It is 2024 —and the tech sector has become the new gold. But unlike traditional gold, businesses have to maintain a competitive edge of the highest degree to remain relevant in the tech industry. Especially when talking about the market in the US and Canada.
How are tech businesses responding to maintaining such a competitive edge? In many ways—from working on the product to managing R&D and from cutting down costs to human resource (HR) management. But one of the most effective strategies is to cut down your human resources costs without compromising on the quality of the work. And you can do that by hiring top tech talent from Latin America (LATAM).
I am saying this because LATAM is home to a growing pool of highly skilled tech professionals, and the cost of hiring them is often much lower than in the United States or Canada.
Want to know how this works? Stay with us.
In today’s entry, I will talk about how to hire tech talent from South America, the challenges associated with navigating the LATAM tech landscape, how to overcome them, and so on.
First, the why part—why hire tech talent from Latin America in the first place?
The Benefits of Hiring Tech Talent from Latin America
Hiring tech talent from Latin America offers a compelling solution, providing businesses with many benefits that can significantly enhance their tech capabilities and drive business growth.
Cost-Effectiveness Without Compromising Quality
Latin America presents a cost-effective alternative to tech talent acquisition compared to North America. As per HeckerRank, a software engineer in LATAM earns $38,000 a year, while the average annual salary for the same position in the United States is $110,000. This is almost 60% saving—this cost advantage is particularly beneficial for startups and small businesses with limited budgets.
However, cost-effectiveness does not come at the expense of quality. Latin America boasts a large pool of highly skilled tech professionals with expertise at par with the North American talent in a wide range of technologies, including web & software development, data science, and cybersecurity. They are well-educated and possess the skills and knowledge necessary to meet the demands of complex tech projects.
Time Zone Compatibility and Enhanced Collaboration
Another benefit of hiring LATAM tech talent is the overlapping time zones between Latin America, the United States, and Canada. Effective collaboration is crucial for the success of any tech project. When team members can communicate easily and work together in real-time, they can resolve issues promptly, make informed decisions, and deliver projects efficiently.
The time zone compatibility fosters a more cohesive work environment, where team members can work together effectively despite geographical separation.
Cultural Affinity and Communication Advantages
Cultural affinity and communication advantages further enhance the collaboration between US and Canadian businesses and their Latin American tech teams. Latin America shares cultural similarities with the United States and Canada, making it easier for businesses to integrate and engage their remote tech teams.
Yes, there may be a few differences in the ideals and values. However, tech professionals from LATAM are known for their adaptability and cultural flexibility, making it easy for them to integrate into global teams, especially in Canada and the US.
Language barriers are minimal, as English proficiency is prevalent among Latin American tech professionals. This shared language facilitates clear communication and reduces the risk of misunderstandings, ensuring that all parties involved understand project requirements and expectations clearly.
Strong Tech Education and Training
Latin American countries have made significant investments in tech education and training, resulting in a well-prepared tech workforce. Per Crucnchbase, VC investors poured roughly $19.5 billion into Latin American startups. This fueled a renewed interest in the rise of tech education and training.
Universities and technical institutions across the region offer rigorous programs in various tech disciplines, producing graduates with the skills and knowledge needed to succeed in the tech industry. From NET, RoR, Python, and Node.js to React.js, Vue.js, and React Native, you will find any type of talent your business needs.
So, how do you tap into this wealth of talent?
Here are some starting points to consider.
How to Hire Tech Talent from Latin America?
Hiring tech talent from South America can be a strategic move for businesses in the US and Canada, offering access to a skilled and cost-effective talent pool. To successfully navigate the hiring process, consider the following approaches:
Leverage Freelance Platforms
This is the simplest way to reach talent across the globe, including candidates from South America. Utilize popular freelance platforms like Upwork, Freelancer, and Workana to connect with tech professionals from Latin America. These platforms offer a wide range of talent, allowing you to filter candidates based on skills, experience, and location.
If you are going with this option, here’s what to keep in mind while hiring remote tech professionals from Latin America.
However, this could be a cumbersome process for some businesses. Finding the right candidate means sifting through hundreds of candidates. It’s more like a trial-and-error approach until you find the right one. Which brings us to referrals.
Tap into Referrals
Encourage your existing network of employees, colleagues, and partners to refer qualified tech professionals from Latin America. Referrals can provide valuable insights into candidates’ work ethic, skills, and cultural fit.
But relying on referrals means that you already have an existing relationship with some from South America. What if you don’t? Hop onto job portals!
