The United States is facing a critical shortage of tech talent that is only projected to get worse. According to Labor Department data, there were over 765,000 job openings in the US tech sector in 2021, with projected growth of 13% from 2020 to 2030. With such high demand, companies are struggling to find enough skilled developers, programmers, and engineers locally to fill key roles and meet business needs.

At the same time, Latin America is emerging as a major hub for IT talent. Countries like Mexico, Brazil, Argentina, Colombia and Chile are producing hundreds of thousands of qualified developers every year from their tech university programs. In 2020 alone, Latin America graduated over half a million software engineers, computer scientists, and other tech professionals.These numbers are projected to steadily rise over the next decade.

LATAM tech talent combines deep technical skills with soft skills like communication, collaboration, and commitment to excellence. The majority are fluent or proficient in English as a second language. They stay up-to-date on the latest programming languages, frameworks, and methodologies. With the right training and environment, they have the potential to be top-performing contributors at global companies.

Benefits of Hiring LATAM Tech Talent

Time Zone Alignment

One of the most impactful benefits of hiring Latin American developers is the natural alignment with US time zones. According to Best team practices when working across time zones, having overlapping work hours enables “real-time collaboration, instant feedback, and synchronous communication.” Unlike hiring talent in Asia or Eastern Europe, bringing on developers based in LATAM allows for substantial workday overlap with the US and Canada without significant adjustments.

Countries like Mexico, Colombia, Honduras and Peru are either in US time zones or at most 2 hours ahead on Eastern Time. Costa Rica, Panama, and Ecuador match up with Eastern Time as well. This makes it possible to have common “core collaboration hours” where LATAM developers can directly interface with teams and stakeholders in North America in real-time. You can have a daily standup or sprint planning meetings with video. Aligned time zones are key for distributed teams to interact and work together cohesively.

Cost Savings

One of the biggest advantages of hiring developers from Latin America is the significant cost savings on salaries compared to the US and Canada. According to research, the average remote software developer salary in Latin America ranges from $40,000 to $70,000 USD per year, while salaries in the US tend to start around $110,000. Companies can realize 30-60% savings on labor costs by building teams in LATAM.

Despite the lower salaries, LATAM developers deliver high quality work and contributions. They are just as well-trained and skilled as their American counterparts. The cost differentials stem from lower local living costs in LATAM rather than any difference in capabilities. Companies can take advantage of this arbitrage to get superb technical talent for a fraction of the price. With remote work, there’s no need to pay San Francisco salaries for world-class coding skills.

Technical Skills

Latin American developers consistently rank high on global coding assessments and tests. According to a LinkedIn report, LATAM developers are familiar with cutting-edge and in-demand programming languages like Java, Python, and JavaScript. They stay up-to-date on the latest frameworks and technologies because they are passionate about their craft. LATAM coders and engineers often contribute to open source projects to hone their skills.  Latin American countries like Chile are investing heavily in programming and computational thinking education. This results in a large talent pool with strong technical abilities.

LATAM tech talent consistently scores higher on coding exams and technical interviews compared to other regions. Their expertise across high-demand programming languages and frameworks makes them valuable additions to development teams. Companies can leverage their strong technical foundation and eagerness to learn when adopting new technologies and methodologies.

Latin American tech talent offers US firms cost savings, aligned time zones, top skills, and teamwork. With a shortage of tech talent in the US, Latin America has emerged as a major hub for IT professionals. Hiring developers from Latin America allows for substantial workday overlap with the US and Canada, enabling real-time collaboration. Companies can also save significantly on salaries, with 30-60% lower costs compared to the US.