Both Brazil and Argentina have emerged as nearshore development hotspots thanks to their thriving technology ecosystems and proximity to North America. Companies looking for skilled developers often turn to these countries for their growing talent pools and favorable business environments.
When it comes to expanding your technology team, hiring nearshore developers is a smart move. But with so many options in Latin America, choosing between countries like Brazil and Argentina can be a difficult decision. In this guide, we'll break down the key differences to help you decide where to hire nearshore developers for your business.
Learn more about nearshore staffing: Scale your team with agility.
Hire Nearshore Developers in Brazil vs. Argentina
The chart compares the key characteristics of both countries as nearshore development destinations. Across five main categories, it provides a clear perspective on the strengths and differences between Brazil and Argentina, helping companies make informed decisions about where to hire nearshore developers.
The five key points compared in the chart are discussed in detail below: Cost of Hiring, Time Compatibility, Talent Availability, Language Skills, and Technology Growth. Each of these factors plays an important role in selecting the ideal nearshore development destination.
Cost of Hiring Nearshore Developers
One of the most important factors when choosing a nearshore destination to hire nearshore developers is cost. Both Brazil and Argentina offer competitive pricing compared to hiring locally in the U.S. or Canada, but their rates vary.
Brazil: Developers in Brazil typically charge between $3,750 and $5,000 per month, depending on experience and specialization. The cost of living is higher in cities such as São Paulo and Rio de Janeiro, which can affect salary expectations.
Argentina: Argentina offers some of the most affordable rates in Latin America, with developers charging between $2,500 and $3,125 per month. The country's currency fluctuations and low cost of living make it an attractive option for budget-conscious companies.
Learn more about development nearshore in LATAM for US companies.
Time Zone Compatibility
Time zone alignment is critical for seamless communication and collaboration. Both Brazil and Argentina are well-positioned for North American businesses looking to hire nearshore developers.
Brazil: Depending on the time of year, Brazil operates on UTC-3 or UTC-2 (during daylight savings). This provides a 1 to 3-hour difference with U.S. Eastern Time, ideal for real-time collaboration.
Argentina: Argentina sticks to UTC-3 year-round, offering consistent time zone alignment with the U.S. East Coast.
Nearshore development offers companies a balance of cost-effectiveness, skilled talent, and collaboration. By choosing to hire nearshore developers, businesses gain the advantage of working with teams in nearby countries, benefiting from similar time zones that enable real-time communication and faster project delivery. In addition, nearshore developers provide access to highly skilled professionals at competitive rates, making it an ideal solution for scaling teams efficiently.
Quality and availability of talent
Both countries have a strong developer community, but there are differences in their talent pools.
Brazil: With an estimated 630,000 software engineers working in the IT services sector, the country has one of the largest technology workforces in Latin America. The country produces a large number of engineering graduates each year, making it easy to find specialists in a range of programming languages, including Python, Java and PHP.
Argentina: Despite its small population, Argentina is no slouch. Its education system emphasises STEM fields, with a strong focus on software and IT services, Argentina's tech talent pool is growing and the country is already a resource for tech giants such as Google, Oracle and IBM.
Both countries are tech powerhouses, but Brazil's large pool of talent makes it better suited to large-scale projects, while Argentina's focused expertise suits niche development needs.
Language Proficiency
Effective communication plays a critical role in the success of nearshore partnerships. When comparing Brazil and Argentina to hire nearshore developers, their respective English proficiency rankings reveal significant differences.
Brazil: Ranked 81st out of 116 countries in the EF English Proficiency Index (EPI), Brazil has an EF EPI score of 466, slightly below the global average of 477. Within Latin America, Brazil ranks 18th out of 21 countries. Although English proficiency is improving, especially in large cities and among developers with international experience, it remains less widespread overall.
Argentina: Argentina ranks 28th out of 116 countries with an EF EPI score of 562. This places Argentina well above the global average and makes it the second highest ranked country in Latin America. This higher level of competency, along with cultural alignment with Western business practices, ensures smoother communication and integration for international teams.
Technological growth
Both countries have a solid IT infrastructure, but serve different types of technology needs.
Brazil: Brazil excels in cloud computing, mobile application development, and financial technology. Brazil leads Latin America in startup ecosystems, with more than 13,000 startups created in the last decade and eight unicorns valued at more than $1 billion. It is also the only country in the region to be among the top ten unicorn markets in the world.
Argentina: Argentina is home to some of Latin America's most successful technology companies. Buenos Aires, known as the region's former dot-com hub, has established itself as the country's startup ecosystem. The capital has also been the birthplace of major entrepreneurial successes, such as Mercado Libre, the first online marketplace in Latin America to be listed on the New York Stock Exchange.
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FAQ
How much does it cost to hire nearshore developers?
The cost varies by country and developer expertise. In Brazil, rates range from $3,750 and $5,000 per month, while in Argentina, you can expect $2,500 and $3,125 per month.
What is the disadvantage of nearshore?
The main challenges include potential cultural differences, legal considerations, and the need to manage remote teams effectively.
How much does it cost to outsource software development?
Outsourcing costs depend on the project scope and location. Nearshore options in Brazil or Argentina typically cost $3,500 to $5,000 per month per developer.
What is a nearshore software development company?
A nearshore software development company is a service provider located in a nearby country, offering IT expertise with similar time zones for improved collaboration.
Conclusion
Choosing between Brazil and Argentina to hire nearshore developers ultimately depends on your business priorities. If you're looking for a larger talent pool and diverse expertise, Brazil's large workforce and growing tech ecosystem make it an excellent choice. Meanwhile, Argentina's affordability, higher English proficiency, and strong cultural alignment with Western companies make it ideal for seamless communication and advanced technology needs. Both countries offer unique strengths, so carefully weighing factors such as cost, time zone, and quality of talent will help you make the best decision for your team's growth.
To make the best decision, use the calculator below to estimate your costs and potential savings. For more details and personalized advice, please contact us.
