Pros of Outsourcing Software Development in Latin America

Anastasia Stefanuk

Latin America has emerged as an attractive destination for IT outsourcing, especially software development, in recent years due to numerous upsides associated with this thriving region such as cost-efficiency, availability of skilled developers, and proximity to major industrial countries in the world. Latin America software developers are highly skilled professionals who can provide cost-effective solutions for businesses looking to develop software applications or outsource IT services. Let’s explore different aspects of South America software development and IT outsourcing services.

Latin America Outsourcing Destination: An Overview

According to Statista information, the average annualized growth of LATAM software development and IT services is about 7.7%, which marks the increasing interest of the world in this region as a whole. There are 33 countries in Latin America and the Caribbean region with a total population of about 652 million. Brazil, Mexico, Colombia, Argentina, and Peru are the top 5 countries in terms of population. The share of the services sector in the entire GDP of the region is about 67.7%, which is mainly contributed by the following major services:

• Science and technology
• Software development and communication
• Banking and financial services
• Healthcare and education
• Energy and environment services
• Transportation and urban development
• And others

The role of Latin America software development outsourcing services has increased significantly in the ever-expanding demand for South American software developers in the global market. The salient features of software development outsourcing Latin America market include:

• Major tech hubs: São Paulo, Buenos Aires, Rio De Janeiro, Lima, Santiago, Bogotá, Brasília, Panama City
• Popular technologies: JavaScript, HTML5, PHP, Python, C#, .NET, Kotlin
• Talent pool: Over 1,000,000 developers
• Developer’s average-monthly salary: $1,200 – $5000

Pros and Cons of Software Development Outsourcing to Latin America

Outsourcing software development companies in Latin America for hiring services offers a range of benefits to clients globally. Those benefits also come with a few downsides too. Let’s figure out the major pros and cons of outsourcing software development brokers LATAM.

Pros

• Cost-efficiency. The software development outsourcing to Argentina, Colombia, Chile, and other LATAM countries offers you a great deal of cost-efficiency. The average cost of hiring software developers in Latin America varies by country, skills, expertise level, and experience. The salary ranges for software developers in Latin America start from $1200 and go through $6000 per month based on different factors. Thus, you can hire a suitable developer in those countries at much cheaper than the US and other Western European countries to save a substantial cost.
• Ideal location. The location of South American countries plays another very important role in helping the region qualify as an attractive destination for hiring Latin America developers. It is situated very near to the USA, Canada, Mexico, and many Western European and South African countries. It is effortless for the clients in those countries to travel to the outsourcing destination for in-person meetings and communication.
• Large pool of tech talent. There are over 24.6 million software developers in the world. A huge portion of those software developers belongs to South American countries such as Brazil, Argentina, Colombia, etc. An estimated pool of over a million software developers works in Latin American countries.
• Diverse skill-sets. Diverse and large area of this region has software development companies in Latin America MEAN stack, and other skill-sets such as a range of computer coding languages, development methodologies, and testing platforms. The availability of diverse skills helps clients achieve a comprehensive software development solution under one roof. For instance, if you outsource software development to Brazil, you can achieve a unified solution powered by hundreds of thousands of software developers with diverse skill sets in the country.  
• Overlapped time zones. All software development LATAM countries are not 2 to 5 hours away from the time zones of North American and Western European countries. Thus, the overlapped business hours help clients with coordination and communication in a real-time environment during office hours.
• Language proficiency. English language is widely spoken and understood with greater smoothness and fluency. Spanish and Portuguese are other very common languages mostly spoken in North American and European countries. A continuous improvement in English Proficiency Index (EPI) in those countries makes it an ideal location for outsourcing.
• Professionalism. Software developers and experts are highly educated, qualified, and trained for modern work ethics, customer orientation, problem-solving, innovation, and commitment. Those traits make them highly reliable and productive human resources for the outsourcing of IT and software development Latin America services.   

