Introduction 

Many organizations in Western Europe and North America have observed that recruiting software developers locally has gotten more expensive and challenging in the Great Resignation era. The force of globalization can step in to save your effort when local artists’ pools for technology are exhausted. For this reason, a lot of IT executives contact Latin American software development firms to establish remote teams. 

We can offer you some guidance on how to get in front of the best people in this area because our company establishes software development teams throughout Latin America. We’ve had a lot of experience since 2008 assisting our clients in growing their teams of developers and navigating the scarcity of tech talent. We now wish to assist you as well. 

Let’s begin with a quick synopsis of the relevant market.

Software Developers In Latin America: Overview

Over the recent years, the IT industry in various cities of Latin America has grown dramatically as a large number of US firms have begun to realize their potential. During this period, a number of software hotspots developed which include:

• Argentina
• Chile
• Brazil
• Colombia
• Mexico 

The main reasons which explain why Latin America is a hot place for companies to hire software developers.

Solid Background 

The establishment of the Latin American software development industry is mainly based on their high-class incredible education system. Almost out of 500 top universities in the world, 100 are based in Latin America, including cities of Chile, Columbia, Argentina, Mexico, and Brazil. 

The Government of Latin America has also taken multiple initiatives in developing a STEM education system in the region to nurture the local tech talent. For instance, the colleges and universities of Brazil only give 100k tech graduates, enhancing the reputation of the country to source software developers among them.

Suitable Time Zone

The biggest advantage of sourcing Latin American software developers is that they have less time difference as compared to other European and Asian countries. The team of both regions can easily share their time and working schedules with each other and can work together without much time differences among them which is a key part of a successful work.

Talent

Latin America is the only place that typically has the most talented tech developers and engineers. The number of tech talent has risen to 1 million. Not only do these software developers of Latin America have skills but also have incredible talent.

Cost

The average wage of software developers in Latin America ranges between $28 to $105 per working hour. However, it is easy to say that Latin America has a more affordable hiring rate as compared to other countries.

English Level Proficiency

Spanish-speaking IT professionals are fluent in the English language. The adult in Chile and Argentina has an advanced level of English speaking skills (C1–C2), as determined by the Education First English Proficiency Index, while the adult in the other three countries (Colombia, Brazil, and Mexico) has a lower-intermediate and upper-intermediate stage of the English language (B1–B2). 

Why is the Industry of Software Development Thriving in Latin America?

The following essential factors are the main reasons why the industry in Latin America keeps rising. 

• Startups & Entrepreneurship

Several Latin American cities like Mexico, Buenos Aires, Bogotá, and São Paulo became central hubs for small tech companies and startups. This growing culture of creativity and innovation attracts great entrepreneurs and investors. Moreover, these startups take a major role in creating job offers and ultimately contributing to the growth of the economy on a higher level.

The companies of the United States are also attracted by the growing tech startups in Latin America. These companies find it quite appealing to recruit a nearshore software developer at an affordable cost.

• Tech Talent

The majority of universities in Latin America offer technical courses and computer science programs which ultimately leads to the increment in the local talent. Other than traditional tech programs of universities, various companies are potentially collaborating with tech organizations to deliver educational and training chances for incredible software developers, providing an advanced approach to better learning. For example, there are several coding and programming camps specially made to train certain skills and meet the technical demands of the real world. 

• Nearshoring & Outsourcing

The practice of outsourcing and nearshoring has gained popularity among businesses worldwide that want to create software applications at a cheaper cost without sacrificing quality standards. 

It’s a wise business strategy, which explains why 37% of normal firms and 60% of companies outsource at least one aspect of their operations, including app development.

Mexico is one Latin American country that US businesses have been traveling to more frequently recently. Brazil and Argentina are two more of the most nearshore outsourcing destinations for American companies.

• Increasing Collaboration in Industry

Entrepreneurs and software companies in Latin America are increasingly working with partners abroad and attending international tech conferences. These gatherings give business owners from Latin American nations the chance to network, present their goods and services, and gain knowledge about current market trends and best practices.

Latin American businesses can grow and prosper by working together with foreign partners. This promotes innovation and knowledge exchange, introducing fresh viewpoints and concepts to enhance goods and services.

Additionally, working with foreign businesses and organizations encourages inclusion and diversity, which spurs innovation and success for enterprises in Latin America and around the world.

Tips and Steps Find The Best Software Developers In Latin America

Working with a company like Latam Recruit, which specializes in finding IT talent in Latin America, is the best way to get your feet wet in the field of software development there. We’ll go over the advantages and possible drawbacks of this strategy below.

Pros

• Swiftness

Many Latin American software developer recruiting firms help assist you in rapidly adding the necessary capabilities and avoiding the step of recruiting in a cutthroat local market. 

