Offshore Software Development in Latin America

Better than outsourcing or hiring โ€” build with us your own turnkey offshore development center in Latin America, and receive:

  • Silicon Valley-caliber team from 0 to 100 developers in 1 yearย 
  • Up to 40% cost savings compared to traditional outsourcersย 
  • Employer of Record serviceโ€“our compliant employment solutionย 
  • Zero buy-out cost & no hidden fees
  • No intermediary in team management, your corporate culture

Your Own Up and Running Offshore Software Development in Latin America

Valley Talent for 40% less costs
All-In-One single place for your needs
No Buy-Out insource for free

Can an Offshore Provider Guarantee You?

2.5 years

is the average tenure of our hires

Cultural alignment

with your company values

Pricing transparency

no hidden or buy-out fees

Legal & compliance

and other needed operational support

Exceptional dedication

Itโ€™s literally your own team

Long-term partnership

shared responsibility & commitment

Key things about offshore development in Latin America

why big tech offshore software development to Latin America
Shortage on the US market and talent pool in Latin America
Software developersโ€™ salaries in the US vs Latin America
Top software development hubs in Latin America
What is an offshore software development center?

why big tech offshore software development to Latin America

The appeal behind offshore software development services in Latin Americaย lies in 2 main drivers that propel tech companies forward: huge tech talent pools and slashed costs. Thus, technology giants tap into million-sized pools with coders of diverse tech stacks. That, in turn, helps them build products faster and scale while reducing costs due to a stark contrast between software engineersโ€™ salaries from the US and other countries. For instance, if you hire offshore developers, you save from 30% to 70%: just look for an offshore software development team outside the US.

Shortage on the US market and talent pool in Latin America

Tech demand in the US remains strong: there are currently 4.18 million US developers working as IT specialists, while 121,000 IT jobs remain unfilled. As of March 2024, there were 438,000 active tech job postings, with 41% accounting for occupations that require AI skills.ย ย 

Overall, the US labor market is still tight. The struggle is ongoing: to find suitable candidates for open positions. Plus, the implications of recent layoffs and hiring freezes are still taking their toll.

Thatโ€™s why, when seeking rare tech talents, companies turn to offshore software development to Latin America. Here, tech businesses hire developers out of an abundant 2M pool. Letโ€™s take a closer look at trending sectors: AI, Blockchain, Cloud, and Machine Learning.

Software developersโ€™ salaries in the US vs Latin America

  • AIย 

A senior artificial intelligence engineer from Latin America earns around $5,280 monthly, while a software developer with the same level of expertise from the US gets ca. $11,000.

  • Blockchainย 

Blockchain developers with 5+ years of experience from Latin America charge $5,400 a month. At the same time, their counterparts from the US get $11,000 monthly.

  • Cloud

The salary of a Cloud developer in Latin America is $5,060 a month, while Cloud engineers from the States earn $14,500 monthly.

  • Machine Learning

The Latin American tech market offers ML developers around $4,800 monthly, while engineers with the same expertise from the United States get $11,000 a month.

Top software development hubs in Latin America

  • Mexicoย ย 

Mexico is one of the most popular destinations for development offshoring. The countryโ€™s talent pool amounts to over 700,000 software developers who excel in various technologies and programming languages, including JavaScript, Python, SQL, C#, React.js, and Angular. Mexico’s IT infrastructure is flourishing, with 38 IT clusters, over 400 service companies, and more than 450 startups spread across three major tech hubs: Mexico City, Monterrey, and Guadalajara, often referred to as the Silicon Valley of Latin America.

  • Argentinaย ย 

The Argentinian tech scene is home to over 115,000 tech talents who stand out in the region for their most robust English command. Local tech wizards shine in Python, Cloud APIs, TensorFlow, SQL, and rank among South Americaโ€™s best mobile developers and data analysts. Buenos Aires, Cรณrdoba, and Mendoza are focal points for Argentina’s tech scene, boasting 11 unicorns and over 17 IT clusters.

  • Colombia

Colombia is home to a thriving tech ecosystem, boasting a talent pool of over 150,000 software developers. Annually, it adds around 13,000 tech graduates to its workforce. Colombian software engineers are highly skilled in programming, specializing in Java, Python, C#, SQL, and Ruby. The country’s ICT market is vibrant, with over 1,300 startups spanning 31 distinct sectors. The country hosts three dynamic tech hubs located in Bogotรก and Medellรญn.

