Pros of Outsourcing Software Development in Latin America

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. Hire software developers in 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 decided software development outsourcing 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.
• 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:

Outsourcing to Argentina’s IT Market

Argentina’s IT sector is well positioned to become an influential player in the development of future technology-driven business solutions as the global IT landscape continues to change.

• The IT industry in Argentina has grown at a phenomenal rate of 17.76% in recent years. This explosive growth has established Argentina as a major player in the IT outsourcing Latin America market, thanks to the country’s friendly business climate, highly trained workforce, and widespread demand for IT services around the world.
• With more than a thousand IT firms, Argentina provides a wide selection of the best software development companies in Latin America. Companies ranging from startups to industry heavyweights provide a wide range of IT services, ensuring that businesses of all sizes have access to the software, security, and analytics they require.
• The roughly 111,000 experts working in IT in Argentina are an invaluable resource. These professionals have extensive training, a solid work ethic, and the ability to quickly adjust to novel situations. 
• The information technology business in Argentina is not limited to the domestic market; in fact, the country’s tech exports are worth $466 million. The benefits of outsourcing to Latin America, including cost-efficiency and a talent pool, make it a strategic choice for businesses seeking high-quality solutions.
• The Argentine workforce’s fluency in PHP,.NET, Java, Python, and Lua, among other languages, facilitates effective communication and cooperation with clients around the world. Unlock the innovation and skills of software developers in South America with Mobilunity to take your projects to new heights.

You can hire software developers in Chile and Argentina programmers to build an effective remote team in Argentina and Chile for effective outcomes.

IT Hubs in Argentina

• Buenos Aires

In the heart of Argentina, Buenos Aires is the technical hub. Software developers, approximately 35,000, thrive in the city. Tech-savvy people earn about $1,997 monthly. Buenos Aires’ IT culture attracts local and international techies with its innovation and collaboration.

• Cordoba

In lovely Cordoba, west of us, we find a tech hub. With 8,000 software engineers, Cordoba has a creative IT community. Software developers in this attractive city average $1,100 per month. Cordoba attracts tech talent with its inexpensive cost of living and rich culture.

• Rosario

Rosario, on the Paraná River, is a growing software development city. Rosario has 5,000 software developers, boosting its tech industry. These skilled workers earn $968 per month on average. Rosario’s scenic surroundings and growing tech population create a unique work-leisure mix.

• La Plata

Software developers can find a quieter but equally enriching atmosphere in La Plata, just outside Buenos Aires. Among its 3,000 developers, La Plata promotes cooperation. The average compensation for software developers is $794 per month. Techies like this city’s proximity to the capital and quality of life.

• Mar del Plata

Mar del Plata, a picturesque beach city, is our last visit. Around 2,500 software engineers work here in the sea breeze. This close-knit tech community earns $582 per month through invention and hard work. Mar del Plata’s laid-back beach lifestyle and booming IT sector appeal to work-life balance seekers.

Salaries of Software Engineers in Argentina

Outsourcing to Puerto Rico

Puerto Rico is a fascinating option for software outsourcing South America because of the high quality of its IT services.

• The IT sector in Puerto Rico has experienced unprecedented growth in recent years. The island’s growth rate of 4.97% is indicative of its resolve to become a major player in the international IT industry. Outsourcing software development to Puerto Rico is a wise decision for IT projects because of the territory’s closeness to the U.S. mainland, trained bilingual workforce, and stable business environment.
• There are over 953 IT companies in Puerto Rico, all of which contribute to the island’s technical development. Companies of all sizes, from startups to multinationals, offer a wide variety of information technology services, from software development to cybersecurity. Software developers from Latin America bring a wealth of expertise and innovation to your projects, making them a valuable asset for businesses worldwide.
• Dedicated and skilled workers are the lifeblood of a successful IT sector, and Puerto Rico is home to nearly 22,000 such individuals. Because of their versatility and propensity for creativity, they are excellent software outsourcing Latin America partners for firms.

