If you are looking to outsource AI development, you have probably considered Latin America as a cost-effective and talent-rich region. Two cities that stand out in this regard are Medellin and São Paulo. Both offer strong technology ecosystems, skilled AI professionals, and growing innovation hubs.
In this blog, we'll compare Medellin and São Paulo across six key factors: cost, talent availability, time zone compatibility, and cultural fit. Whether you're a startup looking for AI development or an enterprise looking for scalability, this breakdown will help you weigh the pros and cons of each city before making a decision.
Learn more about hiring AI developers in Latin America.
Outsource AI development to Medellin vs. São Paulo
If you want to outsource AI development in Latin America, choosing the right city is critical to ensuring project efficiency and effective collaboration. Medellin and São Paulo stand out as two of the top destinations for outsourcing tech talent in the region. Each offers unique advantages in terms of time zones, costs, tech ecosystems, and the quality of talent available.
Next, we will dive deeper into these key factors and explain how each impacts the decision to outsource AI development to Medellin and São Paulo.
Time Zone Alignment
Time zone compatibility is a critical factor when you outsource AI development because it directly affects communication, collaboration, and project efficiency. The closer the time zone, the easier it is to schedule meetings, manage workflows, and ensure real-time responses.
Medellin: Operating on Colombian Time (COT), which coincides with Eastern Standard Time (EST) for most of the year; if your company is based in Miami or elsewhere on the East Coast of the United States, your Medellin AI developers will be in the same time zone. Even for teams on the West Coast, such as in San Francisco (PST), Medellin is three hours ahead, making overlapping work hours manageable.
São Paulo: Follows Brasilia (BRT), which is typically two hours ahead of Miami. However, for companies based in San Francisco (PST), São Paulo is five hours ahead, which may require more flexibility in scheduling meetings and real-time collaboration.
Cost Comparison
When outsourcing AI development, cost plays a significant role. Medellin often provides a more budget-friendly option, while São Paulo offers competitive rates with a slight variation. Below is a comparison of mid-level AI developer salaries in both cities.
Medellin: Budget considerations are always crucial. Outsourcing AI development to Medellin may be more cost-effective. The average salary for a mid-level AI developer ranges from $4,000 to $7,000 per month.
São Paulo: In São Paulo, salaries are slightly higher, with mid-level AI developers earning between $3,750 and $6,500 per month.
Find out more about the top 5 benefits of outsourcing DevOps in Latin America.
Tech & Startup Ecosystems
Medellin: Initiatives such as Ruta N have made the city a magnet for innovation and startups by promoting science, technology, innovation, and entrepreneurship. The city was named "City of the Year" by the Wall Street Journal and made it into the world's top 100 in food tech with an impressive leap of 22 positions.
In addition, Medellin is the second largest prop tech ecosystem in the region, strengthening its ability to attract talent, investment, and development in key industries.
São Paulo: It is a key hub for innovation and entrepreneurship in Latin America. The city is home to 12 of the 17 current Brazilian unicorns. According to the Startup Ecosystem Report 2024, São Paulo ranks 23rd in the global fintech ranking, consolidating its position as a benchmark in the sector. It is also one of the main centers of the SoftBank Latin America Fund and the birthplace of venture capital firms such as Kaszek, one of the most prestigious in the region.
Talent Pool and Expertise
When looking to outsource AI development, finding the right talent is essential. Both Medellin and São Paulo stand out as key hubs for highly skilled professionals, each offering a strong technology ecosystem backed by research institutions and a thriving startup scene. Here’s how these cities compare in terms of expertise and innovation.
Medellin: Medellin has a growing pool of highly skilled developers. It is one of the two cities with the largest number of technology communities, supported by research institutions, where 80% of Colombia's startups are concentrated. In addition, EAFIT University has established itself as one of the best institutions in the country for those seeking a high-level education in technology.
São Paulo: The Brazilian software market employs about 133,000 professionals, most of them in this city. Thanks to its attractiveness as a technology hub, São Paulo brings together experts from all over the country and offers a solid foundation in AI and software development. It is also the leading city in the EdTech industry in Brazil, with a strong focus on the domestic market. A significant portion of EdTech companies are concentrated in the Southwest region (58%), while 37.8% are located in the state of São Paulo.
Learn more about the top 10 cities for outsourcing in Latin America.
Language Proficiency
When choosing where to outsource AI development, language proficiency plays a crucial role in ensuring smooth communication and collaboration. While both Medellin and São Paulo have strong tech communities with English-speaking professionals, overall fluency levels vary, which can impact workflow efficiency.
Medellin: Spanish is the primary language in Medellin, but English is widely spoken in the technology sector. Colombia ranks 74th out of 116 countries on the EF English Proficiency Index, with an EF score of 485, slightly above the global average of 477. Within Colombia, Medellin scores 509, above the national average, making it one of the best cities to hire English-speaking talent.
São Paulo: São Paulo's primary language is Portuguese, and although English is spoken in the technology industry, proficiency levels are generally lower than in Medellin. Brazil ranks 81st out of 116 countries in the EF EPI, with an EF score of 466, below the global average. São Paulo, in particular, has an EF score of 501, making it one of the best cities in Brazil for English-speaking professionals.
Cultural Compatibility
Medellin: Cultural alignment can influence project success. Colombian culture, especially in Medellin, emphasizes warmth and collaboration. Building strong personal relationships is often key to effective teamwork.
São Paulo: Brazilian culture in São Paulo is dynamic and diverse. The city's fast-paced environment reflects its status as a business hub. Understanding local business etiquette can enhance collaboration.
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FAQ
How much does it cost to hire an AI developer?
The cost varies based on location and experience. In Medellin, mid-level AI front-end developers earn between $4,000 and $7,000 per month, while in São Paulo, the range is $3,750 to $6,500.
How do you hire an AI developer?
Start by defining your project requirements. Then, explore local tech communities’ job platforms and consider partnering with recruitment agencies familiar with the Medellin and São Paulo markets.
What are the reasons for outsourcing?
Outsourcing AI development offers access to specialized talent, cost savings, and flexibility. It allows companies to focus on core competencies while leveraging external expertise for specific projects.
Conclusion
Deciding where to outsource AI development depends on your business priorities, whether it's cost, talent availability, time compatibility, or cultural fit. Medellin and São Paulo offer thriving technology ecosystems, but each city has unique advantages that may better suit your specific needs.
If your company prioritises real-time collaboration with US teams - especially those based in Miami. -especially those based in Miami (EST), Medellin's perfect time alignment makes it an ideal choice. In addition, Medellin offers competitive salaries for developers, a growing pool of AI talent, and slightly better English proficiency, which facilitates communication. On the other hand, São Paulo is the largest technology hub in Brazil, with a larger talent pool and strong investment in AI.
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.
