How to Outsource To Chile

Hiring remote developers has become the go-to cost-saving strategy for businesses ready to expand their tech teams without any geographic constraints. Now, the best way to hire remote developers for North American business is to recruit nearshore IT professionals from Latin America. Nearshoring to LATAM allows you to access several countries with large IT talent pools and affordable development rates. Chile, in particular, is emerging as a top destination for hiring nearshore developers. With a growing tech ecosystem and favorable business environment, Chile offers amazing talent to choose from for companies looking to hire remote developers. While we understand that hiring from a country you’re not familiar with might seem a little intimidating, we’re confident that nearshoring to Chile is worth the challenge. That’s why we created this guide to walk you through everything you need to know about hiring Chilean developers and ensure a hassle-free nearshoring process. Keep reading to learn more!

Why Chile is an Attractive Option to Hire Nearshore Developers

You might be wondering why Chile stands out as a nearshore software development location. The benefits range from cost-effectiveness to cultural compatibility, making it an attractive option for many businesses. Chile has rapidly gained recognition as a top choice for remote software development, and there are compelling reasons behind its growing popularity. 

Great Talent To Choose From:

According to a study by Stack Overflow, over 70% of developers in Latin America prefer remote work, emphasizing the whole region's readiness to engage with global companies. Chile is no exception, with many software developers ready to start working for North American businesses already looking to get involved in international projects. In terms of industry distribution, Chilean software developers are proficient in a wide range of sectors, including finance, healthcare, retail, and logistics. This versatility means you can find developers with specific expertise relevant to your company without having to spend weeks stuck at the interviewing stage. 

Good Infrastructure:

Chile’s infrastructure - both economic and educational - adds to its attractiveness as a place to hire nearshore developers. The country has some of the best universities in Latin America, such as Pontificia Universidad Católica de Chile and Universidad de Chile, both of which rank among the top 10 in the region according to QS Latin American University Rankings. These institutions produce a great number of highly skilled graduates in computer science and engineering every year. Another major advantage is Chile’s stable economic and political environment. With the highest GDP per capita in South America and a strong focus on innovation and technology, Chile provides a stable environment for business operations. The World Bank ranks Chile as one of the easiest countries to do business with in Latin America, and its optimal infrastructure has a lot to do with it. 

Time Zone Alignment:

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If you’re looking to hire software developers in Chile, you’ll also appreciate the favorable time zone conversions. The local time zone is similar to that of the U.S. East Coast during most of the year, with the Continental area being within UTC−3 in summer and UTC−4 in winter. This means your onshore and nearshore teams can collaborate in real-time without the hassle of significant time differences. This overlap allows for easier communication and project management, two factors that will surely impact the success of your remote development projects.

The Local IT Sector:

Chile’s tech ecosystem is consistently expanding. The capital city, Santiago, is known as the country’s Silicon Valley, thanks to its growing startup scene and tech hubs. Moreover, the Chilean government actively promotes tech education and vocational training, ensuring a steady supply of qualified professionals. Initiatives like the “Digital Talent for Chile” program aim to train 16,000 professionals in digital skills by 2025, further increasing the number of developers available to work on an international level.

Major IT Savings:

The cost-effectiveness of hiring in Chile shouldn’t be overlooked. While many think offshore outsourcing is the only way to save money on development costs, nearshoring also offers major savings. Just like the rest of Latin America, the overall cost of hiring remote developers in Chile is still lower compared to the US and Canada. Whether you hire developers in Chile directly or work with a staff augmentation agency, you can save up to 40% in development costs. This great balance between price and quality makes Chile a cost-efficient option when looking for nearshore outsourcing destinations. 

Overview of the Chilean Software Development Market

Chile's software development market has experienced significant growth in recent years. A combination of a skilled workforce, strong governmental support, and a thriving startup ecosystem drives this recent increase in popularity. The country is home to over 5,000 tech companies, ranging from innovative startups to established enterprises. According to InvestChile, the software and IT services sector is one of the fastest-growing in the country, with an annual growth rate of 9%. 

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It’s hard to deny that the local government’s initiatives have played a crucial role in fostering this nationwide growth. Programs like Start-Up Chile, which has been recognized globally, provide the necessary funding and support to early-stage tech companies. This initiative has attracted tech entrepreneurs from around the world, further nurturing the local IT talent pool and fostering a culture of innovation across the country. Interestingly enough, this legal and infrastructural support has contributed to unconventional tech-based companies emerging within the local market. A great example of this is NotCo, a Chilean startup dedicated to finding plant-based food alternatives with the help of AI and advanced algorithms - achieving the same beloved flavors without the use of any animal products. 

Key Advantages of Hiring Chilean Developers

1. Quality Tech Education:

The talent pool in Chile is highly educated and proficient in various programming languages and technologies. Chilean universities, such as Pontificia Universidad Católica de Chile and Universidad de Chile, produce graduates who are well-versed in modern software development practices. According to the World Economic Forum, Chile ranks among the top Latin American countries for digital skills among its population, further showing why this country’s talent pool is made up of some of the best nearshore developers.

2. High English Proficiency:

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English is widely spoken among Chilean professionals, particularly in the tech sector. According to the EF English Proficiency Index, Chile ranks among the top countries in Latin America for English proficiency. This high level of proficiency ensures clear communication, reducing the risk of misunderstandings and improving project outcomes. Even if Chile doesn’t have the highest English proficiency level of all LATAM, IT graduates from top institutions like Pontificia Universidad Católica de Chile and Universidad de Chile are often fluent in English, having completed coursework and projects in the language. Many professionals also seek further training through online courses and certifications to enhance their language skills.

