Choosing the Ideal Destination for Nearshore Software Development in Latin America

Today, Latin America can be genuinely called a global technological hub that attracts international investment and drives innovation across the IT sector. For example, the venture investment reached $15.7 billion in 2021, while it was around $4.9 billion in 2019. The region experiences steady technological growth demonstrating potential in building successful startups. At the end of 2021, 47 unicorns were registered in the region, mostly in e-commerce and fintech.

But why do LatAm countries lure investors from all over the world? Apart from startups with innovative approaches and cutting-edge solutions, the region has a lot to offer for North American companies. Cost-effectiveness, geographical proximity, time-zone alignment, entrepreneur-friendly policies, and more make Latin America an appealing nearshore development partner.

IT Outsourcing in Latin America – Discovering the Opportunities

With a high graduation rate per year, LatAm countries offer qualified young tech talent that is in demand in the global tech market. For instance, nearly 739,000 professionals graduate in Latin America each year. What’s more, most LatAm countries have shared time zones with the USA, which allows nearshore teams to effectively communicate in real-time.

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Whatever flattering it may sound, Latin America is also recognized as “Silicon LatAm”, so as a global recruitment company Bridge decided to analyze nearshore services in Latin America to help you find a decent tech partner. Let’s see what country is a perfect spot for Latin America nearshoring.

Top nearshore talent destinations in Latin America

We’ve researched the tech landscape and offerings across the most popular tech talent destinations, including Argentina, Brazil, Colombia, Mexico, and Chile, and are ready to share the findings. Our research covers such aspects as English proficiency level, time zone alignment, annual salary, and more, that directly impact your project’s success. Let’s start with Argentina.

Argentina

According to Statista, 456 startups were registered in Argentina in 2022, with 291 (64%) in Buenos Aires and 126 ‒ in Cordoba, the second-largest city in the country.

So it’s not surprising that Argentina is the home of many Latin American unicorns. As of February 2022, 8 unicorns were registered in Argentina, including Mercado Libre, OLX, Despegar, Globant, and others. The presence of unicorns attracts more venture capital and investors to the region, creating a thriving ecosystem for startups and encouraging entrepreneurship.

Time zone

Although Argentina is quite far from the USA, it is located in the UTC-3 time zone which is only one hour ahead of the US East Coast, 2 hours ‒ from Texas, and 4 ‒ from San Francisco. So distributed teams can seamlessly collaborate throughout the development process and get fast feedback from team members.

English proficiency

According to the research, Buenos Aires has 567 points out of 800 in the English Proficiency Index, which is the highest score among Latin American countries.

Number of developers

In 2022, the number of software developers in the country was around 115,000, while Argentina is ranked #1 in the Global Skills Report by Coursera and heads the list of countries considered “cutting-edge” in the technology sector.

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Software developer’s salary

On average, a web developer makes around $1100 per month. If we compare the salaries of senior and junior developers, they are $1800 and $800 respectively. To learn more about how much developers make in Argentina, read our recent article.

Tech companies with engineering teams and hubs

Apart from the unicorns listed above, such tech giants as Google, Salesforce, and Oracle have offices in Argentina. Learn more about other engineering teams located in this country by reading our article below.

US Tech Companies That Have R&D Offices in Argentina (Google, Salesforce, IBM and more!)

Reasons to hire in Argentina

All in all, Argentina looks like an appealing spot for nearshoring in Latin America. To help you decide on whether it’s the right place to look for a tech partner, let’s sum up the benefits it offers to US companies:

✅ Convenient time difference

✅ English proficiency

✅ Low costs

✅ Big talent pool

✅ Great number of startups

Brazil

Brazil has the largest tech talent pool in Latin America and one of the fastest-growing economies in the world. With around 8,000 companies operating in the software development and production sector, the revenue in the software market is expected to reach $8,43 billion in 2023.

In case you need a detailed overview of software outsourcing opportunities in Brazil, read our related article:

Is Brazil a Good Place for Offshore Software Development?

