Know These 5 Things Before You Hire LATAM Developers

The efficacy of any software development project is largely determined by the expertise and experience of the software developers you bring into your team. From small-scale start-ups to multinational companies, every organization wants to hire the best software developers. As a result, finding qualified IT professionals is becoming more difficult. To address this challenge, many U.S. companies are turning to nearshore software development, specifically by hiring LATAM developers.

For U.S.-based tech companies, Latin America is at the front and center as a desirable nearshore software outsourcing destination due to its low cost, bilingual capabilities, and Time Zone alignment with the U.S.

But, hiring top quality LATAM developers is not without its challenges. We understand that well. Onboarding and integration hurdles can still stymie software development projects. Overcoming the challenges of recruiting, vetting, hiring, and managing latin american development teams can seem daunting for companies unfamiliar with the region’s unique culture and hiring practices. Not to mention security concerns once the team is in place.

But how can you overcome these hurdles? How can you hire LATAM developers for your project among the millions available? What defines a good nearshore developer? Where can you find skilled nearshore developers in Latin America? And finally, what legal considerations need to be addressed when hiring in Latin America?

Questions such as these are quite common among recruiters. Don’t worry. We, here at Next Idea Tech, understand the problems associated with hiring developers and we want to help you find a suitable LATAM developer.

To help simplify the recruitment process, we have put up an excellent resource that highlights 5 key considerations to take into account when hiring nearshore software developers in Latin America. From understanding the cultural nuances to navigating the current state of the local development landscape, we’ll cover everything you need to know to successfully recruit and onboard top talent in this thriving tech region. This article is designed to serve as a guide for companies considering shifting some of their outsourcing dollars to Latin America and investors considering entering this market.

Why do you Need to Hire Nearshore LATAM Developers?

First, let’s clarify who a nearshore LATAM developer is and why you need one.

A nearshore developer is a software developer located in a country geographically close to yours, typically within a similar time zone. This is in contrast to:

Onshore developers: These developers are based in the same country as your company.
Offshore developers: These developers are located in a distant country, often with significant time zone differences.

Here’s a good analogy:

Imagine you’re in the United States and need software developers.

Onshore: Hiring an onshore developer would be like finding someone in your own city or state.
Nearshore: A nearshore developer would be like finding someone in a neighboring country like Canada or Mexico. There might be some cultural differences, but communication and collaboration are easier due to geographical proximity and potentially overlapping time zones.
Offshore: An offshore developer would be like finding someone in a distant country like India or China. The time zone difference can make communication and collaboration more challenging.

Hiring nearshore developers from Latin America enables you to reduce development costs and incorporate a more diverse workforce into your team, all with minimal time zone differences and language barriers.

Consider the following factors to engage the best resources at the lowest possible price. Let’s get started!

1. Skills and Expertise

Firstly, you should clearly define the skills and expertise required for the project. There are essential skills to look out for, and this brief run-down should help you get some ideas. A professional who checks off most of the following requirements would be suitable for the position.

High-level coding and computer programming skills: It is a must-have skill to check for when you’re looking to hire the best nearshore software developers. For several reasons, software developers need to be familiar with multiple programming languages such as JavaScript, Python, Java, C/C++, PHP, HTML/CSS essentials, as well as other programming fundamentals like data structures and algorithms. When you hire nearshore with significant programming experience, they’ll utilize their expertise in different areas of software development to create unique software solutions.

Experience in software testing and debugging: The most significant bug in production is usually deploying untested or broken code. Therefore, one of the greatest skills you can assess a developer for is the ability to test and debug code effectively. There are currently several product testing methods, and when you hire LATAM developers who have gained a mastery of these testing methods, it will have a significant impact on the business and products.

Knowledge of software tools and frameworks: Software frameworks help in building efficient applications. When you hire the best nearshore developers, they will need to design future-proof solutions that do not need re-designing each time a parameter changes. Hence, you don’t want to hire developers who are not vast in their experience. Instead, go for someone who knows the working principles of different software tools and frameworks and can be resourceful enough to consider existing tools before starting a new solution.

