Cost of Hiring LATAM Developers in 2023

Most companies are now on the lookout for hiring LATAM developers. This is because the rising demand for tech talent the world has seen over the past couple of years has been a challenge to most enterprises and startups looking to hire top-quality talent at the right price. 

1. Reasons to hire LATAM developers

Well for starters, hiring offshore developers from the LATAMs is highly affordable. Secondly, it allows you to access a much wider pool of talent. Not to mention the time zone alignment, quality, and availability of developers among many more.

So let us explore each of these in more detail.

1.1 The cost of hiring LATAM developers is far less in comparison

Hiring offshore developers from Latin America is far less costly due to several factors. The standard rates for the talent within the region are lesser partly due to the lower demand for the skill in the market. Additionally, the lower cost of living in the LatAms compared to that of the US and Europe also plays a part. Not to mention the fact that the average wage is lower in that part of the world compared to the USA and Europe. This makes it easier to hire LatAm talent at lower prices.

Furthermore, being able to hire remote workers can help firms save up on overhead costs, employee benefits, and insurance. Other costs such as vacations and corporate training as well as spending on onboarding sessions can be cut as well.

1.2 You can tap into a much wider talent base across the globe

Unlike being limited to a specific location as required when hiring on-site developers, the ability to access a wide network of the best talent across all Latin American nations appears far more attractive to most startups.

1.3 Time-zone alignment with US companies

When outsourcing talent from another country, it is essential that you pay attention to time zone alignment. For instance, when hiring from countries like China and India there will be a 12+ hour difference between the time zones of the talents and their US clients. So, the close proximity of the LATAMs definitely makes them the more feasible option. 

Having your offshore team close by, allows you to have better communication and is helpful when having to resolve problems fast. In the event, business trips are required, it is a lot more convenient to arrange travel between the US and the LATAMs.

1.4 Availability of developers 

It’s becoming increasingly evident that access to quality developers in the US and Western Europe is reducing due to the existing tech giants having scooped up the best of the available talent.

With attractive benefits, perks, and above-industry average salary schemes, it is difficult for startups to think of tapping into this workforce that’s already settled in their stable high paying jobs.

In contrast, LatAm countries are home to large numbers of talented developers. Most of this talent has some experience working for recognized global organizations. But do not have full-time engagements due to excess supply and lack of demand in the field.

Hence, startups that are outsourcing, can hire extremely skilled and capable developers from LATAM at outstanding rates that would be more than happy to join a US startup.

1.5 Education level of talent

The LatAm nations offer thousands of highly skilled tech talent thanks to their education sectors that have recognized and continually support the growth of the industry. 

Even major tech giants like Microsoft and Hewlett-Packard have launched educational programs to assist LATAM talent to develop their skills in the IT field.  This ensures that the talent in this region provides developers that have a solid educational foundation.

So if you want to opt for the best quality, minimize risks and get your job done fast and ensure it’s done professionally, hiring LATAM devs is definitely worth looking into.

1.6 Language proficiency of developers

With higher English language proficiency than that of China, most South American countries have emphasized the importance of English in their educational curriculums. This has led to an advanced rate of English fluency within Latin American countries, unlike most other Asian or East European nations.

Additionally, Spanish being the second most popular language spoken in the United States, LATAM is indeed the preferred offshore destination for US clients that have bilingual employees.

1.7 Flexibility to scale up or down as required

Outsourcing developers allows your company to have a more flexible tech team that can be customized to the company/project at hand. Most talent requirements tend to be on a per-project basis where there’s a need for a specific tech stack for the duration of their project. 

In such instances, it doesn’t make sense to hire full-time in-house team members. Hence, most companies prefer to have the flexibility to scale up or down with their talent based on their requirements. By outsourcing tech talent, startups are able to move their talent between different projects as needed.

2. The cost of hiring LATAM developers Vs. others

The cost of hiring developers is one of the key determinants that sways founders toward the LatAm market. This is because the hourly rate of US-based developers happens to be the highest rate in the industry at about $70.00-$100.00 per hour. The second and third highest are in Canada at $60.00-$80.00 and in Western Europe which amounts to $50.00-$81.00 per hour. In comparison, Latin America’s $45.00-$65.00 appears to be the most attractive rate present in the West. 

You can still afford to find developers at an hourly rate of $35.00-$55.00 coming from South Asia and Eastern Europe. But the language barriers and time zone challenges stand in the way of this union.

2.1 Comparison of the hourly rate of developers globally:

3. The cost of hiring LATAM developers

There are several LATAM countries that you can choose from when searching for qualified tech talent. While on average you may find a software developer in Latin America for hire between the rates of $45.00-$65.00 USD per hour, based on the exact location these rates may differ.

For instance, the hourly rate for developers in Latin American countries like Argentina, Brazil, Columbia, and Mexico which are the most popular locations for hiring remote developers ranges between $42 – $65.

3.1 Comparison of hourly rates for developers in Latin America

4. Cost of hiring developers based on specialty

While geography plays a large role in the rate a developer may charge per hour, their specialties and their tech stack also contribute to the change in rates.

While all specialties fall within the range of about 45-70 per hour, it is important to note that the type of skillset you require may affect the rate of your developer.

5. Obstacles of hiring offshore developers & the alternative

How can you hire offshore dev talent from Latin America that will deliver the best results? 

Although there are so many benefits to hiring offshore talent from the LATAMs, just like hiring any other in-house team member, you may not always find the right pick straight off the bat. Hence, you have to put careful planning and consideration into hiring the best offshore talent.

When outsourcing offshore developers, there are a few challenges you may have to face.

• You may have to go through large numbers of candidates to select those that are suitable for your company and the industry you’re in based on their past experience and references.
• You would have to conduct vetting and screening of talent to ensure they meet your expected criteria, which would be extremely time-consuming
• Based on the tech stack requirements for your projects, you may have to conduct coding skill tests to determine their aptitude for the role.
• The lack of in-person interaction and communication among remote team members may be a downside for those that are not accustomed to the system.
• Onboarding remote team members into your existing team would be time-consuming.
• HR, administration, and payment processes for those in different countries with different currencies would be a hassle to navigate.

Why hiring from a talent marketplace is the solution?

Hiring the right talent is not only expensive but time-consuming. It requires posting advertisements on job boards, fees for recruitment agencies, and making callbacks. It may even require having to contract out specialist headhunters that can find you the right candidates.

This is where hiring from a reputable talent platform like CloudDevs can save your day.

6. Why hire offshore LATAM developers and designers through CloudDevs?

Having access to a pre-vetted pool of senior developers from LATAMs, CloudDevs is able to present you with shortlisted candidates within 24 hours. You are also provided with a trial period of up to 7 days. This is where you test out the talent to see if they are the right fit. If you aren’t fully satisfied, you can make a request and a new talent will be assigned to you at no additional charge and no questions asked.

And the best part is that the expert senior talent at CloudDevs is ideally matched to your project, company culture, and industry specifications. All the hard work that goes into hiring is done for you.

Talent management, payments, and admin are all taken care of by the CloudDevs team so all you have to do is focus on getting your product tailored to you.

You can easily scale up or scale down your team based on the requirements of your company at the time. It is an ideal solution for firms that are looking for more flexible hiring options based on project requirements.

CloudDevs offers a diverse range of tech talent with all manners of in-demand skill sets.

If you wish to hire LatAm developers from our vetted pool of senior talent, get in touch by scheduling a call today.