Cons

• Complex taxation. The tax policies in many South American countries are very complex and discouraging for businesses. Although those countries are continuously reforming their systems, you still need to go through a complex process of taxation, even if you just outsource your software development team in those countries.
• Punctuality. Many clients complain about the punctuality of the workforce, which leads to delayed projects and budget run-overs. The matter of discipline in workflow sometimes results in disastrous consequences in certain rope-tight schedules.
• Political issues. A few countries in this region follow old conservative business doctrines, which may lead to problems in the flow of businesses who outsource their work in those countries. Thus, political issues should be considered before outsourcing a web developer agency Latin America.
• Increasing cost. The average cost for hiring software developers in South American countries is competitive, but it is increasing continuously, especially hiring Puerto Rico, Argentina, Brazil, and Mexico software developers. The average cost of living in those countries is also increasing, which is pushing the salaries of developers upwards.

Popular Destinations for Outsourcing Software Development in South America

There are numerous countries in the South American region to outsource the process for hiring developers in Latin America. A few of those destinations include:

Argentina

Argentina is the third-largest country in terms of the number of software developers and engineers, preceded by Mexico and Brazil. It is one of the attractive destinations for software development outsourcing and building a remote team for other business process management. Argentina shares a long border with other major countries like Chile and Brazil. You can hire Chile software developers and Argentina programmers to build an effective remote team in Argentina and Chile for effective outcomes. The main features of Argentina include:

• Population: 45.38 million
• Number of developers: 114K
• Outsourcing proximity with: USA, West Europe, South Africa, Brazil
• Language proficiency: 556/800
• Popular technologies: Python, Rust, Typescript, HTML, Java, Node.js

Puerto Rico

Puerto Rico is an unincorporated territory of the USA, which is located in the North Atlantic Ocean near the US and the British Virgin Islands. Most of the population benefits from the high-quality education of American universities. The average salary of Puerto Rico developers is $30,750, which is comparatively higher than many other Latin American countries. The main characteristics of Puerto Rico outsourcing include:

• Population: 3.2 million
• Number of developers: 1100 IT graduates annually
• Top tech-hubs: San Juan, Ponce, Caguas, Mayaguez, Bayamon, Guaynabo
• Outsourcing proximity with: USA, West Europe, Dominican Republic, Costa Rica
• Popular technologies: JavaScript, C++, HTML, Java, PHP, Go

Colombia

Colombia is another trendy destination for outsourcing software development processes and building a remote team of LATAM developers. It is located in the North West of South America, neighboring Venezuela, Brazil, Panama, Ecuador, and distant neighbor Costa Rica. You can establish a remote web development company in Colombia to achieve better cost efficiency and productivity. Colombia has a large pool of IT specialists and software developers. The main features of Colombia outsourcing services include

• Population: 50.88 million
• Top tech-hubs: Medellin, Bogota, Santiago De Cali
• Outsourcing proximity with: USA, West Europe, Dominican Republic, Costa Rica
• Language proficiency: 465/800
• Popular technologies: Java, Python, Perl, Kotlin, HTML/CSS, Ruby

Brazil

Brazil is the largest country in terms of both area and population in the Latin American region. The GDP of the country is $1.44 trillion. The majority of the GDP is contributed by services sectors, including IT services and others. It has borders with 10 countries in the region. It is the top destination for outsourcing of IT services and software development in the South American region followed by Colombia and Argentina. Other salient characteristics of the country include:

• Population: 222 million
• Top tech-hubs: São Paulo, Brasília, Rio De Janeiro, Salvador
• Outsourcing proximity with: USA, Canada, West Europe, South Africa
• Language proficiency: 497/800
• Popular technologies: JavaScript, Python, SQL, Java, HTML/CSS, C#

Peru

Peru is one of the top 4 fastest-growing outsourcing destinations in South America preceded by Brazil, Colombia, and Argentina. More than 60% of employees employed in the services sector work for outsourcing service providers. Peru has a long coast in the South Pacific Ocean with direct sea connectivity with many countries such as Costa Rica, Ecuador, Chile, Colombia, and others. Building a remote team in Peru with Costa Rica software development support team offers great flexibility and advantages. The other main points of this country include:

• Population: 32.9 million
• Top tech-hubs: Lima, Arequipa, Chiclayo, Iquitos, Piura  
• Outsourcing proximity with: USA, Canada, West Europe, Australia
• Language proficiency: 505/800
• Popular technologies: Rust, Node.js, C/C++, VB, Kotlin, JavaScript, Java 

Comparison: Major LATAM Development Outsourcing Destinations Vs Ukraine

Like many major countries of Latin America, Ukraine has become a bright spot for software development and IT outsourcing services in the Eastern Europe. Ukraine offers all major benefits that LATAM countries do in addition to numerous other advantages too. Let’s compare the major characteristics and qualities of a few major Latin American countries with Ukraine in the following table.

