Brazil Nearshoring: A Strategic Choice

IT talent is experiencing a shortage, which will be more pronounced in the coming years, especially in countries like the US and Canada. “A 2021 Gartner survey of IT executives [in the US] shows that a majority—64%—believe the ongoing tech talent shortage is the most significant barrier to the adoption of emerging technologies. By 2030, more than 85 million jobs might go unfilled ‘because there aren’t enough skilled people to take them,’ according to Korn Ferry,” reports MIT Technology Review. And speaking of Canada, 55% of Canadian tech entrepreneurs struggle with finding the right needed for growth.

It’s a big challenge, and many companies are wondering how to tackle this issue efficiently. That’s where nearshoring comes into play—a smart solution gaining traction in the IT industry.

Rather than just plugging the talent gap, nearshoring has become an excellent approach for businesses to manage their human resources challenges. And when it comes to nearshoring, particularly in the context of North America, Brazil is turning heads.

But what makes Brazil so special?

Read on as we’ll break down the concept of nearshoring and why Brazil is the go-to spot for nearshoring services.

Nearshoring Explained in Simpler Terms

There are different ways to outsource your projects wholly or partially. One is onshore, where businesses outsource projects to companies or individuals from the same country. Then there is offshore, where the outsourcing or talent partners are in faraway areas, on the other side of the planet. The third approach is nearshore, where your partners are close to you, in different countries but almost in the same time zone as yours. It’s a simple and smart way of teaming up with partners in nearby countries.

So, what sets nearshoring apart from the other approaches?

It’s more budget-friendly than the onshore solution. Compared to offshore outsourcing, you get more quality work in nearshoring. Plus, no crazy time zone differences like offshoring mean smoother communication, no scheduling issues, and fewer headaches.

Why Choose Brazil for Nearshoring?

Brazil emerges as a pragmatic choice when considering nearshoring options. With a population of 216 million and a median age of 33, the country is home to an estimated half a million software developers and boasts 14 tech Unicorns. It’s a practical destination worth exploring if you plan on augmenting your software development team.

Here’s more on what makes Brazil a strategic choice for businesses in North America.

1. Brazil Has a Growing Talent Pool

Brazil boasts a massive and rapidly growing IT workforce, projected to reach 2.2 million by 2024. In 2021, this figure was 1.2 million—so this translates to approximately a 40% increase, highlighting the abundant availability of skilled tech professionals. With a median age of 33, the workforce is young and tech-savvy, representing a significant source of fresh talent eager to contribute their expertise.

But with fresh talent, there’s diversity in the talent as well. From experienced software developers and data engineers to DevOps specialists, product managers, and business analysts, companies can find the perfect talent to meet their specific needs.

2. Brazil is Becoming a Hub of Technical Competency

Beyond the high number of IT professionals, Brazil’s established IT ecosystem promises a strong foundation for technical competency. Universities offering computer science programs are very common—there is a palpable interest in all things tech in Brazil—providing a steady stream of graduates equipped with the latest knowledge and skills. Numerous tech incubators and accelerators further nurture innovation and entrepreneurship.

Just to give you a perspective, the Brazilian Information Technology (IT) market was valued at US$45.2 billion in 2022, growing at 3 percent from 2021, according to the International Data Corporation (IDC)’s 2023 Brazil Predictions study and a report by the Brazilian Association of Software Companies (ABES).

Additionally, established tech companies like Nubank and TOTVS add another layer of credibility and expertise to Brazil’s tech landscape. There are also tech unicorns like Loft and Gympass. These companies demonstrate the country’s ability to produce world-class software solutions and attract top talent.

3. There’s a Collaborative and Creative Culture

It’s not just tech competence—there is more. Brazil’s vibrant culture plays a significant role in fostering a successful nearshoring environment. Renowned for its creativity, innovation, and collaborative spirit, Brazilian culture translates into a dynamic and energetic work environment ideal for developing innovative solutions. The emphasis on teamwork and communication within Brazilian culture promotes a strong sense of camaraderie and collaboration.

