Top 3 LATAM Software Companies 2024

Top 3 LATAM Software Companies 2024

The Latin American IT market boasts a large pool of 1.75 million tech wizards, 3-4 times lower costs than in the States, and a convenient geographical proximity to major tech hubs in the US. And that’s exactly the allure that prompts Western companies to expand to this region and work with software companies in LATAM. But is this the best solution for IT companies, or are there better alternatives?

Alcor helps American software companies to build their own R&D centers and hire LATAM developers with comprehensive EoR and full operational support. With over 8 years of experience in the industry, the company has a deep understanding of the IT market in Latin America as well as knows the best way to do software development there.

Why Is Latin America So Attractive For Outsourcing?

First and foremost, the Latin American talent pool is vast, boasting software developers with different skills and tech stacks. Brazil leads the way with 750,000 software engineers. Mexico follows closely with 700,000, and Colombia has 150,000 developers. Argentina contributes 115,000, while Chile has 61,000 developers.

Apart from it, local tech talents also stand out for both their programming expertise and language skills. Argentinian developers, for instance, are #1 in English proficiency in Latin America, whereas Mexican development experts rank #2 in tech skills in LATAM and #4 worldwide.

Another reason tech companies tap into this thriving IT market is salary rates. Software engineers from Latin American countries charge significantly less for their services compared to their counterparts in the United States. For instance, a front-end developer from Mexico earns around $35,000 a year, while programmers with the same level of expertise from the US get ca. $109,000 annually.

But let’s also not forget about the convenient geographical location. Coordination is much easier with minimal time differences with the US—just one hour with Mexico and two hours with Colombia. Even Chile and Argentina, with three- and four-hour differences, respectively, enable smoother interactions and better oversight.

Top Software Development Companies in LATAM

Let's take a look at the best software development companies in LATAM that are currently operating in the IT LATAM market.

1: Foonkie Monkey

Foonkie Monkey is one of the best software companies in LATAM. Their software team has helped release more than 300 custom apps for clients from 13 countries in Europe and America. Most of them are fintech and healthcare-related companies. Foonkie Monkey mostly makes products from scratch but can still integrate Blockchain and AI into their projects. The company has won awards for its impressive portfolio, e.g., Cannes Silver Mobile, London International Award, and App Circus Colombia.

2: Evoluciona Capital

Evoluciona Capital is based in the Dominican Republic. Their software team specializes in various services, including custom software development, digital transformation, and IT consulting. Evoluciona Capital works with both large multinationals and SMEs. Today, it is one of the most advanced enterprises in the entire region.

3: BairesDev

One of the larger top software development companies in LATAM, BairesDev’s software team has a talent pool of around 4,000 specialists. The business provides software development and staff augmentation services to a variety of sectors, including media, fintech, healthcare, and education. This vendor provides a broad variety of services, including Big Data consulting, cloud consulting, and web development.

Advantages & Risks of IT Outsourcing

At first glance, IT outsourcing may seem quite advantageous, as it provides access to a wider candidate pool, flexibility, and sometimes even cost optimization. On the other hand, this decision is quite risky for companies. And here's why:

* Data confidentiality is a significant concern. If this aspect is not explicitly addressed in the contract, your information is vulnerable to potential leaks, leaving you unprotected.

* Lack of control. Handing over most product development to a service provider means reduced control over core operations. With limited oversight, you can't just see if the developers have addressed your feedback. This can result in extended timelines, communication breakdowns, expensive mistakes, and poor software quality.

* Cloudy pricing. In addition to developer fees, some companies charge their customers extra fees for various services (usually unnecessary) even without the client's knowledge. As a result, the price tag ends up looking much higher than expected.

* Poor dedication. When developers see your outsourcing provider as their main employer, they follow the provider's guidelines and treat your project as just another task. This mindset can reduce their drive to deliver top-quality work and go the extra mile for your product.

When considering the advantages and disadvantages of IT outsourcing, many tech companies find solace in a more secure alternative: establishing their own software R&D centers in Latin America. This approach allows IT businesses to have dedicated software developers overseas while retaining full control over all core operations in-house.

Consider Alcor as Your Trusted BPO Provider

Alcor goes beyond the traditional IT outsourcing model and offers an all-in-one place solution for your business expansion in Latin America. With 8 years of experience building software research and development centers, Alcor knows how to build a software team quickly and efficiently. The company helps you create your R&D center in LATAM or Eastern Europe, providing a full range of administrative support — from full-cycle IT recruiting to legal and payroll. Here’s what it includes:

* IT recruitment. An internal recruitment department of 40 headhunters undertakes all the work of searching for and selecting candidates. You will receive a list of the first candidates a few days after the start of work, and with productive cooperation between a client and a recruiter, the vacancy will be closed within 2-6 weeks.

* EoR Service. Clients can hire remote developers without opening a legal entity in the hired employee's country. In addition, Alcor provides a 100% compliance guarantee!

* Full operational Support. Alcor offers a comprehensive range of services, including purchasing equipment for your software engineers, negotiating and renting office space, and other additional services, ensuring all your operational needs are met.

Final Thoughts

Teaming up with software development companies in Latin America could be a solution for non-tech companies that lack internal programming expertise. On the other hand, building their own R&D center is a more effective option for IT businesses. With a software R&D center abroad, tech companies gain full commitment from the development team, robust IP rights protection, and increased chances of attracting investment and scaling in the new market. Ready to give it a go? Contact us for more information!

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