The tech world is constantly evolving, and in recent years, there has been a dramatic surge in demand for talented software developers. Tech companies are always seeking talented individuals to build and maintain their digital infrastructure, drive innovation, and stay ahead of the competition. This escalating demand for software developers has led to a significant uptick in developers’ salaries.
This forced many companies, especially startups and small companies, to look beyond the traditional hiring pools to find the expertise they need at the cost they can afford. Companies are exploring the option of offshore and nearshore staff augmentation and outsourcing.
One region that has emerged as a hotspot for sourcing software development services is Latin America. With a growing tech industry, a strong educational foundation, a favorable cost structure, and minimal language barriers, Latin America offers a compelling alternative to traditional hiring pools.
If you are looking to hire developers in Latin America, continue reading.
In this comprehensive guide, we are going to take a brief overview of the Latin American software industry before delving into why you should hire LATAM developers. We will also list the best countries for hiring software developers in Latin America and how to hire them.
So, let’s get started!
With a large tech-savvy population, strong demand for advanced technological solutions, and an influx of investments, the Latin American tech industry has been experiencing continuous exponential growth for the past years. Understanding the need for tech advancement, many innovative initiatives of the governments of the LATAM countries have led to the creation of tech hubs in major cities like São Paulo, Mexico City, Belo Horizonte, Medellín, Buenos Aires, Córdoba, Santiago, etc., across the region.
These tech hubs are known for their specialization in various software development domains. Whether you are looking for skilled talent for your web and mobile application development or artificial intelligence and blockchain projects, these tech hubs will have you covered. This is why, besides attracting talented software developers and data engineers, these tech hubs have also become an attraction for startups and corporations of all sizes (small and medium to multinational), seeking skilled tech talent at reduced costs.
With its young, educated, and tech-savvy population, Latin America’s tech industry is destined for continued growth and innovation, allowing businesses in other countries, especially Canada and the United States, to take advantage of it by hiring LATAM developers—equally talented as American or Canadian developers but at reduced costs.
Hunting talented tech workers, businesses across various industries are increasingly turning to Latin America due to various compelling reasons:
Roughly over a million LATAM software developers reside in various Latin American countries. This pool of talented software developers continues to expand as LATAM countries aim to boost their tech skills, education, and capabilities. According to Statista, Brazil has the highest number of developers, around 500,000, and Mexico has 225,000 developers, Argentina 115,000, Colombia 62,000, and Chile 61,000 developers.
By hiring the top developers from the rich talent pool, companies can fill their critical skill gaps and gain a competitive advantage over their competitors.
It is expensive to hire developers in Canada and the United States. Besides the paycheck, there are many other associated costs. As we have calculated, the true cost of your local in-house software development team is 65% more than what it actually looks like, which is already very high.
In the LATAM region, the software development team in Latin America can be roughly 30% less expensive due to low labor costs. Besides that, working with developers in Latin America, you do not have to worry about long-term employment contracts as nearshore software development services offer flexibility, allowing you to scale resources up or down as per your requirements.
One of the most common concerns when hiring remote developers is compromised quality and performance due to reduced costs. But it is not always the case—not with LATAM developers, especially when you hire them after proper vetting. Latin America is home to a large number of highly skilled software developers.
Also, since the onset of the trend of remote work due to the COVID-19 pandemic, LATAM developers have been working remotely in many industries across the globe. So, they are well-suited to collaborating with international teams and working on development projects of various natures.
Hiring developers in Latin America offers the advantage of proximity and time zone alignment for businesses in the US and Canada. This facilitates real-time communication, collaboration, and project management, reducing potential delays and communication hurdles.
Latin America’s tech industry is continuously diversifying and experiencing exponential growth. Different LATAM tech companies specialize in different technologies, from web and mobile development to artificial intelligence, data science, and blockchain. This diversity means there are developers with specific skills for businesses to onboard and begin working without any prior training.
Except for Guyana, no country in South America has English as its official language. However, English is widely spoken in the Latin American region, and there has been an increased emphasis on English language education in the region. Also, software developers and other tech professionals tend to have greater English proficiency due to their education and experience of collaborating with international clients.
Broadly construed as South America, Central America, Mexico, and the Caribbean, Latin America is home to many diverse countries with thriving tech industries and a growing pool of talented software developers. While each country offers unique advantages and challenges, several stand out as particularly attractive options for companies hiring developers in Latin America.
Here are the three best countries for hiring software developers in Latin America for you to consider:
Though the second largest tech market with the second largest developer pool in Latin America, Mexico tops the list of best Latin American countries for hiring software developers. Besides its top-tier software developers, it has to offer the maximum proximity and most favorable time zone alignment, making it the most attractive option for sourcing software development services for US-based companies.
Brazil is not only the largest tech market in Latin America but also houses the largest number of software developers—with a strong educational foundation and development expertise—in the region. They are especially known for their mobile development, fintech, and e-commerce expertise.
Ranked as the 34th top country for education, with many of its universities finding a spot on the list of top global universities, Argentina has a long tradition of excellence in education and technology, producing a steady stream of highly skilled software developers. With a strong educational foundation, Argentina developers are known for strong analytical and problem-solving skills.
Finding and hiring LATAM developers can be challenging, as it requires understanding the region’s unique software development ecosystem and cultural nuances. Below, we have discussed a few ways you can go about hiring developers in Latin America for your business.
DevEngine is a leading nearshore software development outsourcing agency with a deep understanding of the Latin American tech industry. We help businesses in Canada and the US build dream software development teams in Latin America at highly reduced rates.
Our team of experts identifies top-tier LATAM developers and has their senior developers conduct thorough assessments before proceeding, ensuring seamless integration into your team. Besides onboarding, we can help take care of all other tedious tasks related to remote team management, such as cross-border payments and tracking.
If need be, we can also help you move your key LATAM software developers to Canada to work with you onsite.
Here is what we can help you with:
Feel like we may be the right fit for you? Let’s talk and we will start working on setting the team right away!