IT Hubs in Puerto Rico

• San Juan

San Juan is a city of history and invention, and it is here that software engineers leave their digital imprints on the world. About 2,500 developers keep this thriving digital cluster running, with an average pay of $3,540 a month. The city of San Juan is a magnet for techies who are drawn to the Caribbean by its rich cultural heritage and cutting-edge infrastructure.

• Bayamón

About 1,800 software developers call Bayamón, with its appealing mix of modernity and heritage, home. The city’s competitive tech sector is reflected in the average monthly income of these computer-savvy minds: $4,388. Bayamón is a great place for anyone looking to advance their IT career because of its central location and thriving tech community.

• Carolina

A new tech community is developing in Carolina, on the eastern coast of Puerto Rico. About 1,300 software developers here help build the digital landscape while earning $6,184 on average per month. Tech workers who are interested in a combination of closeness to major corporate areas and a dedication to innovation may find Carolina to be an appealing option.

• Ponce

Approximately 900 software engineers live and work in Ponce, a charming city in the south. These digital nomads earn a monthly salary of $3,601 on average. Ponce’s tranquil setting and burgeoning tech industry create the ideal environment for professionals in the Southamerican software development industry to work and relax in harmony.

• Arecibo

The town of Arecibo, Puerto Rico is home to more than just an iconic observatory. Arecibo is home to an average monthly salary of $4,734 and a developer community of over 700 people. Tech professionals eager to make their mark will find a stimulating atmosphere in the city’s unusual mix of scientific curiosity and technical innovation.

Salaries of Software Engineers in Puerto Rico

The Colombian Outsourcing Industry

Colombia, a country renowned for its cultural diversity and beautiful scenery, is currently making waves in the Latin America software outsourcing industry. What makes Colombia so unique in this field?

• The information technology sector in Colombia is booming, expanding at a pace of 9.15% each year. Looking to hire Latin American developers? Mobilunity connects you with the best talent in the region to supercharge your projects.
• Over 3,600 top software development companies Latin America provide a wide selection of services and solutions in Colombia. The information technology needs of businesses like these are extensive, ranging from software development to cybersecurity. Businesses in Colombia can take advantage of the country’s thriving IT scene because of the abundance of specialized knowledge available there.
• Over 150,000 highly-skilled IT professionals in Colombia are known for their creativity and flexibility in the workplace. Outsourcing software development to Latin America with Mobilunity ensures access to a rich pool of talent and cost-effective solutions for your business.
• With a current tech export value of $735 million, it is clear that worldwide companies have faith in Colombia’s IT capabilities.
• Java, Python, Perl, Kotlin, and HTML/CSS are all languages that Colombian IT experts are fluent with.

You can decide outsourcing software development to Colombia to achieve better cost efficiency and productivity. Colombia has a large pool of IT specialists and software developers.

IT Hubs in Colombia

• Bogota

The Colombian capital city of Bogota is a leader in the country’s thriving tech scene. There are over 6,500 Latin American devs in the city, making it a hub for technological advancement. The competitive nature of the profession in Bogota allows for these bright individuals to fetch an average monthly pay of $2,823.

• Medellin

Medellin, Colombia, a city in the foothills of the Andes, has become a major technological center, with an estimated 4,200 software developers calling it home. The average monthly pay for these digital trailblazers is $2,823, and they get to bask in the city’s mild environment while doing so. Medellin attracts software development South America workers thanks to its cutting-edge digital hubs and affordable living.

• Cali

The city of Cali, Colombia, is home to a growing community of software developers in addition to its famous salsa music and lively culture. The average developer income in Cali is $2,310 per month, and the city is home to about 2,800 programmers. The city’s distinctive atmosphere, which is equal parts creative energy and technological forward thinking, is ideal for Latin America software development.

• Barranquilla

Barranquilla, located on Colombia’s northern coast, is a technological powerhouse thanks to its 1,500 strong software developer community. On average, these techies earn $1,283 each year while shaping the future of the digital world. Barranquilla’s growing tech scene and its central location as a major port city make it a desirable location to outsource software development team Latin America.

