Image for Which LATAM Countries For Software Nearshoring (PART 2)

05 Sep 2022

Which LATAM Countries For Software Nearshoring (PART 2)

Hiring nearshore developers in The Dominican Republic


Dominican Republic hanging flag


Time zone difference to the US (EST).

Lucky for those looking to start nearshore software outsourcing to the Dominican Republic, this country has no time zone difference from the EST/EDT schedule. 

Physical distance to the US.

The Dominican Republic is located in the middle of the Caribbean but is still quite close to the United States. This country is 1,997 miles from the US, which can be traveled by airplane in just 3.57 hours.

State of the IT industry.

Although small in size, the Dominican Republic has a strong software engineering community and is a go-to location for many companies in Europe and North America looking to hire remote team members. Most software engineers are based in the cities of Santo Domingo and Santiago de los Caballeros (the largest cities in the country), but many of them also live in remote worker-friendly beach retreats such as Cabarete, Punta Cana, and Las Terrenas.

English proficiency level.

The Dominican Republic has moderate English proficiency according to the 2021 EF EPI score. It ranked 44 out of 112 worldwide and 5 of 20 countries in Latin America, with a total score of 520. 

Popular coding languages and software technologies.

Among the top languages and technologies used by developers in the Dominican Republic are: 


Software engineering education.


Several universities in the Dominican Republic have very good Software Engineering and Computer Science programs, including Pontificia Universidad Catolica Madre y Maestra (PUCMM), Intec, Universidad Autónoma de Santo Domingo (UASD) and Instituto Tecnologico de Las Americas (ITLA). Many offer similar majors but with different names such as Software Engineering, Informatics Engineering, Systems Engineering, and Bachelors in Informatics. There are also many developers who have transferred from other areas of engineering such as Telecom Engineering, Electronics Engineering, and Electrical Engineering. Their job requires them to learn to code and they eventually end up doing it full-time, which makes for a good number of self-taught, learned by trade, developers. 

Approximate cost of hiring. 

As in most of Latin America, the high demand for software developers has made software engineering salaries rise sharply over the past few years in the Dominican Republic. For remote companies looking to hire in the Dominican Republic, these ranges will give you an idea of how much to pay:



Keep in mind that staff augmentation firms will charge an additional fee of about 20% to 30% of the developer’s salary in compensation for their work of finding the right IT professional for your organization. 

Hiring nearshore developers in Chile


Overview of Santiago, Chile


Time zone difference to the US (EST).

There's no time difference between Chile and the EST/EDT schedule. 

Physical distance to the US.

The distance from Chile to the United States is 8,434 kilometers or 5,241 miles. This can be traveled by airplane in 9.36 hours. 

State of the IT industry.

Chile has been growing its IT scene for several years now. Many consider Santiago, the capital, a major Latin American technological hub. It’s easy to see why, as Chile’s startup culture and constant innovation have put the country higher up on anyone’s list. After the government made several investments to attract tech entrepreneurs, the efforts have seemed to pay off – so much so that Chile even ranks first for innovation in Latin America, according to the Global Innovation Index! During the past decade, Chile has continued to grow its IT sector. Even in the middle of a global pandemic, the country managed to rank 5th out of 54 countries in the “Total Early Stage Entrepreneurship Activity” category of the Global Entrepreneurship Monitor.

English proficiency level.

According to the 2021 EF EPI rankings, Chile has a moderate English proficiency level and scores a total of 516 points. This country ranks 47 worldwide and holds the 7th position within Latin America. 

Popular coding languages and software technologies.

The most popular programming languages with software developers from Chile are: 


Software engineering education.

Chile started to become a tech hub during the early 2000s. Now, it’s recognized for its quality developers and referred to as a top nearshore outsourcing destination. The same goes for its education system, which vastly changed after 1981. Today, Chile has 60 different universities, with many of them offering computer sciences as an undergraduate degree. In 2017, the Chilean government spent over 21% of its annual expenditure on improving its educational programs. This carried hugely positive results and newer generations of nearshore developers will be even better trained to do the job.

