How Much Will It Cost You To Hire a LatAm Back-End Developer?

Tech is inarguably one of the most expensive departments to run in any organization. From costly legacy systems that require regular updates to hefty salaries for software and data engineers, the last thing any business leader wants to hear is an additional paycheck in this department. Therefore, if you’re a little bit reluctant to hire back-end developers, we understand where you’re coming from.

However, before you make up your mind, let us interrogate this crucial question together—what’s the actual cost of hiring a back-end developer?

Here’s the thing; the initial cost of hiring back-end developers might seem like a huge unwarranted expense. From huge signing bonuses to hefty monthly salaries and other benefits, there’s no denying that this investment will considerably dent your budget. However, if you look at it this way, you’ll miss the bigger picture.

When interrogating the cost of hiring back-end developers, you should also consider the potential return on investment. Effective back-end development can lead to more scalable, reliable, and efficient software solutions, ultimately saving you money in the long run. 

In this article, we’ll explain how investing in these professionals can help streamline your processes and identify cost-saving opportunities. We’ll also discuss how leveraging back-end developers from Latin America (LatAm) can offer considerable cost savings while still maintaining high levels of expertise and quality.

Let’s get right into it!

The Basics: What Back-End Developers Do?

Back-end developers play a crucial role in building the server-side components of applications. Their responsibilities encompass a range of technical and strategic tasks that ensure the smooth functioning of software programs. Here’s a breakdown of their primary roles:

• Designing and Deploying Scalable Systems: Back-end developers design and implement the architecture of applications that can handle varying loads efficiently. They apply principles of distributed systems to ensure that your application can scale horizontally or vertically as needed. Whether it’s a microservices approach or a monolithic architecture, they choose the right pattern to optimize performance and maintainability.
• Optimizing Database Performance: They are adept at crafting complex SQL queries, designing schemas, and indexing strategies that minimize query times and prevent bottlenecks. Their skills in both relational and NoSQL databases enable them to balance consistency, availability, and partition tolerance according to your system’s needs.
• Ensuring Data Security: By implementing robust authentication and authorization mechanisms, they safeguard sensitive data against unauthorized access. They are well-versed in encryption standards and secure data transmission protocols, ensuring compliance with regulations like GDPR or HIPAA.
• Integrating Third-Party Services: Back-end developers handle the integration of external APIs and services. They ensure seamless communication between your system and third-party platforms, managing data exchange, error handling, and retry mechanisms to maintain robust connections.
• Optimizing Code for Performance: They focus on writing efficient code that minimizes latency and maximizes throughput. This includes profiling and tuning applications to identify and eliminate performance bottlenecks, using tools like APM (Application Performance Monitoring) to monitor real-time performance.
• Implementing Reliable Testing Protocols: They establish rigorous testing frameworks that cover unit, integration, and end-to-end tests. By automating these tests, they ensure that new features don’t introduce regressions and maintain high code quality throughout the development cycle.
• Collaborating on System Design: Back-end developers work closely with front-end developers, UX/UI designers, and DevOps engineers to align on system requirements and constraints. Their collaboration ensures that the back-end services meet the functional and performance expectations set by the rest of the team.
• Managing Deployment Pipelines: They are responsible for configuring CI/CD pipelines, automating deployments, and managing infrastructure as code. This streamlines the release process and ensures that updates are rolled out efficiently and with minimal disruption.

How Much Will It Cost You To Hire a Back-End Developer?

Backend developers earn an average of $80,000 – $110,000 per year, with companies like Google paying these professionals up to $362,000. However, these figures are not cast on stone. The actual cost varies from one region to another and depending on project specifications. For instance, if you only need these experts to augment your in-house team for a short-term project, you’ll definitely incur much lower costs.

Back-End Developer Salaries in Canada

According to Indeed, back-end developers in Canada take home an average of $102,465 per year. A quick review of other salary estimation sites shows that the actual amount could spread from CAD 70,000 to CAD 120,000 annually, depending on factors such as experience, location, and specific skills. Major tech hubs like Toronto, Vancouver, and Montreal offer higher salaries, reflective of the higher cost of living and competitive job market.

Back-End Developer Salaries in the USA

In the USA, back-end developer salaries are generally higher, with averages ranging from $155,903 per year. Of course, this doesn’t apply to all parts of the US. Generally, North America has way higher rates than South America. And reasonably so, it’s more industrialized with more companies competing for a lean talent pool.

The Cost of Hiring Back-End Developers in LatAm

Latin America presents a compelling alternative for hiring back-end developers, offering highly skilled professionals at a fraction of the cost found in North America. The average salary for back-end developers in LatAm varies by country but generally falls within a much lower range compared to Canada and the USA.

Salary Overview in Major LatAm Countries

Latin America’s tech talent is generally under-tapped. Apart from tech giants like Google, Microsoft, and IBM that discovered the region’s potential years ago, several organizations are yet to tap into it. 

As a result, its backend developers come at significantly lower rates than most parts of Canada and North America. Below are a few examples.

• Chile – $58,929 per year
• Argentina – $55, 262 per year
• Brazil – $59,411 per year
• Costa Rica – $60,051 per year
• Mexico – $58,920 per year 
• Colombia – $54,650 per year

The best part is that despite the lower rates, developers from LatAm possess extensive experience and technical expertise, often with backgrounds working with international clients and projects. It’s a no-brainer that the likes of Google established research and development centers in this region years ago.

Additionally, many LatAm tech hubs, such as São Paulo, Buenos Aires, and Bogotá, have burgeoning tech communities that foster continuous learning and innovation.

Why LatAm Can Be a Smart Choice

The cost-effectiveness of hiring back-end developers in LatAm, combined with their robust skill sets, makes this region an attractive option for businesses looking to optimize their development budgets without compromising on quality. By choosing developers from LatAm, you can benefit from competitive rates while accessing a pool of talented professionals who are capable of delivering high-quality solutions. Besides this, you’ll also enjoy the benefits of working with distributed teams in similar time zones, enabling easy real-time collaboration.

Let’s Help You Get The Best LatAm Back-End Developers

While the initial investment in hiring back-end developers may seem steep, the long-term benefits far outweigh the costs. Let us help you optimize these benefits by leveraging top-tier back-end developers from Latin America. We can handle everything, from recruitment to onboarding, as you focus on other essential tasks.