For years, when companies looked to outsource software engineering talent, Asia was the go-to destination. But that’s changing. Today, Latin America is emerging as a new hub for talent, offering businesses a unique alternative. Take IBM and Dow Chemical as examples—both have tapped into the growing talent pool in LATAM, where costs are significantly lower than in the U.S. In this post, we'll explore why Latin America is becoming a popular destination for nearshoring partnerships when it comes to tech talent. 

1. Explore a thriving tech ecosystem

Latin America's tech scene is booming, and it shows no signs of slowing down. With a 20% annual growth rate, the region has cultivated a vibrant tech ecosystem. More than 2.6 million skilled engineers across LATAM are driving innovation in AI, fintech, software development, and more.

Countries like Argentina, Brazil, Colombia, Chile, and Costa Rica are leading the way. Each one contributes a large number of highly skilled, English-proficient engineers who are culturally aligned with the U.S. work environment. For instance, Argentina alone has over 450,000 engineers specializing in software development, data science, and IT services. Brazil is home to more than 1.2 million engineers with expertise in Software Engineering, AI, Data Science, and Cloud Computing.

2. Save your business up to 50% on software development

One of the biggest reasons to nearshore to Latin America is the cost savings. You can reduce expenses significantly without sacrificing quality. On average, hiring an engineer in LatAm costs up to 50% less than hiring in the U.S. For example, a Full-stack Developer in the U.S. might earn around $161,500 per year, while the same role in Latin America costs about $78,000. These savings extend across roles like Front-end and Back-end Developers, Data Scientists, AI/ML Engineers, and more.

3. Work with senior software engineers ready for global projects

Latin American engineers are known for their strong technical skills, problem-solving abilities, and adaptability. They're highly proficient in key technologies like Python, JavaScript, cloud computing, AI, and cybersecurity. Plus, 60% of them specialize in algorithm design and systems optimization, making them well-equipped to tackle complex challenges.

Many of these professionals have experience working on international projects, which means they’re skilled at collaborating remotely and adapting to cross-cultural teams. This makes LATAM engineers highly sought after by U.S. companies.

4. Create strong, productive working relationships 

LATAM shares many values with the U.S., such as a strong work ethic, initiative, and a collaborative spirit. This creates smoother working relationships and reduces the potential for misunderstandings that often arise in cross-border collaborations.

Additionally, LATAM  professionals tend to have a high level of adaptability and openness to feedback, which promotes a positive team dynamic. These shared values also encourage long-term partnerships.

5. Ensure faster project timelines with similar time zones

Last but not least, Latin American countries operate within time zones that are only a few hours ahead or behind Eastern Standard Time (EST), allowing real-time collaboration between teams. This proximity eliminates the need for late-night meetings and promotes efficient project management.

Moreover, better collaboration leads to faster turnaround times for projects, making the development process more agile and responsive to the dynamic needs of the U.S. market. Nearshoring to Latin America ensures that communication flows efficiently, and project timelines are met without the delays often seen in offshore outsourcing.

What’s Next: Tech Trends and Potential Growth Areas for 2025

As we mentioned before, Latin America’s tech sector is on track for incredible growth, making it a key player in the global tech scene. Here’s what we can expect:

1. Emerging Tech Hubs and Districts

Cities like São Paulo, Buenos Aires, and Bogotá are becoming hotbeds of innovation, supported by government policies that encourage startups and tech companies to flourish. According to the GSMA, São Paulo is home to 15 of the 20 largest tech companies in Latin America while Buenos Aires has more than 100 tech companies receiving support from local incubators like Start-Up Buenos Aires.

2. The boom in EdTech and Upskilling Programs

Programs like Laboratoria and Platzi are democratizing access to tech education, ensuring a steady flow of highly skilled engineers. LatAm’s focus on continuous learning keeps its talent at the cutting edge of technology.

3. Adoption of Emerging Technologies

Engineers in Latin America are increasingly specializing in emerging technologies. AI adoption in Latin America grew by 30% in 2023, and Blockchain use cases increased by 40% in industries such as fintech and supply chain management (Sources: IDC Latin America IT Investment Trends).

4. Investment in Research and Development

There is a growing emphasis on research and development across major Latin American countries. Increased funding for R&D is spurring innovation and creating opportunities for local engineers to work on pioneering projects. This focus not only enhances the skill set of the workforce but also attracts multinational companies looking to invest in groundbreaking solutions.

5. International Collaborations

Global tech giants like Google, Amazon, and IBM are investing heavily in the region, establishing innovation centers, and forming partnerships with local universities and tech startups. In 2024, Google established an AI research center in Brazil, which partners with local universities like the University of São Paulo. Amazon Web Services (AWS) has teamed up with the Colombian government to provide cloud computing training programs through partnerships with Colombian universities, aiming to train over 100,000 tech professionals by 2025.

Another example is Microsoft, which is investing $1.1 billion in Latin America, including the creation of data centers in Chile and engineering hubs in Mexico. These collaborations not only bring in cutting-edge technologies but also facilitate knowledge transfer, giving Latin American engineers access to international markets.

Leverage Latin America’s Tech Expertise for Growth

If you want to stay ahead of the game, Latin America offers a reliable partner full of potential, focused on sustainable and inclusive growth. Plus, when you look at the growing number of strategic partnerships and global collaborations, it’s clear that this region is only going to become more important in the global tech scene.

Looking to grow your software development team with talented engineers in a similar time zone? We’re here to help. Let BetterEngineer analyze your business goals and connect you with the best tech talent from Latin America. Reach out to us today and discover how nearshoring to Latin America can transform your business and unlock new growth opportunities. Let’s start building your world-class team together!