Brazil is among the top ten largest global powers in the IT market. Learn how to hire nearshore LATAM developers in Brazil.
Think Brazil is just about beaches and Carnival? Think again! This South American giant boasts a thriving tech industry and a massive pool of talented developers. Brazil is among the top ten largest global powers in the technology market, with investments in information technology (software, hardware, and services) reaching US $50 billion in 2023.
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Contact Us Today!It is simply impossible to talk about a LATAM market without thinking about Brazil. Need a skilled UX designer, a meticulous QA engineer, or a Python whiz? Look no further. Brazil’s tech hubs are teeming with nearshore developers ready to tackle your software development projects. And with the growing popularity of remote work, there’s never been a better time to explore nearshore software development in Brazil.
Intrigued? This post dives into the many benefits of nearshoring software development in Brazil. We’ll cover Brazil’s tech industry strengths, its competitive advantages, and the secrets of how to hire nearshore LATAM developers in Brazil successfully. Keep reading to learn all about nearshore software outsourcing in Brazil!
While time zone alignment isn’t unique to Brazil within Latin America, it’s a major advantage for nearshore development. The biggest advantage of hiring nearshore software developers either directly or through a nearshore software development company is the possibility to work in real-time with your remote software development team!
Brazil is usually only between 2 and 4 hours ahead of the United States, so both teams can share a good amount of working hours. This significant overlap allows for real-time communication and collaboration; this is crucial for efficient project completion.
The cost of living in Brazil is significantly cheaper compared to the US. According to data from my life elsewhere, a collaborative website that allows you to compare where you live to places around the world, the cost of living in the United States is 2.7 times higher than in Brazil!
Since Brazilian developers also charge lower salaries because of the favorable conversion of the Brazilian real (BRL) to US dollars, the cost implications of hiring nearshore LATAM developers from Brazil is much lower. This means that your US-based company can hire nearshore developers in Brazil for a lower price point compared to hiring American developers.
Here are the standard rates for hiring nearshore software developers in Brazil, though be sure to consider 30% to 40% extra costs if you’re working with a third-party nearshore software development vendor.
Why are more and more US-based businesses looking to hire nearshore developers in Brazil? It’s thanks to its worldwide reputation as a country with a vast talent pool of skilled software developers! Brazil boasts the largest developer pool in Latin America, with over 700,000 skilled professionals. This talent is concentrated in tech hubs like Campinas, São Paulo, Rio de Janeiro, and Florianopolis.
Besides sporting a considerable number of local nearshore developers, Brazil also has a steady and ever-growing technological industry. This country has more than 90 different tech parks, where coders gather to innovate and collaborate on various projects. On the other hand, Brazil’s government has also been especially supportive of the local tech industry. Recent legislation such as the Lei do Bem gives tax incentives to companies looking to invest in the local technology sector, in endeavors such as software development or user design. This nationwide support and the strong tech infrastructure already established in the country make Brazil a top nearshore outsourcing destination!
Recent years have seen a growing international recognition for universities in Brazil. This country has some of the largest and most recognized institutions of higher education and research in Latin America! These institutions are renowned globally for their pursuit of excellence in teaching and research and for their contribution to advances in science and technology. Most top universities are state-operated and do not charge tuition fees.
As a whole, Brazil boasts more than 1,714 undergraduate, graduate, and technical degrees within IT-related fields. This results in over 100.000 new developers a year emerging from this country! As we’ve reiterated before, the size of the nearshoring talent pool of Brazil is unparalleled. But it’s clear that the education of Brazilian developers doesn’t fall behind as well.
Here are a few of the best Brazilian universities, according to the 2023/2024 QS World University Rankings®.
As you can see, these universities are located within the country’s major tech hubs! This is no coincidence, as these institutions offer a large array of tech degrees.
The EF English Proficiency Index puts Brazil in position #70 out of 113. With a low English proficiency score of 487 points, it’s understandable why some would gravitate towards hiring nearshore developers in other Latin American countries that sit higher on the rankings such as Chile, Peru, or Costa Rica.
While Brazil’s overall English proficiency ranking might raise a question mark, here’s the good news: many Brazilian developers are fluent or have strong English communication skills. This is because English is increasingly emphasized in education, especially in universities and programs focused on technology careers. Additionally, many developers take advantage of language institutes to further hone their English.
As an extra perk, many Brazilian developers also have a good grasp of Spanish due to the country’s geographical location. This bilingualism can be a valuable asset for projects with Spanish-speaking stakeholders or international teams.
Since Brazil has such a large number of nearshore software developers, local developers try to learn as many languages as they can. This helps them stand out from the competition and gain access to better employment opportunities. So your company will have no trouble finding a polyglot engineer proficient in the languages you’re looking for! Here are some of the most popular coding languages for Brazilian developers.
