Software development outsourcing in Latam: everything you need to know

March 28, 2022

Tags: IT Staff Augmentation

software outsourcing


One of the regions that has stood out the most in recent years due to its constant transformation and evolution is Latin America. The Covid-19 pandemic also drove many of the changes, as it pushed companies to adapt more quickly to the digital environment in order to survive.


“Latin America has a dynamic business environment shaped by several factors: young populations, abundant resources, a growing consumer base, strong business ties, and a flourishing start-up scene”, they stated in an article by Mckinsey.


In addition, the IT services market in Latin America grew by 4.75% in 2021, according to a report cited by the IT User portal. "The IT services market in Latin America is driven by the increasing focus on core competencies and improving efficiency", they said in the report.


software outsourcing


The IT software and services market in Latin America is significant and constantly growing. Brazil and Mexico are the leaders in the software industry in the region, and technology-related jobs are on the rise. In addition, software developers in Latin America have programming skills above the world average.


Why are software developers in Latam so in demand?

Skill and talent

Software developers in Latin America are known for their skill and talent in creating software. Many of them have received technical education in high-quality programs, which has allowed them to acquire specialized skills in areas such as programming, software engineering, and artificial intelligence.


Competitive costs

Labor costs in Latin America are often lower compared to other countries. This means that companies can hire highly-skilled software developers at a lower cost.



Latin America is a very diverse region, with a large number of cultures and languages. This means that software developers in the region can offer unique perspectives and creative solutions to software creation challenges.


software outsourcing


Capacity for teamwork

Software developers in Latin America tend to have a strong ethic of teamwork and collaboration. This can be very beneficial for companies looking to hire software developers who are capable of working well in a team and collaborative environment.



Software developers in Latin America are constantly looking for innovative ways to address the challenges of creating software. This means that they are able to offer unique and creative solutions to business and technical problems.


In Latam there are several of the most prestigious engineering schools in the world

The educational factor is decisive when talking about the quality of software developers. Although many are empirical and have learned the trade thanks to their curiosity, ability and perseverance, others learned while doing their university degree, an aspect highly valued by employers when recruiting new talent.


In Latin America, several of the best engineering schools in the world are located, which guarantees quality and excellence in these profiles. Currently, 20 Brazilian universities are in the ranking of the best engineering schools, shared by the US News portal. Also in this ranking are 4 universities from Chile, 5 from Mexico and 2 from Colombia.


software outsourcing


Engineering schools in Latam are characterized by:

  • Have an updated curriculum that reflects the latest advances in technology and industry trends, thanks to which highly competitive professionals are trained in the world of work.
  • These schools are part of universities that have adequate infrastructure and technologies to support teaching in any branch of technology.
  • They are usually universities with globally recognized certifications and accreditations.
  • In addition to offering the best study programs at the technical level, they are schools that also focus on enhancing students' soft skills, such as communication skills, problem solving, time management, among others.


Skills of software developers in Latam

Software developers in Latin America have a wide range of technical and soft skills. Here are some common skills found in software developers in Latin America:


  • Programming

Software developers in Latin America are experts in programming languages such as Java, C++, Python, JavaScript, PHP, Ruby, among others.


  • Web development

Software developers in Latin America are experts in creating websites and web applications. They have experience using frameworks and tools such as React, Angular, Vue, Django, Ruby on Rails, among others.


software outsourcing


  • Database

Software developers in Latin America have skills in the creation, administration and maintenance of databases using technologies such as MySQL, PostgreSQL, MongoDB, SQL Server, Oracle, among others.


  • Design skills

Many software developers in Latin America have UX/UI and design skills to create user-friendly and attractive user interfaces.


  • Teamwork

Software developers in Latin America have teamwork and collaboration skills to work with other developers and designers on projects.


  • Effective communication

Software developers in Latin America have effective communication skills to communicate with the work team, clients, and other stakeholders.


  • Critical thinking and problem solving

Software developers in Latin America have critical thinking and problem solving skills to address technical and business challenges in projects.


software outsourcing


Risks and opportunities in software outsourcing in Latam

Software outsourcing in Latin America (LatAm) presents both risks and opportunities. Some of them are:



Communication difficulties: The language and the time difference can cause communication problems and delays in the delivery of work.

Work quality: It is possible that the quality of the work is not as expected, due to the lack of direct supervision and control of the project by the contracting company.

Confidentiality and security of information: There are risks of leaking confidential information and security in the transfer of data.

Changes in the market and in technology: Changes in the market and in technology can make outsourcing services less competitive, which can negatively affect the stability of the business.


software outsourcing



Cost-benefit: Software outsourcing in LatAm can offer a significant cost-benefit compared to the costs of hiring and maintaining IT staff at the contracting company.

Specialization: Hiring companies specializing in software development can provide access to technologies and skills that are not found in the hiring company.

Flexibility: Outsourcing of software services allows contracting companies to be more flexible in their operations and adapt quickly to changes in the market and in technology.

Risk reduction: Outsourcing can reduce the risk that the contracting company invests in inappropriate technologies or processes.


In general, software outsourcing in Latam can be beneficial for companies looking for a cost-effective and flexible solution for their IT needs, but it is important to carefully assess the risks and opportunities before making a decision.


Do you need a software development team in Latam? At Rootstack, we have +10 years of experience supporting companies in their digital transformation. Contact us!


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