Nearshore Software Development Rates: The Complete Guide for Midsize Companies
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Nearshore Software Development Rates: The Complete Guide for Midsize Companies


As the tech industry evolves, finding and engaging experienced and cost-effective software developers remains one of the biggest challenges for companies. 

According to the U.S. Bureau of Labor Statistics, software developer demand is projected to grow by 22% by 2029 — much faster than most other professions. This means that recruiting top talent is becoming increasingly competitive, which calls for nearshore software development to gain traction. 

Nearshore software development has emerged as the go-to approach for U.S. companies looking to expand their development teams. To begin with, it offers similar time zones and cultural compatibility.

But here’s where it gets better.

Nearshore software development also provides access to a large talent pool of outstanding software developers at a fraction of local hiring costs.

At this point, you’re probably wondering: What are the real annual rates of hiring nearshore software developers?

Whether you’re expanding into new markets or planning to expand your existing IT team with cost-effective and high-quality top performers, this article is for you.

In this post, you’ll discover:

  • Key factors influencing nearshore development rates;
  • Insights into nearshore software developers’ average annual rates in 2024.

Let’s dive in.

What Are Key Factors Influencing Nearshore Software Development Rates?

Before delving into nearshore development rates, it’s crucial to understand that setting them isn’t a walk in the park. There are various factors that influence these rates, including: 

  • Technical expertise and experience levels
  • Skill sets that are currently in high demand
  • Scope of the project
  • Geographic location

Technical Expertise and Experience Levels

The cost of hiring a nearshore software developer depends on their experience level—whether junior, semi-senior, or senior. 

Developers with extensive experience in some technologies demand more competitive salaries and additional benefits. These include more effective talent management, work-life balance, and the flexibility to work from anywhere.

The standout advantage? Experienced developers require less structured training than beginners. They seamlessly integrate into your projects, contributing value from the very first day.

Skill Sets that are Currently in High Demand

Similar to the previous section, the most sought-after tech skills command premium salaries. It’s a simple case of supply and demand. However, these aren’t just trendy skills. They represent areas of technology that require deep, comprehensive training and a significant investment of time to master.

As these technical talents become scarcer, the power shifts towards employees, allowing them to negotiate for higher salaries that reflect their valuable knowledge.

To give you an idea, these are the top-paying skills in the U.S. for 2024:

  • Business Analyst
  • Data Scientist
  • DevOps Engineer
  • Applications Engineer
  • Full-stack developer
  • Front-end developer

An infographic about the top-paying skills in the U.S. for 2024.

Overall, as companies seek to hire professionals with expertise in popular frameworks and languages, the competition for skilled developers drives up prices.

Scope of the Project

Typically, the larger a project’s scope, the more complex it becomes. Why? These projects often require additional human resources and cutting-edge technologies.

Consider, for example, the development of a SaaS platform. This type of project calls for a diverse team made up of software engineers, product designers, and user experience (UX) designers, among others. Depending on the platform’s purpose, it may also require advanced technologies like cloud computing, artificial intelligence, and robust security protocols (e.g., incorporating HIPAA compliance regulations) to ensure system integrity.

Moreover, projects with larger scopes involve extensive feedback sessions and thorough testing phases to identify and fix any issues before launch. These lengthy processes can lead to developers spending more time on the project, thereby increasing costs.

Geographic Location 

The cost of living in the country where software developers reside can influence their salary expectations. In European countries, such as Germany and France, the cost of living—and consequently, salaries—tend to be higher. This situation can stretch the budget of a company looking to scale. 

Conversely, countries with more affordable talent like India or Ukraine can present significant time zone differences, cultural distinctions, and language barriers with U.S.-based companies. 

These factors can lead to inconsistencies, misunderstandings, and other communication issues that may extend project deadlines, resulting in higher costs.

Fortunately, if your company is based in the United States, there’s no need to worry. The cost of living in Latin America is considerably lower, allowing software developers earning between 5k to 8k USD per month to enjoy a comfortable lifestyle.

It’s important to note that living costs can vary significantly across Latin American countries. For example, Uruguay’s cost of living is 93.3% higher than Argentina’s, which leads to increased average rates. However, this isn’t a major concern. Despite these variations, the savings companies achieve by hiring Latin American developers instead of local talent are still substantial.

The best part? These professionals offer:

  • Timezone aligned;
  • High levels of expertise;
  • Proficient English;
  • And strong educational backgrounds.

An infographic about the advantages of hiring nearshore software developers

No matter where the talent is from, whether it’s Brazil, Chile, Mexico, or anywhere else in the region, integrating a remote Latin American software developer team is an accessible and effective solution for meeting your project needs. 

