Why you should Outsource Your Software Development Needs to Brazil

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Outsourcing software development to Brazil has become a strategic choice for many companies worldwide. The country offers numerous advantages and opportunities for businesses seeking to leverage top-tier talent, innovative technology, and cost-effective solutions.

Brazil is also home to a growing tech industry. For the past 20 years, the Brazilian government made significant investments in training software developers in Brazil. Today, Brazil is a top destination for outsourcing software and is among the top outsourcing hubs in Latin America. 

Understanding the Brazilian outsourcing industry and choosing the right outsourcing partner are essential steps toward maximizing the benefits of outsourcing to Brazil. 

Why Outsource to Brazil?

Brazil is a leading destination for outsourcing software development, offering a rich talent pool of skilled developers, competitive average salaries in USD, and a favorable business environment. Moreover, the country’s proximity to the United States and its overlapping time zone make Brazil an ideal nearshore outsourcing destination in Latin America.

Brazil is also home to some of the best software developers in Latin America. As of 2024, Brazil boasted as many as 500K developers in the country. This includes both English and non-English speakers developers across all levels of expertise. In other words, outsourcing to Brazil means you’ll have no shortage of talent to choose from.

Benefits of Outsourcing to Brazil 

The primary benefit of outsourcing to Brazil is related to the cost of talent. Since the cost of living is lower in Brazil, you can build a really good team at a fraction of what it would cost you to hire out of Silicon Valley. 

Advantages of Outsourcing in Brazil

Some of the advantages of outsourcing to Brazil go beyond cost savings. The country’s tech industry is characterized by its dynamic and innovative nature, with leading companies in cities like São Paulo and Rio de Janeiro driving growth – not to mention it’s a fairly stable political climate.

Brazilian developers are known for their expertise in software engineering, making Brazil a preferred destination for organizations seeking high-quality software development services.

For founders and software engineering leaders looking to build high-performance teams, software engineers in Brazil offer the best balance between time-zone alignment, cost, communication skills, and quality. 

Trustworthy Outsourcing Companies

Exploring software development outsourcing in Brazil presents various choices, from local firms rich in regional expertise to U.S.-based companies like Trio, which uniquely bridges the gap between American business practices and Brazilian technical prowess.

Leading outsourcing companies in Brazil are very well established and focused more on enterprise partners, though several outsourcing firms serve SMEs as well.

Trio differentiates itself by offering the best of both worlds: it ensures project alignment with U.S. standards while tapping into Brazil’s vibrant talent pool, thus providing a seamless, culturally synergistic outsourcing experience. This blend of local talent and deep cultural knowledge positions Trio as an optimal partner for businesses seeking high-quality software development.

High-Quality Brazilian Talent

Brazil’s talent pool comprises skilled software developers known for their proficiency and creativity. With competitive average salaries and a growing presence in the global market, Brazilian developers bring a unique flavor to the teams they join. 

Nearshoring vs Offshoring

Choosing Brazil for nearshoring in Latin America can offer additional benefits such as time zone alignment, cultural affinity, and streamlined communication, all while capitalizing on the advantages of outsourcing from a nearby location.

Offshoring, while more cost-effective than nearshoring, can be much riskier as cultural differences and long distances can make communicating difficult if you don’t know someone with connections to quality talent abroad. 

Overall, nearshoring is a safer alternative and well worth it if you’re looking to build a tight-knit, engaged team, and close to home. 

Choosing the Right Software Outsourcing Partner

When considering outsourcing to companies in Brazil or other countries in Latin America, you’ll more than likely come across a variety of options promising to give you the best Latin American talent in the region. It might be hard to see what differentiates these companies from one another. 

Aspects to Consider When Outsourcing

Understanding key aspects to consider when outsourcing in Latin America will help you vet potential partners more easily. Knowing what you want out of a partnership is only the first step, as it will help you filter out partners that don’t share commonalities with you.

To verify that they can deliver on their promises you’ll want to consider the following things:

  • The quality of their talent
  • The costs of their talent or services
  • Success stories of real clients with available references 

After that, you can dig a little deeper to learn how they handle certain scenarios, such as:

  • Their ability to provide support in cases where their talent isn’t a good fit
  • Their ability to handle security and compliance policies that your business might have

If you’re looking to build a long-term relationship and make outsourcing work for you, you will want to pay attention to how each firm communicates with you. Are they genuinely interested in your unique challenge, and do they seek to collaborate and help grow your business? 

Developer Talent Pools

You might see companies talking about their talent pool and the thousands of developers they have. Talent pools are essentially databases of developers stretching back as far as 2-5 years and help firms place talent faster. 

 Talent pool volume and quality are inversely related. Some companies operate as marketplaces and play a numbers game when it comes to developers. By nature, marketplaces need a strong balance of supply and demand to be profitable and so their vetting systems will be more streamlined and lean to make it easier for developers to be on their platform. 

Costs and Average Salaries

Competitive average salaries in Brazil, combined with the lower operational costs, make it a cost-effective destination for outsourcing while ensuring high-quality services.

Typically, hiring an experienced software developer in South America will cost between $45 and $65 per hour, with variations based on task complexity, developer seniority, and level of involvement. While highly specialized experts may charge significantly more, often double or triple, the average hourly fee for a senior software developer usually remains below $60.

Legal and Regulatory Environment in Brazil for Outsourcing

Navigating Brazil’s legal and regulatory framework is crucial for businesses looking to outsource, ensuring compliance and a secure operational environment for their endeavors.

Understanding the specific laws, regulations, and guidelines that govern business operations, especially in the outsourcing sector, is crucial for ensuring compliance and securing a stable operational environment.

Brazil’s legal framework includes the “Consolidação das Leis do Trabalho” (CLT), which outlines labor rights and regulations, and the Brazilian Civil Code, governing contractual relationships. Recent reforms have aimed to provide clarity and flexibility in outsourcing practices, addressing the legality of outsourcing core business functions, contractual obligations, and rights of outsourced employees.

If any of this sounds overwhelming, no need to worry. Outsourcing companies abstract much of the legal work away from you so that you can focus on building amazing products. 

Final Thoughts

Although many Latin American countries are potential outsourcing options, Brazil still is the best destination for software development and technology outsourcing. Its balance between time-zone alignment, cost-saving, and cultural similarities makes it a great option for building a strong and stable team that will get your product where it needs to be.

Feel free to reach out to us if you have any questions, and good luck on your outsourcing journey.

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Alex Kugell

With over 10 years of experience in software outsourcing, Alex has assisted in building high-performance teams before co-founding Trio with his partner Daniel. Today he enjoys helping people hire the best software developers from Latin America and writing great content on how to do that!
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