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Latin America is quickly establishing itself as another Silicon Valley dubbed “Silicon LatAm” and a player to watch in the global tech landscape. The region features a new generation of tech companies reshaping LatAm economies, with some startups disrupting global markets and becoming international leaders in their respective sub-sectors. But that’s not it; LatAm is also catching the attention of tech leaders looking for a cost-effective approach to hiring tech talent in a turbulent market characterized by recession and tech talent shortage. There’s high demand for LatAm tech professionals from the region. Research shows they were the most requested by companies globally, with hiring from the region growing by 286% in 2021’s second half (H2) compared to H1.
Businesses are turning to nearshore software development talent to maximize their return on investment (ROI). In recruitment, ROI measures an employee’s value to the company against the amount spent on hiring and retention. LatAm talent offers businesses a higher ROI through cost, expertise, language and cultural similarities, time zone alignment, and convenience. This piece looks at top LatAm destinations for nearshore talent, including Argentina, Brazil, Colombia, and Mexico. Read on to see what each destination offers and the benefits of outsourcing your IT needs to these countries’ nearshore software development services.
What's inside:
How Hiring Nearshore Top Tech Talent Maximizes Your ROI
Top Nearshore Talent Destinations
LatAm’s tech talent pool continues to grow, thanks to successful unicorns producing repeat founders and teams, and startups like Creditas, Rappi, MercadoLibre, Nubank training a generation of robust tech talent. This, coupled with government initiatives and local university programs, has resulted in a growing talent pool, which continues to capture the attention of tech leaders and investors. Here’s an overview of top nearshoring destinations, including Argentina, Brazil, Colombia, and Mexico, and reasons to outsource to development partners from the region.
Argentina
- Population: 46.3 million
- Time zone: GMT-3 (1 hour ahead of New York)
- English proficiency: High (the country with the highest English proficiency in LatAm)
- Number of developers: 134,000+
- Average senior software developer's annual salary: $58,300
- Business climate: B
- Ease of business: 126/190
- Tech companies with engineering teams and hubs: Amazon, Google, JP Morgan, Rappi, MercadoLibre
Why You Should Outsource Your Software Development Project to Argentina
- Large developer pool- Argentina has over 134,000 software developers and is known for high-quality tech talent, bagging the top spot in 2019’s Coursera Global Skills Index for state-of-the-art technical skills.
- Over 20,000 graduates in STEM & tech annually- Argentina has since 2015 graduated over 20,000 professionals in STEM annually- there’s one engineering graduate for every 5,000 Argentinians.
- Government initiatives- The country has over 40 programs for computer science in institutions, including The National Technical University, the University of Córdoba, Buenos Aires Institute of Technology, ORT, CITECH, and more. In addition to the many STEM graduates, the Argentine government has sponsored Plan 111Mil, a program intended to train over 100,000 developers. Finally, there are over 30 tech parks in the country working closely with local unis, companies, and tech institutions, to advance tech talent in the country.
- The number of startups- There are over 456 tech startups in Argentina, including Globant, MercadoLibre, MURAL, YPF, and more, proving just how much tech talent the country boasts.
- Cultural proximity- Argentinian developers share cultural similarities with American developers and are conversant with Western business practices, making communication and cooperation easier.
- Minimal time differences- Argentina is one hour ahead of Boston and New York, two ahead of Chicago, and four ahead of Seattle and San Francisco. So, you’ll communicate with your nearshore software development team in real-time, improving collaboration.
- English proficiency- Argentina is the country in LatAm with the best level of English, scoring 562 out of 700. So there are no language barriers, making communication seamless.
- Cheap developer rates- An Argentinian front-end developer, for example, earns $61,984 annually, compared to a U.S.-based one who earns $103,394, saving your business 67% of developer costs.
Brazil
- Population: 216.8 million
- Time zone: GMT-3 and GMT-4
- English proficiency: Moderate/High
- Number of developers: 500,000+
- Average senior software developer's annual salary: $63,300
- Business climate: A4
- Ease of business: 124/190
- Tech companies with engineering teams and hubs: Google, Nubank, Softbank, IBM, HP, Infosys, and Unisys
Why Your Business Should Collaborate With a Nearshore Solution from Brazil
- Thriving software industry- Brazil boasts a remarkable software industry with 6,000+ software development companies. Also, its IT industry is increasing, with an estimated growth of US$12.16 billion in 2023.
- Tech talent pool- Brazil has a high supply of skilled tech professionals, with over 200,000 students in STEM & tech graduating annually from its institutions.
- Tech parks- Brazil features a robust tech and innovation culture. It has over 100 well-built tech parks, 369 business incubators, and 57 accelerators and allocates high funding and resources to develop its core IT infrastructure. Also, companies like Facebook, Google and institutions like the University of São Paulo are investing heavily in tech talent, so it continues to grow.
- Government initiatives- Brazilian Association of Information Technology and Communication Companies (Brasscom) set out to train over 155,000 web developers, while the Brazilian Association of Software Companies (ABES) sponsors various initiatives to grow tech talent.
- Similar time zone- Brazil and the United States have a time difference of one to four hours, making collaboration and communication seamless.
- Cultural compatibility- Argentina shares cultural similarities with the U.S. and understands the Western culture, allowing for smooth collaboration between your nearshore and house teams.
