LATAM has become a go-to region for U.S. businesses looking to augment their teams, consistently ranking as a top choice for skilled software developers. In 2023, the Accelerance report found that software developer rates in LATAM generally ranged from $34 to $96 per hour – in contrast to $62–$209 in North America. With a talent pool exceeding a million software engineers, LATAM offers a vast resource of tech expertise. In this post, we’ll highlight the top 4 countries for staff augmentation in LATAM as well as dive into the factors behind our selection.

How to choose a location for IT staff augmentation in LATAM: Key factors

When it comes to adding developers who fit your culture, speak fluent English, and easily adapt to your business practices, certain LATAM locations stand out. With over 16 years of experience in IT staff augmentation across the region, we’ve identified key factors to guide you in selecting the ideal location for your team expansion.

Factor 1: Your software development budget

In our experience, cost-effectiveness is the main reason companies choose IT staff augmentation in LATAM. Our clients prioritize maintaining high quality without cutting corners, and achieving this balance is essential for a successful partnership with remote developers. When it comes to pricing, Colombia offers some of the most affordable rates, while Brazil and Argentina are slightly higher.

Overall, staff augmentation in LATAM is a proven way to maximize your budget while ensuring quality.

Factor 2: Time zone compatibility

Staff augmentation in LATAM is ideal due to time zone alignment, offering overlapping business hours that enhance communication between your headquarters and remote team. Countries like Mexico, Brazil, Argentina, and Colombia align closely with U.S. time zones, providing 4-8 hours of real-time collaboration. This flexibility allows you to choose a country that best suits your need for seamless, real-time teamwork.

Factor 3: Talent availability in your tech stack

Staff augmentation in LATAM focuses on filling the skill gaps on your team that may be unavailable – or too costly – locally. When selecting a tech hub, it’s essential to explore the local workforce’s expertise and assess talent availability in the technologies you need. A quick LinkedIn search can provide an initial understanding of the talent pool size and availability. For a deeper analysis, consider resources like HackerRank’s Developer Skills Report, the Stack Overflow Developer Survey, or Coursera’s Global Skills Report to evaluate the region’s strengths in your desired tech stack.

Factor 4: English skills

English proficiency varies across LATAM, and in some countries, you may not find high levels of expertise. According to the EF English Proficiency Index, LATAM overall isn’t known for strong English skills, with Argentina being a notable exception – it ranks highest in the region with a population displaying high English proficiency.

In the IT world, assessing each candidate’s language skills individually is essential. For instance, in Mexico, engineers with strong English skills can command up to a 200% salary increase, motivating professionals to improve their language proficiency. At our company, English testing is always part of our candidate screening process. That way, we ensure that 100% of our engineers have full working proficiency in English.

Factor 5: Cultural alignment

Cultural fit is essential for successful staff augmentation in LATAM. That said, it’s a good idea to choose a location with similar culture, business practices, and work ethics. Countries like Argentina, Brazil, and Mexico provide this kind of synergy, especially with the right provider of staff augmentation services in LATAM. That’s why we include culture fit as a core part of our candidate screening process. The teams we build integrate seamlessly into your company’s operations and culture.

What are the best countries in LATAM for staff augmentation?

 For your convenience, we’ve put together the 4 best countries in LATAM for staff augmentation, picked according to the criteria mentioned above. For a deeper dive into each option, we covered technical expertise, providers of staff augmentation services, rates for software development, English skills, as well as cultural and time zone alignment with North America.

Mexico

Mexico is a leading destination in LATAM for technical staff augmentation, with a skilled workforce of over 220,000 software engineers. The country benefits from a solid educational infrastructure, especially in engineering and technology, with Computer Science and IT programs offered at universities nationwide, including over 1,000 tuition-free institutions. Mexico’s tech ecosystem is well-supported by more than 20 tech parks, making it an excellent choice for building a capable and well-rounded tech team.

  • Cost

Mexico’s lower cost of living translates to more affordable software development rates compared to the U.S. On average, a software developer in Mexico charges around $30 per hour, making it one of the most cost-effective choices in LATAM for IT staff augmentation.