Utilize Job Portals
You can utilize popular job portals like LinkedIn, Indeed, and Glassdoor to advertise tech positions and reach a wider pool of Latin American candidates. Tailor your job descriptions to attract top talent and highlight the benefits of working for your company. But like Freelance platforms, it again means sifting through hundreds of applications—it could take months and many interviews to get the desired talent.
Establish a Local Presence
Consider establishing a physical presence in Latin America to demonstrate your commitment to the region and enhance your talent acquisition efforts. A local presence allows for closer connections with candidates, cultural immersion, and a better understanding of the local market.
But here’s the problem: establishing a local presence means more costs. It may make sense for tech giants, but this route is unsuitable for all sorts of businesses, especially small to medium ones.
What then? Is there any solution that can be hassle-free and still bring results? Yes, there is—enters nearshore tech talent providers.
Partner with Tech Talent Providers
This could be the most desirable way for any type of tech setup that wants to have South America’s best, pre-vetted talent. You can collaborate with reputable tech talent providers specializing in Latin American recruitment. These providers possess deep local expertise, extensive networks, and proven track records in identifying and recruiting top-tier tech talent.
Some of them have a local presence in LATAM regions, in addition to North America—thanks to their penetration into both markets, they can see things better from both sides. DevEngine is one such nearshore talent agency.
How DevEngine Streamlines the Hiring Process?
DevEngine, a leading nearshore staffing provider, empowers US and Canadian businesses to seamlessly tap into Latin America’s exceptional tech talent pool by streamlining the hiring process and ensuring a smooth transition for new hires.
Here’s a snapshot of what we do:
- Nearshore Team Augmentation: With DevEngine, we do all the heavy lifting. You can hire individual pre-vetted software and data engineers or entire teams fully managed by DevEngine.
- Contract and Permanent Placements: Within 1-2 weeks, you can onboard qualified engineers for the duration of the specific project or hire them permanently, whatever suits you.
- Part-time Expertise: Gain access to the knowledge and insights of seasoned remote engineers and architects for complex technical challenges on a part-time basis.
- Build, Operate, Transfer (BOT): Get a comprehensive solution tailored to your unique needs, including assembling remote cross-functional teams, arranging a physical office location in LATAM, and transferring team ownership to your company once the process is complete.
What Is It Like Working With DevEgnine?
DevEngine was established to be different. With a presence in three locations across North and South America, here is what sets us apart from other tech talent providers:
Upfront Pricing
With DevEngine’s upfront pricing, you can say goodbye to guesswork and hidden costs. We provide transparent and predictable pricing so you can confidently plan your IT budget and inform your stakeholders of your IT team’s exact annual cost.
Tailored Hiring and Onboarding
We go beyond simply matching candidates to your job descriptions. We take a personalized approach to hiring and onboarding, meticulously crafting a candidate pipeline that aligns with your specific needs, preferences, and company culture.
We also ensure that the engineers we bring on board can seamlessly integrate into your existing team and contribute effectively to your projects.
Rigorous Technical Testing
DevEngine’s commitment to quality extends to our technical testing process. Before you even see a candidate profile, our senior engineers thoroughly assess each applicant’s technical skills and expertise. This rigorous testing ensures that you only receive profiles of highly qualified engineers who possess the specific skills and experience required for your project.
Hassle-Free Management
Outsourcing your IT team to DevEngine means you can bid farewell to the administrative burdens of managing employees. We handle everything from background checks and insurance to hardware requirements, vacation day tracking, and simple invoicing.
We even take care of cross-border payments, ensuring seamless financial transactions regardless of your location. This hands-off approach allows you to focus on your core business priorities while we take care of the day-to-day management of your IT team.
Startup-Friendly Pricing
We understand startups’ financial constraints and have tailored our pricing structure to accommodate their needs. We offer flexible pricing options, including partial payment in stock options, to help align our services with your long-term financial goals. This flexible approach demonstrates our commitment to supporting the growth and success of startups.
Immigration Support (Canada Only)
For companies based in Canada, DevEngine provides comprehensive immigration support to help you relocate key engineers from other countries. Our team will guide you through the entire immigration process, from obtaining visas to securing work permits, ensuring a smooth transition for your new team members. This valuable support streamlines the relocation process and lets you focus on integrating the new engineers into your team and projects.
Are you ready to tap into the vast pool of skilled and cost-effective tech talent in Latin America? With DevEngine as your trusted nearshore staffing partner, you can focus more on your core competencies and let us take care of building your remote team. A team of top-tier tech professionals that drives innovation and growth.
Contact us today to learn more about how DevEngine can help you achieve your tech talent goals.