Brazil is one of the top Latin American countries for development outsourcing. Photo by Raphael Nogueira

6 reasons for outsourcing software development to Brazil in 2020

Over the years, several IT hubs have opened up and grown exponentially to cater to world demand, and Brazil is an excellent example of that. A fantastic resource for companies looking for offshore software development is in fact in Brazil. Given the vast and thriving population of skilled and upcoming software developers, impressive infrastructure, low percentages of attrition, and cost-effective service rates, it is definitely a good choice if one wants to hire overseas programmers from Brazil.

Understandably, in the early days of outsourcing, companies in the US may have acted with considerable caution when hiring developers from other countries. However, in today’s world, one can easily find out about the presence of skilled and reliable software developers in countries like Brazil, test their abilities thoroughly, and hire accordingly. Today, overseas outsourcing to Brazil means a great opportunity to work with developers in real-time, assess progress on the projects, and get the work done timely at reasonable costs, combined with excellent back and forth communication.

For US-based companies, choosing to hire offshore developers from Brazil is a particularly safe and good choice as the IT industry of Brazil has shown remarkable growth in the past few years, and investment in this sector is very high as well. Further, there is a time difference of only one hour between the US and Brazil’s time zones, which makes collaborating in real-time much easier a prospect.

Advantages of software development outsourcing to Brazil

Considering that the Brazilian IT industry witnessed US $46.6 billion in 2018, and student aid such as Science Without Borders and the Greater TI program have helped encourage IT education for Brazilian engineers in Brazil and abroad, it can be safely deduced that Brazil has a deep pool of talented developers to offer the world.

#1 Growing talent pool of tech specialists in Brazil

The University of Sao Paolo was ranked 121st in the global list of best universities in 2018, with its Engineering and Technology field ranking 142nd, a visible improvement from the previous year’s rank of 177th. UFRJ (Universidade Federal do Rio de Janeiro) is another university known for its phenomenal information engineering courses, ranking as the 5th best university in Latin America. If these aren’t sufficient indicators as to the kind of skilled talent Brazil is producing in the software development sector, US companies can gain confidence in Brazil’s software development sector by the knowledge that budding developers are groomed and coached such that their work culture is very similar to that of the US, with a focus on innovation and creativity, which only helps hone the already bright and skilled talents of the industry. Thus, Brazil’s growing talent in developers ensures that US companies would surely prefer to hire software developers from Brazil.

#2 Impressive IT infrastructure

The infrastructural strength of Brazil’s IT sector has been growing steadily over the years. The fact that Brazil boasted of as many as 74 tech parks nationwide in the last decade, should inspire a lot of confidence. Some of these tech parks are now renowned globally for the high density of research centers, massive population of developers, tech companies as well as institutes, such as the Brazilian version of Silicon Valley, in Campinas, north of Sao Paolo. Campinas is known widely for a large number of industrial parks, TechTown, InCamp to name a few. Another gem in Brazil’s IT park infrastructure is Anprotec, with almost 300 organizational bodies, over 6000 companies geared towards innovation, generating thousands of jobs for developers. 

Further, the Brazilian law called ‘lei do bem’ offers tax incentives to corporations that work on innovation in technology, and this has encouraged further infrastructural growth, ensuring that there are many talented developers to choose from if a foreign company wants to hire.  Brazil is continuously using its Science and Technology Parks (STPs) to focus on innovation in technology and is hence one of the top destinations to consider if one is in need of offshore software development services from Brazil.

#3 Fantastic collaborative experience with software developers from Brazil

While there are many software developers available easily in India and some other Asian countries as well, it becomes a less preferred choice for US-based companies to hire them for software development since a major factor that doesn’t work out is the time zone difference. A time zone difference of 10-12 hours is significant and can make collaborative projects a painful process. However, with Brazil, that problem is practically non-existent since Brazil and the USA have a time difference of only 1 hour. So when you hire overseas programmers from Brazil to work remotely with you, the experience will be close to seamless in terms of communication and keeping up with deadlines. With the time zone difference of only an hour in between, you will get quick responses from the developers, which will make working in tandem a smooth and easy task.