  • Tech proficiency

Mexico ranks 32nd globally on Coursera’s Global Skills Index, with a technical proficiency score of 64%. Within LATAM, it holds the #2 position for overall skill proficiency. The country has strong capabilities in software development, data science, and cloud computing. These features make Mexico a reliable hub for staff augmentation in LATAM, particularly for complex projects.

  • Types of companies

Mexico is a key player in custom software development, with over 480 companies specializing in web and mobile solutions, according to Clutch. If you’re looking to augment your LATAM team with JavaScript, Python, or PHP talent, Mexico is an ideal choice. Additionally, for high-demand fields like AI/ML and Cloud, you’ll find ample opportunities to build a diverse and skilled team.

  • English skills

Mexico ranks in the “Low Proficiency” category on the EF English Proficiency Index, with an average score of 477 in 2023. However, English proficiency is relatively strong in urban hubs like Mexico City, Monterrey, and Guadalajara, where it serves as the common language among tech professionals.

  • Time zone compatibility

Mexico is ideally positioned for time zone alignment, a key factor when choosing a location for staff augmentation in LATAM. With a time difference ranging from zero to just 1-2 hours from the U.S., Mexico is perfectly suited for seamless collaboration with North American businesses.

  • Cultural alignment

The success of IT staff augmentation in LATAM often hinges on cultural familiarity between headquarters and the remote team. Mexico offers an excellent cultural fit due to its close proximity to the U.S. and a long history of cultural exchanges – unmatched by any other LATAM country. While Mexican professionals place a strong emphasis on personal relationships at work, they are highly adaptable and easy to build effective collaboration with.

READ ALSO: Nearshoring in Mexico: The Market, Companies, Talent Pool, and Salary Research

Brazil

brazil staff augmentation

Brazil stands out as one of the top destinations for staff augmentation in LATAM. With the region’s largest population of software engineers – over 500,000 IT professionals – Brazil benefits from a strong STEM education system, producing more than 50,000 graduates annually. The country also boasts 30+ tech parks and a vibrant IT community centered in hubs like São Paulo, Campinas, and Porto Alegre.

  • Cost

The average software development rate in Brazil is around $35 per hour, which is a moderately priced option for IT staff augmentation in LATAM. However, Brazilian developers offer a solid price-to-quality ratio, thanks to their high level of expertise and technical skills.

  • Tech proficiency

Brazil ranks 28th globally on Coursera’s Global Skills Index, with a high proficiency score of 94% in technology domains. The local workforce excels in software development, data science, and cloud computing, with strong skills in Python, Java, and JavaScript – key technologies for AI projects.

  • Types of companies

Brazil has a robust IT services sector, with Clutch reporting 366 companies specializing in custom development. Additionally, Brazil is home to over 8,000 vendors of staff augmentation services, most of which are small studios with 10-50 employees. Key areas of specialization include IoT, data solutions, cloud services, cybersecurity, AI, and blockchain.

  • English skills

Similar to Mexico, Brazil ranks lower globally in English proficiency. While overall English skills may be limited, there is a notable segment of IT professionals with full working proficiency, particularly those with extensive experience in the tech industry.

  • Time zone compatibility

Brazil offers substantial time zone overlap with North America, as most of the country operates on GMT-3, closely aligning with EST. When it comes to staff augmentation in LATAM, Brazil is an ideal choice if time zone alignment is your top priority.

  • Cultural alignment

Brazil embraces international business norms and maintains strong economic ties with North America. Brazilian IT specialists are well-versed in Western business practices, with many years of experience in multicultural settings.

READ ALSO: Nearshore Software Outsourcing in Brazil: Benefits, Challenges and Market Overview

Colombia

colombia staff augmentation

Colombia is an up-and-coming destination for staff augmentation in LATAM, thanks to competitive developer rates and a rapidly expanding IT talent pool of over 64,000 skilled engineers.

