The world of tech is constantly evolving, and with it, the need for talented software developers. Companies of all sizes are often looking for ways to reduce costs while still finding the best talent available in a fast-paced and limited market. Hiring developers from Latin America has become increasingly popular as a way to achieve this goal, as about 75% of the companies looking to hire developers in recent years have considered hiring LATAM developers. Now, there are a few things that everyone considering hiring Latin American developers should know. That’s why in this blog, we'll cover some key facts you need to know before you hire LATAM developers so you know the basics prior to committing to a complex recruitment process.
7 key facts about hiring developers from Latin America
1. Hiring LATAM developers helps you save money on development costs.
One of the most significant advantages of hiring LATAM developers is the cost savings that come with this IT recruiting strategy. Compared to developers in the United States or Europe, developers in Latin America can provide quality services at a lower cost. Sometimes, the prices can be up to 30% to 40% cheaper! This is because the cost of living is generally lower in South American countries, which means that salaries and overheads are lower too. Now, while the hourly rates of hiring developers from Latin America are generally lower, the quality of work remains just as high as when you hire the services of a North American professional.
2. Latin American developers have excellent English skills.
Luckily for anyone looking to hire LATAM developers, most developers from Latin America are quite fluent in English. This is often due to the way many Latin American developers have learned English as a second language in school or through self-study - as the so-called universal language is certainly a priority in several of these regions. Secondly, the tech industry is often global, and developers may need to collaborate with people from around the world, including native English speakers. To top it off, many developers are also fluent in both Spanish and Portuguese, which can be an advantage for companies looking to expand into Latin American markets. To check out the English proficiency levels on an average of each LATAM country, head to the EF EPI Index.
3. Despite being down south, there are minimal time-zone differences.
Another advantage of hiring developers from Latin America is that they work in similar time zones to North America, despite some South American countries being quite further down than the US or Canada. For example, most LATAM countries only have one or two hours of time differences, allowing nearshore developers from Latin America to still work Us corporate working hours. This means that communication and collaboration between teams are still highly efficient since there are no significant time differences that could delay responses or feedback.
4. Latin America has a large, thriving talent pool.
The Latin American software industry has seen steady and impressive growth over the past few years. Naturally, this provides the added benefit of gaining access to a larger and ever-growing pool of talent. Latin America is home to a number of highly qualified and experienced nearshore developers with a wide range of skills and expertise in varied tech stacks and technologies. In fact, many LATAM developers have degrees from both local and international top universities and have worked for leading tech companies across the globe. These IT professionals are recognized for their originality, curiosity, technical knowledge, and attention to detail. Because of this, by hiring Latin American developers, your company can access a sizable talent pool that will assist you in achieving your business goals.
5. Payments can be a hassle depending on the country.
At Blue Coding, we're committed to sharing with you the most valuable insights about hiring developers in Latin America. This includes the not-so-simple details, which in this case come in the form of payment solutions. Truth is, paying LATAM developers can be challenging depending on the country you nearshore outsource from. This is due to a variety of factors, but primarily because of:
Currency fluctuations: LATAM countries have experienced significant currency fluctuations in recent years, which can make it difficult to pay developers a stable income. This can lead to issues with budgeting and can cause financial instability for developers.
Payment infrastructures: The payment infrastructure in LATAM countries can be challenging to navigate. Some countries have restrictions on international payments, and there may be limited options for payment methods.
Tax regulations: Tax regulations in LATAM countries can be complex and varied, which can make it difficult for companies to ensure that they are complying with local laws. This can lead to delays in payments and additional administrative costs.
To better navigate your way through these international payments, we recommend partnering with a dedicated nearshore software development company - like us!
6. There are almost no cultural barriers when hiring developers from South America.
Latin American countries share many cultural similarities with the United States, especially when it comes to corporate culture. Developers from LATAM often share similar cultural values with North American companies, such as a strong work ethic, professionalism, and a focus on teamwork. This means they're more likely to understand the business culture and work processes of your organization, making collaboration and the management of remote work easier.
7. Latin American developers are used to remote development work.
As we've said before, remote work is becoming the norm in certain industries, and the IT sector is certainly one of them. Now, the COVID-19 outbreak contributed to a majority of companies adopting a remote or hybrid work dynamic. Just look at the numbers: remote work options grew by more than 1100% between March 2020 and the end of 2021. With that said, many Latin American developers are well-suited for remote work arrangements as a result of the pandemic's opportunity for them to gain an accelerated amount of experience working from home. This allows companies to hire candidates who will quickly adapt to their long-distance work structure and are familiar with a remote environment, making onboarding ad training periods shorter and more efficient.
Ready to hire Latin American developers and save money on development costs?
Hiring developers from Latin America is a growingly popular tactic for businesses looking to save expenses while retaining top talent. Cost savings, staffing flexibility, availability of a larger talent pool, and remote work expertise are just a few of the major advantages of hiring LATAM developers.
Now, the truth is that successful hires depend on having a thorough understanding of the nearshore development process, as well as knowing what traits to seek for Latin American developers and where to look for them. It can be a challenge to navigate the LATAM sector without any prior experience or connections, which is why at Blue Coding we offer staff augmentation services to help companies hire Latin American developers for a fraction of the price. whether you need one nearshore developer or a full team specializing in different tech stacks, our technical recruitment team has you covered. Contact us to learn more about our services!