Hiring the right development team can make or break a project. For many companies, especially startups and enterprises, hiring locally can be challenging due to high costs, limited talent availability, or strict timelines. That’s why many businesses look abroad for offshore development teams.
In this blog, we’ll explore the best countries to hire offshore developers, considering factors like cost, quality, and time zone alignment. Whether you’re building a new product or scaling your tech team, choosing the right location can help you achieve both speed and savings without compromising quality.
Why do companies choose offshore outsourcing?
U.S. companies turn to offshore outsourcing primarily to reduce costs and maximize resources. Hiring locally can be expensive, especially for senior-level positions. For example, a senior developer in the U.S. might cost around $120,000 per year, while a developer with similar skills in Colombia could earn about $45,000 annually. This significant difference allows businesses to allocate funds to other critical areas like marketing, product development, or growth initiatives. Offshore outsourcing also helps companies optimize overhead expenses since there’s no need to invest heavily in physical office space or infrastructure abroad.
Another major reason is access to specialized talent. Many U.S. markets face shortages of experts in high-demand areas like cloud computing, cybersecurity, and mobile app development. Offshore teams bridge this gap by providing skilled professionals who are ready to join projects quickly. In addition, outsourcing offers the flexibility to scale teams up or down based on business needs, which is crucial for fast-paced industries such as e-commerce, SaaS, and fintech, where demand can fluctuate dramatically throughout the year.
Learn more about how to hire offshore software developers.
The best offshore destinations that you can consider
Not all regions offer the same benefits when it comes to offshore development. When selecting a destination, companies should carefully evaluate factors such as English proficiency, technical education, cultural compatibility, time zone overlap, and overall costs. These elements determine how smoothly your teams will collaborate and how efficiently projects will progress.
For U.S.-based companies, Latin America is often the preferred option because it strikes the right balance between cost and collaboration. Here’s why:
- Time zone alignment: Countries like Mexico, Colombia, and Argentina share similar time zones with the U.S., enabling real-time communication and faster decision-making.
- Cultural compatibility: Similar work culture and business practices make it easier to align expectations, manage teams, and build long-term relationships.
- Cost-effective talent: Companies can achieve significant savings compared to U.S. salaries while still accessing highly skilled developers with strong English proficiency.
Eastern Europe tends to be a better fit for European companies due to proximity and advanced technical education, while Asia is usually chosen when lowest cost is the main priority—though it often comes with time zones and communication challenges. For U.S. businesses, Latin America remains the most balanced and reliable option for offshore outsourcing.
Learn more about hiring tech roles. Learn the criteria for choosing the best agency.
Our thoughts on the pricing structure of Toptal
While it's not possible for us to find details about how much of what a client pays ultimately goes to a candidate, we believe clients looking for transparent and straightforward pricing may want to look at other alternatives.
Our opinion is that if they are charging a client more than $12,000 monthly for a developer, they should at the very least be giving $9,600 to the candidate, but it's likely that it's even less than that.
What Hiring Managers Should Ask Before Choosing a Talent Partner
Before partnering with any talent provider — whether Toptal, Teilur, or others — hiring managers should consider asking the following key questions:
- What percentage of the fee actually goes to the talent?
- Are replacement or satisfaction guarantees included in the contract?
- How are regional salary benchmarks determined?
- Is there full transparency in how rates are broken down?
- What is the long-term cost difference between hiring directly and through a platform?
These questions can help businesses make informed decisions and ensure that pricing aligns with both market realities and ethical compensation practices.
5 Best Countries for Offshore Outsourcing in Latin America
Latin America has become a hot spot for companies in the U.S. looking to build offshore development teams. Its close time zones, cultural similarities, and competitive costs make it an attractive alternative to traditional outsourcing regions like Asia or Eastern Europe.
Here are five of the top countries in LATAM where you can find skilled developers to help you scale your business.
1. Colombia
Colombia has quickly gained attention as a leading hub for offshore development, thanks to its expanding tech industry and affordable rates.
- The IT services market is projected to grow steadily at 6.27% annually, reaching $2.77 billion by 2029, up from $2.17 billion in 2023.
- The country is home to over 85,000 active developers, many of whom have experience working with international clients.
- Its aligned time zones with the U.S. allow for real-time collaboration, making it easier to communicate and manage projects without major scheduling issues.
Why choose Colombia: It’s a great option if you want a strong balance of cost and quality, with teams that can work alongside your local staff almost as if they were in the same office.
2. Mexico
Mexico is a top choice for U.S.-based companies because of its geographic closeness and shared cultural background, making collaboration seamless and travel easy.
- With over 563,000 developers, Mexico has the second-largest tech workforce in Latin America.
- Each year, around 124,000 tech graduates enter the workforce, ensuring a constant flow of fresh talent.
- The short travel distance allows for quick on-site visits, perfect for project kickoffs or important meetings.
Why choose Mexico: Ideal for businesses that value face-to-face interactions, real-time communication, and teams that understand the U.S. business environment.
3. Brazil
Brazil offers the largest pool of tech professionals in the region and is known for its mature, diverse technology market.
- Key innovation hubs like São Paulo, Rio de Janeiro, and Curitiba play a significant role in Brazil’s strong IT services industry.
- Brazil consistently ranks among the top countries in IT revenue in Latin America, reflecting its robust outsourcing infrastructure.
- The main challenge is language: Portuguese is the official language, so it’s essential to verify English proficiency when hiring for global projects.
Why choose Brazil: Perfect for companies needing large teams or highly specialized skill sets, and who don’t mind managing some language coordination.
4. Argentina
Argentina is widely recognized for its high-quality tech talent and strong reputation in the global outsourcing market.
- Developers from Argentina are known for their problem-solving abilities and creativity, fostered by a strong educational system.
- The country consistently ranks high in English proficiency, which helps eliminate communication barriers.
- While Argentina offers excellent talent, businesses should consider its economic instability, which can affect payment agreements or pricing structures.
Why choose Argentina: Best for projects that require senior developers with exceptional skills and strong English communication, provided you plan for currency fluctuations.
5. Costa Rica
Costa Rica may be smaller than other countries on this list, but it stands out for its stability and high-quality workforce.
- The country has built a reputation for political stability and a bilingual talent pool, making it a safe and reliable outsourcing destination.
- While the number of developers is smaller, Costa Rica maintains high education standards, producing highly skilled professionals.
- Strong English skills and cultural alignment make collaboration with U.S. companies effortless.
Why choose Costa Rica: Ideal for companies that prioritize low-risk partnerships and want to work with teams that offer both quality and reliability.
Hire the Best Offshore Developers in Latin America with Teilur Talent
Building a reliable offshore team doesn’t have to be complicated. Teilur Talent helps U.S.-based companies hire top developers in Latin America through a transparent and efficient process. With a flat 20% commission, you’ll always know exactly what you’re paying, without hidden fees. Our goal is to make offshore hiring simple, predictable, and fully aligned with your business needs.
Every candidate we present goes through comprehensive English proficiency tests and rigorous technical assessments, so you meet only highly qualified professionals. Thanks to our proven process, we maintain a 90%+ retention rate, ensuring you build teams that stick and grow with your company. If you’re looking to hire offshore developers who can deliver results and integrate seamlessly with your team, Teilur Talent is your trusted partner in Latin America.