  • Chileย ย 

Chile boasts a talent pool of 61,000 software developers, with 5,000 ICT graduates joining the workforce each year. IT experts in Chile rank #1 in Latin America for digital skills, and showcase strong expertise in Java, Python, and PHP, as well as proficiency in data analytics, mobile development, and statistical programming. Around 303 startups and 122 software and data sectors call Chile its home. The country’s tech landscape includes two active tech hotspots: Santiago and Valparaรญso.

What is an offshore software development center?

An offshore software product development center is your dedicated remote office with a team of software engineers. Usually, tech product companies establish such centers in foreign locations with an abundance of talent and lower labor costs. Imagine it as an extended piece of your in-house puzzle: a reliable partner that offers software development center solutions helps you with attracting, hiring, and employing Senior, Lead, and C-level developers, dealing with payroll, accounting, and taxes, finding and leasing office space, procuring tech equipment, and providing benefits for your team. All this is possible without setting up your legal entity abroad โ€” ask Sift, Ledger, ThredUp, and other companies!

In comparison with IT outsourcing model, where you completely delegate your product development to a third-party team and have no direct control over it, your own offshore software development company in Latin Americaย presupposes the hiring and retaining of the right talent without any buy-out fees, forgetting about operational functions that fall on your partnerโ€™s shoulders, and, thus, scaling in a chosen location faster.

Your own Offshore Software Team in Latin America is Better than Third-party

Alcor is an all-in-one place to establish and run a turnkey software R&D center:

  • Employer of Record support โ€” no need to set up your legal entity
  • From 0 to 100+ software developers in one key talent pool
  • Establish your corporate culture with your own team. โ€จNo intermediary
  • No buy-out or other hidden fees
Book a call

Your Own R&D Center vs Offshoring to Latin America

Offshoring software development

  1. Maximized cost savings Your own software R&D team costs 40% less than an offshore software team in Latin America. Because you get no buy-out fees & markups.
  2. Long-term commitment Product development and a sense of ownership attract professional developers as bees to honey. Hence, more loyalty.
  3. Direct control over development You get your team of offshore developers for ideation, innovation, and growthโ€”without intermediaries.
  4. Intellectual property under control With direct agreements, you fully own your product and its source code, keeping unique engineering expertise in-house.
  5. Easy investment attraction Establishing your own offshore software development center will enhance your appeal to investors.

Offshore software development

  1. Cloudy pricing With outsourcers, the markup for your vendorโ€™s service might exceed a development rate by 50%.
  2. Temporary fix Offshore software development teams in Latin America are loyal as long as the contract lasts and wonโ€™t go teh extra mile to ensure your productโ€™s long-term success.
  3. Your provider comes first An external development team will report only to your vedor, treating you as the โ€œsecondaryโ€ employer.
  4. IP rights transfer complexities When you engage an offshore software development company in Latin America, the IP rights of your product initially belong to the outsourcing team. So think ahead about the safe transferring of them to you later.
  5. Barrier to investment attraction Engaging with an offshore development partner means that you delegate your core competencies to developers who will leave your team for good. Not exactly the investorโ€™s dream.

Companies Scaling with Alcor

Alcor is a reliable partner that meets our hiring needs. We finally hired experienced software engineers in Eastern Europe with strong tech skills and business acumen. Account Managers are awesome!

Andrii Akselrod CTO People.ai

With Alcor’s all-in-one solution, we got a software R&D office with 15 senior PHP devs and a compliant operational coverage. I really appreciated their transparent pricing structure and deep expertise.

Boris Glants CTO Tonic Health

We interviewed a lot of EoR platforms and companies, but Alcor was the only one that provides a combo package of EoR and Recruting offerings. Alcor helped us build a full stack team in 1.5 month.

Dmitrii Iermiichuk Head of Engineering Gotransverse

We wanted to switch from our outsourcing provider, and Alcor has become really game-changing for us. Within a mere 6 months, we got a fully-fledged team of 30 engineers in our own R&D office.

