How to Hire The Best South American Developers for Your SaaS Company in 2024

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In recent years, South America has emerged as a prominent hub for IT outsourcing, challenging traditional outsourcing destinations like Poland, Romania, Ukraine, and India. The paradigm of outsourcing has shifted from being solely a cost-cutting measure to a strategic approach for accessing a vast pool of high-quality software development talent.

Traditionally, competitive prices in regions like Eastern Europe and Asia gave them an edge in the outsourcing market. However, the landscape is evolving, and many US-based businesses are turning to South America for software development outsourcing due to its commitment to higher quality and favorable time-zone congruence.

A graphic titled "Why Choose Outsourcing" with a magnifying glass icon, listing benefits such as "Cost Reduction," "Professional Focus," "Access to Resources," "Scaling Flexibility," and "Quick Integration," advocating for outsourcing as a strategic business decision.

Why Companies Choose Outsourcing

Companies opt for outsourcing for various reasons, depending on factors such as organizational size and the capacity of their in-house engineering teams.

  1. Cost Reduction

Cost reduction remains a primary driver for outsourcing. Many companies prefer lean in-house teams, outsourcing non-mission-critical tasks to firms that offer cost-effective solutions. Whether a partial or complete outsourcing approach, the result is a significant reduction in overhead employment costs.

  1. Professional Focus

Managing an in-house engineering team requires bandwidth and expertise that not all companies possess. Outsourcing allows companies to entrust application development to external teams, enabling in-house managers to concentrate on core business priorities.

  1. Access to Resources

Access to essential resources and technologies is not universally available within every organization. Outsourcing bridges this gap, enabling both new and established companies to leverage external expertise through intermediaries.

  1. Scaling Flexibility

Flexibility in scaling, whether up or down, is a competitive advantage. While employment regulations and laws can complicate rapid changes in team size, outsourcing provides the flexibility needed for swift adaptation to market demands.

  1. Quick Integration

Compared to the time-intensive process of hiring full-time in-house professionals, outsourcing offers a faster alternative. If agreement terms are promptly established, development projects can kick off within a matter of weeks, if not days.

Nearshore vs. Offshore Outsourcing

Not all outsourcing is the same, and geographic location plays a crucial role. There are three main types of outsourcing: Onshore, Nearshore, and Offshore. For a US-based company, outsourcing to South America is considered nearshore due to geographic proximity and similar time zones, providing a strategic advantage over offshore options.

What to Consider in Nearshore vs. Offshore Outsourcing

When deciding between nearshore and offshore outsourcing, several factors should guide your decision:

  1. Price

Offshore outsourcing often offers lower hourly rates, making it attractive for cost-centric organizations. Nearshore outsourcing, while slightly more expensive, provides the benefit of working within similar time zones.

  1. Location

Nearshore outsourcing to South America ensures a time zone difference of less than two hours on average, facilitating better coordination and communication between teams.

  1. Communication

Effective collaboration is essential for successful outsourcing. South America, with its high proficiency in English, particularly stands out in overcoming potential language barriers.

  1. Culture

Cultural fit is crucial for a productive collaboration. Nearshore outsourcing to South America aligns well with Western work culture, fostering easier communication and understanding.

State of Software Development in South America

South American countries, including Brazil, Chile, and Argentina, are witnessing a surge in interest from global companies, particularly from the United States. The Brookings Institute and the London School of Economics rank Santiago as the world’s fifth-best economic performing city.

Benefits of Working With South American Developers

Choosing South American developers offers several advantages:

  1. Price vs. Quality

South American developers provide a balance between cost-effectiveness and high-quality work. The region’s investment in technical education ensures a skilled talent pool.

  1. Competence

South American developers excel in their understanding of tools and project lifecycle, making thoughtful considerations on software architecture for scalability and performance.

  1. International Experience

Many South American developers have worked with global corporations, gaining valuable experience and skills, making them competitive in the international tech market.

The Cost of Hiring a Remote Developer in South America

While outsourcing is synonymous with cost reduction, South American countries offer a unique proposition. Hourly rates for experienced software developers in South America range from $30 to $75, ensuring cost-efficiency without compromising quality.

Top Destinations for Outsourcing in South America

The top countries for hiring software developers in South America are:

  1. Argentina

   – Capital: Buenos Aires

   – Population: 44.27 million

   – Language: Spanish

   – Hourly rate: $30-50

  1. Bolivia

   – Capital: Sucre

   – Population: 11.05 million

   – Language: Spanish

   – Hourly rate: $20-45

  1. Brazil

   – Capital: Brasilia

   – Population: 209.3 million

   – Language: Portuguese

   – Hourly rate: $25-40

  1. Chile

   – Capital: Santiago

   – Population: 18.05 million

   – Language: Spanish

   – Hourly rate: $30-50

  1. Colombia

   – Capital: Bogota

   – Population: 49.07 million

   – Language: Spanish, English

   – Hourly rate: $25-45

  1. Peru

   – Capital: Lima

   – Population: 32.17 million

   – Language: Spanish, Quechua, Aymara

   – Hourly rate: $20-50

  1. Uruguay

   – Capital: Montevideo

   – Population: 3.457 million

   – Language: Spanish

   – Hourly rate: $25-45

Where to Find South American Software Developers

If you’ve decided to outsource to South American countries, several avenues can help you find competent talent:

  1. Freelance Marketplaces: Ideal for short or medium-term collaborations with individual specialists.
  2. Job Boards: Connect with professionals seeking full-time employment, offering a niche-specific approach.
  3. Staffing Agencies: Delegate the candidate search to agencies, providing hand-picked selections for your consideration.
  4. Outsourcing Agencies: Specialized in providing software development talent, these agencies manage the hiring process and deliver completed work to meet your requirements.
A grayscale image of a woman in a suit and fedora hat looking through a magnifying glass towards a map of South America, highlighting the continent's countries, symbolizing a focused search or research in that region.

Conclusion

Working with South American software developers, particularly through the unique approach offered by Devhunt, provides an optimal solution for companies seeking affordable talent within the same time zone. Devhunt goes beyond traditional outsourcing, offering on-demand access to competent software developers, eliminating the need for extensive full-time hiring processes. If you aim to expand your software engineering team with Latin American talent, Devhunt is your reliable partner for success. Contact us to discuss your project and find the best match among our engineers.

Why Should You Hire A Latin American Developer
Strategic Tech Insight: Empower Your Team with Latin American Developers – FREE eBook Instant Download!
Alex Kugell
With over 10 years of experience in tech recruiting, Alex has assisted in building teams across Cloud Computing, Virtualization, and SaaS Startups before co-founding Devhunt with his partner Daniel. Today he enjoys helping people hire the best software developers from Latin America and writing great content on how to do that!
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Why Should You Hire A Latin American Developer
Strategic Tech Insight: Empower Your Team with Latin American Developers – FREE eBook Instant Download!
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