Moreover, the language will not present a barrier in this collaboration, since speaking and communicating fluently in English is increasingly being given more importance when educating the Brazilian youth, in particular, software developers since their skill is universally in demand. Hence apart from being skilled in coding languages, these developers will also be able to communicate with you easily without any trouble whatsoever, making offshore software development in Brazil a good choice.

#4 High retention of Brazilian developers

The market for software developers continues to grow more and more competitive, especially in certain developing nations like India. That often means high levels of attrition, developers moving swiftly from one job or project to another, which would cause significant difficulties for a company hiring offshore developers. However, in the case of Brazil, this is a non-issue since the market is not so competitive yet and thus you will most likely be able to enjoy working with the same developer from the start of a project to its culmination.  

This spells a large number of benefits for US companies, as the technology and know-how utilized in the project stay within the project and as a result, there is no loss of time and knowledge, no communication issues because of changing developers, and no delay or hitch in project completion either. An added plus of having the same developer work with you is that you also get excellent support from the same team throughout the entire project. There is no compromise in quality of work whatsoever with Brazil, so if a US-based company is looking for outsourcing software development from Brazil, this is another reason Brazil is high on the list of countries to look at. 

#5 Reliable and highly professional work of developers in Brazil

While Brazil still has a way to go to be considered in the same league of outsourcing as China or India, the country has made considerable progress. Brazil’s software developers are committed to sticking to timelines, making deliveries as discussed on the right dates, and are in fact cited as excellent in terms of customer service, quality of call centers, and high reliability for US companies. To ensure complete transparency and give you full freedom when you hire remote development teams from Brazil, YouTeam actually gives you the choice to select the team you will be working on the project with, for development. This would help in increasing the level of trust between the company and the developers and increase the confidence of the client that this is indeed the right option to choose for professional software development outsourcing from Brazil.

#6 Reasonable cost of software development services in Brazil

Cost-wise, even with extra expenses and bonuses, outsourcing to the Brazilian software development sector would cost US companies much lesser than what it would to hire US developers. The average entry-level salary for a software developer in Brazil is only about USD 4963 a year, while the average salary for a software developer at entry-level in US is as high as USD 74532 a year, a significant difference. Thus by choosing to hire offshore software developers from Brazil, US companies would be saving a considerable amount of money while still getting good quality work and output for their technical projects. Additionally, the overall cost of collaborating and coordinating with developers in Brazil is affordable, which makes it a highly viable choice to hire software developers from Brazil.

What to watch out for working with Brazilian outsourcing companies

If you are looking to hire software developers from Brazil, it is, of course, a safe and reliable choice, but just as in the case of outsourcing to any other country, there are a few things every company should be careful to note and remember to do before actually committing and hiring the developers.

  • An important thing you must do is to review the developer’s background and skills thoroughly. It is a good practice to ask for reviews, testimonials, and experiences which verify the reliability and overall work quality of the developer you are looking to hire. Before hiring, make sure you know everything you need to know with respect to the developer’s skills and be sure to interact with them well so you can tell if they will be a good fit for your project.
  • Since you will be working with the developer remotely, seek and provide clarification regarding timelines, dates for completion of every phase of the project, delivery schedules, and all other logistical aspects. 
  • Before outsourcing software development from Brazil, another aspect you must check is that you have a technical expert on board who can review the tech side of the work done by the developer, which would prevent wrong outputs and dangerous errors from being committed, particularly if you are looking to create an integrated project with tech and your system together.

