Unlocking Opportunities: The Appeal of Software Development in South America

In the dynamic world of software development, South America emerges as a less competitive yet richly promising market. This region boasts a vast pool of undiscovered, high-quality software developers, freshly graduated or seasoned in the freelance sphere. Opting for nearshore developers from South America means facing significantly less competition for top talent compared to the U.S., offering a strategic advantage in the global quest for skilled software professionals.

Hire the best developers in Latin America. Get a free quote today!

Contact Us Today!

The South American software development market is starting to attract many US businesses. The continent, in particular, is at the forefront of this technology renaissance. Countries like Argentina, Brazil, Chile, and Colombia are leading in the digital transformation that’s making the whole region dominant. If you’re running an agency or a development team of any sort, you should definitely keep South America open as an option. It offers a golden opportunity to seed your team with premium nearshore software developers—people who have that natural ability that you don’t pick up in school that makes them excel in your team in a very unique and exciting way but haven’t quite been discovered yet.

Keep reading this blog post as we explore why South America is a great destination for nearshore software development and how this beautiful continent is proving to be the perfect place for innovation and IT growth!

What is the State of Software Development in South America?

Countries in South America are attracting massive interest in software development talent from businesses globally. Many of these businesses are located in the US because of their shared time zones and geographical proximity. The region is changing the perception that outsourcing software development projects is not a good business idea and has become a goldmine in IT on the global scene. South America has become an excellent destination for software development because of the highly qualified IT talent that continues to grow annually. Moreover, there is less competition for top development specialists in South America than in North America, which makes staffing faster and easier.

South American nations excel in several international ranks like Ease of Doing Business, GSLI, and Global Innovation Index. Most governments in the continent focus on digital skills, digitalization, infrastructure, and foreign investment. As such, entrepreneurs find it easier to locate the perfect support and resources for their tech projects thanks to the rising number of tech incubators, accelerators, and technology parks.

Today, South America has an IT talent pool of approximately two million professionals. Because of this, the continent’s skilled workforce and growing technology industry make software development outsourcing in South America highly attractive for companies who want to take advantage of the continent’s potential. 

The Benefits of Nearshore Software Development in South America for US Companies

In an ideal world, software development outsourcing should be seamless. However, most people end up disappointed by agencies that operate abroad. South America is emerging as a go-to continent for nearshoring software development projects. The continent’s track record is great thanks to many passionate developers ready to offer quality work. We’ve listed several reasons and benefits of working with a good nearshore software development team in South America.

Quality vs. Price 

When you hire developers from South America, you don’t have to worry about compromising work quality for reduced prices. One of the main reasons for organizations turning their attention to South America for software development is the massive cost savings it comes with. While the continent might not provide cheaper labor costs like some Asian countries, it does offer a great balance between affordability and quality.

Most South American countries invest in technical education, thus allowing raw IT talent to thrive. While you’ll be benefiting from favorable conversion rates from U.S Dollar to South American currencies, the true value is from the quality work of South American developers and their passion to be part of the tech market in the United States. 

Unlike using onshore software development firms in the US, outsourcing to South America can lead to huge savings. You will get the same level of quality and technical expertise of work while saving huge sums of cash. It means that you can allocate more money to other vital areas of a project such as marketing or development thus leading to a greater return on investment. The trend of outsourcing to Latin America allows firms to stay competitive in a highly cost-conscious market while maintaining efficiency and top quality.


South American developers do quality work so there is no reason why you shouldn’t outsource to them. The gurus have honed their skills and know how to tackle projects from the beginning to the end while considering software architecture to prepare any software for performance and scaling.

Software development in South America is on a steady growth because of a high number of competent developers in the continent.  According to a report by the Latin American Council of Social Sciences (CLACSO), there has been a 50% increase in computer science graduates in South America in the past decade. Moreover, most of these software developers have a unique combination of linguistic proficiency in multiple languages and technical skills, which make them extremely desirable to tech companies globally.

South America’s Software Development Scene: An Emerging Market

South American nations attract many companies worldwide that want to benefit from the expertise of remote engineers. Many skilled developers have worked with global companies, learning new skills and ideas in the process.

At first, you might not instantly associate South America with tech innovation, but when you look closely, you’ll see a thriving ecosystem of developers making a huge impact on the global digital scene. These developers have shown their ability to pioneer working solutions and change industries. The commitment to innovation and quality in South America is global and not limited to the local scene.