Familiarity with recent industry developments: Technology is extremely fast-moving, so if you’re aiming to hire nearshore software developers in LATAM, they should be able to learn new programming languages and techniques, as well as, adapting to the continually changing environment. Alongside learning about technology, software developers will often have the opportunity to develop their knowledge about the business and sector they are working in, as these are also ever-changing.

Proficient in data structures and algorithms: The knowledge of data structures and algorithms is a top priority to assess a talented programmer’s problem-solving and coding skills. Keep an eye out for software developers with sound expertise in data structures and algorithms to solve specific problems and reduce complexity.

Seamless communication and teamwork capabilities: In addition to technical skills, nearshore software developers need to be great communicators and team players. As an employer or technical hiring manager, you will hire nearshore developers who most likely will spend a lot of time collaborating with colleagues from different departments, as well as other internal clients. They might be discussing a bug that needs to be fixed, planning an upcoming release or feature. The need for software developers to work as part of a team to share knowledge and ideas demand proficiency in teamwork and communication.

Excellent creativity and problem-solving skills: Hiring top software developers isn’t quite the same as hiring a graphic designer but that doesn’t mean software developers cannot be creative in their own way. There are many ways in which they can showcase their creativity, including in the way they think to solve a problem. Nearshore developers, for example, need to be able to put themselves in the users’ shoes to provide a software solution or build a product.

They will need to develop innovative new systems, technical functionalities, and creativity comes into play when designing a well-thought-complex software solution. Ensure to hire software engineers who display exceptional creative and problem-solving traits as these are highly beneficial business skills.

2. Where to Source LATAM Developers

If you want to scout for potential candidates, there are several ways to find nearshore software developers from LATAM. Even though it is a competitive market, you will find many potential fits for your company if you know where to look. This is how to find LATAM software engineers.

Nearshore outsourcing and staff augmentation firms: Finding LATAM developers is much easier when working with an agency that has experience hiring nearshore developers in Latin America. Firms like Next Idea Tech (hey, that’s us!) know their way around the local regulations and can guide you through the process and avoid any hassles for your company.

Personal referrals: Referrals are great because you get to learn more about a potential nearshoring candidate from someone who has already worked with them or heard of their great work. Request referrals from your contacts in Latin America.

Online software development communities: As mentioned before, there is a large software development community in LATAM. Many remote developers join online groups on social media, such as LinkedIn, Reddit, or Facebook. There are also online forums, while not as popular. You might be able to post a job ad on one of them, depending on each community’s rules.

Online job boards: Unlike online communities, job boards are strategically designed for remote software developers and tech companies looking to outsource to find one another. Post about the vacant position on an online job board and you will surely receive more than a few responses.

Local events (virtual and in-person): Software development events in LATAM are huge. The community is friendly and motivated to share the latest coding trends, search for job opportunities, and chat with several U.S. tech companies. Try joining one of their virtual events as a potential employer or send a small team to their in person conferences.

3. Engagement Model for Hiring LATAM Developers

There are many ways to find nearshore software developers from LATAM. Though they are in high demand at the time, there is still a wide array of educated and English-proficient developers that can be a strong fit for your company’s technological needs. Here are the most common ways to go about hiring nearshore developers.

Hire through a Nearshore outsourcing and staff augmentation firms: As highlighted earlier, nearshore outsourcing agencies are the best way to hire qualified LATAM developers that will be in your company for the long term. At Next Idea Tech, we have a careful vetting process and know how to negotiate fair rates for LATAN software engineers.

Hire a direct contractor: If you want to hire LATAM developers without any third-party involvement, a direct contractor is your best bet. Though these types of LATAM software engineers can be more challenging to find, as they are wary of job scams and might prefer to work with freelancing platforms to ensure they get paid. Try to search for LATAM developers through LinkedIn and contact them on the platform to show the position is legit.

Hire using popular freelancing platforms: UpWork and Freelancer are two of the most popular freelancing platforms for sourcing software developers in Latin America. These platforms make payments and time management easier, but they often get a share of your developer’s pay. So don’t be surprised if the rates are higher for developers there! Another downside of freelancing platforms is that it can be hard to get a proper evaluation of the developer before starting to work together.

