7 Benefits to Outsourcing Software Development in LATAM

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7 Benefits to Outsourcing Software Development in LATAM

As the U.S. faces tech talent shortages, companies are struggling to build powerful software, development teams. To meet their ever-growing tech needs, many CTOs and VPs of Engineering are leveraging software developer talent in Latin America through solutions like direct hiring and nearshore staff augmentation, to name a few.

Over the last decade, Latin America has become a hotspot for developer and IT outsourcing and boasts of numerous advantages for U.S. businesses, including larger talent pools, cost-effective pricing, and nearshore proximity. Here we’ll consider the benefits of outsourcing software development in Latin America, so tech decision-makers have full vision into the potential of LATAM talent.


Why is Outsourcing Software Development a Smart Strategy?

Outsourcing software development has led to top-tier results for companies lacking local tech talent. By partnering with software engineers in global locations, CTOs and VPs of Engineering are able to build dynamic teams and capitalize on advantages such as:

  • Reduced costs
  • Access to specialized expertise
  • Scalable manpower
  • Quicker time-to-market
  • Agile processes

Overall, outsourcing to regions like Latin America gives U.S. companies significant flexibility in their budgets and staffing, so that software development can fully align with their company’s needs.

Thousands of companies are turning to hire developers in Argentina, Brazil, Colombia, Mexico, Peru, Costa Rica, and many others in LatAm.

What’s Behind Latin America’s Technical Growth?

Software developers in Latin America have the ideal profile for outsourcing partnerships. LATAM has a budding tech talent pool that’s characterized by:

  • Record numbers of tech graduates
  • High rankings in developer skills tests and reports
  • Wide range of programming skills
  • High software engineer job satisfaction
  • Multilingual talent, with top English rankings
  • Track record of remote work
  • Affordable hourly developer costs

This type of high-quality pool with cost-effective rates is ideal for U.S. companies looking to outsource software development.

Learn more about LATAM software developer profiles on TECLA and create an elite outsourcing team for your development needs.

7 Benefits to Outsourcing Software Development in LATAM

1. Top talent pools

With excellent developer skills, top English scores, and remote work experience, LATAM software engineers have it all to meet today’s demanding development requirements. In addition to top talent, software developers in Latin America are also known for their high job satisfaction, which leads to better retention rates when working with tech companies.

2. Budget-friendly costs

Though the exact cost savings will depend on the company’s programming and talent needs, developer rates in LATAM are typically 50% less than U.S. developer rates. This level of accessible pricing means that businesses can make the most of their development budgets.

Location Average developer rate
U.S. $75-250 per hour
LATAM $40-75 per hour
W. Europe $60-100 per hour
E. Europe $35-70 per hour
Asia $30-50 per hour

3. Nearshore time zones

IT outsourcing in Latin America is also ideal for maintaining close contact with software developers. LATAM countries have a full workday of overlap with U.S. time zones, which facilitates project management. This is especially vital to achieve a fast time-to-market, as collaboration with developers must be highly responsive. Nearshore proximity is also useful for site visits if needed, as flight time isn’t usually too cumbersome.

4. Strong IT ecosystem

Every LATAM region has its own strengths, but countries like Costa Rica, Colombia and Argentina have excellent tech infrastructures. In addition, many tech companies have a proven track record of working with U.S. companies and building strong outsourcing partnerships. As a whole, LATAM has become an engine for new software start-ups and a reliable region for high-quality software development partnership.

5. Cultural connection

Software developers in Latin America understand western workplace values, allowing teams to seamlessly collaborate. Sharing workplace expectations of deadlines, communication styles, remote work policies and quality standards is helpful for maximizing partnership. Overall, U.S. companies won’t encounter as much cultural clash in LATAM compared to other regions across the world.

6. Top English skills

In addition, LATAM software engineers have some of the highest English skills worldwide, ranking high to moderate in global assessments (such as the EF EPI). U.S. companies can enjoy smooth communication with dedicated teams and easily give tech feedback without worrying about language barriers or misunderstandings.

7. Ideal for agile development

Overall, outsourcing software development to LATAM is a first-rate choice for businesses utilizing agile methods. With overlapping time zones, tech teams can keep in close contact and have stand-up meetings as needed during development iterations.

Outsourcing to this region also allows for great scalability when it comes to building engineering teams. Through outsourcing, U.S. partners can easily add manpower to speed up development time or expand the scope of a project. Having this flexibility is a great advantage of outsourcing developer talent.

Ready to get started with agile development? Get matched with top LATAM software developers on TECLA.

How Does LATAM Stack Up With Other Outsourcing Destinations?

Though LATAM is a top software development outsourcing destination, other options are available. Here are some key takeaways about popular outsourcing destinations worldwide to inform company decision-making:

  • U.S. and Western European countries have excellent developer talent that’s in high demand by companies. However, the cost can be a large detractor, as rates in these regions are 2-3x more expensive globally. In addition, the talent pool is more limited, which makes it challenging to find certain tech specialties or skills.

  • Eastern European destinations such as Poland and Romania have top-tier programming talent and a more accelerated tech infrastructure compared to LATAM. However, these locations don’t have the overlapping hours necessary for truly responsive agile development. Software engineer rates also tend to be somewhat higher than LATAM, which can increase company budgets.

  • Asian outsourcing countries such as India and China offer large talent pools at cost-effective rates. That said, the skill level can vary greatly, which puts the onus on U.S. companies to verify skills and ensure quality standards. In addition, the lack of overlapping hours and wider cultural differences may negatively impact collaboration.

For businesses who value agile-friendly collaboration at affordable rates, LATAM may be the optimal destination to partner with software engineers.

Where Can You Find Software Developers in Latin America?

Finding software developers or teams in Latin America isn’t difficult, but it’s important to take advantage of the right platforms to get long-term, specialized talent. Some top job boards and services for connecting with world-class talent includes:

  • Searching on general job sites such as LinkedIn and Indeed.
  • Posting on remote or developer-specific job boards
  • Using social media and developer communities to find potential candidates.
  • Attending developer events to meet potential hires.
  • Leveraging developer recruitment services that connect companies with top talent.

Ultimately, CTOs and VPs of Engineering looking for long-term talent solutions may benefit from developer recruitment services like TECLA. We match your company with the ideal developer candidate from our robust, highly vetted pool of software developers in Latin America.

Recruit or Directly Hire Top Software Developers in Latin America

Putting together a results-driven engineering team is the key to unlocking software development success. Outsourcing software development in Latin America can be the right solution for companies who require affordable, talented developers who can collaborate seamlessly with their teams.

To achieve your development vision, leverage LATAM software development talent on TECLA. You can find the best software developers in Latin America through our network of 20,000+ LATAM IT workers. We’ll help match you with elite software engineers to power your company into the future.

Nadia Hlebowitsh


Nadia Hlebowitsh

Nadia Hlebowitsh

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