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The website 2023 development landscape in LATAM

Regarding outsourcing website development talent, regions like southeast Asia and central Europe always come to mind. Still, everything has been changing with the rise of the Latin American software development boom in the last couple of years.

From Mexico to Argentina, the region is home to a thriving community of talented developers making their mark on the world through their contributions to cutting-edge technologies and innovative software solutions. So whether you're a software developer yourself, a business leader looking to tap into the region's talent, or just curious about the advantages of the Latin American development world, you'll find valuable insights and information here. 

Keep reading to find out how Latin America is shaping the future of website development.

Latin America by the numbers

The development industry in Latin America is booming rapidly. Growth can be traced back to ever-increasing better education in technology and improvement in the region’s development infrastructure. This means there is way more talent to pick from when you look at options from Latin America than within the US. 

On that note, Latin America has a great population of 21 million software engineers who are currently available in the market. And according to Statista, there are roughly over 1 million software developers in Latin America​​ involved in offshore development. Just to name a few countries, Brazil tops the list with around 500,000 developers, followed by Mexico (225,000 developers), Argentina (115,000 developers), Colombia (62,000 developers), and Chile (61,000 developers).

Also, the region is full of a young population ready to take on new challenges. This young talent force can bring fresh perspectives, enthusiasm, and energy, making them more flexible and creative potential workers. Plus, they are tech-savvy and, therefore, excellent web development candidates. 

Advantages of working with Latin American developers

It’s no secret that Latin America has seen outstanding economic growth in the past few years. According to Bloomberg, companies looking to hire from Latin America have increased by 156%, making LATAM the most popular worldwide, with software engineers leading the recruitment sector.

The growth rate of hiring across Latin America for software engineer and account executive positions increased by 286% in the second half of 2021, more than in any other region in the world. Most of the new hires are located in Argentina, Brazil, and Mexico, but competitive wages also make companies take a closer look at Colombia. But why? 

First of all, Latin American software developers are one of the best options to work with, as they often have a strong technical background and are able to deliver high-quality work at competitive rates. Additionally, many Latin American countries have a strong IT and development education tradition and a culture that values technical skills, which can lead to a high level of expertise among software developers in the region.

From Baja California, Mexico to Patagonia, Latin America is bursting with bright young web developers, data scientists, and programmers, driving rapid Latin American technology sector growth. Based on the current technological development in Latin America, experts expect the region to continue producing top-notch software development professionals to cater to the growing industry's needs. This makes a good pool of highly qualified and very experienced workers at the reach of companies HR team’s hands. In other words, LATAM is full of attractive candidates to choose from when companies are looking to set up world-class development tech talent networks or hire individual remote engineering talent.

It's also worth noting that many Latin American countries have a good time zone overlap with the US, which can benefit communication and collaboration. Therefore, besides the competitive costs, the Latin American region is close enough to the North American markets, enabling real-time collaboration at times that work best for both parties to make projects time-efficient and easy to coordinate. While the time difference between America and Asia can exceed 12 hours, the time difference between American companies and countries in South America is usually within 5 hours, which keeps exchanges within the same business day.

Should I nearshore in Latin America?

Short answer, yes! As geographical proximity is of prime importance in nearshoring, Latin America has become one of the favorite outsourcing destinations for US-based companies. The LATAM region has slowly but steadily become one of the primal providers of tech talent worldwide, with its thriving economies, steady political contexts, and big pools of development talents.

The number of developers is projected to rise to 28.7 million in 2024. Latin America is one of the regions that will grow the most regarding programmers and developers, even growing faster than North America. 

Among Latam countries, Mexico gains the most because of its proximity to the United States. In fact, it has already started to show the benefits, reflected in high foreign direct investment (FDI) inflows into Mexican states bordering the United States. While Mexico as a whole reported a 4% decrease in FDI in 2021 against the average from 2015 to 2019, its northern states of Baja California, Chihuahua, and Nuevo León recorded increases of 54%, 6%, and 4%, respectively, according to Mexico’s Secretary of Economy. 

The Inter-American Development Bank estimates that nearshoring could add US$78 billion to Latam’s exports yearly, from which US$35 billion would go to Mexico and US$7.8 billion to Brazil. Industries such as automobiles, textiles, pharmaceuticals, and renewable energy could benefit the most.

When thinking about nearshore, other strong allies that come to mind are Argentina, Chile, and Colombia. 

First, on the list, Argentina is one of the best options to outsource IT talent, as it offers cost-effective software solutions with a large pool of industry experts within a pretty convenient time zone and almost cero cultural barriers. The country also has the highest level of English in the region

Regarding Chile, the country has one of the most business-friendly environments and advanced infrastructure facilities in the Latin American region, so it shouldn’t be a surprise that the country aims to be a key supplier of IT and software development services to the western market. Also, the country's BPO and IT industry is thriving and provides high-quality services to local and global clients. As of 2021, the literacy rate in Chile is 96.4% — higher than the Latin American average of 93.9%. Finally, Chilean software developers are known for their solid programming skills and consistently rank in various coding competitions, making software development one of the most outsourced services to Chile. 

Finally, thanks to all the hiring and investment benefit from the government to attract foreign IT leading companies worldwide, Colombia has earned the status of the software development outsourcing hotspot in South America. Colombia’s economy is among the strongest in Latin America, ranking as the fourth largest and making it a stable and reliable region for companies looking to outsource IT services. 

Wherever you look at it, Latin America is the future of website development. From increased efficiency to wider access to specialized skills, resources, and top talent, the region is the place to be looking at this 2023. Now, it is only a matter of deciding the best country for nearshore web development according to your business needs. 

Don’t know where to start? Talk to our experts! At Intersog, we have been delivering success across industries for over 15 years, developing web applications customized to each client’s specific requirements by leveraging our extensive expertise and deep technology capabilities.

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Nearshore

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