How Much Does it Cost to Hire a Software Developer from LatAm? A Guide for CEOs

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How Much Does it Cost to Hire a Software Developer from LatAm? A Guide for CEOs

In recent years, Latin America has emerged as a hotspot for tech talent, especially in software development. As remote work becomes the norm, CEOs of startups are increasingly looking towards this region to bolster their tech teams. But one pressing question remains: How much does it actually cost to hire a software developer from LatAm? This guide aims to help you answer this question, providing a comprehensive breakdown of costs and other factors to consider.

What's inside:

Understanding the Software Developer Landscape in Latin America

Latin America, with its diverse and rapidly growing tech ecosystem, offers a vast pool of skilled software developers. Countries like Brazil, Argentina, Colombia, and Mexico have seen significant investments in their tech sectors, leading to a surge in IT education and training programs. This investment has paid off, with many Latin American developers now competing on a global stage in terms of skill and expertise.

The region's appeal isn't just limited to its talent. Latin America's proximity to the United States, coupled with overlapping time zones, makes it an attractive option for startups looking for seamless collaboration. Moreover, cultural similarities and a strong emphasis on English education in many LatAm countries ensure smoother communication and integration with US-based teams.

For startups, this means access to a vast talent pool without the challenges posed by significant time zone differences or cultural barriers. Additionally, the competitive nature of the tech market in Latin America ensures that startups can tap into a range of skill sets, from app development to complex software engineering.

Software Developer Salary in Latin America 

When considering hiring from Latin America, understanding the salary dynamics is crucial. Salaries for software developers in the region can vary significantly based on factors such as experience, specialization, and location.

For a clearer understanding, we've created a table comparing the average salaries in major countries within the region to the average salary of software developers in the USA. This comparison highlights potential cost savings and provides valuable insights for businesses to make well-informed decisions.

how much does it cost to hire a software developer? comparative salary chart by region.

Note: The salaries are annual averages in USD. These figures are inclusive of benefits (if hiring on payroll) or in lieu of benefits (if hiring contractors) and only consider professionals with working English proficiency.

It's also essential to note that while salaries in Latin America might be lower compared to the U.S. or Western Europe, the quality of work and expertise remains competitive. This cost-effectiveness is one of the primary reasons why many startups are turning to LatAm for their tech needs.

For a more detailed breakdown, you can refer to TECLA's salary wizard, which offers insights tailored to specific roles, experience levels, and countries in Latin America.

The True Cost of Hiring Software Developers 

While the base salary is a significant component, it's just one piece of the puzzle. Hiring a software developer entails additional costs that CEOs need to be aware of. These can include benefits like health insurance, bonuses, and other perks that are standard in the tech industry.

Moreover, if you're considering hiring a freelance developer, factors like project management tools, communication platforms, and potential training might add to the overall cost. On the other hand, opting for a dedicated team or partnering with a software development company might offer cost savings in the long run, as many overheads are absorbed by the service provider.

It's also worth noting that the overall cost can be influenced by the hiring model. For instance, hiring an in-house developer might involve recruitment fees, onboarding costs, and infrastructure investments. In contrast, remote developers from Latin America might only require a workstation setup and relevant software licenses.

By understanding these nuances, startups can budget more effectively, ensuring they get the best value for their investment while accessing top-tier talent.

Time Zones and Their Impact on Collaboration

One of the standout advantages of hiring from Latin America is the time zone alignment with U.S. companies. This geographical proximity ensures that most working hours overlap, facilitating real-time collaboration, meetings, and decision-making processes.

For startups, this means fewer late-night or early-morning calls and a smoother workflow. Project management becomes more efficient as team members can quickly address queries, share updates, and make iterative changes without waiting for responses across vast time differences. This synchronous work environment can significantly boost productivity and reduce project timelines.

Comparing Local vs. Remote Software Developers from Latin America 

The decision between hiring a local developer and a remote developer from Latin America often boils down to cost, skill availability, and project requirements.

Local developers might offer the advantage of face-to-face interactions, understanding local markets, and immediate availability for meetings. However, they often come with a higher price tag due to the competitive tech market in places like the U.S.

On the other hand, remote developers from Latin America can provide cost savings without compromising on skill and expertise. They bring a fresh perspective, diverse experiences, and the added advantage of time zone alignment. The potential savings can then be reinvested into other areas of the startup, such as marketing, product development, or customer support.

TECLA: Your All-in-One Solution to Hire & Retain Software Developers from LatAm

In the evolving landscape of tech hiring, Latin America stands out as a region offering both talent and cost-effectiveness. For startups, especially those on a tight budget, looking southward can be the key to scaling efficiently. 

As you navigate this journey, let TECLA be your guide. With over a decade of experience in recruiting exclusively from Latin America, we're here to ensure you find the right fit for your team. Explore TECLA's services and tap into a network of top-tier talent ready to drive your startup's success.


What is the average salary of a software developer in Latin America?
The average salary varies based on the country, experience, and specialization. Generally, software developers in Latin America earn competitively compared to their global counterparts. For instance:
In Brazil, a junior developer earns around $27,866, while a senior developer can expect around $75,800, and experts can earn up to $104,791 annually.
Argentina sees junior developers earning an average of $21,676, mid-level developers at $38,514, and senior developers around $59,605. Experts in the field can earn up to $82,530.
Mexico offers $24,670 for junior developers, $40,830 for those at a mid-level, $63,240 for senior developers, and experts can earn as much as $87,460.
Are there additional costs associated with hiring remote software developers from Latin America?
Yes, beyond the base salary, there might be costs related to benefits, tools, training, and communication platforms. However, these are often offset by the savings from the competitive salaries in the region.
What is the cost comparison of hiring a local versus a remote software developer from Latin America?
In tech hubs like Silicon Valley, a senior developer's average salary can reach up to $105,800. In contrast, senior developers in Latin American countries such as Brazil, Colombia, and Mexico earn $75,800, $66,495, and $63,240, respectively.
While remote developers from Latin America might come with lower base salaries, additional costs like setup, communication tools, and potential time zone adjustments should be considered. Nonetheless, the overall savings, combined with the expertise of LatAm developers, often makes remote hiring a cost-effective and appealing choice for many companies, especially startups.

Gino Ferrand


Gino Ferrand

Gino Ferrand

Gino is an expert in global recruitment having spent the last 10 years leading TECLA and helping world-class tech companies in the U.S. hire top talent in Latin America.

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