In this article
- Why US companies hire developers in South America
- Criteria for choosing countries
- Top South American countries for hiring developers
- Developer salaries compared
- Case studies: Success stories in LatAm hiring
- Challenges and mitigation strategies
- FAQ: Hiring developers in South America
- Book a Howdy Demo
The US tech industry continues to face a long-term shortage of developers. As competition for talent grows, many companies are turning to South America for skilled engineers who can collaborate in real time and deliver top-tier results.
Building a nearshore development team offers the best of both worlds: access to highly skilled developers at competitive rates, cultural alignment, and overlapping time zones. Through partners like Howdy.com, US companies can hire remote developers in South America quickly, compliantly, and with ongoing support.
Why US companies hire developers in South America
A trending destination for nearshoring, South America offers several advantages for US companies:
- Skilled talent pool. The region is home to over 2 million tech professionals, many of whom are trained in highly sought-after skills such as artificial intelligence (AI) and data analysis.
- Cultural compatibility. Many South American engineers speak English and are familiar with US workplace culture.
- Cost savings. Developer salaries in South America are often over 50% lower than in the US.
- Time zone alignment. South American countries share similar time zones with the US.
Criteria for choosing countries
Before deciding where to hire, it’s important to evaluate each country using consistent criteria. Here’s what Howdy’s hiring experts consider when building distributed engineering teams:
- Talent pool size. Larger markets like Brazil and Colombia offer a broad selection of engineers.
- English proficiency. Communication is easier when engineers speak English well. We used EF's English Proficiency Index (EF EPI) for rankings.
- Time zone overlap. The more hours of the working day overlap with US time zones, the better for collaboration.
- Cost. LatAm engineers are often 50 to 80% less expensive than US hires.
- Infrastructure. Reliable internet and coworking access are critical for remote productivity.
- Tech ecosystem. Supportive government policy, funding, and education strengthen the developer pipeline.
- Retention. Lower turnover helps you build long-term team continuity.
Top South American countries for hiring developers
Here’s how the leading markets compare across cost, English proficiency, and infrastructure, with insights from Howdy’s regional hiring experts.
Brazil
Brazil has the largest tech talent pool in the region, with over 750,000 developers. It’s home to global tech hubs like São Paulo and Recife, as well as emerging hubs like Florianópolis. Salaries average 48% lower than in the US. Over 90% of Brazil's population lives in UTC−3, which is 1 hour ahead of US Eastern Time (ET) during US daylight savings.
Brazil ranked low on the 2024 EF EPI. In practice, however, many Brazilian developers in the tech scene do speak English, especially in major cities.
Explore our full guide: Why Hire Workers in Brazil.
Argentina
Argentina offers strong English skills and the highest EF ranking in LatAm. The country also has a highly educated tech workforce and one of the lowest average senior developer salaries — over 80% less than in the US. Buenos Aires leads as a tech hub. Argentina’s economy can be volatile, but that also increases the availability of top talent looking for stable foreign contracts. Argentina is in UTC−3, which is 1 hour ahead of US Eastern Standard Time (EST) for most of the year.
Read our guide: Why Hire Workers in Argentina.
Colombia
Colombia’s tech sector is experiencing rapid growth, with a concentration of talent in Bogotá and Medellín. The government supports tech education and foreign hiring. Senior engineers here earn roughly 65 to 87% less than their US peers. While English proficiency is moderate, many young engineers are bilingual. Colombia is on UTC−5, which is the same as US EST for half the year.
Explore our full guide: Why Hire Workers in Colombia.
Chile
Chile ranks high for internet reliability and English skills. Santiago is a strong tech hub, supported by programs like Start-Up Chile. Salaries are still 50 to 60% below US averages, and infrastructure is some of the best in South America. The stable business environment also makes Chile attractive for long-term team-building. Chile’s time zone is UTC−4, the same as US EST for part of the year.
Peru
Peru’s tech market is smaller but growing, with Lima as its central hub. English proficiency is lower, but fluency is increasing in the tech sector. Compared to the US, developer salaries are around 60% less. Government investment in digital infrastructure and education is expanding the local talent pool. Peru is on UTC−5, aligned with US Eastern Time much of the year.
Uruguay
Uruguay is small but mighty. It has strong public education, solid English proficiency, and a reputation for stability. Montevideo leads the country’s tech scene. Salaries are 33 to 56% lower than in the US. Uruguay is on UTC−3, aligned closely with US Eastern Time.
See also Why Hire Workers in Uruguay.
Developer salaries in top South American countries compared
Here’s a quick snapshot of how key hiring markets compare across salary, English proficiency, and infrastructure based on Howdy’s regional hiring data.
Case studies: Success stories in LatAm hiring
Many US tech companies have already found success by hiring in South America through Howdy.com. Let’s look at two examples:
- Workrise. This US workforce management platform built a distributed engineering team with Howdy, adding senior-level talent from Latin America. The time zone overlap helped optimize delivery cycles and reduce costs. Learn more about how Workrise built a high-retention, high-impact engineering team with Howdy.
- Truepill. Howdy helped this digital pharmacy platform source top developers, accelerating product development while maintaining quality and culture. Learn more about how Truepill worked with Howdy to rapidly scale their engineering team.
Challenges and mitigation strategies
The benefits of hiring in South America are clear. However, there are a few challenges to be aware of:
- Economic volatility. Inflation and currency fluctuations can affect local labor markets. Paying in USD helps provide predictability for developers.
- Legal complexity. Labor laws vary. Use a partner like Howdy to manage local compliance and contracts.
- Retention pressure. Top engineers are in demand globally. Retain them with competitive pay, benefits, and inclusion in your culture.
This is why many US companies rely on Howdy for localized compliance, HR operations, and team retention support across Latin America.
FAQ: Hiring developers in South America
What is the average salary for developers in Argentina?
Senior developers typically earn 70–80% less than in the US, depending on experience and tech stack.
Which South American country has the best English proficiency for engineers?
Argentina consistently ranks highest in the EF English Proficiency Index, followed by Chile and Uruguay.
How do US companies hire developers in South America?
Most partner with nearshore talent firms like Howdy, which handle sourcing, vetting, legal compliance, and HR logistics.
What time zones do South American developers work in?
Most countries fall within UTC−3 to UTC−5, overlapping closely with US working hours.
How does Howdy support US companies hiring abroad?
Howdy builds compliant, high-retention engineering teams across Latin America — covering payroll, benefits, and cultural alignment — so you can focus on growth.
Book a Howdy demo
Ready to build your South American engineering team? Book a Howdy demo to see how we make nearshore hiring fast, compliant, and cost-effective.