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Key Takeaways
- Latin America offers cost-effective software development with real-time collaboration advantages for US companies, making it an ideal outsourcing destination, just as Serbia serves as a nearshore development powerhouse for European businesses with similar benefits.
- For US-based teams, LatAm developers work in the same or close time zones (0-5 hour difference), enabling immediate communication and faster development cycles, whereas Serbia’s 6+ hour time difference creates collaboration challenges.
- Nearshoring to LatAm countries like Argentina, Mexico, Brazil, Colombia, and Chile means better project management, fewer delays, and easier integration with US teams, thanks to similar work hours, competitive salaries, and thriving tech ecosystems.
Serbia is the birthplace of Constantine the Great and home of the world’s best raspberries. But if you’re more interested in coding for a Raspberry Pi than baking one, Serbia’s world-class developers might have caught your attention.
For US businesses looking to scale development teams efficiently, outsourcing software development to LatAm vs. Serbia is a key consideration. Both offer skilled professionals, competitive rates, and robust IT sectors—but which one aligns best with your business goals?
Serbia has long been a top choice for European companies due to its geographic proximity, while Latin America is gaining traction as a preferred outsourcing destination for US businesses for the same reason. In this article, we’ll help you find out which region makes sense for your team.
Why US Companies Are Looking Beyond Serbia for Software Development
Serbia has built a strong reputation as a tech hub. Only a few years ago, the government announced that every second new job was in IT. The country produces highly skilled developers, particularly in AI, fintech, and blockchain, making it a prime outsourcing choice for software development for European businesses.
Here’s the thing though: Serbia is popular largely because it’s a “nearshoring” destination for Western European companies. Nearshoring simply means outsourcing to nearby countries to leverage minimal time zone differences and cultural similarities.
For companies in Western Europe, Serbia’s time zone alignment enables real-time collaboration with development teams. Their developers are online at the same time; meetings don’t require someone to wake up at 5 AM, and project management flows naturally.
However, for US-based companies, that same nearshoring advantage exists in Latin America, where workdays naturally overlap with US time zones. When a developer in Argentina starts their day, your team in New York or Chicago is just grabbing their morning coffee—perfect for daily standups and real-time problem-solving.
Beyond time zone convenience, LatAm developers offer comparable expertise in back-end development, cloud engineering, and DevOps, with salaries often on par with or lower than Serbian rates, depending on the country.
With many LatAm countries hosting booming tech hubs, US companies are increasingly turning to Latin America for cost-effective development teams to fuel growth and scale operations.
Why Latin America Is Becoming a Software Development Powerhouse
Latin America has emerged as a top destination for outsourcing software development, offering cost-effective, high-quality talent with seamless time zone alignment for US companies.
With competitive developer wages, world-class universities, and a rapidly growing tech sector, LatAm is a sustainable and scalable option for businesses looking to build skilled development teams.
1. Cost savings without sacrificing quality
Outsourcing to Latin America provides significant cost savings compared to hiring in the US while remaining competitive with Serbian rates. Here is a quick rundown for a full-stack developer:
- Latin America Regional Average: $48,000 – $78,000 (via our salary guide)
- United States: $66,000 – $161,000 (via our salary guide)
Unlike regions where lower costs can mean lower quality, LatAm developers are well-trained and earn wages that provide strong local buying power.
So, why hire from LatAm? Like hiring in Serbia, it offers a cost-effective, highly skilled workforce, but without having your remote team so far away.
2. Convenient time zone overlap
Real-time collaboration is one of the biggest reasons US companies choose Latin America for outsourcing. Latin American developers work with a 3–8 overlap in working hours with US teams. (Serbia only allows for 2 hours—if you’re on the East Coast).
That means developers in countries like Argentina, Mexico, Brazil, Colombia, and Chile can join standups, assist with sprint planning, and troubleshoot issues without the communication lags that can come with outsourcing to countries with large time differences.
This allows for:
- Seamless real-time communication with engineering teams.
- More efficient project management for agile development cycles.
- Faster response times for debugging, iteration, and client feedback.
3. High-quality talent and growing tech hubs
LatAm’s developer talent pool is growing rapidly due to:
- Universities that produce world-class engineers, with colleges in Brazil, Mexico, Argentina, Chile, and Colombia making up the top 10 universities in 2025 in LatAm.
- Government-backed initiatives fueling software development, AI, and cloud computing.
- Increased venture capital funding, boosting startups and demand for experienced developers.
With a strong education, a thriving tech ecosystem, and a business-friendly environment, LatAm is now the ideal region for US companies looking to scale software development efficiently through outsourcing.
Serbia: A Strong Contender for European Businesses, But Is It Right for the US?
As we touched on, Serbia has carved out a reputation as a leading tech hub in Eastern Europe, producing highly skilled developers in fields like AI, fintech, and blockchain.
While software development outsourcing to Serbia is a popular choice for Western European businesses, US companies may face challenges in cost efficiency, collaboration, and time zone compatibility when doing so.
