Hiring Software Development in South America Just Makes More Sense

90% satisfaction rate with Fortune 500 companies and smaller boutique firms

South America: Software Development Advantages

For US companies seeking to fill an ever-widening skills gap in the US technical workforce by outsourcing IT projects, South America is a gold mine of talent. We started as a company in 1995 and have migrated from being a CMMI level 5 company to an agile nearshore center. We know software.

Online statistics portal, Statista, crunched thousands of surveys and industry studies to report that global spending on IT services will rise to over $1 trillion in 2019. As demand for IT talent increases globally, US policies regarding work visas and other immigration issues further tighten the availability of onshore resources. As US hiring managers seek to ramp up their technology teams, resource availability and rising salaries are causing them to look more closely at outsourcing opportunities. 

Near-shore resources in the Western hemisphere below the equator offer many benefits over farshore resources in more distant regions such as Asia, India, and Europe. In case you have not looked at a globe in a while, take a look at the Mercator map that depicts the proximity of South America to the US and Canada. Note that using a slightly later work schedule (which Argentinians have worked even before the advent of outsourcing), all time zones of North America are covered in a normal work day. 

Hiring onshore in the US is expensive, but proximity and lack of cultural differences can expedite a project’s schedule. The other problem with building your development team onshore is that finding experienced engineers and developers with the skills you need is time-consuming and can be fruitless. The US has lots of top developers, just not enough of them. We have our choice of many experienced IT staff so you get the resources you want fast ent in Text Editor.

Outsourcing to a farshore IT resource location most likely will offer the lowest hourly rate if that is your top priority. Companies who hire us to augment their onshore US IT teams or fully outsource their IT projects to our teams understand that there are hidden costs to contracting software development further afield. Miscommunication and project delays often gobble up the difference between South American software development rates and farshore rates. 

Our Clients

US and European companies with go-to-market plans for software products and applications to support services are finding it increasingly challenging to stay competitive given the rising costs of hiring on-site IT resources, if they can find them at all. The US Bureau of Labor Statistics projects national demand for IT resources to exceed 1.2 million by the year 2026. The savvy job search app, Indeed, found in a study of the US IT job market that today’s gap in available software-related resources is almost 500K with 90% of companies falling short of meeting their deadlines for hiring, significantly impacting go-to-market plans as well as competitive edge and, ultimately, the bottom line.

Benefits of Hiring South American IT Resources

According to Deloitte’s Global Outsourcing Survey for 2018, 87% of business in the IT sector choose nearshore outsourcing for cost-cutting purposes. Vates goes beyond cost-cutting delivering advanced disruptive outsourcing solutions at great rates with resources that work well with your existing teams.

Our nearshore development staff blends the prime benefits of onshore and offshore. Our South American team can quickly staff up to offer a blended project team that decreases your software development costs while giving your regular status and problem-solving communications during your regular business hours with a team that is culturally similar to your company’s employees. 

The top reasons our North American clients say they like working with their southern neighbors follow.

With South America’s longitudinal position almost due South of US, the work hours are the same. Do not worry about the southern continent’s slight skew to the east, as the work day starts a little later than in most US cities so the work hours align well. Plus, your onsite visits, if needed, cost less in transportation and lost time to jet lag.
Cultural Similarity
The social culture of South America is different from other parts of Latin America. Buenos Aires, Argentina, is known as the “Paris of South America [https://frenchly.us/buenos-aires-paris-south-america/ “target=_blank”]” with cultural influences beyond its Parisian style cafes and European flair in its architecture. When you work with us, you will see the difference and your onshore team will more quickly “gel” with our team as mindsets and sense of pride closely approximate North American styles of teamwork and communication.
Hourly rates may be higher than farshore rates, but your project will benefit from more efficient communication and other benefits which offset the slight premium. Often, prospective clients are surprised at the affordability of South American rates, but some of the best sources of resources have experienced economic downturns. So “our loss is your gain” in that our economies run at a lower scale than the US meaning that the strong US dollar can buy a lot of software development hours, more than most expect.

Vates Lab makes us Different

Through our Vates Lab program we develop emerging technologies to drive innovation, speed to market, enhanced user experience, and improved performance for our clients.

Vates Lab is part of the commitment to 7% investment in $&D. The lab’s team of senior engineers dedicate research and development to focus on innovation which enriches the capabilities of our SCRUM-certified delivery teams. The Vates Lab team is composed of senior Customer Software developers, IoT engineers, Big Data engineers, Computer Vision engineers, Machine Learning and more. 

Major accomplishments include:

Sending a satellite into space
Developing an IoT product from proof of concept (PoC) to market.
Developing predictive maintenance solutions

The Vates Software Development Difference

South America has an amazing pool of technical resources. Governmental agencies like in Argentina sponsored several initiatives supporting the software development industry boosting the understanding of the importance of international standards compliance and protection of intellectual property. 

Vates’ team is in locations in Argentina, Chile, San Francisco, California, and Miami. Year after year, our highly certified teams are have accomplished 90% customer satisfaction levels. We can augment your staff or deliver services like Time & Material Scrum Teams and turnkey project

Custom Software Development
DBA - Database Administrators
System Integrator Engineers
IoT end to end solutions - developer and system integrators
Computer Vision solutions - Facial Recognition, Image recognition and more
Cloud-based Solutions
Machine Learning
Atlassian Developers (certified Gold Partners)
Robotic Process Automation (RPA)

Compare Vates to Other South American Software Developers

Among companies in the southern hemisphere, Vates distinguishes itself from other Latin American software development companies with several key approaches: 

  • CMMI Certification - Vates has committed to the process improvements prescribed by CMMI so that our clients and our teams benefit. The certification is at the core of many of our differentiators described below.
  • Vates Lab – Our rapid prototyping lab is the secret to our amazingly high customer retention rate. Fewer surprises, lower costs, and rapid delivery of functionality create happy customers.
  • End-to-end project management – Our teams are CMMI-certified using Agile SCRUM techniques to ensure delivery stays on point and that human-centered design and communication are a central focus.
  • Our Quality Scorecard – Our weekly evaluation of our processes and projects assure that we continually learn from what we do for rapid improvement and alignment with ISO 9001:9002. This internal process is critical to maintaining our 90% customer satisfaction rate.
  • Vates Hive – Collaboration, collaboration, collaboration, with healthy doses of accountability. That is what Vates Hive is all about and what makes our client-centered design processes dynamic and creative.
  • Testing & Quality – test, test, test…even as a service! Learn more about our testing services that ensure your products we deliver delight your customers.
  • Investment in R&D – We pour 7% back into our own innovation and tools.
  • Optimized Staffing Process – We hire top talent using our proprietary process supported by world-class software developed by our own team. Our multiple office locations in Latin America give us superior access to resource pools.
  • Experience and Breadth – Our leadership team has more than 25 years’ experience creating a strong positive culture and clear direction for our 500+ team members. Our diverse teams are well-suited for all types of organizations from our portfolio of  Fortune 500 companies to smaller boutique companies making big waves.


Contact Vates

    424 A Johnson St.
    Sausalito, CA USA 94965
    Phone +1 786-472-1998

    20807 Biscayne Blvd, Ste 100
    Aventura, Florida 33180 USA

    Phone +1 786-472-1998

    Agustinas 833, Torre B, Piso 8
    Santiago, Chile
    Tel: +56 2 2712 1670

    Billinghurst 1833, Piso 6
    Buenos Aires, Argentina C1425DTK
    Phone +54(11)5218-5711 

    Av. Colón 778, Piso 8
    Córdoba, Argentina X5000EPU
    Phone: +54 351570-9800