Once you have gone through all of the above and are ready to hire the developers, these are some process-oriented points that will come in use if kept in mind:

  • It is extremely important to have a technical member on your side of things, who can keep an eye on the technical project work the developer is involved in. In the event you hand this task to a non-technical person, they won’t be able to govern the technical parts. This will result in grave mistakes and loss of time, resources, and delay of project completion. 
  • Communication is key when it comes to offshore software development from Brazil because it will help you keep track of how the remote developer team is doing the work, what kind of progress has been made, and will also help you gather whatever knowledge/information/aid your team needs from theirs, swiftly. 
  • Project deadlines and key timelines should be met as strictly as possible, so make sure of that, and for some reason, if there are any unexpected delays, ensure that the reason for this is communicated with both sides in a timely fashion. 
  • At the end of the day, no matter which country you are seeking software development outsourcing from, these are points you should keep in mind, as otherwise problems can be encountered with any team in any country you may work with. Moreover, there are undeniably some disadvantages to remote outsourcing as well.

Disadvantages of software development outsourcing to Brazil

In the 1990s as well as the early 2000s, it is easy to recall that India used to be a top destination for outsourcing software development, but some incidents over the past decades have changed that unfavorably. Meanwhile, one may even ask if the other Latin American countries are also good choices for software outsourcing, they are fairly good options, indeed, but Brazil is much more attractive in terms of all that it offers. From incredible rising talent in software development to high quality of infrastructure, increasing capabilities, multilingual communicative abilities, and high reliability, it is one of the best options US companies can consider when looking for offshore software development services. 

A key reason the Indian IT industry suffered a drop in outsourcing from countries like the US is the massive time zone difference, of about 12 hours. The time zone difference made it tough for Indian developers to communicate in real-time with the companies because the timings would hardly ever match. Another reason was the increasing number and severity of scams in the IT sector — if one is not careful enough, they might very well get scammed out of important project info, although that’s why it is so important to be cautious about hiring, and less to do with Indian developers. 

For Brazil, some of the major disadvantages include the tax system, which is highly problematic from a foreign corporation’s perspective if they are looking to hire overseas programmers from Brazil. Taxation in Brazil is a complex system as it counts a lot of different variables as taxables, such as the cost of energy consumed. To understand and work with these complications, US companies often have to resort to seeking aid from third party advisors, which can be an extra expense and also a nuisance. The wage system, while reasonable, has also gotten complex with multiple components for foreign companies to consider. In recent years, the total cost of all-inclusive resources (labor, transport, recruitment, extra payment for vacation, bonus, etc) has grown significantly and that’s a cost every company must consider carefully before going ahead with the hiring, lest it poses a financial problem later. 

Some difficulties mentioned above can be overcome with the help of YouTeam. When you hire engineers on our platform, you sign a contract with a dev shop — formal employer of these developers. That means that all questions related to salaries and taxes would be solved by the outsourcing company. And you don’t have to pay anything extra for this.

Another problem seen sometimes in respect to Brazil is the instances of union-related violence, where unions would often take to the streets and thrash people from certain sectors if they felt that their market was being threatened. However, this is more common in the case of goods and certain tangible services like transport, and not seen as much in software development.

Key Takeaways

Even with so many options for outsourcing, Brazil still comes out to be a very attractive, reliable, and cost-effective option for US companies considering hiring outsourced software developers. For those US-based companies thinking to hire overseas programmers from Brazil, there are some factors they can be confident of, from the start of the project to its completion.

  • Talent pool: Brazil has invested highly in its software development sector and has provided many encouraging opportunities for students to study software engineering, thus leading to a huge talent pool in the country.
  • Great infrastructure: Brazil boasts of very impressive infrastructure in software development, from over 74 tech parks in the country, generating thousands of employment opportunities for up and coming software developers, and offering chances for innovation at every step.
  • Working in real-time: With the minimal difference in time zones, it is easy for US companies to work in collaboration with Brazil’s software developers remotely, as no time is wasted in communication.
  • High developer retention: Software developers in Brazil are less likely to jump from company to company, ensuring that you get to work with the same team from start to finish of a project.
  • Reliable and professional: Brazil is increasingly improving the performance quality of its software developers, which means they are committed professionals who will deliver your projects timely and neatly. 
  • Low comparative cost: While you will have to pay much less to outsource software development from Brazil, you still get the high quality of technical work you would expect from US developers.
Written by
Svetlana Shevchuk

Digital Marketing Specialist at YouTeam, a Y Combinator-backed marketplace for building remote dev teams.

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