If you are looking for nearshore backend development, two cities that stand out are Monterrey, Mexico and Medellin, Colombia. Both have significant technology ecosystems that attract U.S. companies looking for skilled backend developers with API design, microservices, and cloud computing expertise. Monterrey benefits from its proximity to the U.S., a mature IT industry, and universities specializing in backend technologies such as CI/CD automation and scalable architectures. Meanwhile, Medellin is an emerging innovation hub with competitive costs and a growing pool of talent skilled in database optimization, DevOps, and modern backend frameworks.
In this blog, we'll compare these two cities across seven key factors, including cost, time zone alignment, and talent availability, to determine which offers the best environment for building a high-performing backend team.
Find out more about nearshore software development: The Complete Guide.
Nearshore Backend Development in Monterrey vs. Medellin
The following chart provides a visual comparison of nearshore backend development in Monterrey and Medellin based on five key factors: cost, time zone alignment, available talent, technology infrastructure, and English proficiency. These factors directly impact the efficiency and success of remote development teams.
Below, we will explore these factors in detail to better understand the benefits of nearshore backend development in Monterrey and Medellin and how they can impact the decision-making of companies seeking talent in Latin America.
Cost Comparison
Nearshore backend development in Latin America not only reduces costs but also improves productivity. U.S. companies that have outsourced to the region have reported savings of up to 50% and production efficiencies of up to 30%. Monterrey and Medellin stand out as competitive options but have key differences in cost and technical specialization.
Monterrey: In Monterrey, salaries for backend developers range from $3,750 to $6,250 per month, depending on their level of expertise in tools such as REST/GraphQL APIs, SQL/NoSQL databases, and cloud deployments. In addition, the city has companies that use microservices architectures and CI/CD, which can affect hiring costs.
Medellin: Medellin offers a more cost-effective option, with monthly salaries ranging from $3,125 to $5,625. Its growing technology ecosystem has driven demand for developers with skills in database optimization, API integration, and backend process automation. This cost difference may be relevant for companies with tight budgets or looking to scale their teams without compromising quality.
Time Zone Alignment
Time zone compatibility plays a critical role in nearshore backend development as it directly affects real-time collaboration, meeting schedules, and response times. Both Monterrey and Medellin offer favorable time zone alignments for U.S. companies, but there are some key differences to keep in mind.
Monterrey: Monterrey operates on Central Time (CT), which is the same time zone as cities like Chicago, Dallas, and Houston, and is only two hours ahead of San Francisco (PT) and one hour behind Miami (ET), making it an excellent choice for companies on both coasts. Teams working with Monterrey developers can expect a full workday overlap, ensuring seamless communication and minimal delays in project timelines.
Medellin: Medellin, meanwhile, follows Colombian Time (COT), which coincides with Eastern Time (ET) for most of the year, and is a good option for companies based in New York, Miami, or Washington, D.C., as it allows for real-time collaboration with no time difference. For West Coast companies in San Francisco or Los Angeles (PT), Medellin is two hours ahead.
Learn more about why time zone overlap matters for LATAM outsourcing.
Talent Pool
When considering nearshore backend development, the availability of qualified professionals and the quality of educational institutions are key factors. Both Monterrey and Medellin have made great strides in cultivating technology talent, and each offers unique advantages.
Monterrey: It stands out as one of Mexico’s leading technology hubs, and it is supported by a strong educational infrastructure. The city is home to prestigious institutions such as Tecnologico de Monterrey and the University of Monterrey. The expansion is being driven by the city's emphasis on engineering and technology programs, ensuring a steady influx of skilled backend developers.
Medellin: Often referred to as Colombia's innovation capital, Medellin has also invested heavily in education and technology infrastructure. The city is home to prestigious institutions such as EAFIT University, which is known for its high-quality technology programs. The city's focus on innovation and entrepreneurship has fostered a vibrant community of skilled developers. Initiatives such as Ruta N have further enhanced Medellin's attractiveness by promoting science, technology, and innovation, attracting both talent and investment.
Technology Infrastructure
Technology infrastructure plays a critical role in the success of nearshore backend development. Monterrey and Medellin stand out as two of the most important technology cities in Latin America.