4. Time Zone Compatibility

Brazil has four time zones. With partial overlap with North America, companies can enjoy efficient communication and collaboration without significant scheduling adjustments. The team or individuals you hire will be working a part—a significant part—of their shift in the same shift as you. This overlap allows for synchronous meetings and real-time project updates, ensuring smooth workflow and promoting productivity.

5. Access Talent at an Affordable Cost

Competitive rates make Brazil an economically advantageous option. Remember, if you are not saving 30%+ compared to your local in-house team cost, there is no reason to go nearshore from our standpoint. The Brazilian market definitely offers that saving opportunity.

Skills to Look for in Brazil

If you’re on the hunt for skilled professionals, Brazil has got what you need. Here’s a peek into the key skills that align perfectly with roles like software developers, data engineers, DevOps specialists, product managers, and business analysts.

1. Software Development in Brazil

Brazilian software developers are like coding wizards. Their proficiency in programming languages and problem-solving skills is top-notch, especially in databases, computer programming (92%), and mobile development (88%). (The percentages in parentheses are scores, as given by Coursera in their Global Skills Report. Whether it’s creating robust applications or implementing innovative solutions, Brazilian software developers bring technical expertise that can significantly enhance your development projects.

2. Data Engineers in Brazil

It’s not just software development; Brazilian learners are nailing it in data science and engineering, too. They’ve got the world’s #1 data visualization skills, scoring high in data management (99%), data analysis (98%), and statistical programming (98%). These skills are perfect for roles that need a deep understanding of data, such as data analysts, data engineers, and other data science professionals.

3. AI Experts from Brazil

AI education and expertise are becoming the next big thing in the tech sector, and Brazil is not lagging behind. Spending on AI is set to hit over US$1 billion in 2023, 33% more than the previous year. There are skilled AI professionals ready to bring innovation to roles that demand cutting-edge AI applications.

4. DevOps Specialists from Brazil

DevOps specialists play a pivotal role in streamlining development and operations processes. Brazilian professionals in this field excel at creating seamless workflows, enhancing collaboration between teams, and implementing automation. Choosing Brazil for nearshoring means integrating DevOps expertise that fosters efficiency and innovation.

5. Cloud Architects from Brazil

Brazil’s investing big in cloud computing, with spending on Infrastructure-as-a-service (IaaS) and Platform-as-a-Service (PaaS) solutions hitting over US$4.5 billion in 2023. For roles that need expertise in infrastructure management and development, Brazilian professionals bring the right skills.

6. Product Managers

A successful product needs effective management. Brazilian product managers bring a unique blend of strategic thinking and market understanding. Their ability to navigate the product landscape ensures that your offerings align with market demands and stay ahead of the competition.

What to Keep in Mind While Going with Brazilian Talent?

First of all, screening for communication skills. The Portuguese accent, while charming as it is, may not always align naturally with English speakers. So, be prepared to invest extra time in screening for strong communication abilities, particularly if you’re sourcing remote software engineers for client-facing roles or complex projects where effective communication is paramount.

From our experience, approximately 1 in 5 engineers you interact with will possess the required level of language proficiency.

But don’t be alarmed.

This is not an insurmountable challenge and can be easily managed. Just make sure you work with a solid recruitment partner—like DevEngine—who not only understands your requirements but also goes the extra mile to bring the kind of talent that’s needed for your growth.

What Does Partnering with DevEngine Look Like?

At DevEngine, we prioritize transparency and excellence in nearshoring. Our upfront pricing ensures predictability and transparency—working with us, you can accurately communicate the cost of your engineering team from Brazil to your CEO. Our startup-friendly pricing recognizes cash flow challenges. That’s why we offer flexible options, including partial payment in stock options to align with your long-term goals.

Whatever the size and nature of your project, we have your back. And we mean it—we customize our hiring and onboarding processes to meet your specific needs so that IT talent from Brazil is smoothly integrated into your projects. Our senior engineers conduct technical testing on all candidates before presenting their profiles, guaranteeing top-tier quality from the beginning.

Once the team is onboarded, the part of managing the team comes. At DevEngine, managing your remote team is hassle-free. From background checks and insurance to vacation day tracking and cross-border payments, we handle it all, freeing you to focus on what matters the most—growing your business.

Ready to transform the way you work? Contact DevEngine today and discover nearshoring from Brazil that works for you.