The remote work revolution has led some US tech companies to look for new hires in Latin America, where they can find qualified professionals in similar time zones and willing to work for lower wages. This is a logical extension of the move away from high-cost hubs like San Francisco and New York to less expensive locations, even across national borders—a trend accelerated by the pandemic-induced shift to remote work. Additionally, currency exchange rates against the dollar only reinforce this trend.

Brazil, in particular, has become increasingly attractive to companies spending in dollars. Since the start of the pandemic, the Brazilian real has lost more than a quarter of its value. Other Latin American currencies, like the Argentine peso and Colombian peso, have also been among the worst performers over the past two years. As a result, when a Silicon Valley startup hires someone like Alexandre Rocco, the arrangement becomes mutually beneficial.

Why Are US Companies Hiring Remote Latin American Talent?

A concept that's gaining traction in US tech companies is “nearshoring”—hiring or outsourcing to workers closer to the domestic market. Instead of outsourcing to Asia or India, the new focus is on Central and South America.

A Bloomberg report highlights a key reason for choosing professionals from these regions.

"Global tech companies are increasingly hiring workers in Chile, Guatemala, Uruguay, and other South and Central American nations to handle tech tasks like software coding. While some of these countries are thousands of thousands from the US border, they're only a couple of time zones away from most of the US and Europe, making them ideal for handling tasks that can be done over the phone or computer during Western business hours," the report explains.

Bloomberg also notes that around 760 global corporations have cut over half a million jobs since October, with the tech sector accounting for about 149,000 of those job losses. Simultaneously, some companies are adding employees in overseas locations where wages tend to be lower.

The salary differences are striking

Deel's clients pay an average annual salary of about $74,400 across Latin America for full-time and contract workers in areas like engineering and product design. In contrast, a US-based software developer earns an average of $127,000, and a computer systems analyst makes about $102,000, according to last year's data from the Bureau of Labor Statistics. "If, for the price of 10 engineers in the United States, we can hire 100 engineers in Brazil, that's certainly something to consider," says Deel CEO Alex Bouaziz.

Remote Work is Part of the New Normal

Salaries for junior positions in Latin America listed on the Revelo platform have increased by nearly 50% to an average of around $89,000 per year since the pandemic began. “If I’m hiring someone in Cleveland, why not hire someone in Bogotá?” said Josh Brenner, CEO of Hired, in an interview. “Both are remote, both are in the same time zone, and this way is more cost-effective right now.”

Job Seeking

From the coastal city of Florianópolis in southern Brazil, Janaina Coelho earns between $3,000 and $5,000 per month working as a quality control developer for Los Angeles-based hospitality startup AvantStay. Before the 32-year-old left her job at a Brazilian tech firm last year, Coelho had not considered switching to a foreign company. But then she started receiving offers, and the promise of a salary in dollars and the option to work remotely was attractive.

“Why did I look for a job abroad? Because foreign companies started reaching out,” said Coelho. “I started receiving new offers every week.”

Pia Orrenius, vice president of the Dallas Fed Bank, notes that offshoring tech roles may not be as easy as it seems. The outsourcing boom decades ago was largely driven by cheaper English-speaking labor in countries like India. Reproducing this with Spanish- and Portuguese-speaking tech workers in Latin America will be harder to scale.

Remote work allows Latin American professionals to access opportunities abroad.

“Good luck finding fluent English speakers,” said Orrenius, a labor economist. “There are many limits to how much employers can do this.”

But for Lucas Mendes, co-founder of Revelo, companies looking for talent abroad are now ahead of what will soon become a necessity. Mendes says the remote boom driven by the pandemic has led the São Paulo-based recruiting firm to expand fourfold, attracting clients ranging from startups to big names like Goldman Sachs Group Inc. and Accenture Plc.

“The pandemic turned the local market into a global one,” said Mendes. “The genie is out of the bottle.”

The South American Advantage: Expanding Outsourcing Horizons

While Asia has long been known as a global outsourcing leader, other regions are now offering distinct benefits to companies ready to explore beyond traditional options. South America, in particular, is emerging as a compelling choice for North American businesses, with countries like Argentina, Brazil, and Colombia presenting strong tech sectors, highly skilled professionals, and a business culture that aligns well with North American practices.

One of South America’s significant advantages is its geographic proximity to the U.S., allowing for more seamless collaboration thanks to overlapping time zones. For American companies, partnering with South American teams minimizes time zone challenges common with other outsourcing destinations, enabling real-time communication and collaboration during regular business hours. Additionally, South America’s cultural alignment with North America can ease communication and reduce the potential for misalignment.

Remote Staffing Agencies are helping to build South America’s reputation as a top outsourcing destination, providing talent for roles ranging from IT and software development to customer service and business analysis. The region’s expanding tech ecosystem, bolstered by investments in education and technological infrastructure, is positioning South America as a growing hub for skilled talent.