If you're looking for software engineering talent in Latin America, you've probably asked yourself: which country offers the best combination of quality, cost and compatibility with my company? Hiring a nearshore team not only optimizes costs, but also accelerates development and facilitates real-time collaboration, thanks to aligned time zones and agile methodologies.
Among the most competitive options, Colombia and Brazil stand out for their growing technology ecosystem, large talent pool and experience in backend and frontend development. In this blog, we will compare both destinations with key facts about costs, technical skills, English proficiency and cultural compatibility to help you make the best decision for your company.
The Benefits of Nearshore Software Engineering
Nearshore Software Engineering consists of outsourcing software development to nearby countries with similar time zones and cultural affinities. Unlike offshore outsourcing, where teams may be located in regions with significant time differences, nearshore teams operate on almost equal schedules.
This model offers key advantages for companies:
Cost optimization: Nearshore destinations such as Colombia and Brazil offer highly skilled tech talent at a significantly lower cost than North America. In fact, 87% of tech companies are considering nearshore outsourcing to reduce expenses. This strategy reduces operational costs and provides access to top talent in backend, DevOps, cloud computing, and front-end development.
Efficient communication: With minimal time difference, sprint planning, daily meetings, and real-time issue resolution become more fluid. Nearshore teams integrate frictionlessly into existing workflows, enabling more efficient project management and accelerated development cycles.
Scalability and flexibility: Nearshore Software Engineering allows companies to scale their development teams flexibly, adapting to business needs without the burden of long-term hiring. Instead of spending months on recruitment and training, specialized and pre-screened engineers can be quickly integrated, optimizing delivery times and reducing operational risk.
Learn more about nearshore staff augmentation.
Nearshore Software Engineering in Colombia vs Brazil
The following is a comparison between Colombia and Brazil in terms of cost, talent and other key characteristics to evaluate which is the best option for Nearshore Software Engineering.
Time Zone Alignment
Time zone compatibility is a key factor in ensuring smooth collaboration with remote teams. The closer working hours are aligned, the easier it is to coordinate meetings, resolve issues in real time, and maintain an efficient workflow, especially in agile environments.
Colombia: Colombia operates on Eastern Time, making it an ideal nearshore option for companies from cities like New York or Miami, allowing for real-time, uninterrupted collaboration and streamlining communication. For companies from San Francisco or Los Angeles, the difference is only three hours.
Brazil: The country spans multiple time zones due to its size, but its major technology hubs, such as São Paulo and Rio de Janeiro, typically operate one to two hours ahead of Eastern Time. For companies on the U.S. West Coast, this means that Brazilian teams start their workday some hours earlier.
Learn more about why time zone overlap matters for LATAM outsourcing.
Cost Comparison
Budget is a key factor when selecting a nearshore partner, especially for software development teams that require expertise in software architecture, back-end development, cloud computing, and agile methodologies.
Colombia: Offers competitive labor costs ranging from $3,125 to $5,625, providing access to highly skilled software engineers in API, database and scalability development without compromising quality.
Brazil: Has a larger pool of IT professionals, but with higher costs ranging from $3,750 to $6,250. The investment is higher, but provides access to specialists in big data, artificial intelligence and cybersecurity.
Talent Pool
When choosing a nearshore software development partner, the quality and quantity of available talent are key factors. A solid team should have skills in back-end development, cloud computing or artificial intelligence, and experience with agile methodologies and remote collaboration tools.
Colombia: Colombia has a growing technology ecosystem, with 150,000 IT professionals, including 60,000 software developers specializing in backend, cloud computing and cybersecurity. Medellin has positioned itself as an innovation hub, driving a sector that generates $10 billion annually and is growing 10-15% each year.
Brazil: The region's largest economy, Brazil is home to 630,000 IT engineers, with 133,000 software development professionals. São Paulo and Rio de Janeiro lead the sector, with a high concentration of talent in big data, AI and fintech. Its robust ecosystem makes it ideal for highly specialized and large-scale projects.
Find out more about the tech talent pool in Latin America.
English Proficiency
Effective communication is key in nearshore software development, where software engineers work in teams to develop scalable applications, optimize cloud infrastructures, and build robust back-end systems. Good English skills facilitate collaboration, improve documentation, and streamline processes in agile methodologies.
Colombia: Colombia has strengthened the teaching of English in the IT sector. Many software engineers have an upper-intermediate level, which facilitates communication with U.S. companies. According to the EF English Proficiency Index, Colombia ranks 74th out of 116 countries, indicating a moderate command of the language. However, most developers can interact with ease.
Brazil: Although Brazil has a large community of developers specializing in big data, AI, and fintech, English proficiency is more variable. The country ranks 81 out of 116 on EF's English Proficiency Index, reflecting a slightly lower average level than Colombia.
Transparent Pricing with Teilur Talent in Nearshore Software Engineering
One of the biggest concerns about nearshoring software development is hidden fees. Many companies struggle to understand exactly how much of their payment goes to the actual developers versus the agency margins. This is where Teilur Talent changes the game in nearshore software development - we openly disclose our margins, which never exceed 20% of the payment made to candidates.
Beyond pricing, we handle everything from recruiting to payroll so you don't have to worry about administrative tasks. Our mission is to disrupt the international recruitment industry by offering expected salaries and clear fee structures, something rarely seen in the industry. When you choose Teilur Talent for nearshore software engineering, you get access to skilled developers without the usual financial guesswork.
Learn more about the Importance of Transparency for Developers and Clients.
FAQ
What is nearshore software?
Nearshore software refers to software development services outsourced to a neighboring or nearby country, allowing for better time zone alignment, cultural similarities, and cost savings compared to onshore or offshore outsourcing.
What is an example of nearshore?
An example of nearshore outsourcing is a U.S.-based company partnering with a development team in Colombia or Brazil to build a web application, benefiting from lower costs and overlapping working hours.
What is nearshore technology?
Nearshore technology involves outsourcing IT services, such as software development, cloud computing, and technical support, to a nearby country that offers skilled professionals at competitive rates.
What is the difference between nearshore and outsource?
Outsourcing is a broad term that includes nearshore, offshore, and onshore outsourcing. Nearshore outsourcing specifically refers to hiring teams in neighboring or nearby countries, whereas general outsourcing can involve any location.
Conclusion
Choosing between Colombia and Brazil for Nearshore Software Engineering depends on your company's priorities. If you are looking for time alignment, competitive costs and greater English proficiency, Colombia is an excellent choice. Its technology ecosystem is growing, with a highly skilled engineering community and a favorable business environment that facilitates the hiring of nearshore teams in a fast and cost-effective way.
On the other hand, Brazil stands out for its large and consolidated technology industry, with a large number of developers available. Although the time difference may require adjustments and the level of English varies, the country offers specialized talent in advanced technologies. Ultimately, both countries present solid nearshore opportunities.
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.
