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.
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.
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.
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.
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.
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.
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.
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.
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.
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.