The software development industry is growing fast worldwide. As digital solutions are now the need of the hour, companies are looking for dedicated and skilled software developers. This need has crossed borders!
Mexico is the city of tech and offers numerous opportunities in the tech and software development industry. With experienced software developers of LATAM, Mexico is the ideal option, which offers both quality and affordability. The software developers are well-versed in various tech stacks.
Overview of the Latin American Tech Industry
The Latin American tech industry has grown exponentially over the past years. It has a large tech-savvy population, advanced technological solutions, and investments. The government has taken the initiative for tech advancement in LATAM countries. It leads to more regional tech hubs in cities like Mexico City, Cordoba, Belo Horizonte, etc.
The tech hubs have experience in software development. You can find tech talent in any industry, including blockchain, AI, ML, and more. As they have this much talent, startups and companies contact them for hiring tech talent with less effort and cost.
Latin America’s tech industry and educated talent allow other countries to hire them. It saves costs and provides continuous innovation. Most countries like Canada and the US hire LATAM developers.
There are more than 2M talented software developers in Latin America. Therefore, Latin America is considered one of the fastest-emerging tech talent companies. Companies from other countries prefer to hire professionals from Latin America because of the potential.
Almost all countries in Latin America are developing. However, Colombia has become the most preferred country for outsourcing the roles for some years. According to the statistics, Colombia was in 3rd rank in Latin America in 2021. Mexico is first, and Brazil is in second position. The rankings are based on the size of the IT market.
The Colombian Federation predicts a 5% growth in the GDP of the Colombian IT and software industry. Some cities in Colombia, like Cali, Medellin, and Bogota, are hubs of emerging startups. The government also support these startups by providing funding and incentives. It encourages the new skilled people to grow more. Tpaga, Ayenda, and Rappi are the well-known tech startups of Colombia.
The largest tech hub of Latin America is Brazil. It emphasizes e-commerce, Fintech, and software development. In the ranking of ease of doing business, Brazil is on 124th. The government has initiated multiple initiatives to improve the IT industry to improve the rankings. They have developed technology and science parks, digital programs, startup support, and cybersecurity training. The projected progress of the IT industry in Brazil is about 5% and $8B in 2023. The rank became better in the Kearney GSLI list in 2021.
Mexico also focuses on the FinTech, e-commerce, and development industry. In the global Tech market, Mexico is 12th based on innovation and 3rd in LATAM and Carribean. It also has similar projects to Brazil. The initiative includes technical parts and investments for technological advancement. Mexico has more than 700,000 software developers and 3M professionals in STEM.
The government is also trying to advance Argentina in technology and innovation. As a result, Argentina ranks 9th in the Global Innovation Index. Argentina’s focus is on biotechnology, software, and nanotechnology. It has 115,000 software developers with an emphasis on STEM and English proficiency. This makes it a favorable location for hiring tech talent in SA.
The companies are also diverting their focus towards Costa Rica. The environment is tech and infrastructure-friendly. It is 3rd in the Global Innovation Index in the LATAM region. Almost 22% of tech is advanced and related to tech 4.0. The education level is high in Costa Rica. It has more than 7,000 STEM and 45,000 software developers. The government of Costa Rica and the private sector are investing in tech hubs and training.
LATAM’s Laws and Regulations
Contracts & Agreements
Before hiring tech talent from Latin America, you should create employment contracts and agreements. These agreements should include employment, job descriptions, salary, working hours, benefits, and termination.
You must comply with the labor laws of Latin American countries. Almost every LATAM country has different laws and regulations. Your research should include allowed working hours and overtime. Some countries also have set minimum wages, so look for that too.
Labor Laws of Various Countries
Most countries have different laws, so you should compare them to know the differences. This analysis will update you about the workflow. You can get this information from legal and government websites.
Contact legal professionals and consultants if you don’t understand or know about the laws. They have the expertise to know about labor laws in specific countries of Latin America. So, you can get help with all the basics of legal compliance and regulations.
Intellectual Property Protection
Rights & Ownership
You should add separate clauses about intellectual property rights and ownership in the agreement. The document should mention that any developed project belongs to the company and the employee has no rights. Moreover, you can set other specific agreements as per your company policy.
The company should create a proper NDA to protect sensitive information, secrets, projects, and collaborations. They should also discuss it with the developers to ensure they comply with the obligations and keep the confidential data safe.
Data Security & Privacy
Data security and protection are needed for this digital development. You must review and implement data protection laws in the LATAM countries and your home country. Several laws, like the General Data Protection Regulation, exist for data protection. You have to comply with all implemented laws.