Approximate cost of hiring.

Like most Latin American countries, hiring software developers in Chile can result in significant savings compared to your local market. Here's what to expect when hiring developers based in Chile:



Keep in mind that staff augmentation firms will charge an additional fee of about 20% to 30% of the developer’s salary in compensation for their work of finding the right IT professional for your organization. 

Hiring nearshore developers in Ecuador


City in Ecuador


Time zone difference to the US (EST).

When it comes to the EST/EDT schedule, the US is one hour ahead of the Ecuadorian time zone. 

Physical distance to the US.

Ecuador is 2,913 miles from the United States. It takes 5.19 hours to arrive by plane. 

State of the IT industry.

Quito is Ecuador’s capital and has a relatively small population of 2.7 million. Though not as numerous as some of its Latin American counterparts, it has a consistent history of software development outsourcing and is a local tech hub. Quito is home to Ecuador’s entrepreneurial scene and tech industry, powering several local developers throughout the years. Thanks to the great concentration of developers in tech hubs like Quito, the country has shown promise for nearshore software development! According to the Global Innovation Index, Ecuador ranks #33 among the 37 upper-middle-income group economies and #99 out of the total 130 countries

English proficiency level.

Ecuador has, according to the 2021 EF EPI score, a very low English proficiency level. It ranks 90 out of 112 countries worldwide and 18 out of 20 within Latin America. The score is also quite low, with just 440 points. 

Popular coding languages and software technologies.

Most popular programming languages with nearshore developers from Ecuador: 


Software engineering education.

Overall, Ecuador boasts 49 technical certificates and undergraduate degrees within the programming field. The country has strong universities and a good variety of traditional colleges and tech institutes that developers can choose from to perfect their coding skills. In addition, the government also supports the educational growth of future developers. The recent Scratch Day Ecuador initiative boosted the computer programming skills of several children all across the country by providing free coding training at all local schools.

Approximate cost of hiring.

Because the living costs in Ecuador are lower than in the US, the salaries for Ecuadorian software developers are more affordable than those of American coders. This is one of the most competitive advantages of nearshoring developers in Ecuador and all of Latin America! Here is an estimate of the salaries for nearshore developers in Ecuador: 



Keep in mind that staff augmentation firms will charge an additional fee of about 20% to 30% of the developer’s salary in compensation for their work of finding the right IT professional for your organization. 

Hiring nearshore developers in Panama


Beach in Panamá


Time zone difference to the US (EST).

Panama is just one hour behind the EST/EDT time zone. 

Physical distance to the US.

The shortest airline distance between the US and Panama is 2,411.85 miles. This equivalates to a 3.89-hour plane ride. 

State of the IT industry.

Panama has a growing IT sector, with a strong emphasis on its expanding software outsourcing industry. Sure, this small country only has 3.5 million people. Yet it still consistently scores pretty high in the Global Competitiveness Report. According to the World Economic Forum, Panama is the 66 most competitive nation in the world out of 140 countries. Furthermore, Panama grew 40.4% year-on-year during the second quarter of 2021. This gain is widely welcomed after the losses caused by the COVID-19 pandemic. The local software industry played a considerable part in this consistent progress. Even more, Panama has long been recognized as a top nearshore outsourcing destination by US-based companies.

English proficiency level.

Panama has a low English proficiency level, with a score of 475 according to the 2021 EF EPI score. Worldwide, Panama ranked 73 out of 112 countries, while within Latin America it scored the 14th position.

Popular coding languages and software technologies.

Most popular programming languages with nearshore developers in Panama:


Software engineering education.

Aspiring Panamanian developers have several options when it comes to software engineering education. There are different technical universities that offer undergraduate STEM and computer sciences degrees, especially in Panama City. The country also has a high college graduation rate, with over 91% of students reaching their academic goals. There are different coding institutes, online courses, and free internet resources available for nearshore developers in Panama as well. If you search for the right candidates, you’ll surely find coders with strong educational backgrounds!

Approximate cost of hiring.