Time zone

Brazil is located in UTC-3, so teams can easily communicate during regular business hours. For example, Brasilia, the capital of Brazil, is 1 hour ahead of Washington D.C, and 4 hours ahead of Los Angeles and San Francisco. 

English proficiency

According to the British Council research, only 5.1% of people over 16 state they have some knowledge of English. Although Brazil doesn’t head the list of proficient English-speaking countries, it is ranked 58th in the EF English Proficiency Rating, which is a moderate level.     

Number of developers

There are nearly 500,000 software developers in Brazil, which is also the highest number in LatAm countries. Brazil has a variety of universities, including the University of Sao Paulo, the Federal University of Minas Gerais, and the State University of Campinas, which take the 2nd, 5th, and 8th places respectively in the Top 200 Universities in Latin America.

Software developer’s salary

The average salary of a junior software developer in Brazil is around $9,500 a year, which is approximately $790 a month. At the same time, a senior specialist can expect to get $35,000 a year or, respectively, $2,900 monthly. We’ve dived deeper and researched the topic of developers’ salaries in Brazil. Read our article to learn how much engineers earn depending on the domain, programming language, and more. 

Tech companies with engineering teams and hubs

Such tech giants as Dell, IBM, Intell, Microsoft, and others have offices in various cities across Brazil. 

Reasons to hire in Brazil

When considering Brazil for nearshoring in Latin America, you should carefully analyze whether the IT environment in this country matches your project needs and business specifics. Let’s see what benefits Brazil offers to US companies:  

✅ Largest tech talent pool in LatAm

✅ Time difference of one to four hours with the USA

✅ Fast-developing economy

✅ Low costs

✅ Quality education system

Mexico

Nearshoring to Mexico is an excellent way to get expert developers nearby with the country sharing the border with the USA. Besides, Mexican business values are very similar to those in the USA, which simplifies business partnerships between countries. According to the research, Mexico is ranked 60 among 190 economies in the ease of doing business.

Tech Industry in Mexico – Is This Destination Right For Your Project Outsourcing

Time zone

Mexico is located in 4 time zones, corresponding to the US. For example, cities in Arizona and Texas share similar time zones with Mexico, which means remote engineers can communicate in real-time during work hours.

English proficiency

Although Mexico is ranked 88 in the EF English Proficiency Index, it is still higher than the previous year’s position ‒ 92 out of 112.

Number of developers

With around 225,000 qualified engineers, Mexico takes the second place in LatAm countries in the number of developers. Each year, there are nearly 130,000 graduates in Computer Science in Mexico.

Software developer’s salary

A junior software developer earns around $10,600 a year, which is approximately $900 monthly. A senior engineer can earn up to $2900 a month. Nearshoring in such countries as Mexico allows you to find top talent in locations with lower living costs and, therefore, save your budget on salaries.

In case you choose to hire remote experts in Mexico, Bridge can help you find skilled developers with ease. We have local recruiters specializing in LatAm and Mexico in particular, who understand technology and can reach out to candidates using their native language.

If you need more details on Mexico’s labor laws and regulations, feel free to read our related article below.

Hiring Tech Talent in Mexico: Navigating Labor Laws and Regulations

Tech companies with engineering teams and hubs

Google, Microsoft, Intell, Apple, Amazon, Walmart, and numerous other companies established offices in Mexico, showcasing that this region offers favorable conditions for nearshore software development.

Reasons to hire in Mexico

If you still hesitate about whether Mexico is the right choice for your project, here is a checklist to make the final decision:

✅ Competitive salary rates

✅ Wide talent pool

✅ Convenient time difference

✅ Geographical proximity

✅ Cultural alignment

Nearshore Software Development in Mexico: Worth It or Not?

Colombia

Based on the Startup Ecosystem Index 2023, Colombia ranks 40th in the global rating (which is 4 steps higher than it was in 2022), and 4th in the regional rating of LatAm countries. What’s more, unlike the rest of the regional top 5, Colombia’s rating has recently increased, which makes it an appealing destination for startups.

