US tech companies are facing a long-term developer shortage. As the IT labor market tightens, many businesses are looking beyond national borders to build their engineering teams. Nearshoring — outsourcing work to nearby countries — is a growing trend, with South America emerging as a top destination for hiring.
Building a nearshore development team in South America can offer US businesses the best of both worlds: access to skilled talent at competitive costs, minimal time zone differences, and strong cultural alignment. This guide breaks down the best South American countries for hiring engineers, based on key criteria like language skills, infrastructure, and salary.
Why hire engineers 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 evaluating countries
Before sharing top countries for hiring engineers, we'll explain the criteria behind our picks:
- Talent pool size. Countries with more engineers and STEM graduates offer broader recruiting options.
- 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 countries overview
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.
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.
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.
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. Peru is on UTC−5, aligned with US EST much of the year.
Developer salaries in top South American countries compared
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 Brazil and Colombia. The time zone overlap helped accelerate delivery cycles and reduce costs. Learn more about how Workrise built a high-rentention, high-impact engineering team with Howdy.
- Truepill. The digital pharmacy startup turned to LatAm engineers to scale backend systems. Howdy helped source top developers from Argentina and Uruguay, helping the company grow without increasing US headcount. 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.
Conclusion: How to choose the right country
The best country depends on your needs. Here's a simple decision framework:
- Need strong English and low cost? Choose Argentina or Chile.
- Want a large talent pool? Brazil or Colombia may be best.
- Looking for stability? Uruguay is a solid long-term bet.
- Expanding quickly? Combine multiple countries to diversify risk.
Latin America gives US companies a clear path to scale engineering teams with real-time collaboration and major savings. Whether you're hiring one developer or building an entire team, the region offers proven, high-quality talent.
Ready to build your South American engineering team? Book a demo to see how Howdy can help.