Setup a local company: This one is an ambitious nearshoring alternative. Though if you are looking to build a larger team and establish your presence in the region, creating a subsidiary of your company in Latin America can be a smart and proactive move. That way you can hire local employees, be it in-person or remote software developers. Just make sure you are complying with employment regulations of the developer’s country from the get-go.

4. Software Developer Salaries in LATAM

For companies seeking cost efficiency, moving certain positions abroad can be advantageous, especially considering that wages in the U.S. are typically double those in countries like Argentina, Brazil, and Mexico.

However, before diving into the LATAM developer talent pool, it’s crucial to understand salary structures and compensation trends. Here’s a breakdown of the factors that influence the salaries for software developers in LATAM:

Experience Level: Junior developers will naturally command lower salaries than senior developers with extensive experience.
Skillset: Developers with specialized skills or experience in specific technologies can expect higher salaries.
Location: Cost of living can vary across LATAM countries, influencing developer salaries. Major tech hubs like São Paulo (Brazil) or Mexico City might offer slightly higher salaries.

Knowing salary ranges for various developer levels in LATAM helps you set realistic project budgets. Analyzing salaries also helps you assess the value proposition. You might find highly skilled developers with lower salaries, maximizing your project budget for other areas like technology or design.

Aside from that, knowing the market rate for specific skills ensures you offer a competitive compensation package to attract top LATAM developers. This is crucial considering the growing demand for their talent and it can go a long way to minimize attrition rates.

This knowledge also empowers you to build the perfect team structure for your project. Balancing senior developers for guidance with junior developers for cost savings might be a strategy based on salary differences.

5. Legal and Regulatory Compliance

Each LATAM country has its own set of labor laws governing employment contracts, benefits, taxes, and work regulations. Failing to comply can result in hefty fines, penalties, or even legal disputes.

Demonstrating a commitment to legal compliance from the outset fosters trust and a long-term, successful partnership with LATAM developers. It shows you’re a professional company that values ethical business practices.

In addition, anticipating potential legal hurdles helps you plan effectively and thus avoid disruptions or delays in onboarding developers as well as project roadblocks caused by unforeseen legal issues.

To adhere to the established regulations and laws:

Research relevant labor laws in your target LATAM countries.
Consult with an experienced legal professional specializing in international employment law.
Clearly outline employment terms and conditions in contracts, including compensation, benefits, and IP ownership.
Understand visa requirements for remote workers and plan accordingly.

By taking the time to address legal and regulatory considerations, you can ensure a smooth hiring experience, protect your business interests, and build a strong foundation for a successful nearshore development project with LATAM developers.

The Next Idea Tech Advantage

Finding the proper resource may be a time-consuming process; depending on your demands, you may need to do a number of assessment tests in order to find the ideal website developer. All of that time-consuming effort, on the other hand, may be removed if you engage specialist web developers from a reputable software engineering business.

At Next Idea Tech, we recommend nearshoring as the most efficient and cost-effective way to start software outsourcing. Thanks to our extensive knowledge of the Latin American tech talent market and experience hiring nearshore developers from LATAM, we know the ins and outs of nearshoring to this region and can guide you in the process of doing so. We have a deep understanding of the cultural, legal, and technical aspects of working with nearshore development teams in the region and can leverage this expertise to help you find the right developers for your projects.

We specialize in helping businesses hire and manage nearshore software developers in Latin America. We have a team of experienced recruiters and project managers who work closely with clients to understand their specific needs and rapidly identify and onboard the best developers for your IT projects. Our mission is to connect the best of LATAM’s development talent with growing North American companies to create long lasting quality partnerships.

In addition to our recruitment process, we also provide ongoing support and management for nearshore development teams, including accounts management, communication facilitation, and performance monitoring. Our developers use modern Agile methodologies and project management tools to ensure that projects are delivered on time, within budget, and to the highest quality standards. If you’re interested in our services, you can contact us to schedule a free strategy call to discuss how we can help you grow and save money on development costs!

Jeremiah