Outsourcing software development to South America has become an increasingly popular option for companies looking for remote talent. With advantages such as minimal time zone difference, proximity, good infrastructure, internet coverage, and IT clusters that can transform the economy and talent policies, South America offers several benefits for hiring remote software developers.
Less time difference: South American countries share time zones with North America, which makes communication easier.
Proximity: South American countries are relatively close to North America, which means less travel time and costs.
Good infrastructure and internet coverage: South American countries have invested in infrastructure and internet coverage, making it easier to work remotely.
IT clusters: Some South American countries have developed IT clusters that have the potential to transform their economies and talent policies.
Top South American Countries to hire software developers
It's important to note that the "best" country to hire software developers in South America can vary depending on specific needs and requirements, such as project scope, budget, and technology stack. Thorough research, consideration of factors like language proficiency, cultural compatibility, legal requirements, and collaboration with local experts or recruitment agencies are recommended to make informed decisions.
In this blog post, we will provide a review of the top countries in South America for hiring remote software developers. We will discuss the general conditions of each country in terms of infrastructure, talent development, culture, and cost.
When assessing the costs of hiring in different countries, begin by determining whether you prefer to hire a contractor or offer the stability of an employment contract with associated benefits. If you opt for the latter and wish to ensure legal compliance, you will require an Employer of Record (EOR) service or a provider such as BetterWayDevs.
Additionally, the cost of benefit packages should be factored in, as it varies depending on the country and specific agreements in place.
Peru is one of the most favorable countries for hiring software developers in South America. It boasts good cultural compatibility and programming expertise, making it a preferred choice for multinational companies. In fact, Peru ranked first in the Coursera Global Skills Ranking 2022 in the Technology category, highlighting its strong technological capabilities. Additionally, it holds a significant position in the IMD Global Skills Ranking.
One of the key strengths of Peru is its high percentage of graduates in science and engineering, making it a talent-rich pool for hiring software developers. It also performed well in the Global Innovation Index, ranking second in South America. This demonstrates the country's focus on innovation and its potential for technological advancements.
It also performed well in the Global Innovation Index, ranking second in South America. This demonstrates the country's focus on innovation and its potential for technological advancements.
Approximate cost of hiring in Peru
Regarding hiring costs, if you are hiring contractors, salary costs are very uniform in the region. Nevertheless, when hiring with full labor compliance, Peru has slightly lower labor costs when compared to other South American countries. On the other hand, local labor benefits in Peru include 30 days of vacation, compensated with fewer bank holidays than other countries in the region.
The approximate cost of hiring software developers in Peru can vary depending on the level of expertise, experience, and specific requirements of the project or company. According to our data, you can hire junior software developers from 17,000 USD a year, Mid-Level developers from 24,000 USD, but Senior and highly specialized profiles go up to 72,000 USD.
Cultural Traits in Peruvian Developers
In terms of cultural traits, Peruvian professionals are known for their warmth, friendliness, and adaptability. They are generally open to working with multinational companies and have a good understanding of international business practices. Peruvians also value relationships and personal connections, which can contribute to a positive work environment.
In conclusion, Peru is a top choice for hiring software developers in South America. With its favorable cultural compatibility, strong programming expertise, and high rankings in global skills and innovation indices, Peru offers a competitive advantage in the region. Moreover, its relatively lower hiring costs make it an attractive option for companies looking to expand their software development teams.
Colombia is another emerging destination for hiring software developers in South America. Cities like Bogota and Medellin are known for their growing tech scenes, with a focus on software development and IT services.
A dynamic IT ecosystem, favorable government policies for nurturing technology talent, and promoting local start-ups make Colombia an attractive option for foreign companies to establish and hire.
Additionally, the country produces 84,000 tech graduates per year, rapidly expanding the talent pool. Colombia shares the same time zone as US Central Standard Time throughout the year, making it accessible to US recruitment teams at all times. In fact, it takes three hours from Miami to Bogotá, becoming a strategic nearshore destination for US companies.
