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Software Developers in Latin America: Facts and Insights

Introduction

It is not wrong to say that we see unparalleled and positive growth in the economic and pioneering industries of LATAM or Latin America. As per reports and data, in 2021, the software sector of Latin America made a revenue of more than 22.1 Billion Dollars. 

Majority of the top software companies in Latin America are located within nations such as Argentina, Mexico, Colombia and Brazil. These places have incredible software engineers and are considered as the central hub of tech companies. The software market of Argentina has $1.9 billion in 2021 which is predicted to raise up to $2.8 billion in 2026. 

Brazil is the second largest country whose software market will grow up to $6 billion by the year 2026. 

The software and tech market of Brazil has shown an exceptional increase of 26%. It has reached its max point up to $1.5 billion in 2020. Latin America’s software industry has gained immense popularity due to increased use of smartphone devices and the internet. The government of Latin America has also suggested new strategies and measures to develop a new business startup and allow them to grow quickly in the international market.

The VC activity has also grown over the half decade. There are now 23 major markets in the area. LATAM closed a record 488 acquisitions in 2021 alone, making agreements worth $4 billion for the following year in a row. Its startup exits generated a whopping $11 billion in profit. That demonstrates the enormous growth that the LATAM software market is seeing. Furthermore, Entrepreneur claims that LATAM is still producing excellent software engineers around the area to meet the expanding demands of the business. 

Businesses are also paying attention to LATAM and searching for talent, even beyond the area. Various studies show that companies who recruit their software developers through Latin America have seen their company rising up to 155%. This promising result makes Latin America a top place for hiring software developers and engineers.

Check out our review of the software industry in Latin America and how it can help your company if you’re new to the market and want to hire onshore talent from the region.

Why Hire Software Developers in Latin America ?

There are different reasons why software developers are drawn to Latin America: 

‍Education

The region’s broad education activities and programmes contribute to the rising number of software engineers in LATAM. Free education is offered in several LATAM nations, particularly in the fields of information technology, engineering, and tech careers. Additionally, government and independent initiatives are pushing tech firms, enterprises, and organizations to hire interns, which encourages more locals to pursue employment in the industry. The National Plan for Electronic Languages, for instance, was launched by Chile’s Ministry of Education in an effort to inspire more students to pursue jobs in computer science and engineering. This method begins prior to college, with thorough training programmes for teachers and computer science lesson plans offered by universities.

Software growth

The software industry of Latin America has so much talent because of their high education system. The IT sourcing market of Mexico is rapidly growing with the rate of 10-15% each year, which makes it the largest outsourcing place for developers.

LATAM nations are leading the way in IT and software products and services because regional governments and administrations are encouraging people, businesses, and organizations to pursue computer science education and focus. 

‍Tech startups  in Latin America

Crunchbase marked Latin America that has grown significantly in 2021 around the globe. The value of tech firms in this region has increased up to $216 billion from $38 billion in just three years. This ratio does not seem to slow down in the future because only startups of Latin America have earned around $450M in just two weeks of 2022. 

The increasing middle class in Latin America is a huge market for services, which is attracting the attention of global investors. Talent maturity is also contributing to the growth of startups in the region.

Benefits of Hiring Software Developers in Latin America

Over time, software development in South America has expanded rapidly. Working remotely for companies with headquarters in the US and Europe has boosted economic growth in the majority of LATAM nations and produced a large number of well-paying jobs by local standards. Latin America offers a wide range of benefits to the startups. Some of them include:

  • ‍Expert services

The region has seen enormous tech investment throughout the years, which has contributed to its growing popularity as a tech hotspot. LATAM is increasingly gaining traction as the hub for software engineering and IT thanks to the numerous well-known startups and IT giants who outsource their IT projects to it. In addition, some major internet companies have already established offices in Brazil, such as Dell, Google, Airbnb, Amazon, HP, GoDaddy and Netflix, among others.

  • Cost-effective

The cost of software developers in Latin America is substantially lower than that of their counterparts in North America, despite the fact that their rates are greater than in certain nations typically connected with offshore software services. Because it reduces the quantity of full-time employees and salary costs, staff augmentation is advantageous for startups. It also removes additional expenses, such as benefits, paid time off, and other perks.

  • ‍English Proficiency

According to the world’s largest ranking of countries and regions based on English proficiency, multiple Latin American and Caribbean countries ranked optimally in the English Proficiency Index of the EF (EPI) for 2021. Argentina, with “high proficiency” English competencies, was the top-ranked LATAM nation. English proficiency is increasing in LATAM, outperforming rival Asian outsourcing markets. Improved English proficiency translates to more successful interaction with less interruptions that could lead to mistakes and problems in teamwork. 

  • Zone differences

Due to the 12–24 hour time difference in most Asian and European nations, working remotely might be difficult. Communication is facilitated by the fact that most Latin American nations are only one to three hours apart from the United States.

  • ‍‌Proximity to the U.S.

