Nearshore software development in Latin America
What it costs, how the main countries compare, and how to pick the right way to work with a nearshore team.
The short answer
Nearshore software development means working with developers in Latin America who share most of your working day. A mid-level software engineer costs about $4,000 a month, versus $14,618 for the same role in the US once benefits and taxes are counted: roughly 73% less, or $127,000 a year per developer.
Nearshore vs offshore vs onshore
- Onshore (in the US): full overlap and no distance, at US salaries plus about 29% for benefits and employer taxes.
- Nearshore (Latin America): 0-2 hours from US Eastern time in most countries, so developers join standups, pair and review code in real time.
- Offshore (Asia, Eastern Europe): often a lower hourly rate, but little or no overlap, so work is handed off overnight and blockers wait a day.
What nearshore developers cost
Mid-level, full-time, per month. US total cost is the BLS median wage plus benefits and employer taxes; the nearshore rate is what US companies pay for remote work, before any agency fee.
| Role (mid-level) | US total cost | Nearshore rate | Difference |
|---|---|---|---|
| Software Engineer | $14,618/mo | $4,000/mo | 73% less |
| Full-Stack Developer | $14,618/mo | $4,500/mo | 69% less |
| Frontend Developer | $9,960/mo | $3,800/mo | 62% less |
| Backend Developer | $14,618/mo | $4,200/mo | 71% less |
| Mobile Developer | $14,618/mo | $4,500/mo | 69% less |
| DevOps Engineer | $14,618/mo | $5,000/mo | 66% less |
| Data Engineer | $14,996/mo | $5,000/mo | 67% less |
| QA Engineer | $11,212/mo | $3,000/mo | 73% less |
How Latin American countries compare
Time difference with US Eastern, and what senior developers report earning from local employers (Stack Overflow Developer Survey 2025, only where 30 or more answered). Remote roles for US companies pay more than these local figures.
| Country | Time vs US Eastern (winter / summer) | Local senior developer pay | Survey respondents |
|---|---|---|---|
| Argentina | 2 h ahead / 1 h ahead | $4,792/mo | 104 |
| Brazil | 2 h ahead / 1 h ahead | $3,489/mo | 439 |
| Chile | 0-2 h ahead, varies with Chile's daylight saving | $3,181/mo | 67 |
| Colombia | Same time / 1 h behind | $4,362/mo | 81 |
| Mexico | 1 h behind / 2 h behind | $3,465/mo | 120 |
Mexico lines up with US Central time, 1-2 hours behind the East Coast. Colombia matches US Eastern in winter and is 1 hour behind in summer. Argentina and Brazil are 1-2 hours ahead, which gives East Coast teams a head start on the day. Brazil has the most respondents in the survey, a sign of how large its developer market is.
Three ways to work with a nearshore team
Staff augmentation
Individual developers join your team, work your hours and follow your process. You manage the work.
Best when: You have an engineering lead and a roadmap, and you need more hands.
Dedicated team
A group of developers, often with QA or DevOps, works only for you as an extension of your engineering team.
Best when: You need several people at once and want them to ramp up together.
Project outsourcing (dev shop)
A company builds a defined project for you with its own managers and process, usually for a fixed scope or budget.
Best when: You don't have an engineering team and need a finished product delivered.
Nexus works in the first two models: we place developers and build dedicated teams that work inside your process. We don't run fixed-scope projects. See team compositions and costs.
How to choose a nearshore partner
- See how candidates are tested for your stack, not just that they're "vetted".
- Confirm working hours in writing: overlap is the reason to go nearshore.
- Know who handles contracts, payroll and compliance, you or the partner.
- Ask what happens if a hire doesn't work out and how fast a replacement arrives.
- Get the full cost upfront: the developer's rate and the partner's fee.
For the full checklist, read our guide to choosing a LATAM hiring partner.
Frequently asked questions
What is nearshore software development?
Working with software developers in a nearby country with overlapping working hours. For US companies that usually means Latin America, where most countries are 0-2 hours from US Eastern time, unlike offshore teams in Asia or Eastern Europe that work while the US sleeps.
How much does nearshore software development cost?
A mid-level software engineer in Latin America costs about $4,000 a month, versus $14,618 for the same role in the US once benefits and employer taxes are counted: about 73% less, or $127,000 a year per developer, before any agency fee.
Is Mexico a good country for nearshore software development?
Mexico is 1-2 hours behind US Eastern time, aligned with US Central, and has a large developer market. Developers there working for local employers report a senior median of $3,465 a month (Stack Overflow Developer Survey 2025); remote roles for US companies pay more.
Nearshore or offshore: which is better?
Offshore can cost less per hour, but the time difference means work is handed off overnight and questions wait a day. Nearshore costs somewhat more and lets developers join standups, pair and reply during your working day. For teams that ship continuously, the overlap usually matters more than the hourly gap.
Can I build a mobile app with a nearshore team?
Yes. Mobile developers in Latin America work in React Native, Flutter, Swift and Kotlin. A mid-level mobile developer costs about $4,500 a month, versus $14,618 fully loaded in the US.
Build your nearshore team
Tell us the roles you need and we'll present pre-vetted developers within 7-14 days.
Sources: BLS Occupational Employment and Wage Statistics (May 2025); BLS Employer Costs for Employee Compensation (June 2026); Stack Overflow Developer Survey 2025. Nearshore rates are Nexus rates for remote work with a US company. Full methodology.