As the third largest Latin American IT market, Colombia has attracted the attention of companies like Amazon Web Services and Microsoft, securing recent investments. With a focus on IT services, Colombia has become a top-of-mind destination for the industry.
The local government invests in creating an optimal environment to develop companies of all sizes, from startups to business giants with billions of dollars in revenue, making Silicon Valley Colombia the technological mecca of Latin America. In 2020, it was positioned as the second country in Latin America to receive the most funds and private capital investments in this sector, after Brazil.
Colombia also ranks third in South America on the Global Innovation Index, and second in terms of the percentage of graduates in science and engineering, with a score of 23.5% of graduates in 2022.
Approximate cost of hiring developers in Colombia
The average annual salary for a software developer in Colombia, as in the most attractive countries of the region, goes up to 72,000 USD depending on the level of expertise and experience. According to our data, you can find mid-level software developers from 26,000 USD, and senior professionals from 42,000 USD to 72,000 USD.
Cultural Traits in Colombian Developers
Colombian culture places a high value on respecting authority figures, and hierarchical structures may be more prevalent in the workplace. Being mindful of this cultural trait and managing teams accordingly could be important. Personal connections and referrals may also play a significant role in the hiring process in Colombia, similar to other South American countries.
Uruguay, a small country with a highly educated workforce, has been gaining recognition as a nearshoring hub for IT professionals. Its capital, Montevideo, is home to numerous software development companies and startups, making it an attractive destination for remote software development teams. Uruguay has been ranked second in South America in the IMD Global Talent Ranking, highlighting its strong talent pool.
One of the key advantages of hiring software developers in Uruguay is the country's highly skilled workforce. Uruguay has a robust education system, with a high literacy rate and a focus on STEM fields. This results in a talent pool of skilled and experienced software developers who are proficient in English and have a good understanding of international business practices.
Additionally, Uruguay has a high percentage of graduates in science and engineering, making it a talent-rich pool for software development.
Approximate cost of hiring Uruguayan developers
The cost of hiring software developers in Uruguay is among the highest in the region, reflecting a prevailing trend of competitive salaries driven by foreign companies vying for talent in desirable locations. Furthermore, Uruguay stands out as one of the most developed countries in the region, with exceptional living conditions that contribute to a higher cost of living. In fact, Uruguay ranks first place in the Living Cost Index for South America.
These are some salary references:
- Junior developers: $3000-$4000 USD per month.
- Mid-level developers: $4000-$6000 USD per month.
- Senior developers: $6000-$9000 USD per month.
In terms of cultural traits, Uruguayan professionals are known for their strong work ethic, professionalism, and adaptability. They are familiar with Western business practices and are accustomed to working with multinational companies. Uruguayans also value relationships and personal connections, which can contribute to a positive work environment and smooth collaboration with remote teams.
Chile is another country in South America that offers a favorable environment for hiring remote software developers. With a growing tech industry and a focus on innovation, Chile has become a prominent destination for software development teams.
One of the key strengths of Chile is its strong innovation ecosystem, with a supportive government and policies for nurturing technology talent and promoting local startups. This has created a favorable environment for the growth of the IT industry, making Chile an attractive option for hiring remote software developers. It has been attracting large companies like Google, Microsoft, and Amazon Web Services to operate and market there.
In fact, Chile ranks first in South America in the Global Innovation Index, which highlights its innovation capabilities.
Chile also has a strong education system, with a high literacy rate and a growing number of graduates in the science and engineering fields. This provides a talent pool of skilled software developers who are proficient in English and have the potential to contribute to the success of remote software development teams.
Approximate cost of hiring a developer in Chile
In terms of hiring costs, Chile is slightly higher compared to other countries in the region. While the cost of hiring software developers in Chile may vary depending on the level of expertise and experience, the median annual salary for programmers in Chile goes up to $77,400 USD. Chile has been also a large outsourcing market, and the presence of international companies has been raising salaries to more competitive ranges at the global scale.
Cultural traits in developers from Chile
Culturally, Chilean professionals are known for their professionalism, punctuality, and strong work ethic. They are accustomed to working with international companies and have a good understanding of Western business practices. Chileans also value teamwork and collaboration, which can contribute to a positive work environment and effective collaboration with remote teams.
