Brazil Software Outsourcing – A Comprehensive Report

Brazil Software Outsourcing – A Comprehensive Report

Brazil boasts an excellent pool of software engineers, high-rated IT-institutions, and a thriving tech scene. It’s no wonder U.S. companies are flocking to Brazil to scale their tech projects.

To give tech managers the full picture of Brazilian software outsourcing, we’ll highlight the top advantages of choosing to hire or work with software developers in Brazil.


Contents

Brazil at a Glance

  • Capital: Brasília
  • Currency: Real (R$)
  • Time zone: GMT-3 & GMT-4
  • Population: 212 million
  • Software developers: 500,000+
  • Software development companies: 6,450+
  • Official language: Portuguese
  • Democracy index: 6.8/10
  • Business climate: A4
  • Ease of doing business: 124/190

Brazil is a leading software outsourcing destination in LATAM with the #1 largest talent pool, as well as an innovative startup scene. With robust tech initiatives, world-class educational institutes and affordable salary rates, it’s no wonder why Brazil-U.S. collaboration is so successful. In 2021 alone, Brazil’s software industry earned over $10 billion in revenue.

The IT Ecosystem in Brazil

The IT ecosystem in Brazil is flourishing through a world-ranked software economy and a strong startup culture, as well as new initiatives such as tech parks. In fact, Brazil’s ICT economy is expected to grow 7.1% per year. Here are some ways that Brazil’s robust tech scene supports new growth in software outsourcing.

Robust Tech Landscape

Here are some of the most exciting programs and companies that promote software skills in Brazil:

  • ABES programs: The Brazilian Association of Software Companies (ABES) sponsors a variety of initiatives including ABES Conecta!, the ReciTech Program and the ABES Startup Internship Program.
  • Anprotec programs: Anprotect offers a variety of workshops, programs and opportunities for tech students, professionals and entrepreneurs.
     
  • Tech parks: Brazil currently has 369 business incubators, 100 tech parks and 57 accelerators. Brazil's premier “Silicon Valley” technopole is the São José dos Campos Technology Park, but there are others in Sorocaba, Ribeirão Preto, Piracicaba, Botucatu and more.
  • Estação Hack (Hack Station): Run by Facebook, this Hack Station in São Paulo provides free programming and business training to young students and professionals.
  • Chinese investment: China has taken notice of Brazil’s potential and invested a lot in new Brazilian startups. In the decade up to 2020, this country invested $66 billion in projects across Brazil.
  • “Lei do Bem”: A Brazilian law that promotes the tech industry through tax incentives for tech innovation and R&D.

Innovative Startup Scene & Community

(Source: Statista)

Brazil is famous for its thriving startup scene and developer community. This country has an impressively high startup rate of 10.2% (which is just shy of the U.S.’s rate of 10.7%). It also hosts 13,000 startup companies and a whopping 16 tech unicorns, including:

  • QuintoAndar
  • C6 Bank
  • Creditas
  • Nuvemshop
  • Wildlife Studios
  • Loft
  • CloudWalk
  • Loggi


In addition, Brazilian developers are highly active through the Hackathon Brazil community, which organizes meet-ups, workshops, hacking challenges and events. It even runs an annual hackathon for NASA space apps.


Huge Software Services Market

(Source: ABES)

Brazil also has one of the largest software services markets in the world, ranking 9th worldwide and 1st in Latin America.


(Source: ABES)

In addition, Brazil has a robust IT market that’s valued at $49 million, 26% of which involves software. Currently, Brazil has 6,450+ software development companies, as well as thousands more in the software distribution and IT services markets.

With such a booming software economy, Brazil is a great choice for finding high-quality developer talent and outsourcing partners.

Track Record of IT Outsourcing

(Source: ABES)


Finally, Brazil has a strong foundation in outsourcing, with 40.9% of its software services dedicated to outsourcing. Brazilian developers and companies have extensive experience working with U.S. companies and advancing IT relationships abroad.

In addition, large tech enterprises have set up offices in Brazil to take advantage of developer talent. In fact, 65% of Fortune 500 companies are located here, including:

  • IBM
  • Uber
  • Amazon
  • Google
  • Oracle
  • Microsoft
  • Meta
  • Dell


The fact that global and U.S. companies choose to set up shop in Brazil shows that the talent is world-class.


Ready to hire Brazilian developers? Get in touch with TECLA to connect with top software professionals in Brazil.

The Brazil Software Developer Profile

Brazil has outstanding software developer talent. Brazilian developers have strong educational backgrounds, top coding skills and a wide range of skills.

Below are common characteristics of Brazilian developers.

#1 Largest Talent Pool in LATAM


(Source: Statista)


How many developers are there in Brazil? Brazil has over 500,000 professionals participating in offshore software development. In addition, with 227,000 STEM graduates per year from Brazilian tech institutes, this number is sure to continue rising.

(Source: U.S. News & World Report)


In addition to the high numbers of graduates, Brazil has some of the finest IT institutions in the world. Overall, Brazil has 123 national institutes of science and 400 incubators. It even has 6 universities in the top 500 universities in the world, according to the prestigious U.S. News & World Report.

