Software Outsourcing in Latin America vs. Europe: A Guide for Founders


Paola T.

Marketing and Culture

Posted on June 20, 2023


First, let’s talk about Latin America, specifically Colombia. Colombia has been steadily gaining recognition as a software development destination thanks to its strategic location, robust talent pool, and favorable business environment. In fact, by the end of 2023, the Latin American software development market is projected to be worth over $25 billion. That’s a lot of zeros!

But Europe is not one to be left behind. With established tech hubs like Berlin, London, and Amsterdam, Europe has been dominating the nearshoring scene for years. However, with the rise of Brexit and the COVID-19 pandemic, many European companies have been turning to Latin America to fill their talent needs.

Advantages of Hiring a Nearshore Team in Latin America vs. Europe

Cost Savings

One of the biggest advantages of hiring a nearshore team in Latin America is cost savings. Salaries in countries such as Mexico, Brazil, and Argentina are significantly lower than those in Europe. Hiring in Colombia costs you between 40-70 USD per hour, while hiring in the US, and Europe will cost you 80-150 per hour. This means that you can have a team of highly skilled developers at a fraction of the cost of hiring locally or in Europe.

Time Zone Compatibility

Latin America is in a similar time zone to the United States, making communication and collaboration easier. This means that your team can work with your in-house team in real-time, leading to quicker turnaround times and more efficient project management. Outsourcing in Europe takes patience since the time differences affect how quickly you will get a response from your team members.

Cultural and Linguistic Similarities

Many Latin American countries have a strong cultural and linguistic connection to the United States. This can lead to a smoother transition and fewer cultural barriers to overcome.

Proximity to Major Markets

Europe is home to many major markets, including the United Kingdom, Germany, and France. If your business has a strong presence in these markets, hiring a nearshore team in Europe may be the best option.

Access to a Large Talent Pool

Latin America and Europe are home to many highly skilled developers, and hiring a nearshore team gives you access to this talent pool. This means you can find developers with the specific skills and expertise your project requires.

Both Latin America and Europe have their advantages when it comes to hiring a nearshore team. Ultimately, the decision comes down to your business needs and goals. If cost savings, culture, and time zone compatibility are important to you, a nearshore team in Latin America may be the best option. If you have a strong presence in European markets, hiring a nearshore team in Europe may be your choice.

Whether you’re a company looking to nearshore your software development, or a talented developer looking for your next opportunity, keep an eye on Latin America. At Ideaware, we will partner with you to build a nearshore software development team that meets your project needs. The future of tech is looking bright!

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