At DevEngine, we believe that nearshore outsourcing to Latin America is a viable choice if it yields at least a 30% cost savings compared to your local in-house software development team. After all, stretching your budget and decreasing the burn rate while building your product is the main driver behind augmenting the development and data teams in LATAM.
Before evaluating the potential LATAM savings, make sure you have a solid grasp of the true cost of hiring a local developer, which is a bit trickier and more expensive than most people realize. Take a look at our blog post here for more details.
Once you wrap your head around the direct costs, recruitment and onboarding, and indirect costs associated with your local hires, it’s easy to see the benefits of augmenting your team with some remote LATAM software developers. Again, savings in excess of 30% are reasonable and should be expected, based on our experience in the market, but the global talent competition is real and some companies value skills over cost savings, so there will be some exceptions.