Companies usually share their data with their employees. If you share any data with the LATAM developers, ensure you have data handling and protection protocols. You should use secure communication tools and data encryption to prevent data breaches.
Every country in Latin America has different data protection laws. You must be aware of these legislations. For instance, Brazilian GDPL is for Brazil, while personal data protection law is for Argentina.
You must be familiar with the cybersecurity industry and practices in LATAM. It includes familiarity with cyber threats, the best approaches to deal with them, prevention, and future trends. You can read about the cybersecurity landscape from reports and research.
Why Should You Hire LATAM Developers?
Before hiring a developer from Latin America, you should know why they are best for your company. Here are the reasons for hiring LATAM developers:
- Cost-effective Software Developers
LATAM software developers are a good choice for companies and startups. They are cost-effective and affordable. However, you get high quality at even affordable rates. The prices are not too low but comparatively lower than in other countries. Startups can use this budget for more technological advancement.
- Many Options for Software Developers
Latin America has many software developers. The number of software developers is increasing due to technological advancements. The more technology and digital systems, the more the software developers will need. Latin America become an ideal place to look for tech talent. Also, the time zones are almost similar, so there is no difficulty matching the time.
- High Quality-Price Ratio
Latin America is the absolute choice as it provides quality work at a lower price. It has the best software developers. They also have good tech stack, communication skills, and tech abilities. The reasonable prices make it a great quality-to-price ratio. It also shows that technology will become more advanced.
- Accessible Talent
The timezone of LATAM is close to the US. It makes communication more accessible and easier. You can also visit the team in Latin America, as it’ll not take much time and money.
The Process of Hiring LATAM Developers in 2024
Latin American software developers are the top talent in the software development industry. They have a diverse portfolio of languages and frameworks. This makes the talent highest among other regions.
HackerRank’s 2021 Developer Skills Report ranked the software developers of Latin America among the top performers globally. Their programming skills were in Python, Java, and JS.
- Stack Overflow’s 2020 Developer Survey states that LATAM has more software developers than any other county. This percentage has increased in the last five years.
- The Coursera Global Skill Index 2020 had LATAM countries with proficient developers in the top 10 countries.
Here’s a complete guide on how should you hire from Latin America:
#1. Your Requirements
You must first know what you expect from the software developers and your requirements to hire talent. You must know the programming languages, platforms, and frameworks. Based on your work, decide how many resources you’ll need. You can narrow down your research by setting a clear roadmap.
#2. Your Budget
To analyze the budget, first note your needs and research the salaries for the particular requirements. This way, you can make an estimated budget. You can then decide what part should be outsourced and what not. The budget analysis will help you to set guidelines and expectations. Moreover, you can give the market competitive salaries to the software developers.
#3. Right Working Model
Software industries work on several working models. These models are also a point of consideration when hiring talent from Latin America. It makes hiring and working easier and smoother. You can select the talent based on which model they work.
#4. Tech Stack
The hiring depends on the programming language used for software development. The company knows the roadmap and needs, so it can decided based on the requirements. You must research the technology stack and decide before hiring someone. After deciding, look for the right talent with expertise in the same programming language and framework.
#5. Preferred Countries
As every country has different rules and regulations, you should shortlist some of them which suit your company’s requirements. You can compare these countries based on the minimum wage, working hours, overtime, and laws. It’ll let you know about the trends, developers, and technologies used in the region.
#6. Clear Job Description
You have two options while hiring from Latin America. First, you can hire or contact a talent acquisition company. Second, you do it by yourself.
If you decide to hire by yourself, you must have a detailed job description. It should state the timings, technology stack needed, and other details. Once you have a JD, share it across social media and other talent hunt websites.
You’ll receive many applications for the role. Like JD, now you should have interview questions to scrap the right talent from all applications. You should also explain the company, its values, and its rules to them.
Recruit the Best LATAM Developers from Latin America
There are so many barriers to outsourcing a task. One should overcome communication barriers, learn laws and regulations, and manage teams accordingly. It requires a proper approach to balance recruitment with needs.
This is how LATAM Recruit developers come in! We are an emerging company that will connect you with the perfect tech talent. We have a large network of developers with proven practical experience. We’ll connect you with the right talent without any hassle.
How much does a Latam developer charge?
A software developer charges about 45-65 USD on average.
Whose salary is highest in LATAM?
Puerto Rice has the record highest monthly average salary. Its net is equal to around $1700 per month. The highest offering in continental LARAM is of Uruguay at $1039.92.
What is the number of software developers in LATAM?
The number of software developers in Brazil is around 500,000, 220,000 in Brazil and 115,000 in Argentina.