The most hassle-free way of hiring nearshore software developers in Brazil is by partnering up with a nearshore software development company. These firms (Like us, Next Idea Tech) are a great cost-effective option thanks to their involvement in the recruiting and payment procedures. Nearshore software development agencies offer years of outsourcing expertise and a trusted network of talented developers from top nearshore locations in Latin America. This streamlines the recruitment process, helping your company hire nearshore developers in Brazil more efficiently!
Direct contractors in Brazil are freelance developers who operate independently, without relying on platforms, agencies, or employment organizations. They typically showcase their services on personal websites or use LinkedIn for professional networking.
By engaging directly with them, you can avoid intermediary fees and expenses.
However, hiring direct contractors in Brazil may involve a more time-consuming process, especially for those new to outsourcing in the region. If you’re considering this approach, start by exploring software developers based in Brazil on LinkedIn!
One of the greatest advantages of referrals is their ability to streamline the scouting process. When you receive a referral from an industry contact, you’re getting a personal recommendation for the services of a Brazilian developer.
Typically, the referrer has either worked directly with the developer or knows of their exceptional track record. This simplifies the entire process significantly. You can immediately interview the referred nearshore developer and assess if they align well with your company, saving valuable time that would otherwise be spent searching for talent.
Despite The Great Resignation, job ads placed on job boards and online communities are still popular with developers all around the world. To maximize your chances of success, you need to:
Understand that posting a job ad is a passive approach to nearshore outsourcing. You’ll need to wait for responses from Brazilian developers. So be patient and consider other options as well!
Global Employment Organizations are available throughout the world and act as third-party organizations for international outsourcing. These organizations provide a structured alternative for hiring nearshore software developers in Brazil, albeit with significant involvement on their part.
They act as intermediaries, employing developers “on record” who are ready to start working. They facilitate the co-employment of developers with your company, handling legal and administrative aspects. Typically, these agencies charge the developer’s salary, cover costs for perks or benefits, and levy a fee of 10% or higher for their services. This fee reflects their involvement in managing payroll, compliance, and other administrative tasks.
Engaging a Global Employment Organization can provide reliability and convenience by streamlining the hiring process and ensuring compliance with local regulations in Brazil. While their fees add to your hiring costs, it is justified by the reduction in administrative burden and legal complexities associated with international employment.
Freelancing platforms rose in prominence a few years back and saw increased usage during the COVID-19 pandemic. Platforms like Upwork and Fiverr facilitate connections between Brazilian developers and US-based companies, offering convenience and ease of use.
However, even though they’re easy to use and convenient for those new to outsourcing software development services in Brazil, they come with a few drawbacks. For starters, unlike traditional hiring processes, you may have limited ability to assess the skills of Brazilian developers before hiring them through these platforms. In addition, the nearshore developers’ have to give a part of their pay to the platform which can affect their overall compensation.
While these platforms are convenient for short-term projects or quick tasks, they may not be ideal for establishing long-term relationships with nearshore software developers in Brazil.
Brazil boasts a vibrant local software development community with extensive experience in nearshore outsourcing. As a result, Brazilian nearshore developers actively participate in numerous developer events throughout the year to broaden their networks and explore new opportunities. These conferences provide an excellent opportunity to engage with a substantial number of Brazilian developers who are actively seeking new projects and collaborations.
Major software development hubs in Brazil host these events regularly, offering ample opportunities to attend either in-person or virtually. By participating in these events, you can gain firsthand insights into the skills, expertise, and personalities of potential nearshore developers. This direct interaction can help you gauge fit and make informed decisions when hiring nearshore LATAM developers in Brazil.
Setting up a subsidiary of your US-based company in Brazil is a bold approach to nearshore outsourcing. It’s particularly advantageous if you’re committed to expanding your presence in Brazil and cultivating long-term relationships with local developers.
By having a physical presence in Brazil, you gain deeper insights into the local market, culture, and talent pool. This allows you to tap into Brazil’s skilled workforce at competitive rates, both remotely and through local hires. This approach also supports sustained growth and operational stability.
Just keep in mind that you’ll have to comply with Brazilian regulations and legal requirements. This includes company registration, tax obligations, employment laws, and other local regulations governing business operations and hiring.
At Next Idea Tech, we specialize in connecting US-based companies with skilled developers who excel in delivering high-quality coding solutions aligned with your creative vision. Whether you’re looking to augment your existing team or hire developers directly, we’re here to help you bring your ideas to life through code.
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Schedule a consultation with us today to explore how hiring nearshore developers in Brazil can benefit your business. Let’s discuss your goals and discover the ideal solutions together!
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