In our recent blog post, we explored why Latin America stands out as the ideal location for your nearshoring strategy. With its booming tech scene, diverse talent pool, and favorable economic conditions, the region offers a solid ground for companies looking to build software development teams.

But what exactly does this region have to offer in 2025? In this post, we’ll dive deep into the top destinations in South America for building your software development team. We’ll look at the unique opportunities and strengths of each tech hub to help companies identify the best locations for hiring talent.

Top Tech Hubs in LatAm for 2025

The tech scene in Latin America has been booming, especially in recent years. In 2021 alone, Latin American startups raised a whopping $16 billion, according to The Economist. And the momentum hasn’t slowed down. Venture capital funding for new firms doubled from 2020 to 2024, and 2025 is shaping up to be another record-breaking year for tech investments in the region.

Emerging trends such as AI, 5G, cloud computing, and edge technologies are rapidly reshaping Latin America, where cities like São Paulo, Bogotá, and Santiago lead in innovation. A report from Deloitte’s Tech Trends 2024 anticipates that by 2025, Latin America will be at the forefront of adopting these advancements. Additionally, the region's cloud market is projected to hit $18.7 billion by 2027, with 30% of businesses already working on AI solutions.

Let's now explore the top tech hubs in the region for 2025. These cities not only lead in technological innovation but also offer exceptional opportunities for companies to scale their software development teams.

1. São Paulo, Brazil

As Brazil's largest city, São Paulo stands out not just as a cultural and financial center but also as a leading hub of technological innovation. The city is responsible for 60% of Brazil’s startup investments and is home to 11 unicorns, including the globally recognized fintech giant Nubank, which serves over 80 million customers.

• Talent Pool: 500,000 IT professionals, expected to grow by 15% by 2025.
• Main Industries: Fintech, with regulatory technology (regtech) and insurance technology (insurtech) emerging rapidly.
• Investments: The city attracts 60% of Brazil’s startup capital; global giants like Amazon and Spotify are heavily invested.
• Infrastructure: São Paulo’s tech-friendly regulations, extensive coworking spaces, and annual events like São Paulo Tech Week and StartUp Week bolster its innovation ecosystem.

2. Bogotá, Colombia

Bogotá is the tech capital of Colombia, housing 62% of the country’s tech companies. It’s home to over 800 startups and boasts a fast-growing software development industry projected to hit $35 billion by 2027. The city’s innovative ecosystem and strong public-sector support make it a top choice for building tech teams.

• Talent Pool: Home to top universities, Bogotá expects 100,000 new tech professionals by 2025.
• Main Industries: Sectors like fintech, health tech, and edtech are projected to have 15% annual growth in 2025.
• AI Market: Projected $2.5 billion AI market by 2027, with 30% of businesses developing AI applications.
• Government Support: Bogotá benefits from government programs like Apps.co and Innpulsa, along with tax incentives that attract investment and support the city's growing tech ecosystem.

3. Santiago, Chile

Chile is often dubbed the "tech mecca" of Latin America, thanks to its leadership in AI development, 5G coverage (at 92%), and an increase in cloud investments. With one of the region's most skilled tech workforces and globally competitive universities, Santiago is a key player in Latin America’s tech future.

• Tech Economy: Chile's digital economy is projected at $45 billion by 2025, focusing on cybersecurity, AI, and IoT.
• Main Industries: Santiago’s main industries include fintech, edtech, and health tech, all of which are expanding rapidly.
• Connectivity: With 92% 5G coverage and a rise in cloud investments, Santiago offers a strong digital infrastructure.
• Educational Excellence: The University of Chile ranks among the best in Latin America for computer engineering, reinforcing its reputation for excellence in technical education.

4. Buenos Aires, Argentina

Buenos Aires is both a cultural hotspot and a leading tech hub in Latin America, with Argentina’s IT market valued at $11 billion. Known for its affordable tech scene, the city’s vibrant ecosystem and relatively low cost of living make it an attractive destination for tech companies and startups alike.

• Market Valuation: Argentina’s IT sector is valued at $11 billion, with Buenos Aires driving the majority of activity. 
• Talent Pool: Buenos Aires, hosts over 85% of the Argentinian talent pool and 35,000 new tech graduates are expected by 2025.
• Main Industries:  E-commerce, fintech, and agritech are set to expand by 20% by 2025. 
• Startup Culture: Home to over 1,000 startups, Buenos Aires has a vibrant entrepreneurial environment. The annual startup investments are expected to rise by 15% in 2025.

5. Medellín, Colombia

Medellín is known as the "City of Eternal Spring," but it’s also a rising star in Latin America’s tech scene. With a rapidly growing startup ecosystem and strong support from the local government, Medellín is positioning itself as a key player in the tech world.

• Startup Scene: The city is home to 300+ startups mainly in e-commerce and fintech, including La Haus (backed by Jeff Bezos).
• Talent Pool: Universities like the University of Antioquia support a 12% annual growth in tech talent, building a solid workforce of developers and engineers.
• Main Industries: Medellín’s tech sector is heavily involved in artificial intelligence, biotechnology, and advanced manufacturing.
• Government Support: Medellín's local government has invested heavily in technology and innovation with programs like Ruta N.

How to Choose Where to Build Your Software Team in Latin America

With so many tech hubs, finding the right place for your software team requires careful planning and a tailored approach. There’s no single “best” location—what works well for one company may not be right for another. That’s why it’s essential to work with a professional agency that understands the local market.

For instance, larger cities like São Paulo and Buenos Aires offer a big pool of tech talent, while smaller hubs like Medellín and Santiago may provide more specialized skills. Some cities also have unique industry strengths: São Paulo and Buenos Aires lead in fintech, while Bogotá and Medellín are strong in e-commerce and food tech.

In the end, choosing the best location means understanding your specific needs and getting guidance from experts who know the region well.

BetterEngineer: Customized Talent Search and Integration

At BetterEngineer, we don’t just connect you with engineers; we integrate them into your team for long-term success. Our unique approach to nearshore staff augmentation ensures that every hire is aligned with your company’s culture, goals, and values from the start.

What Sets Us Apart:

• Local Expertise with Global Reach:  While other companies may take a broad approach to talent acquisition, we specialize in sourcing the brightest engineering minds from Latin America. This nearshore advantage means you benefit from cultural alignment and real-time collaboration due to minimal time zone differences.
• AI-Powered Placement with a Human Touch:  Our hybrid vetting process combines AI-driven assessments with personal interviews to ensure that candidates meet both your technical and soft skills requirements. We carefully evaluate candidates for cultural fit, communication ability, and problem-solving skills, ensuring they are not just a checkbox but a true asset to your team.
• Ongoing Support and Upskilling: The partnership doesn’t end once the engineer is hired. We offer continuous support to ensure your engineers keep bringing ongoing value to your projects.

Our approach guarantees that your team will not just grow in numbers but also in strength and cohesion, with engineers who are aligned with your company’s mission. Let BetterEngineer help you build the right team for your business success.