It is better to hire a software developer that lives a little closer. Being employed by LATAM puts you nearer to the action. Therefore, you don’t have to fly halfway around the world to visit your remote employees and participate in the development cycle. Building a team and culture are also made much easier by this.

  • Culture clash

When deciding where to hire talent, there are unquestionably noticeable distinctions between North and South Americans. However, you should also take into account how comparable these two cultures are, particularly if you’re thinking about growing in regions like Asia. There are observable similarities across the civilizations of North, South, and Central America despite their disparate origins. 

The American’s history has shown clear signs of the mixed traditions of Native Americans and European settlers. The culture of these countries change with the time but the origin of traditions and values stays intact. These values affect work ethics and values a lot. Also, we can’t ignore the fact that Latin American countries also use the same products, watch the same media, and follow the same American standards of work.

Additionally, LATAM nations utilize American working norms, purchase American goods, use American technologies, and consume media in a manner comparable to that of the United States. 

Latam Recruit’s Talent Recruitment

Latam Recruit stands apart in the competitive market for recruiting Latin American programmers, thanks to their approach to talent recruitment. Finding candidates is only one step in their process; another is spotting extraordinary talent that precisely fits the parameters of your project. A closer look at their hiring procedure is provided below:

  • Custom Hiring: Latam Recruit spends time getting to know your particular requirements and preferences. Their recruitment efforts are based on this information, which guarantees that the individuals are an ideal match for your projects.
  • Top Talent: Latam Recruit is proud to have access to the top three percent of talent in Latin America and Eastern Europe. This dedication to excellence ensures that you will have availability to a group of highly qualified experts.
  • Speed & Efficiency: In the rapidly evolving field of technology, efficiency is paramount. Your committed development team may start working in weeks rather than months with Latam Recruit. You can accelerate your products’ manufacturing velocity with this speed.
  • Rigorous Screening: Each developer must pass a thorough screening process. To make sure they fulfill the highest requirements, this involves technical exams, cultural fit assessments, and in-depth interviews.
  • Transparent and Capped Fees: Latam Recruithas a different pricing structure than other standard recruitment agencies. There are no up-front expenses; payments are paid over a period of 18 months. With an upfront return on investment and cost-effective talent, this clear and restricted fee model offers.

Latam Recruit’s – Your Gateway to Software Developers in Latin America

Companies are turning more and more to specialists like Latam Recruit in their drive to create teams of software developers in LatAm and hire workers from Latin America. The following explains why Latam Recruit is the ideal partner to work with when bringing Latin American IT talent to its full potential:

  • Tailored Solutions: Latam Recruit is aware that no two situations are the same. Whether you want to expand your current team, hire Latam engineers, or establish a specialized development team, they provide tailored solutions to meet your unique requirements.
  • Founders: Latam Recruit was founded by SaaS-based business owners who have firsthand experience with the difficulties of assembling remote development teams. They offer invaluable knowledge and perspective to the table. They’ve made the necessary corrections to spare you from having to.
  • Yourshore Model: The cutting-edge “Yourshore” concept from Latam Recruit guarantees that the Latam software developers you hire are exactly what you need. It enables you to establish completely devoted teams of developers in LATAM that can be customized to meet your unique needs.
  • Customer-Centric Approach: Latam Recruit places a strong emphasis on client centricity in whatever they do, and they are committed to your success. To accentuate their dedication to prioritizing their clients, they explicitly state this in their pricey logo.

Latam Recruit is a reliable partner on your quest to fully utilize an opportunity of Latin American digital talent, not merely a supplier of services. They prioritize your success, give experience, and streamline the procedure.

Conclusion

Latin America has been a sought-after location for companies looking to hire developers from the region due to its reputation for technological innovation and superior software development. Offering a distinct combination of benefits, such as cost-effectiveness, cultural affinity, and a continuously expanding pool of talent, the region is an alluring option for businesses globally.

Businesses who want to take advantage of this potential should contact professionals like Latam Recruit. We are a dependable partner in the endeavor to establish teams of software developers in Latin America and Eastern Europe, streamline the procedure, address obstacles, and guarantee that you will have a link to the best 3% of talent in these regions.

Businesses may confidently start their journey to leverage Latin America’s outstanding tech talent, expedite their growth projects, and maintain an advantage in the rapidly changing software innovation landscape by selecting Latam Recruit. Hiring engineers is only one aspect of the problem; another is opening up a world of opportunities in the Latin American digital sector.

FAQs

Why is Latin America a right place for startups?

The rapidly expanding, digitally underserved middle class and the pervasiveness of technology in every aspect of consumers’ life are driving rapid growth in Latin America’s consumer marketplaces. This leads to greater demand for digital software, which encourages the growth of companies and raises investor interest.

What is the cost of hiring Software Developers in Latin America?

The price range of recruiting a software developer from Latin America varies on the basis of their talent and experience. A junior software engineer will take up $35-$40, while an experienced developer ranges between $50-$60.

Jeylin Vasquez

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