Nearing 700 million residents, Latin America is quickly becoming a leading pool of talent for North American hiring teams. With a growing number of reputable schools, increasing English language acquisition, and millions of self-taught autodidacts, LATAM is the go-to option right now for hiring developers. Wages are low, quality and supply are high, while collaborative friction is minimal given it sits on the same time-zone.
The rising tech talent of Latin America
Brazil, Mexico, Argentina, Colombia and Chile have all developed strong technology sectors over the past decade, with thousands of qualified developers produced annually. Brazil leads the region in terms of numbers with over 500,000 software developers, while Mexico and Argentina follow with substantial developer populations of their own.
These tech hiring trends are helped by investments in tech-focused education and government initiatives that support digital transformation. Uruguay, which has a high concentration of talent, has Plan Ceibal, which was an initiative to integrate technology into education – helping provide laptops to pupils in school.
The region’s universities have also adapted their curricula to meet market demands, with many institutions partnering directly with tech companies to make sure that graduates possess industry-ready skills. The Instituto Tecnológico de Buenos Aires, which is the premier university in Argentina, has a partnership with Microsoft Argentina. This partnership integrates 3 hours of weekly instruction for a Cloud course, for example, though the university has now partnered with over 500 tech firms.
Key advantages of hiring LATAM developers
Cost is still one of the most attractive aspects of hiring developers in Latin America – wages are between two to three times lower than in US tech. Companies can access comparable skills and English proficiency rates but save millions in not only payroll, but also recruitment.
Culture is important, and LATAM has very simlar working culture to Northern American companies. Not only do they work on the same time zone, meaning there’s no friction or lag in communication, but communication style, work ethic and business practices are all comparable.
The technical expertise available in LATAM is the full spectrum – the population is around double that of the US, meaning there are ample devs in the major languages like Python, JavaScript, Java and C#, as well as modern frameworks like React, Angular, Node.js, and particularly cloud technologies. Many have experience with agile methodologies too, along with DevOps practices and emerging tech like artificial intelligence and blockchain.
Navigating the challenges
Despite its advantages, hiring in LATAM is somewhere between its infancy and maturity. This means that both local and international firms are already competing for the same pool of devs, and wages are increasing. While they’re still cheap comparatively, they’re arguably less stable as international wages begin to equalize. It also leads to higher turnover rates, though this is less of a problem when using nearshoring agencies, as they take responsibility for recruitment (costs, though, can be passed on indirectly).
Regulation isn’t always straightforward. Direct hiring can be tricky given that there’s no harmonization between nations in terms of employment laws, tax requirements, visa regulations, compliance, and so on. Therefore, grouping LATAM as one pool of talent only makes sense when not hiring directly.
Infrastructure is still being developed. While some nations like Uruguay are very developed, some of the larger markets like Brazil and Mexico can struggle with connectivity, power outages and even political instability. Currency volatility is also a challenge, particularly for those in Argentina, as fluctuations can impact the real cost of hiring and maintaining teams in LATAM countries. While prices might be denominated in USD, it still creates turmoil for your workers.
Building successful LATAM development teams
Success in hiring LATAM developers requires a strategic approach that goes beyond simply posting job listings. Companies should invest in understanding local market conditions, salary benchmarks, and cultural nuances specific to their target countries. Building relationships with local universities, tech communities, and professional organizations can provide valuable talent pipeline access.
Establishing clear communication protocols and collaboration tools becomes essential for remote or distributed teams. Companies should implement robust project management systems, regular video conferencing schedules, and cultural sensitivity training to ensure effective teamwork across borders.
Offering competitive compensation packages that include not just salary but also benefits valued by local professionals can help attract top talent. These might include professional development opportunities, flexible work arrangements, health benefits, and career advancement pathways.
A good time to build relationships
The LATAM tech talent market has exploded in growth. While that is a good thing for North American companies who seek cheaper access to talent, it’s not yet fully stabilized. As remote work becomes more normalized and better technology and processes emerge to facilitate it, LATAM is having an increasingly important relationship with US firms.
To take that relationship a step further, it might be advised to seek potential partnerships, either with associations, government initiatives, universities, or perhaps local agencies that connect you to workers.
