The Top Nearshore Development Countries

Introduction

Nearshore development refers to the practice of outsourcing software development to countries that are geographically close to the company that is doing the outsourcing. This can be an attractive option for United States companies because it allows them to take advantage of lower labor costs while still being able to communicate and collaborate with their development team easily due to the proximity. 

Overview of Nearshore Development Countries

Nearshore development countries are particularly attractive because the cultural, linguistic, and time zone similarities between the parent company and the development team can facilitate clear communication and understanding, which is critical for successful custom software development projects. Nearshore software outsourcing also reduces the risks associated with talent outsourcing as the distance between the two parties is minimized.

Countries considered “nearshore” will vary depending on the location of the outsourcing company. For instance, a company in the United States might consider Mexico and Canada as nearshore development destinations. In contrast, a company in Europe might consider countries in South America to be nearshore.

Popular Nearshore Software Development Countries

Here is a list of nearshore development countries that are commonly considered top talent destinations. each with their own benefits. 

Brazil

Population

The current population of Brazil is 216.2 million.

Spoken Languages

The official language of Brazil is Portuguese, but there are also several indigenous languages spoken in Brazil, including Guarani, Tupi, Kayapó, Wari, and Xavante. Many immigrants in Brazil speak a variety of languages, including English, Spanish, French, and Italian. 

Quick Facts

• According to Stack Overflow, Brazil has a large pool of developers, with approximately 475,272 individuals working in the field. This makes it the leader in Latin America for tech talent.
• The country produces many IT graduates, with approximately 100,000 individuals completing technical or graduate courses each year. According to the U.S. News & World Report, six Brazilian universities are ranked in the top 500 universities worldwide, demonstrating the strong tech background of Brazilian developers.
• The country is a popular choice for nearshore software development due to its proximity to the United States, lower labor costs compared to developed countries, and the widespread use of English and Portuguese in business.

Colombia

Population 

The current population of Colombia is 52.2 million.

Spoken Languages

The official language of Colombia is Spanish. However, several indigenous languages are spoken in Colombia, including Quechua, Wayuu, and Kichwa, among others. Additionally, some communities in Colombia speak Afro-Caribbean languages, such as Palenquero and Creole English.

Quick Facts

• Colombia is home to many engineering students, accounting for 25% of all engineering students in Latin America. This abundance of talent has contributed to the success of numerous software development companies in the country, including the unicorn company Rappi. So it is no surprise that Colombia has a thriving software development industry.
• The majority of the population in Colombia speaks Spanish, making it an ideal location for companies looking to outsource software development to a Spanish-speaking country.
• The cost of nearshore software development in Colombia is generally lower than in other countries in North and South America, making it an attractive option for companies looking to reduce development costs. 

Mexico

Population

The current population of Mexico is 132.2 million.

Spoken Languages

There are two main languages spoken in Mexico: Spanish and Indigenous languages. Spanish is the official and predominant language in Mexico, and the majority of the population speaks it. 

There are around 68 Indigenous languages spoken in Mexico, including Nahuatl, Maya, Mixtec, and Tzotzil. Indigenous languages are also recognized as official languages in some regions of the country. English is also spoken by a small portion of the population, especially in urban areas.

Quick Facts

• Mexico is the largest nearshore software development country in Latin America, with a strong presence in the tech industry and a highly educated and skilled workforce.
• The country has a large pool of bilingual professionals, making it an attractive location for companies looking to outsource software development and other IT services.
• According to Stack Overflow, the country is home to 223,398 software developers, making it the second most populous Latin American country for software developers. In terms of programmer skill rankings, Mexico placed 33rd in HackerRank Challenges.

Costa Rica

Population

The current population of Costa Rica is 5.2 million. 

Spoken Languages 

The official language of Costa Rica is Spanish, but there are also some indigenous languages spoken in certain regions, such as Bribri, Cabécar, and Guaymí. Additionally, many Costa Ricans are also fluent in English due to the country’s strong tourism industry.

Quick Facts

• According to Coursera’s statistics, Costa Rica ranks second in IT programming competencies in Latin America and 27th globally.
• According to the World Economic Forum, the country boasts the highest educational score in Latin America and offers its students a top-quality education. Its engineering program alone graduates 4,000 students annually.
• Costa Rica is known for its stable and democratic government, making it a safe and reliable location for outsourcing software development. 

Peru

Population

The current population of Peru is 34.1 million.  

Spoken Languages

The official language of Peru is Spanish, but many indigenous languages are also spoken in the country, including Aymara, Quechua, and a number of Amazonian languages such as Asháninka, Shipibo-Konibo, and Yine.

Quick Facts

1.     Peru is located in the western part of South America and has a strong tradition in technology and software development.

2.     The time zone in Peru is similar to the US and Canada, making it easier for companies to collaborate and communicate with their offshore teams.

3.     Peru has a growing startup ecosystem and is home to many successful tech companies, including the social media platform Olapic and software development firm Industrial Global Union.

Chile

Population

The current population of Chile is 19.52 million.

Spoken Languages

The official language of Chile is Spanish. However, there are also small communities of speakers of indigenous languages, such as Mapuche, Quechua, Aymara, and Rapa Nui.