- English proficiency- The EF’s English Proficiency Index puts Brazil in position 6 in LatAm in English proficiency, with a score of 51 out of 100. Also, the country’s Ministry of Education launched the Languages without Borders program to improve foreign language skills (including English) among its graduates. This allows for easier communication between your house and nearshore teams.
- The number of startups- Brazil has over 13,000 active tech startups, so there’s robust tech talent in the country.
- Cheaper developer rates- A Brazilian mobile app developer, for example, makes $72,046 compared to a U.S.-based developer who earns roughly $135,962 annually. This saves your business 89% of hiring costs.
Colombia
- Population: 52.4 million
- Time zone: GMT-5
- English proficiency: Moderate
- Number of developers: 65,000+
- Average senior software developer's annual salary: $59,300
- Business climate: A4
- Ease of business: 67/190
- Tech companies with engineering teams and hubs: Amazon, IBM, Google, Oracle, Blackbird, Redhat
Why Hire Colombia’s Tech Talent
- A high number of graduates in STEM & tech- The country features one of the top rates in STEM graduates in LatAm. 23.10% of all tertiary degrees are linked to construction, engineering, and manufacturing.
- Government initiatives- The country has a strong ecosystem of research institutions and universities for training developers, with three being ranked in the top 30 in LatAm. Its Ministry of Information and Communication Technologies (MinTiC) is also trying to prevent a looming talent crisis in the software industry by launching several initiatives encouraging the growth and development of the nation’s tech workforce. Other programs, including INNpulsa, offer grants to advance tech talent further. All these efforts could prevent a predicted shortage of 100,000+ software developers by 2025.
- Tech parks- Tech parks such as the Ruta N Building have recently flourished in the country, acting as hubs for innovation.
- Time zone alignment- New York, for example, is an hour ahead of Colombia, allowing teams to communicate in real-time.
- English proficiency- Nearly all Colombians speak Spanish, but some regions like Andrés, Santa Catalina Islands, and Providencia have English as their official language.
- The number of startups- Colombia features an extensive startup scene, with successful unicorns like Rappi and LifeMiles. The country has over 1300 tech startups, including Acelero and MercadoLibre, meaning it has thriving tech talent.
- Cheaper developer rates- A senior developer based in Colombia will save you roughly 60% of hiring costs.
Mexico
- Population: 132.8 million
- Time zone: GMT-5, -6, and -7
- English proficiency: Moderate
- Number of developers: 225,000+
- Average senior software developer's annual salary: $64,300
- Business climate: A4
- Ease of business: 60/190
- Tech companies with engineering teams and hubs: Cisco, Honeywell, Pinterest, and Salesforce
Why Outsource Nearshore Software Development in Mexico
- A high number of STEM graduates- Mexico graduates more STEM students than the U.S. on a per capita basis, and is among the top ten countries with the highest number of STEM graduates globally.
- Government initiatives- Many prestigious computer science programs are offered at institutions such as the Monterey Institute of Technology and Higher Education, the National Polytechnic Institute, the University of Guadalajara, the University of Guanajuato, and for free. Private institutions also invest in initiatives to build tech talent. Conferences like Talent Land help grow tech talent, while programs like 500 Startups LATAM and Fondo Nacional Emprendedor promote the growth of Mexican-based startups.
- Tech parks- Mexico is home to 20+ tech parks, including Apodaca Technology Park, Creative Digital City, and Guadalajara Software Center.
- Number of startups- Mexico has 1305 tech startups, hiring top tech talent from the region.
- Mexico mainly uses three time zones, which correspond to U.S. time zones, improving collaboration.
- Mexico understands American culture well, allowing for easier teamwork.
- Cheaper developer costs- A senior developer based in Mexico will save roughly 60% of hiring costs for your business.
Go-To Comparative Table of Top Nearshoring Destinations
Partner with TECLA to Hire LatAM Talent and Maximize Your ROI
Many nearshore software development companies are in the market, making it hard to hire the best fit. Choose a nearshore partner with the technical expertise necessary for your project requirements, one that shares similar values and work cultures, communicates clearly and transparently, has industry experience, and has a portfolio proving they can deliver high-quality software solutions.
TECLA is a professional, trusted nearshore company that works closely with you to understand your project requirements and business needs, providing software solutions that meet your expectations. Here’s why you should work with us:
- We have a robust network of 50,000+ pre-vetted tech professionals and a presence in 18+ Latin American countries, including Brazil, Argentina, Colombia, and Mexico.
- 500+ top U.S. tech companies have worked with us to augment their LatAm recruitment.
- 96% candidate success rate- Get connected to elite, pre-screened tech professionals in a few days.
- Seven days to hire- TECLA trims down recruitment cycles, helping fill up your team and ramp up your project fast.
- Our hiring process is seamless and hassle-free- We handle everything for you, from legal, HR, compliance, and contract, letting you focus on core business functions.
- Scale up and down as needed with our senior-level talent
- TECLA offers training via their program TECLA Boost to improve your nearshore team's English and soft skills, keeping everyone on the same page.
- Hire top developers with zero risk with our 14-day trial period and a 90-day guarantee.
Latin America will continue to be the most sought-after nearshoring destination for software development, and your business stands to benefit from outsourcing its development needs to the region. Read on for more here on the future outlook for software development in Latin America and what this means for your business.
FAQs on Maximizing Your ROI with Nearshore Talent
LatAm Making?
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