There’s a quiet hiring revolution happening, and it's not in San Francisco or New York.
As the demand for tech talent grows, so does the price tag. In the U.S., salaries for IT professionals have ballooned, with even mid-level developers commanding six-figure packages (plus perks, stock options, and the occasional office dog).
Great talent is worth it, but does it have to cost that much?
Here’s the good news: it doesn’t.
Across the border, a rich ecosystem of skilled IT professionals in Latin America is thriving. These engineers, analysts, cloud architects, and support specialists are working in U.S. time zones, speak excellent English, and deliver results that rival (and sometimes exceed) their North American counterparts at a significantly lower cost.
In this guide, we’ll break down just how wide the gap has become. You’ll get a role-by-role salary comparison between the U.S. and LATAM, real savings data, and insights into why nearshoring is more than a trend.
If you’re building or scaling a tech team in 2025, this could be your game-changer.
Why Salaries for IT Professionals Are Skyrocketing in the U.S.
Picture this: a startup needs a backend developer. They post the job. Within a week, they're staring down offers from candidates asking for $150K… and that’s before benefits, bonuses, or even setting up a Slack channel.
Salaries for IT professionals in the U.S. are soaring, not just because tech skills are in high demand, but because the talent pool is stretched thin. Every company, from early-stage SaaS startups to Fortune 500 giants, is chasing the same developers, engineers, and cloud specialists. It’s a full-blown bidding war.
And it’s not just the usual suspects in Silicon Valley. Now that remote work is the norm, companies in every sector, including healthcare, fintech, and retail, are joining the race for top tech talent. The result? Wage inflation, longer hiring cycles, and a growing talent gap.
Here’s what’s driving the surge:
- Massive demand for digital transformation in every industry
- Remote hiring trends that open up geographic competition
- Retention issues, as developers jump to the highest bidder
- The “tech tax”: inflated compensation just to stay competitive
If you’re a U.S.-based company, you’re not just hiring locally; you’re competing globally. And often, you're paying more than you should. Which brings us to the smarter alternative: hiring IT professionals in Latin America.
LATAM as a Smart Hiring Destination
While the U.S. battles a tech talent shortage (and sky-high salaries), another region is quietly becoming the best-kept secret in global hiring: Latin America.
From Mexico City to Montevideo, a new generation of IT professionals in LATAM is reshaping what it means to build remote tech teams. These developers, cloud engineers, DevOps pros, and IT support specialists are not only highly skilled; they’re cost-effective, culturally aligned, and working in the same time zones as most U.S. businesses.
Let’s break down why hiring in LATAM isn’t just cheaper; it’s smarter:
- Time zone alignment: Most LATAM countries operate on U.S.-friendly schedules, meaning no more 3 a.m. standups or async chaos.
- Top-tier talent: LATAM universities are producing world-class engineers, and many professionals are already experienced with U.S.-based teams and tools.
- High English proficiency: Especially in tech hubs like Argentina, Colombia, Brazil, and Chile.
- Lower cost of living = lower salaries: You’re not paying less for less. You’re paying less for equal or better talent.
And here’s the kicker: these aren’t freelancers working off random job boards. With the right partner (like South, for instance), you can build a dedicated, full-time team in LATAM that functions as a seamless extension of your U.S. operations, without the overhead.
When companies realize they can save 50–70% per hire without sacrificing quality, it stops being an experiment and starts being a strategy.
U.S. vs. LATAM: Salary Comparison for Key IT Roles
If you're wondering how much you could actually save by nearshoring your tech team to Latin America, this breakdown makes it crystal clear. Below, we’ve compared average annual salaries for IT professionals in the U.S. and LATAM for five essential roles.
The difference? In most cases, you're looking at over 60% in cost savings, without compromising on skill or output.
How Much Can You Really Save?
Let’s talk numbers. The salary differences between the U.S. and LATAM aren’t just small discounts; they’re deep cuts that can dramatically shift your cost structure.
If you’re building a small-to-midsize tech team of 5–10 people, hiring in Latin America can easily save your business hundreds of thousands of dollars per year, without cutting corners on quality, collaboration, or speed.
Here’s what those savings might look like:
- Hiring five software engineers in the U.S. at $120,000 each? That’s $600,000/year.
- The same team in LATAM might cost around $225,000/year.
- Total savings? Roughly $375,000 annually; money you could reinvest in growth, product, or marketing.
And it’s not just about salaries. You’ll likely reduce overhead costs too:
- No relocation packages
- Lower benefits and payroll taxes
- Reduced time-to-hire thanks to broader talent availability
- Minimal timezone friction = higher team efficiency
How to Hire Top IT Professionals in LATAM
By now, the math is clear, but how do you actually tap into this talent pool?
Hiring IT professionals in LATAM can be seamless if you choose the right model. The good news? You’ve got options.
1. Staffing Partners (like South)
This is probably the easiest, most comprehensive path. With a nearshore staffing partner, you get pre-vetted IT professionals matched to your needs, without the admin headache. From contracts to compliance, it’s all handled for you.
At South, we specialize in helping U.S. companies build high-performing remote tech teams in Latin America. Our vetting process ensures you’re not just hiring fast; you’re hiring right.
2. Direct Hiring
If you already have legal entities set up in Latin America, you can source and hire talent directly. This gives you full control but adds complexity; think local payroll, compliance, and HR.
3. Freelance Marketplaces
Platforms like Upwork or Toptal can help you find individual contributors quickly, but they’re best for short-term projects or specialized tasks. Long-term team building? Not so much.
The Takeaway
In a market where talent is scarce and costs are climbing, it’s easy to feel like your hiring options are limited. But they’re not. Latin America offers a clear path forward, one where you can build world-class IT teams without paying Silicon Valley prices.
From significant salary savings to timezone alignment and cultural fit, hiring in LATAM is no longer a “maybe”. The question isn’t if you should consider it. It’s how soon you can get started.
If you’re looking to scale your tech team without the U.S. price tag, South can help you find and hire top-tier IT professionals in Latin America fast.
Schedule a free call with us today and let’s build your next great team together!