Quick Facts

• Chile’s IT industry is highly innovative and has ranked well on the Global Innovation Index, coming in at number 53 out of 132 economies in 2021. Chile is a hub for startups and innovative companies, with a thriving tech ecosystem and a culture of innovation and entrepreneurship.
• This nation ranks #5 out of 54 countries in the Global Entrepreneurship Monitor, which confirms the entrepreneurial spirit of the country.
• According to the U.S. News & World Report, Chile has some of the best technologically-focused educational institutions in Latin America, following Brazil and Argentina. In fact, a few Chilean universities are among the top 500 in the world. 

Argentina

Population

The current population of Argentina is 46.2 million. 

Spoken Languages

Spanish is the official and most widely spoken language in Argentina. However, there are also small populations of speakers of English, Italian, German, and French, as well as various indigenous languages such as Quechua, Mapuche, and Guarani.

Quick Facts

1. Argentina has the highest technological skills in the world, according to the 2020 Coursera Global Skills Index report. In a survey conducted by Stack Overflow, IT developers in Argentina stated that Python was their preferred programming language, while they received the most inquiries about C and Java language.
2. With approximately 134,000 software developers, Argentina is an excellent location in Latin America to hire remote software developers.
3. You can be confident that your workforce will be highly educated, with seven Argentinian universities ranked in the top 50 in Latin America. Additionally, students can choose from 200 IT degrees at several highly-ranked universities.

Venezuela

Population

The current population of Venezuela is 28.2 million.

Spoken Languages 

The official language of Venezuela is Spanish. However, there are also indigenous languages spoken in Venezuela, such as Wayuu, Warao, Pemon, and Yanomami. English is also widely spoken as a second language, especially in the business and tourism sectors. 

Quick Facts

• You can easily collaborate with Venezuelans on real-time projects because the Venezuelan Standard Time zone is only one hour ahead of United States Eastern Standard Time.
• Venezuela was placed 15th out of 20 Latin American countries in the EF EPI rankings in 2021. However, this ranking is only average. In reality, most university-educated Venezuelans have a high level of proficiency in English.
• Outsourcing IT development to the country can save you a lot of money. The average salary for a Venezuelan software developer is around 120,000 VES or about $27,427 per year. This is much lower than the average salary for a San Francisco-area software developer, which is around $95,589 per year.

Ecuador

Population

The current population of Ecuador is 18 million.

Spoken Languages 

Spanish is the official language in Ecuador, but there are many other indigenous languages spoken in the country, including Shuar, Quechua, and Awapit. Many people in Ecuador speak some English, especially in tourist areas and in business settings. 

Quick Facts

• In Ecuador, there are a total of 49 technical certificates and undergraduate degrees available in programming. The country is home to strong universities and a diverse range of traditional colleges and technical institutes, providing developers with a range of options to hone their coding skills.
• Engineers in Ecuador have an average salary of $60,960, making it a very appealing location for cost-effective services.
• Ecuador has a great potential for business growth due to its convenient location in relation to 38 US states. Being only one or two time zones away, Ecuador is an ideal location for outsourcing companies to consider for their hiring strategy.

Dominican Republic

Population

The current population of the Dominican Republic is 11.1 million.

Spoken Languages

The official language of the Dominican Republic is Spanish. However, there are also small communities that speak indigenous languages, such as Taíno and Garifuna, as well as Haitian Creole due to the country’s close proximity to Haiti. English serves as a second language in order to communicate better with tourists. 

Quick Facts

• Ecuador is located in South America and is known for its diverse landscape, including the Andes mountains, the Amazon rainforest, and the Galápagos Islands.
• Ecuador has a growing technology sector and is a popular destination for nearshore software development due to its proximity to the United States and the availability of skilled talent.
• The official language of Ecuador is Spanish, but many professionals in the technology industry also speak English, making communication with international clients easier.

Puerto Rico

Population

The current population of Puerto Rico is 2.6 million.

Spoken Languages

The official language of Puerto Rico is Spanish. However, English is also widely spoken and taught in schools. Some people also speak a local dialect known as Puerto Rican Spanish, which includes elements of indigenous languages, African languages, and other Caribbean dialects.

Quick Facts

• Puerto Rico is a United States territory, making it an ideal location for nearshore software development due to its proximity to the mainland and shared language and cultural similarities.
• An engineer in the United States typically earns around $100,000 per year. However, in Puerto Rico, the average salary for this profession ranges from $35,000 to $75,000. Outsourcing can also lead to cost-saving measures such as reduced vacation time, healthcare benefits, and other expenses.
• Puerto Rico offers a number of tax incentives for companies that establish a presence on the island, including a 4% corporate tax rate and exemptions on imported capital goods and inventory.

Summary

If you believe that nearshoring software development in Latin America is the right decision for your business, it’s time to start recruiting. Finding and hiring talent can be a complex process, but working with a trusted partner like Flatirons can make it much easier. 

At Flatirons, we source the most skilled software developers in Latin America to support your project and fill any expertise gaps, ensuring the best possible outcome. Our extensive network in the region allows us to offer cost-effective nearshore software development services with top-tier talent.