Argentina is known for its large pool of skilled software developers and strong technical education system. Buenos Aires, in particular, has a growing tech scene with many software development companies and startups. The cost of hiring software developers in Argentina is relatively lower compared to other countries in the region. English proficiency is also high in Argentina, with the country having the highest English proficiency in the region.
With 20,000+ annual STEM graduates and 39+ computer science programs, Argentina has two spots on the list of top 20 Latin American universities, making it a favorable environment for software development.
Approximate cost of hiring a developer in Argentina
In terms of salaries, the average annual salary for a software developer in Argentina ranges from approximately USD 20,000 to USD 50,000, depending on the level of expertise and experience.
Cultural Traits in Developers from Argentina
Work-life balance is also a priority for Argentinians, and flexibility in work arrangements and emphasis on work-life integration are important factors to consider when hiring developers in Argentina. The communication style in Argentina may be direct, which can come across as assertive or passionate, and being mindful of communication nuances and cultural differences is important to avoid misunderstandings.
Building personal relationships and networks are highly valued in Argentina, and personal connections and referrals can play a significant role in the hiring process. Tapping into local networks for recruitment can be beneficial in Argentina.
Brazil is the largest economy in the region and is a major outsourcing country, attracting large companies. It has a vast talent pool of software developers, with over 500,000 IT professionals and 100.000,000 new graduates each year.
Brazil boasts a robust tech ecosystem, with major tech hubs in Sao Paulo and Rio de Janeiro, and over 2,600 public and private universities across the country offering software engineering programs. However, it's worth noting that the cost of hiring software developers in Brazil may be relatively higher compared to some other South American countries, due to factors such as increased competition in the strong local IT market.
Approximate cost of hiring developer in Brazil
Junior developers: $1000-$2000 USD per month
Mid-level developers: $2000-$4000 USD per month
Senior developers: $4000-$8000 USD per month
Cultural Traits in Brazilian developers
In terms of cultural traits, Brazil may have a hierarchical business culture where authority and seniority are respected. Understanding and navigating this hierarchy may be important when managing teams and dealing with employees at different levels. Building personal relationships and trust is also crucial in Brazil, as business interactions may be more informal and relationship-oriented.
Flexibility in work arrangements and acceptance of local norms regarding time and deadlines are also important cultural traits to consider when hiring developers in Brazil.
Choosing the best country
In conclusion, choosing the best country for hiring software developers from South America depends on various factors such as your specific needs, budget, and cultural considerations.
Peru, Colombia, Uruguay, Chile, Argentina, and Brazil all offer excellent conditions for nearshoring, but it's important to understand the cultural traits that may vary across these countries.
For instance, in Colombia, you may encounter a strong emphasis on hierarchical structures and respect for authority in the workplace, while in Peru, personal relationships and networking may play a crucial role.
Uruguay is known for its highly educated workforce and a culture that values work-life balance, while Chile is recognized for its tech-savvy talent pool and innovative mindset.
Argentina boasts a vibrant tech ecosystem with a diverse pool of talent, and Brazil offers a large pool of skilled developers with a growing tech industry.
Understanding these cultural nuances can help you tailor your hiring process and foster effective communication and collaboration with your remote team.
In terms of salaries, It's important to note that these are rough estimates and salary ranges can vary greatly depending on various factors. In general terms, the median current annual salary for senior developers in South America is 66,000 USD, while the expected median salary is 84,000 USD. Especially if you are targeting top talent and senior developers, you must be prepared to offer competitive salaries.
It's always recommended to conduct thorough research, consult local sources, and consider specific factors related to the skills and experience of the software developers you intend to hire, as well as local market conditions and cost of living. Collaborating with local experts or recruitment agencies can also provide valuable insights into current salary trends and hiring practices in each country.
At BetterWay Devs, we provide expert guidance to help you navigate through these cultural considerations and find the perfect fit for your company's needs. Schedule a call with us to unlock the potential of transparent IT recruitment and staffing in South America.
BetterWay Devs Inbound Marketing Manager