Why Hiring Software Developers in Latin America is a Cost-Effective Solution for Tech Companies
- Viet Nguyen
- Mar 2
- 3 min read
With competitive salaries and a growing pool of skilled software developers, businesses are looking for cost-effective ways to build their engineering teams. Companies in North America are now turning to Latin America as a solution for hiring experienced developers at lower costs while maintaining high quality. With reduced salary expectations, a strong technical workforce, and time zone alignment with the U.S. and Canada, hiring in Latin America provides significant financial and operational benefits.
Cost Savings: Comparing Software Engineer Salaries
Hiring software developers in Latin America can significantly reduce costs compared to North America. Below is a comparison of the average annual salary for a senior software engineer in different regions, based on calculated estimates from Glassdoor data.
Country | Average Annual Salary (Senior Software Engineer) |
United States | $140,000 - $170,000 |
Canada | $120,000 - $150,000 |
Mexico | $50,000 - $70,000 |
Brazil | $45,000 - $65,000 |
Argentina | $40,000 - $55,000 |
Colombia | $40,000 - $60,000 |
Chile | $40,000 - $55,000 |
These numbers highlight potential savings of more than 40% when hiring in Latin America compared to North America, making it a viable strategy for companies looking to scale their development teams efficiently.
Advantages of Hiring Software Developers in Latin America
Access to Skilled Technical Talent
Latin America has a well-established community of software engineers proficient in technologies such as JavaScript, Python, React, Node.js, and cloud computing. Many universities and coding boot camps in the region produce high-caliber talent, making it easier for companies to find skilled developers.
Time Zone Compatibility
One of the biggest advantages of hiring in Latin America is its time zone alignment with North America. Unlike outsourcing to regions like Asia or Eastern Europe, developers in Latin America can work in real-time with U.S. and Canadian teams, ensuring smooth communication and collaboration.
English Proficiency and Communication
Many software developers in Latin America have a strong command of English, particularly in Mexico, Argentina, and Colombia, where English proficiency is emphasized in the tech industry. This minimizes language barriers and improves teamwork across distributed teams.
Cultural Fit and Work Ethic
Developers in Latin America share cultural similarities with North American companies, which helps integrate them into existing teams. A strong work ethic, adaptability, and familiarity with Agile development practices make Latin American developers well-suited for remote collaboration.
Cost-Effective Remote Work Infrastructure
The widespread adoption of remote work in Latin America has led to improved internet connectivity, coworking spaces, and access to international projects. Many developers in the region have experience working with global companies, making them well-prepared for remote and hybrid work environments.
Companies Hiring Software Developers in Latin America
Many well-funded tech companies have teams made up of professionals from Latin America, highlighting the region's growing role in global tech hiring. Below is a list of companies with portions of their workforce based in Latin America, along with their estimated workforce percentage in Latin America and total funding.
Company | Industry | % Workforce in LatAm | Total Funding |
FinTech | > 40% | $815 M | |
IoT | > 5% | $12.8 M | |
FinTech | > 75% | $24.5 M | |
GreenTech | > 20% | $48.9 M | |
SaaS | > 15% | $ 70.6M | |
SaaS | > 90% | $ 3M | |
E-Commerce | > 40% | $ 130 M | |
FinTech | > 90% | $ 10.7M | |
AI & Real Estate | > 90% | $ 110 M | |
SaaS | > 90% | $57.5 M |
(Data sourced and estimated from LinkedIn company pages and investment reports in 2025)
Start Building Your Software Team in Latin America Today
Hiring software developers in Latin America is a cost-effective, provide access to skilled talent, and operational benefits for companies looking to expand their development teams. With lower salaries, strong technical expertise, and alignment with North American work schedules, Latin America is becoming a preferred destination for companies seeking high-quality developers.
For businesses looking to streamline the hiring process and ensure compliance, using an employer of record (EOR) service simplifies legal and administrative challenges.
Workmate helps companies source top-tier software developers and manage payroll, compliance, and contracts seamlessly. Schedule a call today to learn how we can help you build your remote development team in Latin America.