Monterrey: With an ecosystem of 121 startups, Monterrey is home to nearly 11% of Mexico's startups, consolidating its position as the second most important technology hub in the country. In addition, more than 70% of foreign direct investment linked to nearshoring has been directed to Monterrey. The city stands out for its highly productive and specialized workforce, making it a key destination for innovation and technological expansion.
Medellin: Established as a center of innovation and technology in Latin America and named "City of the Year" by the Wall Street Journal, Medellin is the second largest prop-tech ecosystem in the region, attracting investment and specialized talent. Its potential has been recognized by industry leaders such as Andrew Ng, founder of Google Brain, who chose Medellin to establish an artificial intelligence operations center.
Learn more about the top 10 outsourcing cities in Latin America.
Language Proficiency and Communication
Communication is essential when working with a nearshore backend development team, as clear technical discussions help ensure smooth collaboration on API design, database optimization, and DevOps workflows. English proficiency plays a crucial role in bridging the gap between U.S. companies and nearshore developers.
Monterrey: Ranked 87th in the world for English proficiency, with an EF English Proficiency Index of 556 points. Most of the city's tech workforce can communicate effectively in English, which is particularly important when discussing backend architectures, debugging issues, and writing clear documentation for APIs.
Medellin: Ranked 74th in the world, it has an EPI score of 509, reflecting a moderate level of English proficiency. The city's growing emphasis on bilingual education and international partnerships has resulted in more English-speaking backend developers. Medellín's tech talent tends to be proficient in technical English for programming, database queries, and API documentation.
Transparency for Nearshore Development with Teilur Talent
At Teilur Talent, we believe that hiring nearshore backend development teams should be simple, transparent, and cost-effective. Unlike traditional agencies that add hidden fees or inflated margins, we operate with full transparency - our pricing model ensures that companies know exactly what they are paying for. We openly disclose our margins and only charge up to 20% of the developer's gross salary, allowing companies to maximize their budget while still accessing world-class backend talent.
Beyond pricing, we focus on seamlessly matching developers to your business needs, ensuring that the talent matches not only your technical requirements but also your time zone and work culture. Whether you're in Miami, San Francisco, or anywhere in between, our nearshore backend developers are strategically located to ensure real-time collaboration and minimal workflow disruption. With Teilur Talent, you get highly skilled backend developers without the complexity or unpredictability of traditional hiring models.
Learn more about Teilur Talent's pricing disruption with transparency in recruiting.
FAQ
What is Nearshore Backend Development?
Nearshore development refers to outsourcing software development tasks to teams in neighboring or nearby countries. This model offers benefits such as cost savings, cultural alignment, and convenient time zone overlap, making collaboration easier than with offshore teams.
What comes under backend development?
Backend development involves building and maintaining the server-side logic, databases, and application programming interfaces (APIs) that power web and mobile applications. It includes technologies like Node.js, Python, Java, Ruby on Rails, and database management systems such as PostgreSQL and MongoDB.
What is an example of nearshore?
A U.S. company based in Texas outsourcing backend development to a team in Monterrey, Mexico, is an example of nearshore outsourcing. The geographical proximity ensures seamless communication, minimal time zone differences, and a cost-effective development process.
How do I hire a backend developer?
Hiring a backend developer involves defining your project requirements, identifying necessary technical skills, and selecting a hiring model—freelancers, full-time employees, or nearshore development teams. Partnering with a nearshore provider can streamline the hiring process, offering access to pre-vetted talent that aligns with your business needs.
Conclusion
Both Monterrey and Medellin are excellent choices for nearshore backend development, offering great technology talent, competitive pricing and favorable time zone alignment. Monterrey has a well-established technology ecosystem, top-ranked universities, and strong business ties to the U.S. Medellin is emerging as an innovation hub with cost-effective solutions and a fast-growing community of skilled developers.
The best choice depends on your specific needs: if you prioritize proximity to the U.S. and a high level of English proficiency, Monterrey may be the best option. If cost savings and a thriving innovation scene are more important, Medellin might be the right choice.
To help you make the best decision, use the calculator below to estimate your costs and potential savings. For more details and personalized advice, please contact us.