So, How Much Does it Cost to Hire a Nearshore Software Developer?

In this section, we’ll share the average nearshore development rates with a focus on Latin American talent. We’ll categorize these rates into three groups:

  • The cost of hiring nearshore software developers in Latin America;
  • The cost of hiring nearshore software developers based on roles;
  • The cost of hiring developers through a nearshore development partner.

Disclaimer: Our average rates are for senior software engineers from Latin America, assuming you’re an executive at a U.S. company looking for professionals with extensive experience.

Let’s dive in.

The Cost of Hiring Nearshore Software Developers in Latin America

The average senior software developers salary in Latin America ranges from $64,000 to $104,700 USD per year, depending on the country.

For instance, Argentinian senior software developers earn between $90,000 and $102,000 USD per year and Brazilian software developers between $80,000 and $102,000 USD per year.

The average salary of Latin American software developers by country

Countries Annual rates in USD
ArgentinaBetween US $90,000  and $102,000
Brazil Between US $80,000  and $102,000
Costa RicaBetween US $72,000 and $126,000
ColombiaBetween US $67,000 and $95,000
ChileBetween US $65,000 and US $90,000
PerúBetween US $64,000 and US $90,000
MéxicoBetween US $79,000 and $113,000
Uruguay Between US $78,000 and $117,000
HondurasBetween US $69,912 and $104,700

*Salary ranges include payroll benefits and only consider professionals who are proficient in English.

Source: Levels.fyi

The Cost of Hiring Nearshore Software Developers Based on Role

You already know how cost-effective hiring mid-level and senior developers from Latin America can be. However, you might be wondering how rates can vary depending on the role

The average cost to hire a developer from Latin America based on roles

RoleAnnual Latin American rates in USDAnnual rates in United States
Frontend developersBetween US $64,000 and $108,000Between US $132,000 and $300,000
Backend developersBetween US $64,000 and $114,000Between US $130,000 and $270,000 
Full stack developersBetween US $66,000 and $130,000Between US $113,000 and $280,000

Source: Glassdoor, Indeed, Levels.fyi

Cost of Hiring Developers Through a Nearshore Development Partner

Are you looking to hire top-tier nearshore software developers but are struggling to find your perfect fit? Your company lacks the time or internal HR infrastructure to find high-quality talent at a good price?

Nearshore developer partners, also known as IT staffing companies, with LATAM talent pools can be your ultimate allies in navigating the average salaries of software developers and finding the right matches fast and efficiently.

Unlike platforms like Upwork, which cater to hiring all kinds of freelance talent, this nearshore developer partners specialized in software developers from Latin America offer a combination of:

  • Brand awareness;
  • In-depth tech industry knowledge;
  • And a group of experienced recruiters.

This enables these companies to conduct hundreds of interviews with top talented developers each year.

The Cost of Hiring Developers Through a Nearshore Development Partner

Nearshore development partner rate (annually)Hiring software developers in USA
Between US $90,000 and $102,000 Between US $186,000 and $226,000 

*Salary, benefits, taxes, and fees (BEON.tech fee included) / Source: Glassdoor and BEON.tech data

As you can see, the average salary of software developers with a nearshore development partner varies between US $90,000 and $102,000. Meanwhile, the average salary of software developers in the USA ranges between US $186,000 and $226,000.

By partnering with IT staffing companies like BEON.tech, U.S.-based companies can save between $96K and $124K annually on hiring top software developers.

The best part? You can maintain top quality while avoiding the challenges of finding, hiring, and keeping your new hires engaged and onboard.

Let’s Power-Up Your Tech Team With Top-Tier Nearshore Software Developers

In this post, we covered the annual software development rates associated with hiring a highly experienced nearshore software developer.

As you can see, hiring top-tier developers from Latin America could be significantly more affordable compared to the cost to hire a software developer in the U.S. This solution allows you to secure top performers without incurring the high costs associated with U.S.-based professionals, where the senior software developer salary can be quite substantial.

If you’re looking for the right IT staffing partner to expand your IT team, we can lend a hand. At BEON.tech, we pride ourselves on being a process-conscious, expertise-driven IT staffing company chosen by midsize and large U.S. companies to augment their teams with outstanding LATAM software developers.

We help our clients in:

  • Finding pre-vetted candidates within the top 3% of software developers from Latin America;
  • Conducting interviews tailored to their hiring process and technical requirements;
  • Avoiding the hassle of handling contract management, compliance, and all hiring operations, including payment;
  • Building a robust framework for guaranteed retention.

Interested in learning more? Schedule a call with one of our representatives to discover how BEON.tech is already assisting organizations like yours.

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