Ukraine has very close proximity with all major Western European countries and overlapped working hours with countries in North America. It shares common culture and has a higher fluency in English language. Ukraine offers a much higher quality/cost ratio. Ukrainian software developer rates are customer-oriented. Developers are highly innovative, consistent, committed, flexible in working hours, and many other professional attributes.

Top Reasons to Hire Ukrainian Software Developers

Ukrainian software developers have proven themselves to the world for their high-quality work, innovative approach to problem-solving, competitive prices, greater productivity, reliable services, and many other professional and technological attributes. Many companies across Europe, North America, Australia, Indo-Pacific, and other regions prefer building a remote team of software developers in Ukraine. The main reasons to choose Ukrainian software developers include:

• High education standards. Ukrainian STEM education system is very well-known for its high standards and practical approach to the solutions in the real-world industries. This is the reason that a huge number of students from across the globe come to pursue their technical degrees in Ukraine. As many as 16,000+ IT students are graduating every year in the top technical universities of the country.
• Large pool of tech-talent. Ukraine has one of the largest pools of tech-talent of over 200,000 IT professionals in Eastern Europe. This huge pool consists of software developers with diverse skills and experience and many other experts such as testers, QA engineers, web designers, and software development managers.
• Competitive prices. The quality vs cost commonly referred to as quality/cost ratio of Ukrainian developers is much higher than developers in many other outsourcing countries. They offer numerous additional advantages that make your project a big success and you save substantial amounts in different sections and heads.
• Language fluency & shared culture. Ukrainian developers speak English very fluently. The average EPI score of Ukraine is 525/800 points. It shares European culture and work ethics, which boost the effective communication and understanding among the client dedicated software development team Ukraine.
• Convenient location with overlapped time zones. Ukraine is located in Eastern Europe, which is the central location for all major countries in Europe, Asia, Indo-Pacific, North America, and Africa. All those countries share overlapped working hours for more effective communication and coordination in a real-time environment during the office hours.
• High level of professionalism. Ukrainian are highly qualified and trained professionals with a range of desirable soft skills such as innovative thinking, out-of-the-box approach to problem solving, work-commitment, customer-oriented nature, consistency in behavior, and many others. All those factors result in a highly congenial environment, which produces great benefits, reduced risk, and satisfied teams.

Why Is Mobilunity a Perfect Company to Hire Developers from Ukraine?

Mobilunity is a highly professional company that offers you a comprehensive solution to meet your remote hiring needs for software development and IT services: hiring a CTO, Fintech developer or ROR programmer. The most common reasons to hire developers through Mobilunity in Ukraine include:

• All-in-one solution. Our team assists you in assessing your business needs, providing a proper solution, accomplishing recruitment, onboarding your team, and scaling your existing team for any emergent situation to meet new requirements under one roof. We can provide a range of customized solutions such as team extension, team-building from scratch, project-based hiring, managed services team, and others.
• Competitive prices. We provide a cost-efficient solution tailored for achieving 100% business objectives. Our solutions are cost efficient and fixed-rate offers without any hidden charges at all.
• Successful track-record. Powered by a team of over 200 specialists and over 11 years of industry expertise, we have a proven track-record of successful business relationships with a large number of clients across 15+ countries worldwide.
• Fully managed service with full control. We offer the entire process managed by our professional team on your behalf. You have full control over the teams we build for you to accomplish your development tasks.
• Continual support. We provide our clients with continuous and consistent support to keep them aware of the emerging market trends, fill the future gaps of tech-talent, expand their existing teams, retain their talent effectively, and much more on a regular basis so that our clients feel 100% satisfied and relaxed.

Are you ready to take your business to new heights successfully through outsourcing services? Recruit software development companies in Latin America with us now!