Salaries for Panamanian developers are much lower than those for American coders, thanks to the favorable conversion of Panamanian Balboa to US Dollars. Here are the approximate rates: 



Keep in mind that staff augmentation firms will charge an additional fee of about 20% to 30% of the developer’s salary in compensation for their work of finding the right IT professional for your organization. 

Hiring nearshore developers in Peru


Overview of Machu Picchu


Time zone difference to the US (EST).

Peru is only one hour behind the EST/EDT time zone. 

Physical distance to the US.

The distance from Peru to the United States is 3,455 miles. It takes 6.17 hours to arrive in this Latin American country on the shortest flight. 

State of the IT industry.

Peru might only have 38,136 software developers, but since almost 33% of Peruvian developers are actively looking for new coding work, chances are you’ll find the right candidate for your company. This country underwent significant growth within its IT sector for the last decade, with the help of PromPeru (Peru’s national export and international commerce chamber) and its thriving tech community. The country has seen a recent overall growth rate of 5.9% in recent years, with relatively low inflation rates and a steady increase in its economic power. Though the Peruvian tech industry saw a decline of 12.2% in IT spending during 2020, this was mostly due to the economic crisis caused by the COVID-19 pandemic. In 2021, this decline has been reversed. Now IT spending has seen a 9% growth rate and is predicted to keep growing during 2022.

English proficiency level.

Peru has a moderate English level, with a 2021 EF EPI score of 505. This country ranks 11 of 20 in Latin America and 56 out of 112 worldwide. 

Popular coding languages and software technologies.

Most popular programming languages with nearshore developers in Peru:


Software engineering education.

Peruvian software developers rank high at a worldwide level thanks to their coding skills. According to the TopCoder rankings, nearshore developers in Peru take a rightful 26th place. This puts them just below Argentina and Brazil, two Latin-American nearshoring powerhouses. These skills don’t come from thin air, as Peru has a solid educational system that produces quality software developers every year.  Peru has a strong tech presence when it comes to higher education. Back in 2011, the Peruvian government founded the UTEC (University of Engineering and Technology), a state-of-the-art technology center and undergraduate university. Today, UTEC is known as one of the most technologically advanced universities in all of Latin America and it’s where many Peruvian developers go to learn how to code. 

Approximate cost of hiring.

Thanks to the favorable conversion of Peruvian soles to US dollars, nearshore developers in Peru charge lower salaries than American developers. This way you can get the same high-quality coding solutions at an affordable price. Let’s see the average monthly rates of software outsourcing to Peru:



Keep in mind that staff augmentation firms will charge an additional fee of about 20% to 30% of the developer’s salary in compensation for their work of finding the right IT professional for your organization. 

Hiring nearshore developers in Costa Rica


Costa Rica jungle


Time zone difference to the US (EST).

Costa Rica is two hours behind the EST/EDT time zone. 

Physical distance to the US.

The distance between Costa Rica and the United States is 2287 miles via airplane. This can be traveled in just 3.62 hours. 

State of the IT industry.

Although Costa Rica was not previously known for its programming industry, this country has always been a true innovator when it comes to sustainable energy sources and biomedical research. This is thanks to the diverse flora and fauna present in this territory! Therefore, even if Costa Rica never excelled at coding, this country still knew its way around innovation and technologies.  Now, the Costa Rica software development scene is rapidly evolving, and it’s easy to tell by the latest rankings. According to the Global Competitiveness Report 2019 created by the World Economic Forum, the country ranks first in Latin America for the skills of its current and future workforce, especially in the tech industry. Even more, the Global Innovation Index 2020 report puts Costa Rica at #56 place among 131 other world economies. It also ranks #51 for innovation progress.

English proficiency level.

Costa Rica ranks 44 out of 1122 countries across the world in the 2021 EF EPI report, with moderate English proficiency. It has a score of 520 points and holds the 4th position within Latin America. 

Popular coding languages and software technologies.

Most popular programming languages with nearshore developers in Costa Rica: 


Software engineering education.