• Cartagena

Cartagena has been making waves in the software development world in addition to its well-known historical appeal and stunning coastline landscapes. Roughly one thousand developers South America contribute to the local IT scene, bringing in a monthly income of around $1,247. The city of Cartagena, with its rich history and burgeoning tech scene, makes for an interesting setting for innovative software projects.

Salaries of Software Engineers in Colombia

Brazil’s Outsourcing Potential

Brazil is a great place to take advantage of South America software outsourcing because of its extraordinary growth rate, plenty of IT enterprises, powerful talent pool, high tech export value, and proficiency in chosen programming languages.

• Growth Rate of 8.34% is Impressive The IT sector in Brazil is constantly evolving and growing. This number demonstrates the country’s efforts to foster a varied IT environment, which makes it a desirable location for companies in search of innovative technologies.
• Brazil’s wide selection of IT services and solutions is the result of the country’s large IT industry. When it comes to software development company in Latin America, you have a plethora of options to choose from – 15k companies in Brazil only.
• Brazil is home to a formidable IT workforce, with over 1.2 million skilled workers who are known for their commitment and flexibility in the field. Clients looking to outsource to Latin America can benefit greatly from the expertise of these professionals, who are prepared to take on even the most complex IT projects.
• Brazil’s IT business is relevant around the world because of the country’s $6.35 billion in IT exports.
• Information technology experts in Brazil are fluent in many languages, but they have a soft spot for PHP,.NET, Erlang, Lua, and Node.js. For enterprises wishing to take advantage of the region’s abundant talent pool, remote software development in Latin America is a wise choice.

IT Hubs in Brazil

• São Paulo

Software engineers are drawn to Sao Paulo, Brazil’s thriving commercial and technological center. So Paulo’s average monthly wage is $3,012, and the city is home to around 30,000 developers who are changing the city’s digital scene. The city’s growing IT environment, reflected in the city’s competitive wage, attracts people from all over the world.

• Rio de Janeiro

About 18,000 software developers call Rio de Janeiro, Brazil, home. These experts bring in a monthly pay of $6,369 on average while working near beautiful beaches and famous sites. Rio is a one-of-a-kind place for people who love both nature and technology because of its fusion of the two.

• Brasília

Brasília, Brazil’s capital, is home to the country’s government and is also a burgeoning center for technology. There are over 7,000 software developers in the city, and they make an average of $5,136. Braslia’s advantageous location and expanding IT community make it an attractive choice for software engineers seeking to further their careers.

• Fortaleza

Fortaleza, located on the northeast coast, is rapidly developing into a major hub for technology. There are over 5,500 software engineers in the city, and they bring in about $5,547 per month on average. IT professionals looking to strike a work-life balance will find what they’re looking for in Fortaleza, thanks to the city’s low cost of living and growing IT industry.

• Salvador

Salvador is making great gains in the field of software development in addition to its well-known cultural achievements. There are over 4,000 software developers in the city, with an average pay of $2,876 per month. Salvador’s cultural diversity and burgeoning tech scene make it an attractive location to outsource software developers Latin America.

Salaries of Software Engineers in Brazil

Peru: A New Global Tech Giant

Peru has been rising in popularity as a prime location for IT outsourcing in Latin America. Let’s look at what makes Peru’s technology scene so interesting:

• The IT sector has been expanding at a rate of 8.63% annually, making the country a major player in the international IT outsourcing market. Peru software development outsourcing with Mobilunity offers top-notch solutions and expert talent for your projects.
• Boasts a thriving ecosystem of software development companies in Peru, with over 1,800 firms providing services and solutions to meet the demands of a wide variety of businesses. 
• Peru is proud of its pool of 38,000 IT experts, who are known for their hard work and flexibility. These professionals are equipped to take on challenging IT tasks and complete them effectively and creatively.
• Peru’s ability to provide high-quality IT solutions and services to clients around the world is reflected in the $172 million worth of the country’s technology exports.
• PHP, ASP.NET, Lua, and CSS are some of the most widely used languages in Peru’s technological community.
• For unmatched expertise and talent, hire software developers in Peru with Mobilunity and unlock the potential of your projects.