Specifically, several institutions stand out for producing unicorn makers, especially the Universidade de São Paulo (USP):


(Source: Antler)


Skilled Tech Talent


(Source: Coursera)


Brazilian developers are some of the most skilled worldwide. Brazil scored well in TopCoder challengers, earning 13th place worldwide. In addition, according to software developer skills tests such as Coursera, Brazil is ranked highly in areas such as:

  • cloud computing (98%)
  • computer programming (64%)
  • data management (59%)
  • software engineering (57%)

Ultimately, Brazilian developers have excellent skills that are competitive with other countries worldwide.

Wide Range of Developer Skills

Brazil has great diversity when it comes to programming skills. According to data from Stack Overflow, Brazilian developers mostly commonly know JavaScript, HTML, SQL, Java, Node.js and Python. Overall, they have a wide range of programming skills that companies worldwide can leverage.


(Source: Rodrigo-StatsPY)


No matter your software development needs, TECLA has the right Brazilian programmer for your team. Leverage our talent pool today.

Why Brazil-U.S. Collaboration

Brazil also has certain advantages as a software outsourcing destination. Brazil-U.S. collaboration is strengthened not only by the impressive talent but also the top communication skills. Here’s how Brazil builds robust, long-term outsourcing relationships.

Matching Time Zones

Time zone coverage is a big thumbs-up when it comes to outsourcing to Brazil. That’s because Brazil is located in the GMT-3 and GMT-4 time zones. GMT-4 is the same time zone as EST in the U.S., which means Brazilian developers could have up to 8 hours of overlap with New York based companies. These matching hours are extremely helpful for responsive and collaborative development.

Cultural Proximity

Brazil has good cultural compatibility with U.S. companies, traditionally scoring “very good” on Gartner’s index. Because of its proximity to the U.S. and its global outlook in general, Brazil has a similar work culture and an innovative mindset. To help matters, Brazilians also share certain cultural icons with the U.S. as far as the music and movie industry are concerned.

While Brazil doesn’t score high overall in English skills, software developers here tend to lead the pack in terms of advanced English proficiency, making it easy for companies to collaborate with Brazilian developers.

Ideal for Agile Development

Brazil is also a top choice for achieving excellent outcomes from agile processes. Given the proximity in time zones, work culture and overall communication, Brazilian developers can undergo development without any major hurdles. Scheduling stand-up meetings and iterating products is a straightforward process with Brazilian software engineers.

Software Engineer Salary in Brazil

Brazil has some of the most attractive software engineer salaries in Latin America. Though this country has highly skilled talent, the average salaries for developers tend to be quite affordable, especially when compared to the U.S. and Europe.

Brazil Software Developer Salaries

Software developer in Brazil Monthly Salary Annual Salary
Junior: R$8,000 ($1,705 USD) $20,460 USD
Middle: R$15,625 ($3,330 USD) $39,960 USD
Senior: R$35,700 ($7,610 USD) $91,320 USD

How much do software developers make in Brazil? According to data from Glassdoor, software developer salaries in Brazil are quite affordable compared to the U.S. While the average developer earns just under $40,000 a year in Brazil, the lowest paid software developers in the U.S. $82,430. That nearly halves a company’s salary costs. However, senior software engineers earn much more with an average salary of $91,320.

Software Engineer Salary Based on Popular Technologies

Of course, developer salaries will vary according to the individual’s experience and expertise, as more senior or specialized skills will involve higher costs. For example, here are some the average Brazil software developer salaries for more specialized technologies:

Technologies Average Salary for Equivalent (Top-Rated) U.S. Talent Rates of Top Developers from Brazil on TECLA platform
Python $175,000 - $195,000 $68,000 - $104,000
JavaScript $165,000 - $185,000 $62,000 - $96,000
Node.js $165,000 - $185,000 $65,000 - $102,000
Ruby $175,000 - $200,000 $84,000 - $120,000
PHP $135,000 - $145,000 $52,000 - $84,000
Java $152,000 - $175,000 $65,000 - $92,000
iOS $150,000 - $182,000 $66,000 - $90,000
Android $150,000 - $185,000 $63,000 - $88,000

Summary of Brazil Software Outsourcing Benefits

The IT Ecosystem Software Developer Profile Colombia-U.S. Collaboration Cost of Hiring Colombia Devs
- Robust tech landscape

- Innovative startup scene

- Huge software services market

- Track record of IT outsourcing
- #1 largest talent pool in LATAM

- Skilled tech talent

- Wide range of developer skills
- Matching time zones

- Cultural proximity
- Ideal for agile development
- Low-cost developer salaries

In the end, Brazil is an excellent destination for software outsourcing. From its thriving tech scene to its high-quality development talent, Brazil excels in all the major categories, including world-class IT programs, diverse programming skills and innovative startup culture.

No matter your software outsourcing needs, Brazil is an ideal choice that checks all the key boxes for software development success. Consider hiring Brazilian developers from our top-tier network at TECLA. Get in touch with our team to learn more about our vetted IT talent from Brazil.

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