Elena Leonova Director of Product Management Bigะกommerce

Alcorโ€™s R&D solution eclipses full-cycle recruitment, EOR service, and operational support for our offshore team. Their ‘all-in-one place’ approach is far more cost-effective than I could’ve imagined.

Farhad Shamshirzan
Farhad Shamshirzan Director of Software Engineering Certent

I value their commitment to going the extra mile. We evolved from an outstaff project into an independent company, and Alcor’s support was crucial. They hired and ondoarded 15+ professionals for us.

Grigoriy Didorenko Research and Development Director BIScience

Thanks to Alcor, we hired four engineers and a designer that strengthened our team. Beside stellar recruitment, Alcor flawlessly handled our payroll. Their approach was seamless and swift.

Kirill Latish Head of Engineering & Communications Velory

Alcor closed our 4 QA positions in a month and more than doubled the team in a year! We chose Alcor because of their communication style, cost, scope of services, and ideas to help us be successful.

Vitalii Belelia Production Management & App Support Manager Ledger

Expanding our engineering team outside the US with Alcor was a game-changer! They found 15 talented developers and provided seamless EOR & operational support. Great responsiveness to our needs!

katherine-laggos-chartbeat
Katherine Laggos VP People & Culture Chartbeat

FAQ about offshore software development in Latin America

1) Is it cheaper to offshore software development to Latin America?

Yes, with offshoring software development to Latin America, you can save from 30% to 70%, while scaling your company at the same time. Hereโ€™s what makes it possible: the difference in salaries & taxes and Alcorโ€™s comprehensive all-in-one-place software R&D center solution without buy-out fees.

In the US, a senior software developer earns up to $180,000 a year, while software engineering experts from Latin America make, on average, $42,500. The regional taxation policies also offer lower tax rates.

Lastly, our approach goes beyond finding software developers. We get you a software team thatโ€™s yours from day one โ€” cut costs by not paying buy-out fees!

2) What are the benefits of building a development center with Alcor?

With Alcor’s 360-degree model, there’s no need to engage with multiple vendors to establish your R&D office offshore or nearshore. In one place without additional intermediaries, you receive full-cycle IT recruitment services alongside effective Employer of Record support that eliminates the need to establish your legal entity in the target location. Additionally, we assist in leasing office space, providing employee benefits, procuring laptops and other equipment for your team, and much more. Just share your needs, and weโ€™ll take care of them all!

3) How fast can Alcor build an offshore development team in Latin America?ย 

We pride ourselves on expeditious tech recruitment โ€” stellar quality within tight timeframes. Alcorโ€™s average time to close a vacancy when hiring a developer is 2-6 weeks. In just 1 day of our cooperation, youโ€™ll get blind CVS. In the next 5 days, weโ€™ll start sending you CVs of pre-vetted candidates whom you’d want to invite for an interview right away.

4) Can you headhunt C-level management in Latin America?

Thatโ€™s an ace up our sleeve. Weโ€™ve amassed 8 years of experience in the industry and accumulated the best practices in recruiting C-level and Lead specialists! Thatโ€™s why, C-level management positions, such as CTO, CIO, CMO, CFO, and others, come to our recruiters as easy as pie. Our clients attest to it: we hired the Head of R&D for Sift, an online fraud detection application development firm, from the second CV. Other successful cases include the Director of Engineering for Dotmatics and the Deployment Lead for Ledger.ย 

5) What about payroll, accounting, and office lease?

If you hire an offshore application or web development team with Alcor, thereโ€™s no need to establish your legal entity in a target location. With our comprehensive EoR support, we take care of all the nuts and bolts for your offshore software developers. It includes the employment of software engineers, monthly payroll management, tax payments, compliance with all local laws, and even more. With our turnkey solution, you can be assured โ€” we guarantee 100% compliance while handling all the paperwork.ย 

Finally, if you want to pump it up, opt for our R&D services with full operational support, office lease, and equipment procurement.

6) What else does the software development center in Latin Americaย include?

Apart from the full-cycle IT recruitment process of offshore software developers and EoR support, we offer a wider range of additional services, including IT infrastructure setup, procurement management, employer branding, and other back-office assistance. Alcor is like your personal team builder: you choose the services to build your software R&D center from 0 to 100 people in 12 months.ย