Costa Rica is known for prioritizing education, as it’s a country that invests in educational resources. As of 2020, the local government will spend over 7% of the national GDP on education. Moreover, Costa Rica has the highest score in Latin America for educational systems, according to the World Economic Forum. Combine this commitment to education with its booming tech industry, and you can see why so many people are looking into how to hire remote nearshore developers in Costa Rica.

Approximate cost of hiring.

Thanks to the favorable conversion of Costa Rican colones to US dollars, software developers in Costa Rica are much more affordable than their American counterparts. They share the same skills, and language, and have similar time zones, but at an affordable price. Let’s see the average monthly rates of Costa Rican developers:



Keep in mind that staff augmentation firms will charge an additional fee of about 20% to 30% of the developer’s salary in compensation for their work of finding the right IT professional for your organization.

Hiring nearshore developers in Colombia


Colombian flag hanging from bulding


Time zone difference to the US (EST).

Colombia is just one hour behind the EST/EDT time zone. 

Physical distance to the US.

The distance from Colombia to the United States is 2,622 miles. This takes 4.67 hours to arrive on an airplane flight. 

State of the IT industry.

Colombia’s economy has been growing for over a decade. After the country underwent a massive transformation, it emerged as a strategic destination to do business in Latin America. In fact, it was named the fourth friendliest country to do business within that region by Doing Business 2018. Its economy has also seen overarching growth, expanding at an outstanding 3.8% on average from 2010. Even more, Colombia’s GDP is expected to increase by 3,6%-4.0% nearing the end of 2021. The software development scene in Colombia has flourished under all of this recent growth. Back in 2014, the government launched the new Bring IT On campaign to promote growth within the IT industry and position Colombia as a technological hub within Latin America. Ever since that transformation, Colombia’s coding and technology scenes have expanded more than 170% in the last five years!

English proficiency level.

Colombia has a low English level according to the EF English Proficiency score released in 2021. With a score of 485, it ranks 81 best worldwide and holds the 17th position out of 20 countries within Latin America. 

Popular coding languages and software technologies.

Most popular programming languages with software developers in Colombia: 


Software engineering education.

Software engineering education for Colombian developers is significantly higher quality than in several other Latin American countries. This is thanks to the number of national initiatives aimed to produce a new generation of qualified coders. The government itself has stated that its goal is to become the most educated country in Latin America by 2025. And at this rate, we can see it coming to fruition. This vast governmental support for the IT industry has expanded software engineering education in the country. In consequence, Colombia ranked seventh of all Latin American countries in the 2018 Global Talent Competitiveness Index.

Approximate cost of hiring.

To give you an idea of the financial benefits, the costs of nearshore software outsourcing from Colombia can be up to 35% lower. That’s why outsourcing software development to Colombia can be so cost-effective! Here’s the scoop on the average salaries for nearshore developers from Colombia:



Keep in mind that staff augmentation firms will charge an additional fee of about 20% to 30% of the developer’s salary in compensation for their work of finding the right IT professional for your organization. 

The cost of hiring nearshore developers in Latin America. Why are rates rising?

As you have probably noticed, we shared with you an estimate of the rates you can expect from nearshore software outsourcing to these eleven Latin American countries. That’s because rates are indeed rising for hiring nearshore developers in the region. But why is that? The truth is that change is the only constant in the technological sector, and with high demand comes higher costs. 

While rates for hiring Latin American developers have rinsed due to a higher demand for this type of professional, there’s more to the story. Of course, developers are demanding fairer compensation as their services become more requested, but inflation also plays a huge part in the rising rates dilemma. While the US is suffering from unprecedented inflation (reaching a whopping 8.5% last July), so is the Latin American region. 


International Monetary Fund Inflation rates in LATAM


As you can see in the graphic above, inflation has soared in the Latin American region during the past year and continues to rise to this day. To name a few examples, Argentina has a trying 69.5% inflation rate (6th biggest in the world, actually), Mexico scored an 8.15% during the summer, and the inflation rate in Brazil is expected to be 8.50% by the end of this quarter. 

