Nearshore software development in LATAM: the essential guide to scaling your team

Nearshore software development means working with engineers in nearby countries that share most of your business hours. For US companies, that usually means Latin America, where senior developers cost significantly less than in the US, overlap with your team in real time and increasingly speak advanced English. This guide covers costs, English proficiency by country, time zones and a step-by-step process to hire and scale a LATAM development team.

Key insights

• Cost: US companies typically save 40% to 60% compared with equivalent US hires.
• Time zones: most of Latin America works within one to three hours of US Eastern time.
• English: Argentina ranks first in Latin America and 26th worldwide in the EF English Proficiency Index 2025.
• Talent: Brazil, Mexico and Argentina alone had almost 840,000 software developers in 2023, according to Statista.
• Hiring: a nearshore partner handles recruiting, payroll, compliance and retention, so you do not need a local entity.

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Finding the right software developers in the US is slow and expensive. Competition for senior engineers is intense, salaries in major tech hubs keep rising, and open roles can stay unfilled for months. Projects slip, deadlines move and in-house teams risk burnout as they try to keep up.

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Latin America offers a practical way out. Companies can access a large pool of skilled engineers, in-demand specialties and real cost savings, while working in the same hours as their US team. This guide explains why companies hire in Latin America, how to address common concerns and how to build a LATAM development team step by step.

Why hire in Latin America? The benefits

Cost savings

One of the main reasons US companies hire in Latin America is cost. Developers with comparable skills and experience earn less than their US counterparts because of lower living costs, and US companies typically save 40% to 60% compared with equivalent US hires. We break down the numbers in the real cost of hiring software engineers in the US vs Latin America, and you can estimate your own savings with our Nearshore Savings Calculator.

Exact savings vary depending on several factors.

• Location: salaries differ across Latin America, and major cities tend to pay more than smaller ones.
• Experience level: senior engineers with specialized skills earn more than junior developers in any country.
• Specialization: in-demand niches such as machine learning or cloud infrastructure command higher rates.

A large and growing talent pool

Latin America's tech sector has grown quickly, and universities across the region graduate a steady stream of engineers with strong computer science foundations. Many of them also speak English well. In the EF English Proficiency Index 2025, Argentina ranks 26th worldwide and first in Latin America, in the high proficiency band alongside Honduras. Uruguay ranks 34th and, together with Paraguay and El Salvador, sits in the moderate band.

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The region covers almost every specialty, from backend developers in Python and Node.js to data scientists, QA specialists, frontend developers and mobile engineers with experience in frameworks like React Native and Flutter. It also offers scale. According to Statista, there were almost 840,000 software developers in Brazil, Mexico and Argentina alone in 2023, before counting the rest of the region.

Time zone alignment

Most of Latin America works in the same or overlapping hours as major US cities. US managers can run daily standups and code reviews with their LATAM engineers without anyone working outside normal business hours.

• Fewer delays: questions get answered the same day instead of the next morning.
• Better collaboration: brainstorming, problem solving and ad-hoc meetings happen in real time.
• Stronger teams: working the same hours makes it easier to build relationships and trust.
• Fewer errors: misunderstandings get clarified quickly, before they turn into rework.

Some South American countries are one or two hours ahead of US Eastern time, but that is a small gap compared with teams that are 10 to 12 hours away. See how the regions compare in our LATAM vs India guide.

Cultural compatibility

Many Latin American work cultures share core similarities with the US, including a strong work ethic, direct collaboration and a focus on results. This makes it easier to integrate remote engineers into existing teams. Most of the region also shares one language, which helps when building distributed teams across several countries. A few practices make integration even smoother.

• Cultural awareness: short sessions for your team on working effectively with colleagues in Latin America.
• Open communication: regular check-ins and spaces for the team to connect personally as well as professionally.
• Valuing diversity: treating different perspectives as a source of better ideas.

For a deeper look at these benefits, read why US companies hire Latin American developers.

Overcoming common concerns

Communication

Concerns about language or communication styles are common. A good nearshore partner vets candidates for both technical skills and English before you meet them. Clear communication protocols, regular check-ins and tools like Slack and Zoom close any remaining gaps.

Legal and HR complexity

Payroll, benefits, tax laws and labor regulations differ by country. A nearshore partner handles payroll, compliance and administration, so you can hire across Latin America without setting up a local entity.

Managing remote teams

Remote teams work best with clear goals, transparent communication and the right project management tools. At Devlane, our Team Engagement Advisors support engagement and retention, so engineers stay motivated and aligned with your objectives.

How to hire LATAM developers: step by step

These are the steps to hire developers in Latin America. If you work with a staff augmentation partner, the partner handles most of steps two to nine for you.

1. Define your requirements: Outline the skills, experience and technologies you need, along with the project scope and the soft skills that matter for your team.

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2. Choose your sourcing channel: Decide whether you will hire directly through job boards and professional networks, use a staffing agency or work with a nearshore partner. We compare these options in freelancers vs staffing agencies vs nearshore partners.

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3. Screen and shortlist: Review resumes and portfolios against your criteria and build a shortlist of the strongest candidates.

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4. Run technical assessments: Use coding challenges or live technical interviews to confirm candidates have the skills the role needs.

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5. Interview: Evaluate technical depth, communication skills and how candidates approach real problems from your product.

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6. Evaluate cultural fit: Check whether the candidate's values, work style and communication fit your team for the long term.

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7. Check references: Talk to previous employers or colleagues to confirm reliability and performance.

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8. Make an offer: Offer competitive compensation based on local market rates, benefits and growth opportunities.

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9. Onboard: Set up a structured onboarding with the tools, access and context the new engineer needs to contribute quickly.

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10. Support and retain: Keep regular check-ins, feedback and development opportunities in place, since retention protects everything you invested in hiring. To evaluate providers, use our checklist for choosing a nearshore partner in LATAM.

Final thoughts

Nearshore software development in Latin America gives US companies access to senior engineers, real cost savings and real-time collaboration. The key to making it work is choosing the right hiring model and partner, and investing in onboarding and retention from day one.

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Devlane works with US companies as a nearshore technology partner. Some teams bring us in to add senior LATAM engineers through staff augmentation, others to set up operational hubs in Latin America or to build a product end to end with custom software development. Book a call or estimate your savings with our Nearshore Savings Calculator.

Frequently asked questions

What is nearshore software development?

Nearshore software development means hiring or partnering with engineers in nearby countries with overlapping business hours. For US companies, Latin America is the main nearshore region because teams can join daily standups and collaborate in real time.

Which Latin American countries have the best English proficiency?

In the EF English Proficiency Index 2025, Argentina ranks first in Latin America and 26th worldwide, followed by Honduras, both in the high proficiency band. Uruguay, Paraguay and El Salvador fall in the moderate band.

How much can US companies save by hiring developers in Latin America?

Savings typically range from 40% to 60% compared with equivalent US hires, depending on seniority, country and stack. The difference comes from lower living costs in the region.

What time zones do LATAM developers work in?

Most of Latin America is between US Central time and two hours ahead of US Eastern time. Mexico and Colombia align closely with Central and Eastern time, while Argentina and Uruguay are one or two hours ahead of Eastern depending on daylight saving.

Do I need a local entity to hire developers in Latin America?

No. A nearshore partner employs the engineers locally and handles payroll, taxes, benefits and labor compliance, so your company signs one services agreement.

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