Among the most popular startup projects in the country, we can mention Habi, a platform for simplifying the selling and buying of real estate properties, Frubana, a one-stop shop that connects restaurants with suppliers, and La Hause, an online residential platform to find an ideal house, and more.

Time zone

Bogota is one hour behind New York and 2 hours ahead of Los Angeles, so the time difference is convenient for effective team collaboration.

English proficiency

Colombia takes the 77th position in the EF English Proficiency Index and ranks 17 out of 20 in Latin America.

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Number of developers

The tech talent pool counts nearly 62,000 engineers, while the country has reputable universities for training developers, including the University of Antioquia, the University of Los Andes Colombia, and others.

Software developer’s salary

On average, a software developer makes around $1100 a month, which is definitely less than in the USA. For instance, a software engineer in America earns approximately $8800 monthly.

Tech companies with engineering teams and hubs

Many world-known companies, including Twilio, Cisco, Microsoft, Google, Amazon, IBM, Oracle, and others establish offices in Colombia proving it’s an attractive destination for international organizations.

Reasons to hire in Colombia

While Colombia doesn’t have the highest English proficiency level, it still offers essential benefits for companies interested in nearshore software development Latin America. Let’s have a look at some of them:

✅ Startup-friendly environment

✅ Low cost of hiring

✅ Educated developer pool

✅ Convenient time zone difference

Chile

With a relatively small tech talent pool, the IT sector is one of the most promising ones in Chile. The revenue in the IT services market is projected to reach $1.7 billion in 2023, while IT outsourcing dominates the market with a projected market volume of $0.58 billion in 2023, according to Statista.

According to the research, there are around 8,000 IT companies in Chile including nearly 500 medium and large-sized businesses. Also, the Chilean Government provides various incentives to support digital transformation in the country, including Chile Digital 2035. It’s a strategy to promote digital rights, infrastructure development, cybersecurity, and digitalization of the public sector.

Time zone

Chile is located in UTC-3 and is one hour ahead of cities like New York and Washington D.C. Therefore, the time difference with the US states is from 1 to 4 hours, so it doesn’t hinder communication within teams.

English proficiency

Chileans have moderate proficiency in English which allows them to participate in project meetings and communicate with team members, eliminating language barriers. The country is ranked 44th in the EF EPI 2022, being 6th out of 20 in LatAm countries. 

Number of developers

With around 19.5 million population, the country has 61,000 developers engaged in software development, cloud computing and IoT, cybersecurity, and other sectors.

Software developer’s salary

On average, a software engineer makes around $2,000 a month. Although the salary might differ depending on the location, seniority level, and role, it is still lower than in the USA. To get more insights on the salary range in Chile and compare it with other LatAm countries, read our recent article.

Software Developer Salaries in Chile and How It Compares to Other LATAM Countries

Tech companies with engineering teams and hubs

Like in other countries of the LatAm region, many international companies, including Oracle, IBM, Microsoft, Google, and others, have offices in Chile.

Reasons to hire in Chile

Here are the reasons that might persuade you to partner with software developers in Chile:

✅ Government support of the IT sector

✅ Cost-effective labor

✅ Moderate level of English

✅ 1 to 4-hour time difference

Hire top developers in LatAm countries with Bridge

Although collaborating with nearshore software development companies has essential benefits, hiring dedicated developers who will work only for you on a remote basis is still a better deal. And if it seems like a lengthy and costly endeavor for you, consider partnering with global recruitment companies. At Bridge, we offer two types of services ‒ IT staffing and sourcing-as-a-service.

By choosing sourcing-as-a-service, you get a list of potential hires and take care of the hiring campaign independently. As a rule, we provide from 15 to 30 pre-vetted candidates a month, while you start getting the first ones within 5 working days. In case of IT staffing, we find candidates, hire them, and help you onboard them. We also cover all paperwork, team setup, and payroll operations.

Whatever nearshore location you choose, Bridge ensures you hire top experts, rigorously vetted by our tech-savvy recruiters.

Describe your requirements and we will find a perfect fit for your project!