Development companies in South America are establishing themselves globally leading to massive advancements in areas such as cyber security, artificial intelligence, and biotechnology.

Reduced Time Difference Between South America and the United States – Swift Response 

Most companies in the United States don’t use developers from Asia or Eastern Europe because of the wide time gap of over 8 hours. Slow response times in such arrangements often lead to a slow development process. Developers might delay delivering projects because of this. 

South American countries offer an advantage because they’re only a few minutes or approximately an hour behind the east coast of the United States when it comes to time zones. The time difference between a South American nation like Colombia and the United States West Coast is approximately two hours, which is still convenient.

If your company is US-based and you hire nearshore South American developers, you’ll find that the response time is really convenient and you can work in tandem with the developers thanks to the minimal time zone differences. It aligns well with agile development meaning crucial issues or queries can be resolved swiftly and tasks will be completed on time – all of which are crucial when hiring software developers.

The Competitive Edge of South American Software Development: Cultural Similarities

Software development outsourcing to Asian regions such as Singapore can lead to occassional misunderstandings that might need more expenses, corrections, and time to resolve. Cultural similarities and strong English skills make South America a great choice for software development outsourcing. South American nations share similar work practices, business ethics, and even pop culture with North Americans. Such an alignment promotes a good foundation for collaboration and efficiency.

When cultures are compatible, it helps reduce communication barriers. There’s more intuitiveness when clients and developers work together because it becomes easier for the developer to understand the client’s expectations and needs. This cultural synergy also enhances a productive and harmonious working relationship between South American IT professionals and North American businesses. 

What is the Cost of Working with a Nearshore Developer in South America?

As said above, one of the main reasons why companies outsource is cost reduction. Firms looking to reduce costs tend to turn to countries in Asia and South America, which have a good record of providing value. Nations in South America are popular for providing developers with a good work ethic and substantial experience at reduced rates.

On average, you can expect a South American developer to charge between $30-$50 per hour depending on seniority, task complexity, and engagement grade. However, there are more experienced developers charging 3X more.

Cost-effectiveness and high quality of work are a leading reason for the region becoming a strong player in the global software development scene.

Note: It’s possible to find reduced hourly rates such as $10-$15 in South America, but know that these cheap rates might not guarantee good quality of the final project. When picking a software engineer in South America, consider their experience with similar tasks, and references and keep track of them in action to ensure you’re getting the value for your cash.

Most governments in South America are providing support to the IT sector through initiatives that attract global investments and nurture local talent. For instance, the Mexican government started a program known as “Software Nation” intending to make Mexico a top five software exporter in the world. The program aims to encourage software industry growth through measures like training programs, tax incentives, and networking events.  

Final Thoughts 

South America is making a name for itself in terms of software development. The rising number of skilled and youthful software developers, increasing demand for tech in the region, availability of cost-efficient labor, and government support, have all contributed to making South America a good destination for software development. Additionally, the proximity of South American countries to North America – one of the biggest tech markets, is a major upside for companies looking to establish IT partnerships or outsource software development. The continent’s cultural compatibility, time zone proximity, and strong English skills make it more appealing as a software development nearshoring destination.  

Build your South American Engineering Team with Next Idea Tech’s Nearshore Services

Hire Nearshore developers with Next Idea Tech
Hire Nearshore developers with Next Idea Tech

Many companies face the challenge of finding the right talent to fit their needs. The process of hiring and recruiting can be costly and frustrating with no guarantee that a chosen candidate will remain long-term. 

At Next Idea Tech, we meticulously select diverse professionals who align with your vision and goals. We discover, recruit, hire, train, and manage developers at the speed you need. Working with your new South American dev team is easy. Your developers will be legally employed by Next Idea Tech, but they’ll be working remotely full-time for you. Our core management approach means that you’ll have a team of professionals managed by experienced IT leaders.

Furthermore, our South American developers take pride in working for American companies and will go the extra mile for you—it’s a win-win relationship. Your nearshore developers receive a great employment opportunity, you receive competent personnel at a cost that is 40% – 60% lower compared to hiring in the United States. We take care of your staffing needs so you can focus on growing your business.

Getting started is easy. Contact us today and get a free nearshore outsourcing quote today.


Posted on

December 7, 2023