What Is The Best Staff Augmentation Country In Latin America?

As the demand for tech talent outpaces supply, more companies are looking south for IT staff augmentation.

And it makes perfect sense.

Latin America has all the hallmarks of a nearshoring paradise. Its booming software industry generated $18.6 billion in 2022, and Brazil’s market alone is projected to grow by over $3 billion by 2028.

It’s also one of the biggest sources of skilled talent, thanks to EdTech investments that churn out at least 605,000 new software engineers yearly (compared to only 88,000 in the US).

And then there’s e-migration, which has made nearshoring even more affordable. Forget work visas and relocations — you can now hire software developers in Latin America to join your existing teams without leaving their countries.

If you’re thinking of outsourcing software development to this part of the world, you’re probably wondering: What is the best staff augmentation country in Latin America?

In this blog, we’re exploring the unique strengths of the region’s four tech dynamos: Colombia, Mexico, Argentina, and Brazil. Let’s go!

5 great benefits of nearshore staff augmentation

Nearshoring your staff augmentation needs to Latin America offers lots of excellent benefits. Here are just a few key upsides:

1. More affordable than hiring on-shore augmented staff

Hiring software developers in Latin America lets you tap into a skilled talent pool at a fraction of the price you’d pay domestically. It can slash mobile app development costs by anywhere from 30% to 60%.

2. Access to tech talent in other countries

Hamstrung by local talent scarcity? Nearshoring to Latin America opens doors to a larger reservoir of skilled tech professionals just across the border — and all of them can work remotely. Unsurprisingly, 156% more foreign companies hired LATAM-based software engineers in 2022.

3. Similar cultures and values mean better communication and collaboration

Latin America shares many of the same cultural and professional values as the US, reducing miscommunication and friction between on-shore and nearshore teams. This synergy is especially important for projects that require frequent updates and close collaboration.

4. Similar time zones make it easy for augmented staff to work at the same time as your internal team

This is one of the biggest benefits of nearshore software development in Latin America — it allows your nearshore staff to work in sync with your internal teams to streamline project management. No more night owl shifts and waiting games. Everyone can be in your virtual office at the same time.

5. Nearshore tech talent will understand your target market

LATAM tech talent often has a better grasp of the North American market’s consumer behavior compared to offshore counterparts located further afield. They can help you build digital products that just click with your intended audience.

For a deeper dive into the benefits of nearshore software development in Latin America, check out these posts: 6 Excellent Benefits of Staff Augmentation For Your Business.

Comparing the top staff augmentation countries in Latin America

There are four top contenders for remote software development in Latin America. Let’s compare their tech talent pool sizes, time zones, and investment climates.

Colombia

Colombia’s bustling tech scene is fueled by a surge in IT graduates (over 333,000 since 2010!) Major cities like Medellín, Bogotá, Barranquilla, Cali, and Cartagena have all been reinvented as vibrant centers of technology.

The Colombian government actively supports the IT sector with tax breaks and skills development programs — efforts that have made the country attractive for companies seeking affordable tech talent. Being just one hour behind the East Coast and two hours ahead of the West Coast also makes collaborations easier.

Mexico

Mexico is another major player in staff augmentation, with roughly 220,000 software developers. Guadalajara and Monterrey — known as Mexico’s Silicon Valleys — have become primary startup hotspots. Guadalajara alone has more than 30 design centers and four technology research centers, employing over 100,000 people in IT! Monterrey complements this with the Monterrey Digital Hub — an innovation incubator where companies, academics, and digital experts can share knowledge.

Time zones are great, too. Mexico is only two hours behind the East Coast and one hour ahead of the West Coast, so your augmented staff can work efficiently alongside your US-based teams.

Argentina

Argentina is another notable LATAM tech center, with around 115,000 software developers. The country’s IT scene is anchored in major cities like Buenos Aires, Cordoba, Mendoza, and Rosario.

The government actively nurtures the tech industry through initiatives like Argentina Programa and Argentina Emprende and legislation like Law 25,922 (Promotion of Software Industry Law).

Just one hour ahead of the East Coast and four hours ahead of the West Coast, Argentina’s significant overlap with US working hours is ideal for teams coordinating closely on projects.

Brazil

With an impressive pool of around 500,000 software developers, Brazil is the region’s undisputed nearshoring champion. No wonder it’s often called the best staff augmentation country in Latin America.

