Amidst the current economic challenges and the need to meet product development goals within limited resources, businesses are grappling with layoffs and reduced VC investments. To navigate this volatile tech market, an effective strategy is to tap into the talent pool of remote professionals from overseas.
Collaborating with IT experts from regions like Eastern Europe and Latin America presents a valuable opportunity for companies to not only weather the downturn but also thrive. These regions have gained recognition for their abundant supply of highly skilled software developers.
In this article, we will delve into the reasons why hiring tech talent from Eastern Europe and Latin America is a wise choice in the present market conditions.
Why is hiring in Eastern Europe and LATAM cost-effective?
As the economy declines, more businesses are seeking cost-effective solutions for hiring outside of the US. Hiring in Eastern Europe and Latin America offers financial advantages for addressing the crisis and reducing costs.
Benefits of remote hiring in Eastern Europe
Remote hiring in Eastern Europe has gained attention, with software companies of all sizes turning to developers in this region. These professionals have extensive experience in various tech segments and can provide excellent services. They not only share cultural similarities with the US but also have a high level of English proficiency, facilitating seamless integration into your teams. Hiring software developers from Eastern Europe means acquiring top-notch talent with favorable time zone differences, enabling smooth collaboration.
Compared to their US counterparts, Eastern European developers charge relatively low prices. For example, while the average annual salary of a software developer in the US is about $107,299, it is around $44,899 per year in Eastern European countries. Here are the current average salaries of software engineers in Eastern Europe:
- US: $108,160
- Bulgaria: $56,160
- Croatia: $33,280
- Czech Republic: $66,560
- Hungary: $41,600
- Poland: $56,160
- Romania: $37,440
- Ukraine: $60,320
Note that these figures represent base salaries, and additional expenses such as bonuses, taxes, tools, and office rent should be considered when hiring engineers from these countries. Alternatively, hiring contractors from either the US or Eastern Europe is another option. Contractors are paid for working hours, providing flexibility in scheduling, and they can quickly join your in-house team. This arrangement is particularly beneficial when urgent project requirements demand specific skill sets. Here are the average rates of developers as contractors:
- US: $102
- Bulgaria: $54
- Croatia: $58
- Czech Republic: $60
- Hungary: $57
- Poland: $59
- Romania: $56
- Ukraine: $59
Despite lower rates compared to US contractors, developers from Eastern Europe remain highly skilled and experienced, capable of delivering high-quality software solutions.
Benefits of hiring in Latin America
Latin America has emerged as a center of economic growth and an attractive market for business investments, especially in the tech industry. The region provides abundant opportunities to remotely hire software developers due to its large pool of highly skilled professionals.
Although English may be their second language, professionals in Latin America possess strong language skills, similar to their counterparts in Eastern Europe. Furthermore, their proximity to the US fosters cultural understanding, enabling effective collaboration in multinational teams.
In terms of costs, hiring in Latin America allows US companies to save up to 60% on IT salaries. While the average salary in the US is around $107,299 per year, it is approximately $56,804 per year in Latin American countries. Despite the lower expenses, software developers from LATAM maintain a high level of skill, eliminating the need to compromise on quality. As a result, American businesses are increasingly recognizing the advantages of hiring in Latin America.
During the second quarter of 2022, the median annual tech salary in LATAM decreased by 10% to $54,000, further enhancing the cost advantage. Here are the average annual salaries of software engineers in Latin America:
- US: $108,160
- Brazil: $62,400
- Argentina: $45,760
- Chile: $54,080
- Uruguay: $45,760
- Ecuador: $47,840
- Colombia: $43,680
- Peru: $45,760
Hiring contractors from the US or Eastern Europe is also a viable option. They can be easily integrated as part-time members of your in-house team, and you pay them for their working hours, providing scheduling flexibility. If time is critical for your project, having a developer with the exact skillset readily available is particularly advantageous. Here are the average rates of contractors:
- US: $102
- Brazil: $58
- Argentina: $52
- Chile: $61
- Uruguay: $55
- Ecuador: $58
- Colombia: $57
- Peru: $57
When comparing IT rates by role, professionals in Latin America offer affordable prices, up to 60% less than their US counterparts.
Final Thoughts
In conclusion, hiring in Eastern Europe and LATAM presents compelling, cost-effective solutions for businesses seeking to expand their talent pool and reduce expenses. Both regions offer skilled professionals with expertise in the tech market, and their cultural similarities and English proficiency facilitate seamless collaboration.
Eastern European developers provide top-notch talent at relatively lower prices, while Latin America offers savings of up to 60% on IT salaries without compromising quality. Whether hiring full-time employees or contractors, businesses can benefit from the cost advantages and access a wealth of highly skilled professionals. By considering these regions, companies can navigate economic challenges while maintaining a competitive edge in the global market.