Building a remote team in Peru with software developer Costa Rica support team offers great flexibility and advantages.

IT Hubs in Peru

• Lima

The Peruvian capital and technological hub is the lively city of Lima. Lima’s average monthly wage is $2,422, and the city is home to more than 5,000 software engineers who are defining the city’s digital landscape. The city’s burgeoning IT environment, which attracts talent from all across the country, is reflected in the city’s competitive salaries.

• Callao

Callao, Peru’s second largest city and a major contributor to the country’s software development business, is located just outside of Lima. About 1,500 software developers make a living in this port city, with an average pay of $2,400. If you’re looking to boost innovation and growth at your company without breaking the bank, consider outsourcing software development to Peru.

• Arequipa

Arequipa, Peru, a city in the Andes, has become a major center for technology. There are approximately 1,200 software developers in the city, with an average pay of $1,076. Those trying to strike a work-life balance may find Arequipa to be an appealing option due to the city’s excellent environment and cheaper cost of living.

• Trujillo

Trujillo is making headway in the field of software development on the northern shore. This city has an average pay of $1,211 per month and is home to over 900 software developers. Trujillo is becoming a desirable location for IT workers due to its expanding IT sector and close proximity to major corporate areas.

• Chiclayo

Chiclayo is well-known for its historical significance, but it is also making strides in the country’s software industry. About 700 software developers in the city earn an average of $1,987 per month to create the city’s digital future. The city of Chiclayo, Peru, is a cultural hotspot with a burgeoning tech scene, making it an ideal location for developing innovative software.

Salaries of Software Engineers in Peru

Comparison: Major LATAM Development Outsourcing Destinations

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 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 Developers with Us

Mobilunity has proven ourselves 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 with our help. The main reasons to choose us include:

• Large pool of tech-talent. We have one of the largest pools of tech-talent 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 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.

Finding Latin American Software Developers is Easy with Mobilunity

Mobilunity is a one-stop shop for companies looking to hire software developers Latin America because of its stellar reputation in the field. Why Mobilunity is different:

• Our end-to-end solutions cover everything from analyzing your company’s need to find and hire software development team Latin America.
• We offer reasonable prices without any sneaky add-ons or fees.
• We have a solid reputation for providing first-rate service to customers in over 15 different nations and over the course of 12 years in the business.
• Support on an ongoing basis: we will provide you with information about the Latin American industry, help you find and hire top people and expand web development company Latin America.

Consider outsourcing software development to Venezuela with Mobilunity for a cost-effective solution and access to skilled professionals. Or maybe you are looking for outsourcing software development to Ecuador? Mobilunity brings access to a skilled workforce and cost-effective solutions for your projects.

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.

Mobilunity’s Service Models

At Mobilunity, we provide a selection of service options to accommodate a wide variety of IT and development requirements. Let’s take a look at our three primary service models, each of which is aimed at solving problems in their entirety:

• Dedicated Development Teams

You’ll have direct control over a dedicated developer with our Dedicated Development Teams model, while we handle administrative tasks like payroll and customer service. It’s an easy method to get in touch with top-tier talent without having to deal with any bureaucratic red tape. You can consider outsourcing software development to Panama with Mobilunity for access to a growing tech industry and skilled professionals.

• Consultancy Services

Part-time professional advice is a perfect fit for our Consultancy Services concept. We’ll aid with questions about HR, accounting, and the help desk while you manage a part-time employee directly. It can bend with some encouragement.

• Recruiting Services

Our Recruiting Services include both international and local hiring software developers in Latin America and the Eastern European region. Our performance in Japan is only one example of how well we do in competitive markets. Help your company locate the best employees.

Are you prepared to take your IT ambitions to the next level? It’s time to start recruiting Latin American software engineers with Mobilunity.

Written by:

Anastasia Stefanuk

Market Researcher

Disclaimer: All salaries and prices mentioned within the article are approximate NET numbers based on the research done by our in-house Recruitment Team. Please use these numbers as a guide for comparison purposes only and feel free to use the contact form to inquire on the specific cost of the talent according to your vacancy requirements and chosen model of engagement.