  • Cost

Colombian developers charge an average of $25 per hour, making it one of the most cost-effective options in the region. Combined with strong tech expertise, Colombia offers an affordable way to enhance your team without sacrificing quality.

  • Tech proficiency

Colombia leads LATAM in tech skills, ranking #1 in the region and 33rd globally on Coursera’s Global Skills Index, with a high proficiency score of 92% in technology domains. Local developers excel in software development, data science, and cloud computing, with strong expertise in Python, Java, and SQL.

  • Types of companies

Most IT companies in Colombia specialize in computer systems development, IT consulting, data processing, website development, cloud migration, and infrastructure management. They also excel in advanced technologies, including artificial intelligence and machine learning.

  • Time zone compatibility

Colombia operates on Eastern Standard Time (GMT-5), aligning well with North American business hours and offering a substantial overlap for seamless collaboration with U.S.-based teams.

  • English skills

If English proficiency is a priority for your staff augmentation needs in LATAM, Colombia may present some challenges. The country ranks in the “Low Proficiency” category on the EF English Proficiency Index, meaning the pool of highly fluent software engineers can be limited.

  • Culture fit

Colombian teams integrate well with U.S.-based companies. While some differences in business practices and communication styles may arise, local developers are highly adaptable and flexible, making it easy to align with international environments.

READ ALSO: Your Guide to IT Services in Colombia

Argentina

argentina staff augmentation

While it may not yet feature prominently on LATAM staff augmentation lists, Argentina is increasingly recognized for its competitive pricing, a pool of 115,000 software engineers, high levels of technical expertise, and strategic time zone compatibility with North America.

  • Cost

The average software development rate in Argentina is around $40 per hour – currently the highest option on our list, yet still much more affordable than onshore development in North America. This rate is warranted by Argentina’s skilled workforce, backed by a strong educational foundation.

  • Tech Proficiency

Argentina has advanced technological capabilities, ranking 30th globally in the Coursera Global Skills Index with a tech skills score of 93%. This places Argentina #3 in LATAM, just behind Mexico and Colombia. The local workforce is skilled in programming languages like Python, Java, and JavaScript.

  • Types of companies

Argentina boasts a robust presence in custom software development, mobile app development, web development, cloud solutions, and IT-managed services. Local providers of staff augmentation services in LATAM specialize in sectors like Finance, IT, Business, e-Commerce, and Consumer Products & Services.

  • Time zone compatibility

Operating on GMT-3, Argentina aligns well with the EST time zone, leaving 4-5 hours of overlapping work time with U.S. teams for real-time collaboration.

  • Cultural alignment

Argentina stands out for its strong culture of innovation. Much like Silicon Valley, the local workforce emphasizes problem-solving, continuous improvement, and attention to detail. This cultural alignment with North American companies makes Argentinian IT professionals a natural fit, which lends a hand to smooth integration into your operations and minimizing onboarding time.

READ ALSO: Your Guide to Nearshoring in Argentina

Why choose HLAD as your provider of staff augmentation services in LATAM?

We’re a provider of staff augmentation services with over 16 years of experience building tech teams across LATAM. We’ve helped more than 122 businesses augment their teams, including renowned brands like AstraZeneca and Greenpeace, and now we want to help you too.

Top 1% talent: We provide only the best engineers, rigorously testing their tech skills, soft skills, and English proficiency so you can count on working with reliable, highly skilled professionals.

Focus on retention: We’re dedicated to team satisfaction, offering a supportive work environment, competitive pay, and bonuses – resulting in a 98% retention rate last year.

100% project dedication: Our engineers are fully committed to your project’s goals, working for you (and only for you) 5 days per week, 40 hours per week – just as if they were your in-house staff.

Tight integration into your processes: Our engineers become part of your workflows, culture, and management structure, working as an extension of your internal team.

Travel support: We make on-site visits easy for our engineers, helping strengthen the relationships with your company and core team. Likewise, we encourage you to visit your remote branch in Latin America. From logistics to coordination, we handle it all to ensure everything runs smoothly.

Ready to get started? Let’s talk about how a team of skilled developers can help you meet your goals.