• Customized Hiring Process

These recruiting teams are experts in finding and screening software developers that perfectly suit your company and project needs.

• Budget Optimization

If you get your software developers from a company like us, Latam Recruit, you have an opportunity to hire developers on contract and pay as per their working hours. This significantly reduces the overall budget you may spend on hiring a full-time developer for a specific project.

• Increased Control

Collaborating with a Latin American software developer recruiting service gives you the advantage of handling and managing your remote team more easily. Full control of the management and execution process of creating software ensures a better outcome.

Challenges

• Distance

However, there is no doubt that Latin America is most chosen for outsourcing because it has less distance as compared to other European and Asian countries. But still, sometimes, the flight during team visits might become overwhelming due to long flights. For example, if your company is based in NY city and you have to visit Buenos Aires, then it takes almost 12 hours for you to reach there. Therefore, it is best to always consider the time before recruiting any software developer.

• Communication

The main and common language in the IT and tech world is English. While Latin American people mostly do not have fluency in English. Keep in mind, that cities like Brazil have more English fluent speakers as compared to Columbia and Mexico city developers. So ensure the area and then hire the developer accordingly. 

• Culture Difference

The work culture can also be the biggest red turn in hiring a Latin American software developer. Latin America is a place of culture and traditions. They communicate through tones and underlying meanings and messages rather than with simple words.

Well, you don’t have to worry about these challenges much as they can easily be solved with experience and proper management of a hybrid team. We at Latam Recruit always assist our clients in developing effective and efficient communication between the members of their remote teams and help them overcome their existing challenges.

Steps To Find Software Developers In Latin America

This section will help you understand the steps you must take while building your software developer team through a Latin American software developer recruiting service.

• Define The Roles 

If you are on this page researching about sourcing Latin American software developers then this literally means you have a specific job role for hiring engineers. The foremost thing you must consider for which job post you need is a developer. By narrowing down your company and project needs, you’ll be able to find the right candidate for you.

• Review The Roles 

Once you have a clear job role, share your views with the recruiting service to help them understand your needs and requirements. It is best to have a detailed description of the candidate you need along with soft and hard skills, experience, and tech level. Creating a solid structure will allow you to find and recruit a Latin American software developer that caters to all your preferences. 

• Interview Candidates

This is the crucial step that determines the future of your best remote team. Before proceeding to the interview phase, make sure that the recruiting service you choose must go through internal screening first so you don’t have to waste your time interviewing candidates that are not perfect. We at Latam Recruit always test the candidate first for the position based on both culture and skill. We more likely pay attention to the motivation and experience of the developer in the internal screening. We acknowledge that skill and talent is a priority but cultural acceptance and diversity is also the most important aspect of a developer.

• Facilitate The Work 

If all your staff is an in-person employee but now you are hiring a remote software developer, then it is your responsibility to ensure the communication and smoothness of all work go hand-in-hand among all members of a team. Latam Recruit always assists clients and all their team members to have a uniform connection and manage to create a smooth software development process.

Things To Keep In Mind When Recruiting Tech Talent In Latin America

• Different Backgrounds 

One thing to consider when hiring programmers from Latin America is that their engineering backgrounds may differ from those of their American colleagues.

You may never have heard of thousands of local businesses and universities. Furthermore, it’s also uncommon for experts to begin their computer professions in unconventional ways, such as by taking classes or learning online.

Additionally, resumes from Latin America and the United States frequently differ. Rather than listing standard university degrees, it’s customary to add a picture, personal information, and a list of programs and awards as work experience. 

• Payment Methods

Few Latin American nations, like Ecuador, El Salvador, and Panama, have dollarized currencies; the others have their own currencies. Therefore, you must be aware of the currency rate. Additionally, there may be difficulties using some payment methods because it is in a different currency.

Paying employees in Latin America with cash can have an impact on how much money they receive, even though it may be the simplest option for certain American businesses. Consider Argentina, where there are the official rates of exchange and the significantly higher “blue” rate. They thereby lose money if you offer them the standard rate.

Utilizing a variety of platforms like Paypal, Payoneer, and Wise together with several payment options is the simplest way to do this.

• Paperwork & Tax Laws 

Employing programmers within Latin America entails completing additional paperwork related to worker benefits, taxes, and other matters. 

Even while it might appear as quite a bit of work, all you really need to do is familiarize yourself with the local legislation. Or, you could just hire professionals to assist you in avoiding all of this.

Conclusion

Employing a developer in Latin America is similar to hiring one in the United States or Western nations because many of the software engineers there have strong technical backgrounds, and English fluency, and are geographically and psychologically close to you.

It is important to ensure that you have a clear idea of the jobs you need before searching for app development businesses in Latin America. Your chosen partner should then handle finding qualified people and establishing a stable remote work atmosphere for your staff.