To address the surging demand for skilled tech personnel, businesses of all sizes, ranging from startups to established industry leaders, are increasingly opting for team extension in Latin America. This strategic decision is driven by securing a competitive edge in the market.
The region's growing reputation is not just due to its cost-competitive services but also because of the high quality of work, cultural affinity with the US, and English proficiency among experts.
Having established a presence in the region, we know for sure why it is worth your attention. So, why should you hire LatAm developers? What benefits are associated with that? Let’s discover together.
Why should you hire LatAm developers?
Latin America boasts over 1 million highly qualified and versatile tech professionals. This talent pool continually expands, fueled by a steady influx of new graduates from quality STEM education programs. Each year, more than 100,000 graduates with degrees in Information and Communication Technology (ICT), computer science, and related fields join the pool of South American software developers.
Moreover, the competition for top Latin American developers is much lower than in North America. This results in a faster and more efficient staffing process, allowing companies to scale their teams quickly and effectively. What are the other benefits of outsourcing to Latin America? Let’s take a look together.
Access to a vast talent pool
When evaluating potential outsourcing destinations, the talent capacity of the region is a critical factor. Brazil leads the pack in the region with over 500,000 professionals, making the country the front-runner in digital talent in Latin America. Other notable countries for outsourcing in the region include Colombia, with 150,000 experts, Mexico housing 225,000, and Argentina, with 130,000 specialists.
The growing number of tech companies
The region hosts a vast network of tech companies, with the number in each country generally correlating with its population. Consequently, Mexico, Colombia, Argentina, and Brazil have the highest concentration of IT outsourcing companies. The distribution of these companies is as follows: Mexico features over 400 companies, Colombia and Argentina each have more than 350 companies, and Brazil is home to over 250 companies. The region has also attracted major US-based tech giants like Apple, Google, Amazon, and Microsoft, as well as European firms.
For example, N-iX, a renowned global software development company, expanded to Medellín, Colombia, primarily to offer its US partners access to a new pool of highly skilled talent.
Now, let’s take a closer look at the most prominent destinations where you can hire LatAm developers.
Latin American software developers: Where to look for them?
In recent years, Colombia has emerged as a leading destination for IT outsourcing in Latin America. Although it ranked behind Mexico and Brazil in IT market size in 2021, with a notable $10.2B, the country’s ambitions are high. The Colombian Federation of IT and Software Industries aims for the software sector to make up 5% of the nation's GDP by 2025.
Colombia's major urban centers, such as Bogotá, Medellín, and Cali, are at the forefront of this growth. These cities boast a dynamic startup ecosystem spurred on by government incentives, enhanced access to funding, and an increasingly skilled tech workforce. Notable Colombian tech startups that have gained recognition include Rappi, Tpaga, and Ayenda, exemplifying the country's booming tech landscape.
Read more about ways to hire software developers in Colombia
Mexico is the second-largest technology market in Latin America, with its core strengths in software development, fintech, and ecommerce. Globally, it stands 12th in innovation, while in Latin America and the Caribbean, it ranks 3rd. The country's robust technological infrastructure is supported by various government initiatives and investments in startups.
The talent pool in Mexico is particularly noteworthy, encompassing over 700,000 developers and 3 million STEM professionals as of 2020-2021. This substantial base of skilled individuals contributes significantly to Mexico's growing reputation as a major player in the technology sector.
Read more about software developers in Mexico
Brazil stands as the largest technology market in Latin America, with a focus on fintech, ecommerce, and mobile app development. Despite its ranking of 124th in the Ease of Doing Business, Brazil is making significant strides in enhancing innovation within its IT sector. The government has implemented a variety of initiatives, including the establishment of science and technology parks, digital inclusion programs, startup support schemes, and cybersecurity measures.
The country's ICT market is on an upward trajectory, anticipating a 5% growth in 2023, which could see it nearing a value of $8B. This growth is reflected in Brazil's improved positioning on the Kearney Global Services Location Index (GSLI), where the country rose four spots to break into the top 5 in 2021. São Paulo and Rio de Janeiro are at the heart of Brazil's technological advancement, serving as major tech hubs in the country.
Read more about how to find and hire software developers in Brazil
Argentina has experienced substantial advancement in its technology sector. They achieve it by targeted government programs and funding designed to foster innovation and technological growth. Positioned 69th in the Global Innovation Index, Argentina has demonstrated a keen focus on fields like software, biotechnology, and nanotechnology.
The country boasts a robust talent pool, with over 115,000 software developers, underlined by a strong commitment to STEM education and a notably high level of English proficiency among professionals. These factors collectively render Argentina an appealing destination for outsourcing IT and software services.
Read more about software developers in Argentina
Chile's robust tech climate and infrastructure position it as a prime location for software outsourcing. In the Global Innovation Index 2021, Chile outperformed all other economies in Latin America and the Caribbean, showcasing its leading role in the region. The country's global ICT market is growing and is projected to hit $13.93B by 2026. Additionally, Chile's IT sector is supported by a substantial talent pool, with nearly 61,000 professionals employed, further enhancing its attractiveness as a destination for technology services.
Get a complete overview of the software development market in Latin America!
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Why hire LatAm developers with N-iX?
N-iX stands out as a trusted global engineering partner, offering extensive expertise in software development across various sectors, including finance, manufacturing, supply chain, and retail. With a strong presence spanning over two decades in the industry, N-iX has expanded its reach with offices across Europe—in countries like Poland, Bulgaria, Sweden, and Malta—and extending into Latin America.
The company boasts a team of specialists proficient in a wide array of technical domains, including Cloud solutions development, Business Intelligence, Big Data and Data Analytics, IoT, and embedded systems implementation. N-iX's client roster is impressive, featuring collaborations with international enterprises such as Fluke, Gogo, Currencycloud, and numerous Fortune 500 companies.
Commitment to cybersecurity is paramount at N-iX, evidenced by adherence to international standards like PCI DSS, GDPR, ISO 27001:2013, and ISO 9001:2015. The company's excellence and industry leadership have not gone unnoticed, as N-iX has been recognized in prestigious rankings such as the CRN Fast Growth 150 List and the IAOP Global Outsourcing 100, among others, underscoring its status as a top-tier engineering service provider on the global stage.