Naturally, rising inflation rates call for higher development costs. If nearshore developers don’t rise their rates, then they are essentially making less money as time goes on. This is the truth about the situation, but the costs are still 40% to 50% lower than what it costs to hire a developer local to the US. 

The alternative to nearshoring to Latin America: Eastern Europe

If you’re looking to outsource your development work but prefer to go for an offshore alternative, whether that is due to budget issues or because you want to build connections in Eastern Europe, we have the perfect alternative to nearshore software outsourcing to Latin America: Romania. 

Romania is a southeastern European country in the Balkans that’s 7 hours ahead of the EST schedule and 9,068 kilometers (5,635 miles) afar from the United States. Thanks to a skilled and diversified IT workforce, this country has become a hub for technology investment and outsourcing within the European region. There’s a wide range of high-quality choices to hire developers in Romania, as they are proficient in working with either Java, C#, JavaScript, HTML, CSS, Angular or React. Plus, it is worth mentioning that the second most spoken language at Microsoft is Romanian. 

So how can you hire developers in Romania? We have partnered up with Ontegra Solutions, an offshore development agency, to offer you an alternative to nearshoring to Latin America. Ontegra Solutions hires, trains and retains highly skilled technical talent who are experienced with: enterprise applications, native mobile apps for both iOS and Android, cloud services, microservices, security protocols, workflows, full stack solution designs, and implementations 

Ontegra Advantages: 

● Short lead time: provide top talent faster than companies can hire;

● Contract based: help clients meet a spike in demand without being permanent;

● High quality and competitive rates — competitors’ potential lower hourly rates do not 

account for rework and errors. 

Examples of Ontegra’s staff augmentation projects: 

● Modernization of existing applications; 

● Performance analysis and enhancement;

● Restructuring of mission-critical applications to interface with multiple vendors. 

If you want to hire Romanian developers to start offshoring and saving on your development costs, contact Ontegra Solutions to learn more about their pricing and services! 

The alternative for those who prefer custom development and eCommerce solutions: Resolve Digital

Now, not everyone prefers to hire an augmented team to assist with the development aspect of their business, and that’s okay. At Blue Coding, we understand every company has its specific needs, which is why we want to offer you an alternative to our nearshore software outsourcing and staff augmentation services. This option is perfect for those who only need a specific custom development solution or want to build an eCommerce store from the ground up. With the eCommerce market experiencing accelerated growth - take into account that eCommerce sales grew by 27.6% in 2020 - targeted development solutions for your online store are a great choice. Even if you don’t have - or plan to build - an eCommerce application, their full-cycle development services will help you create the custom website or mobile app of your company’s dreams. 

Resolve Digital is a development company offering full-cycle custom development, eCommerce, and SaaS solutions at an amazing price point. With a large team of experienced eCommerce and IT professionals, they make sure to not only build a good design for your site but also ensure all backend development is set up correctly and on time. They build, optimize, and maintain custom web and mobile applications for all industries in record timeframes thanks to their over 18 years of experience in the custom development and eCommerce business. Contact the Resolve Digital team to learn more about their services!

Ready to take the plunge and hire nearshore developers from Latin America?

The eleven countries we’ve compared in this article are all fantastic options for you to hire nearshore developers in Latin America and start software outsourcing. They each have their individual advantages and specificities, but there’s no doubt you’ll find talented IT professionals in any of them. 

At Blue Coding, we have seen the way nearshore software outsourcing helps companies from all across North America reduce development costs, optimize IT operations, and build dynamic, international teams. We believe in the future of Latin America as a nearshoring hub and want you to find coding solutions that will better your organization for the long term. That’s why our mission is to help you find the right nearshore software developers for your business. Since 2014, we have helped US tech companies and various businesses hire Latin American developers through our IT staff augmentation and direct placement services. Now, as nearshoring is on the rise, we are just as committed to this goal. 

If you want to learn more about how we can help you start hiring nearshore developers from Latin America, just get in touch with us! We’ll assess the needs of your business, give you our most updated prices, and tell you more about your services. Contact us today to start nearshore software outsourcing! 

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