Nearshore software development in Latin America

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Most software development organizations, from startups to multinationals, want to pay competitive salaries to the best developers. However, recruiting the best specialists at home has become almost impossible due to needing more skills. As a result, American businesses have moved to Latin America, which is the best option.

Smaller time zones, flexible labor laws, proximity to US states, and minimal or no barriers to communication are all features of South American or Latin American countries. In addition, most countries in Latin America have created an excellent IT environment, making them the most sought-after locations for software outsourcing—one of the best regions in the world for nearshore software development in South America. While most US companies look to Asia for their outsourcing needs, South America offers many benefits that cannot be compared to other regions.

What’s more? Let’s find out.

The software development industry in Latin America

South America has stayed strong in the expansion of the software industry, as in other countries of the world. Most countries have developed initiatives to support sector growth and leadership on the continent. Several accelerators and mentoring programs have found application in Latin American countries due to the region’s proximity and cultural similarity to the United States. Today, American entrepreneurial culture has spread across the continent.

The software development industry has grown dramatically and has become much more competitive due to this expansion. Increasing competition in this booming industry shows the need for quality improvement to stay relevant. The best software developers in Latin America are based in countries such as Brazil, Mexico, Uruguay, and Argentina and serve startups in the US.

Why hire nearshore software development  

Nearshore outsourcing involves hiring a software development company located near the United States, with little to no time difference. This outsourcing method is one of the best options for companies that need to lower costs and don’t want to go offshore. 

Hiring capable developers in Latin America can help solve problems such as understaffed tech teams and tight deadlines. With its plug-and-play system, software outsourcing is the best option for making temporary hires.

Hiring a software development company near the United States with little or no time difference is known as nearshore outsourcing. This type of outsourcing is one of the best options for businesses that want to save costs but don’t want to outsource their work.

Hiring competent Latam developers can solve problems such as a shortage of software designers for hire and tight deadlines. Nearshore software development is the greatest choice for temporary hiring because of its plug-and-play system.

Benefits of hiring Latin American developers

Demand for software outsourcing to remote shores is growing, and your development team’s access to people in South America can create entirely new workflows. Using nearshore software development allows businesses to sell their products and concepts faster. Companies without software development can still create high-quality products while focusing on their core business. Let’s take a look at the benefits of hiring Latin American developers teams for US companies:

Closer Collaboration

For companies looking for an outsourced engineering team with American equivalent qualifications and experience, South American teams offer realistic options for software designers for hire. Full business day overlap with US time zones facilitates real-time collaboration on projects with your software development team. Face-to-face meetings are also a simple reality when outsourcing software development in Latin America due to the short distance and minimal jet lag.

Find new talent software developers in Latam

Even though we often refer to Latin America as one, we are talking about 33 different countries! Many companies leverage the region’s geographical advantages to hire across the continent instead of focusing on candidates from only one country. The talent pool consists of capable engineers from every corner of the continent. Why stick to one country when you can leverage 33?

Although we often refer to Latin America as a single region, there are 33 different nations in this region. Instead of focusing on hiring people from one country, many companies are taking advantage of the region’s geographic benefits to fill vacancies across the continent. Competent engineers from all over the mainland make up the talent pool. Why limit yourself to one country when you can use 33 countries to hire Latin American developers?

Minor Timezone Difference

Time zones must be considered when communicating with customers and business partners. This is equally important in agile software development, where real-time communication is essential to rapidly building a product.

For example, due to the 10-hour time difference and frequent differences in business hours, it is practically challenging to cooperate with India in real-time from the US. Also, depending on their location, some businesses require their engineers to get up early or stay late (i.e., work all night). It affects your ability to retain good talent when offered something different in their time zone or at the level of skill you import from India.

However, Latam developers are acceptable because all these countries are only an hour apart! Around 2:00 pm on a Monday, you can talk face to-face with your South American teammate as if you were both in Chicago or New York.


Companies often think exporting their work abroad will save them money, but this is only sometimes true. Most events end up being more expensive than expected. Software development costs can be significantly higher for local developers.

You can hire Latin American developers depending on your budget. There is a thorough survey with hourly rate options. Excluding taxes and other vendor fees, hourly rates range from $28 to $105 per hour. This means you have a choice of more expensive options like Chile, Brazil, and Argentina, as well as less costly alternatives like Peru, Mexico, and Colombia.

According to Deloitte’s 2020 Global Outsourcing Survey, 87% of IT organizations have outsourced to save money. Researchers predict that by 2025 the global outsourcing market will be $40.16 billion.


Cultural and Language Similarities

Since much of South America is culturally similar to the United States, it will be easier for your employees and other stakeholders to collaborate successfully. All employees can easily communicate with their colleagues due to their high level of English proficiency. Due to regional similarities in business procedures such as accounting and finance, it is easy to incorporate international best practices into regional business practices.


Hire the best software developers in Latin America

There are many benefits to nearshore software development in South America. But keep in mind that outsourcing to Latin America involves more than just cutting costs; it also includes improving performance and building relationships.

Heinsohn is the best fit for your custom software development needs. More than years ago, we provided aspiring entrepreneurs with technology needs by collaborating with an entrepreneurial spirit. Our team of senior engineers and software developers in Latin America is ready to take on any project and help your startup grow. Why spend months building an internal team when you can have staff prepared to go in two weeks? Call us right now.

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