This tech-savvy country is trailblazing in AI, IoT, edge computing, wearables, and other cutting-edge areas. It’s ranked 14th globally for tech skills and holds 36.5% of the Latin American IT market share (ranking 12th worldwide). And with over $49.8 billion invested in software, hardware, and services in 2023, this country is clearly serious about technology.

The government is eager to grow the tech industry with initiatives such as the Lei do Bem (Law of Good), which incentivizes investments in technological innovation and research. These efforts have successfully boosted the private sector’s focus on R&D.

Brazil is also tirelessly strengthening its STEM educational infrastructure. Universities across the country offer specialized IT courses to continuously replenish the workforce with fresh, bright talent. For example, the renowned University of São Paulo (USP) trains students in new areas like AI while the Federal University of Rio de Janeiro (UFRJ) delivers world-class software engineering and data science programs.

tech hubs in brazil — P.S. As a matter of fact, Cheesecake Labs’ HQ is in Florianopolis.

Beyond being a nearshore technology leader, Brazil provides multinationals with a stable foothold in Latin America. Its multiple tech hubs — Florianopolis, Curitiba, Recife, Porto Alegre, Salvador, Belo Horizonte, and São Paulo — attract both local and international bigwigs. Everyone’s here, from regional heavyweights like Mercado Libre to global giants like Google.

Global research and development centers such as IBM in Rio de Janeiro and Samsung in Campinas facilitate knowledge transfer to create a talent pool that’s skilled in emerging niches.

Brazil’s location and cultural connections also make it a strategic entry point to the broader Latin American market. Its diverse demographics and massive population (over 217 million) make it the perfect environment to test new technologies.

That’s exactly what Airbnb did — it initially focused on major Brazilian tourist destinations to refine its strategy before expanding.

Close-up: Colombia vs. Brazil for Nearshore Technology Outsourcing

Colombia and Brazil are often pitted against each other in the tech outsourcing arena.

Which country is the better choice? According to the information above:

Senior software developers in Brazil and Colombia have a similar salary range.
Both countries’ time zones are compatible with the US.
However, Brazil’s talent market is 3x the size of Colombia, suggesting a wider range of skills and expertise available for nearshore staff augmentation.
Brazil also demonstrates a higher English proficiency, which may facilitate smoother cooperation with international teams.

Overall, Brazil’s bigger talent pool and communication proficiency make it ideal for projects that require cutting-edge technology and seamless collaboration.

Why choose Brazil when hiring software developers in Latin America?

Brazil leads the charge for software development in Latin America. Its expansive talent pool and proactive government policies make it an ideal choice. Aside from these, it’s also:

Cost-effective – A software developer in Brazil earns half of the average salary of a US-based developer. The cost savings of hiring Brazilian tech talent can be substantial, ranging from 30-50% more cost-effective than hiring in the US, depending on the role and location.
Time zone compatible – Brazil is within one to four hours of US Central Time, facilitating smooth communication and efficient project management with minimal scheduling headaches.
Culturally aligned – Brazil and the US share many cultural values and work practices — including direct communication styles and results-orientedness. Brazilian teams are also familiar with US project management methodologies (such as Agile and Waterfall).
Attuned to the US market – Because of exposure to US media and pop culture, many Brazilian tech professionals have an excellent understanding of US consumer expectations.

By choosing a Brazilian company as your staff augmentation partner, you can access world-class talent in a stable environment that fuels innovation — everything you need to propel your project forward.

Cheesecake Labs: Software developers from Latin America for US tech companies

With 10 years of experience, Cheesecake Labs is proud to be the #1 mobile app developer in Brazil, and the #1 software development company in Latin America (yup — in the whole continent!)

Our team is headquartered in Florianopolis — a major tech hub that attracts the best Brazilian IT graduates and tech talent with its IT parks and top-ranking universities (in addition to its beautiful beaches, of course).

As a remote software development leader in Latin America, we’ve provided staff augmentation services to many exciting projects catering to the US market, including the car subscription app FINN, money transfer app, Moneygram, and educational platform Singularity University, just to name a few!

Aside from being tech wizards, our Brazilian software developers also have a great grasp of US business practices and consumer expectations.

You can count on us to develop a product that hits home with your audience — whether you’re building a brand-new app or revamping existing software. Let’s chat to explore the possibilities!

About the author.

Douglas da Silva

Also known as Doug Gimli, I'm a developer that works with interactive solutions facing web projects, trying every day to deliver a full and great experience to users.