current clients. The best partners will feel like an extension of your team — not just a vendor on another continent.
Build for change, not for certainty
In a world of shifting markets, user behaviors, and tech stacks, the most dangerous strategy is trying to be too certain. Rigid plans don’t account for discoveries. They don't tolerate ambiguity. They don’t adapt to new signals.
But agility does.
And agility, when powered by the right LATAM talent through a flexible T&M model, gives you the responsiveness you need to build the right thing, at the right time, with the right people.
Final thoughts: Stop buying certainty — start investing in adaptability
In the current landscape, where product roadmaps shift quarterly and user behavior evolves weekly, the idea of locking in every requirement upfront is not just risky — it’s counterproductive. The companies that win are not the ones with the most polished Gantt charts, but the ones with the operational muscle to adapt without losing momentum.
The Time and Materials model isn’t about letting go of control — it’s about redefining control as visibility, flexibility, and continuous alignment. It rewards trust, transparency, and shared ownership. And when you power that model with LATAM talent, you don’t just get nearshore support — you get time zone-aligned partners who speak your language, understand your culture, and are deeply invested in delivering value, not just outputs.
This is more than a procurement decision. It’s a product strategy move.
It’s a commitment to learning over guessing. To agility over rigidity. To building products that reflect what’s real — not just what was scoped two months ago.
If your team is navigating complex priorities, shifting market demands, or scaling a product with evolving needs, T&M with a LATAM team isn’t a workaround — it’s a competitive advantage.
Stop optimizing for hypothetical certainty. Start designing for actual change.