3. A Similar Business Culture

Prioritizing candidates with a high proficiency in business English is particularly important, as well as ensuring a solid cultural fit between your new nearshore developers and your existing company culture. Chilean developers are accustomed to working with international clients and teams, often using English as the primary language of communication. This familiarity with business terminology and practices ensures that they can effectively participate in meetings, write reports, and engage in professional correspondence.

4. Safer Software Development:

Chile's commitment to cybersecurity and data protection also strengthens its position as a reliable outsourcing destination. The country adheres to international standards and has implemented robust data protection laws, giving you peace of mind when handling sensitive information with outsourced development teams.

5. Experience with international projects:

Chilean developers frequently collaborate with clients from North America, Europe, and other regions, and this is a significant advantage when hiring from this country. This exposure to diverse markets enhances their ability to understand and meet the needs of international clients. Many multinational companies have set up operations in Chile, providing local developers with opportunities to work on international projects. Companies like Microsoft, IBM, and Oracle have a presence in Chile, allowing developers to gain experience with large-scale, global initiatives - translating into a deep understanding of international standards and practices.

6. Technological Expertise:

Chilean developers possess expertise in a wide range of technologies and tools that are standard in international projects. From cloud platforms like AWS and Azure to programming languages like Python and Java, they are well-versed in the tech stack commonly used worldwide. This technical versatility ensures they can handle various project requirements efficiently. Chilean developers are familiar with various project management methodologies commonly used in international projects. Agile, Scrum, and Kanban are widely practiced, ensuring developers can seamlessly integrate into global teams. Their proficiency in these methodologies helps maintain project timelines and enhances productivity.

Cost of Hiring Remote Developers from Chile

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When considering whether or not you should hire remote developers in Chile, the cost is a significant factor. As with most nearshoring arrangements, Chilean developers offer a balance between cost and quality, making them an attractive option for businesses. Chile’s cost of living is lower compared to many Western countries, contributing to the lower salary expectations. This enables Chilean developers to maintain a good standard of living while offering competitive rates, providing excellent value for employers. 

Now, please keep in mind that these rates can be up to 20% higher when partnering with a Global Employment Agency, a staff augmentation company, or a marketplace hiring platform. Here’s a detailed look at the cost of hiring junior, mid-level, and senior developers from Chile!

Junior Developers

Junior developers in Chile typically have 1-2 years of experience. They are often well-versed in fundamental programming languages and basic development tasks. The average salary range for junior developers in Chile is between $20,000 to $35,000 USD per year. This range can vary based on the specific skills required and the complexity of the projects they work on.

Mid-Level Developers.

Mid-level developers generally have around 3-5 years of experience. They possess a deeper understanding of software development processes and can handle more complex tasks independently. For mid-level developers, the annual salary ranges from $35,000 to $55,000 USD. This level of expertise offers a good mix of experience and cost-efficiency, making it a popular choice for many businesses.

Senior Developers. 

Senior developers bring over 5 years of experience to the table, often with expertise in specific technologies and frameworks. They can lead projects, mentor junior developers, and provide strategic insights. Hiring a senior developer from Chile will cost you between $55,000 to $85,000 USD annually. Their extensive experience and skill set justify the higher salary, providing high value for critical and advanced projects.

How To Hire Remote Developers in Chile

Leverage Platforms & Job Boards. 

Start by utilizing local job boards such as Get on Board, Laborum, and ChileTrabajos. These platforms are popular among Chilean developers and can help you connect with qualified candidates quickly. Global platforms like LinkedIn, Upwork, and Toptal also provide access to a broader talent pool. Engaging with local tech communities and forums on social media can further expand your reach, so it’s best to participate in discussions and post job openings in these groups to attract candidates actively involved in the tech scene.

Vet Technically and Culturally.

Screening candidates thoroughly is essential to ensure they meet your technical and cultural requirements. Conduct multiple rounds of interviews, including technical assessments using platforms like HackerRank or Codility. These tools help evaluate coding skills and problem-solving abilities effectively. Always check references and review portfolios to verify past work experience and reliability, as speaking with former employers or clients can provide valuable insights into their work ethic. 

Partner With Staff Augmentation Firms.

The most effective approach to recruit IT talent from Chile for those needing a faster hiring process is to collaborate with nearshore outsourcing firms. These companies lessen the administrative work that comes with hiring and onboarding Chilean developers by providing outsourced teams that are ready to work on global projects. For example, at DevelopersLATAM, we can help you hire developers in Chile by offering nearshore technology solutions that are both more affordable and make your life easier. As a nearshore staff augmentation firm, we handle the recruitment so you can start working with the ideal candidate. 

Ensure Legal Compliance.

Legal and contractual considerations are important when hiring in Chile. Ensure your contracts comply with local labor laws and clearly outline work expectations, payment schedules, and intellectual property rights. Consulting with a local legal expert can help navigate these aspects smoothly. Implement an effective onboarding process to integrate new hires into your team seamlessly. Provide necessary tools and resources, introduce them to your team, and set clear expectations. Regular check-ins during the initial period can address any issues and ensure a smooth transition. Use robust communication tools like Slack, Zoom, and Microsoft Teams to maintain clear and consistent contact. Establish regular meeting schedules to keep everyone aligned and on track, ensuring a productive remote working relationship.

Looking to Hire Remote Developers in Chile? We Can Help! 

We hope you gain a better understanding of why hiring remote developers in Chile offers a wealth of opportunities for businesses seeking skilled talent in the tech industry. From the country's strong educational infrastructure to its favorable business environment and cultural compatibility with international teams, Chile stands out as a great nearshore destination for remote development projects. If you're looking to tap into this vibrant talent pool, consider partnering with DevelopersLATAM. With our extensive network of experienced developers and personalized cost-effective hiring solutions, we can streamline your hiring process and help you build a successful remote development team. If you’re ready to hire developers in Chile, contact us today to schedule a free discovery call!