It’s official: South America has become the world’s fast-growing powerhouse for software developer talent.
Just consider that the hiring rate for software engineers in LatAm has increased by an impressive 286% in recent years. South America is especially popular with U.S. companies, spurring 70% growth in remote hiring from this region since 2020.
But why exactly is hiring South American developers in such high demand?
Here we’ll explore the benefits of hiring developers in South America, as well challenges, best practices and sourcing tips. With our guide, you’ll be well-equipped to find South America tech talent and ramp up your business growth ASAP.
Content Overview
Why Consider Hiring Developers in South America?
South America has become a hotspot for hiring developers due to its rapidly advancing tech ecosystem. Experts predict IT outsourcing will grow at a rate of 9.34% in South America – one of the highest globally. This region has it all:
- Top-ranked developers
- Affordable rates
- Seamless logistics
- Cultural alignment
- …and more!
These key features are only possible because of South America’s massive leap in tech infrastructure. LatAm countries have made strides in building tech parks, attaining VC investment and supporting startup networks. Many governments have created tax incentives for the software industry, too.
Maturing local talent is also due to robust STEM-specific educational programs. Just consider that LatAm boasts of 2 million developers and record numbers of tech graduates compared to other regions. Together, these initiatives have borne fruit for generating skilled talent.
Key Benefits of Hiring South American Developers
The benefits of hiring developers in South America are numerous, making it easy for U.S. companies to implement and elevate their technology strategies.
Time Zone Compatibility
South America shares overlapping time zones with the U.S., supporting real-time collaboration during the workday. This is ideal for agile development, as ongoing feedback, daily stand-ups and rapid development sprints are essential to this method’s success.
High-Quality Talent
Software developers in South America are at the top of their fields. In multiple rankings, tech talent in these countries places within the top 10 globally.
What’s more, South America tech talent is incredibly diverse, with different levels of seniority and specializations. Professionals have a reputation for strong non-technical skills as well, including top English. They’re also career-driven and less likely to “job-hop” compared to their U.S. peers.
Cultural Alignment
Given their geographic proximity, South American developers are culturally attuned to U.S. workplace expectations, communication styles, remote practices and more. Overall, they’re able to navigate U.S. culture without friction and establish seamless collaboration across borders.
Cost Efficiency
In addition to top skills, South American developers offer the ideal cost-benefit ratio. In this region, rates are 40-50% lower compared to the U.S. – without sacrificing quality. This means you can enjoy huge cost savings with your hiring budget.
Challenges and How to Overcome Them
Although there are countless benefits of hiring developers in South America, be aware of common challenges. Focus on mitigating these key areas to achieve effective collaboration with South America tech talent.
Communication
Communication is the bread and butter of great teamwork. In fact, poor communication is the #1 reason why IT projects fail today. Be thoughtful about setting up your communication lines. Set up daily stand-ups to align goals and give your developers access to collaboration tools as needed.
Integration with Existing Teams
South American developers tend to integrate naturally into your existing teams. Yet, you should still make an effort to guarantee they’re in sync. Bring together your developers through people-focused meetings and company values, such as transparency, empathy and cultural respect. Creating a peer buddy network or regular virtual coffee breaks can also do wonders.
Legal and Tax Considerations
Hiring South American developers may involve extra paperwork to stay compliant with local laws. For example, you may have to navigate regulations for taxes, worker benefits and more. You can hand off these logistics to a talent partner to avoid missteps and take advantage of laws that promote tech.
Competition for Talent
Finally, South America tech talent is in high demand, generating a competitive hiring market. To appeal to developers here, you’ll have to create regionally attractive job packages and showcase your company’s value proposition to candidates. A local talent partner can help ensure your recruitment techniques are tailored to LatAm developers.
Best Practices for Hiring and Managing Developers in South America
Now that you know the advantages of choosing software developers in South America, let’s discuss how to build your team.
Hiring South American Developers
South American developers have a reputation for elite skills. Yet, the talent profile may look different than other regions. To make the most of hiring here:
- Consider non-traditional backgrounds. Keep in mind that South America tech talent may look different on paper. For example, it’s common for developers here to be self-taught or hold a certificate instead of a degree. Don’t nix top-tier talent from these non-traditional backgrounds.
- Focus on soft skills. 78% of HR managers are seeking tech professionals with strong soft skills. Often soft skills such as communication, problem-solving and self-management make the difference between a good and a great final product.
- Leverage skills tests as needed. It’s useful to verify skills, especially if you’re interested in South American developers from diverse backgrounds. Create your own live coding challenge or work with a talent partner to set up a test.
- Don’t skip cultural fit. Integration between your in-house team and South American developers is essential. Assess cultural fit during the interview process by inviting team members to join the call. You might even hold a “trial meeting” to see the way they engage firsthand.
Managing South America Developers
Onboarding your software developers in South America is just the start. As you manage your LatAm professionals, set them up for success. Strengthen remote collaboration by:
Creating a virtual office. A virtual space to manage projects, as well as chat informally with team members, can be highly effective. Make sure you facilitate these connections, so that your South American developers feel in the loop.
Crafting a remote work policy. A policy may seem formal, but it’s useful for getting everybody on the same page. Your policy can cover everything from flexible schedules to quality standards, security protocols, etc.
Leveraging the best of agile working. The agile method is designed to enable strong collaboration. Utilize the best of this methodology, including daily check-ins, weekly milestones, continuous improvement and more.
Focusing on people-oriented team culture. The core of IT project success is people power. Try to foster a culture that makes your developers feel at home.
How to Find the Right Developers in South America
75% of businesses interested in U.S. engineers also recruited from Latin America. That said, the processes for hiring developers in South America may be quite different. To leverage talent here, you’ll need knowledge of local universities, startups and developer communities. Some ways to do this include:
- Posting on sites such as LinkedIn or developer-specific job boards
- Reaching out via social media to local developer communities
- Using local developer events to meet potential hires
Often the best way to access South America tech talent is through a local talent partner who can easily navigate these networks. For example, at TECLA, we connect North American companies with our elite, pre-vetted South American developers.
Leverage South American Developers With TECLA
Take advantage of the benefits of hiring developers in South America, from top skills to affordable rates. Our actionable tips above can help you hire and manage the best tech talent in this region, so you can kick off your next project with a full development team.
To power up your teams with South American developers, work with a seasoned local partner like us. At TECLA, we don’t just have a robust tech talent network across 18+ LatAm countries – we also deliver recruitment services tailored to your business objectives. Get in touch with our nearshore hiring specialists today!
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