1. Strong developer talent backed by government support
Serbia’s developer workforce is thriving, thanks to a strong STEM education system and government initiatives like EU Pre-Accession Assistance (IPA) grants and the Digital Serbia Initiative.
These programs have fueled growth in software development, cybersecurity, and cloud computing, making Serbia a solid option for complex tech projects.
Developers in Serbia often specialize in:
- Blockchain and fintech solutions for European financial markets.
- AI-driven applications, particularly in automation and data science.
- Custom enterprise software for businesses in Western Europe.
While offshore developers in Serbia are technically skilled, their outsourcing market is primarily built around European demand, meaning it’s not necessarily the best fit for US companies.
2. Competitive costs, but not always cheaper than LatAm
One of the biggest myths about Serbia is that it’s a low-cost outsourcing destination.
While it’s certainly cheaper than hiring in the US, Serbian developer salaries can exceed those in Latin America, especially at the higher end of the bracket. This makes it less cost-effective for US businesses.
The following rates are based on our salary guide and Levels.fyi:
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For companies looking to cut costs while maintaining high quality, outsourcing to LatAm is a far more budget-friendly choice.
3. Time zone differences: A major hurdle for US collaboration
For Western European businesses, Serbia is a prime nearshoring location as its time zone allows for real-time meetings and collaboration. But for US-based companies, the 6-hour time gap with Eastern Standard Time presents significant challenges:
- Delayed response times, especially for agile teams needing quick feedback loops.
- Limited real-time collaboration, requiring early-morning or late-night meetings.
- Potential project slowdowns due to asynchronous communication.
In contrast, outsourcing to LatAm means real-time availability with teams in the same or close time zones, making project management more efficient and responsive.
Serbia remains a fantastic choice for European businesses, but for US companies looking for a cost-effective and scalable solution with the same benefits that European countries have with Serbia, look no further than Latin America.
5 Latin American Countries to Consider for Outsourcing Instead of Serbia
LatAm isn’t just one big tech market—it’s a diverse region with distinct hubs, each with their own strengths and specializations.
While tech talent exists throughout the region, we consistently see US companies having the most success with these five countries as starting points, whether they’re hiring individual developers or partnering with development companies.
So here are the five top countries to consider when outsourcing development projects in Latin America.
1. Argentina: A hub for highly qualified developers
Argentina boasts one of the most educated workforces in LatAm, with strong expertise in fintech, AI, and SaaS development and high levels of English proficiency.
The fintech sector alone has grown from 158 companies in 2019 to 432 in 2024.
Time zone: 1–2 hours ahead of EST (fluctuates as they don’t have Daylight Savings Time
2. Mexico: Ideal for nearshoring and agile teams
As the closest LatAm outsourcing destination to the US, Mexico is a top pick for companies needing quick access to talent.
Time zone: Same as US Central Time, perfect for agile collaboration.
3. Brazil: The largest tech talent pool in LatAm
Brazil has a massive developer workforce, with over 630,000 software engineers. Its major hubs, São Paulo and Rio de Janeiro, are well known for enterprise software, AI, and cloud computing expertise.
Time zone: Same as Argentina. 1–2 hours ahead of EST, meaning great workday alignment.
4. Colombia: A rising star in software development
Colombia’s government has heavily invested in tech education, launching initiatives like Computers for Education, which provides students with ICT tools to strengthen STEM skills. The result has been a fast-growing developer ecosystem with a strong startup culture.
Time zone: Same as EST. Hiring from or outsourcing development to Colombia means seamless remote teamwork.
5. Chile: High stability and a business-friendly environment
Chile consistently ranks as one of LatAm’s top five business-friendly countries, with a stable economy, reliable infrastructure, and a large pool of software developers skilled in AI, cloud computing, and IoT.
Time zone: 2 hours ahead of EST during Daylight Savings Hours; same as EST rest of the year, allowing for easy collaboration.
With top-tier talent, real-time availability, and thriving tech sectors, LatAm gives businesses the same cost-effective benefits as Serbia and access to high-quality talent without the time zone challenges that come with outsourcing software development to Eastern European countries and other hot spots for hiring offshore developer talent.
Final Thoughts
Choosing the right outsourcing location affects everything from project speed to long-term scalability. While Serbia has a strong developer talent pool, its time zone challenges and higher costs compared to LatAm make it a less practical choice for US companies.
Latin America, on the other hand, offers a booming tech ecosystem, highly skilled engineers, and real-time collaboration, effectively eliminating the delays and miscommunications that often come with outsourcing to faraway countries.
At Near, we specialize in building high-performing LatAm teams and know that outsourcing involves more than just hourly rates and contracts. Hidden costs like delays, cultural differences, and communication barriers can add up quickly when working with remote teams far from home.
Want to understand why hundreds of leading US companies are already tapping into the LatAm talent pool? Check out our article on why LatAm talent is becoming so popular with American businesses and how your company can benefit from this growing trend.
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