Hiring Top IT Talent? This Cost Analysis Will Blow Your Mind!

Finding top talent is a challenge for many of us. We know how hard it can be to hire good developers, but you already know that because you are reading this article.

Hiring software developers can be a pretty daunting task and is especially true if you're a startup. One of the most common questions around hiring is why not look for developers in a countries where they are cheaper. Nowadays, this countries are in Latin America since there is a huge pool of talent just across the border and beyond. In this article we are going to explain why hiring near-shore software developers makes sense and provide a cost analysis to show the benefits.

A cost analysis for off-shoring software development shows that hiring Latin American software developers can reduce the cost of software development by 40-70%. The reason why this is true is because the software professionals from these regions are often 10-20x cheaper than Western European countries and North America, yet have similar quality of talent.

There are plenty of reasons why companies outsource, but if you’re part of the hiring process, you need to understand the cost savings of moving nearshore. If you’re a hiring manager and you want to cut costs, then it only makes sense to look at hiring Latin American software developers, dozens of Fortune 500 companies already understand this. Cross-continent communication is a major factor in business operations for many reasons. And when you start talking about time zones, separate languages and cultures, you can see why a virtual company needs their employees to be sitting “right next to them”.

(Slide the table left and right on mobile devices)

Market / Dev Cost Per Hour Yearly cost Overhead Total Monthly cost Savings (month) Savings (year) Savings - 5 person team (month) Savings - 5 person team (year) Savings (%)
US / Mid Lever Developer $77.38 $120,000 $36,000 $156,000 $13,000
Latam / Mid Level Developer $35 $70,560 $0 $70,560 $5,880 $7,120 $85,440 $35,600 $427,200 45%
Market / Dev Cost Per Hour Yearly cost Overhead Total Monthly cost Savings (month) Savings (year) Savings - 5 person team (month) Savings - 5 person team (year) Savings (%)
US / Sr Level Developer $96.72 $150,000 $45,000 $195,000 $16,250
Latam / Sr Level Developer $40 $80,640 $0 $80,640 $6,720 $9,530 $114,360 $47,650 $571,800 41%

Yeah, that's like $1 million a year in savings on a 10 person team!

We’ve said it before and we’ll say it again: there are TONS of benefits to hiring IT talent in Latin America. I mean, just take a look at the cost per hour of the most qualified (and skilled) developers from Mexico and compare it with the US or Canada. It’s amazing how much money you can save when you hire talents from Mexico, Argentina and other Latin American countries.

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