With global businesses increasingly seeking adaptable, high-performing software development teams, a new wave of nearshore cities in Latin America is stepping into the spotlight. While long-established hubs such as Mexico City, Santiago, and Lima continue to play a key role, emerging locations in countries like Bolivia, Brazil, Argentina, Colombia, and Paraguay are building strong reputations. These cities offer a compelling mix of cost efficiency, bilingual technical talent, and supportive business environments, making them dependable partners for North American firms looking to scale their operations.

Where Nearshore Growth Is Accelerating Most

Across Latin America, cities beyond the traditional outsourcing centers are rapidly expanding their presence in the tech ecosystem. According to data from the Association for Private Capital Investment in Latin America (LAVCA), emerging tech hubs accounted for 25.5% of new venture capital-backed startups in 2023, up from 20.7% in 2022. This growth reflects not only a shift in investment patterns but also a growing confidence in the infrastructure and workforce readiness of these emerging areas.
In Bolivia, Santa Cruz is quickly becoming a regional IT nucleus. Local universities are ramping up their investment in engineering and software programs, while the city's youthful demographic and expanding digital infrastructure support sustained growth. In Brazil, São Paulo continues to lead with deep technical capacity and experienced, enterprise-ready teams. The city's longstanding integration with the global tech market makes it a stable option for complex software delivery.
Argentina's Buenos Aires boasts a well-established base of developers with high English proficiency and years of experience serving international clients. In Colombia, Bogotá is leveraging public-private partnerships to strengthen digital education and expand software exports. Meanwhile, Asunción in Paraguay is offering a business-friendly environment with tax incentives and a growing pool of trained engineers.

What Makes These Cities Competitive Nearshore Options

The primary advantage of these emerging cities lies in their combination of affordability and technical capability. In Bolivia, Paraguay, and parts of northern Argentina, engineering salaries remain 40 to 60 percent lower than in the United States, without sacrificing quality or education. These markets are producing engineers with a strong foundation in key disciplines like AI, cloud architecture, and cybersecurity.
Time zone alignment is another critical factor. Cities in Brazil, Colombia, and Argentina share overlapping work hours with major U.S. cities, which allows for real-time communication, faster iteration cycles, and more seamless collaboration across distributed teams. This alignment reduces operational friction and enhances productivity in agile software development.
Government policy is also playing a pivotal role. Paraguay and Bolivia have launched national programs to support digital skills training and offer tax incentives aimed at tech sector growth. Colombia, Brazil, and Argentina continue to invest in public-private initiatives that expand access to STEM education, incubate startups, and strengthen IT infrastructure. These actions reinforce the long-term viability of these emerging tech ecosystems.

Delivering Tangible Business Outcomes

Companies that integrate emerging nearshore hubs into their delivery models are witnessing measurable benefits. Lower operating costs do not come at the expense of quality. Many firms report improved access to niche expertise in areas such as machine learning, fintech platforms, and cloud-native application development.
Moreover, the agile compatibility of these cities allows teams to integrate smoothly into North American work cycles. This means faster onboarding, more effective standups and retrospectives, and real-time product iteration. Companies gain access to a larger, more diverse talent pool, while maintaining the speed and responsiveness expected in today’s software development environments.
Supportive regulatory environments further enable businesses to scale operations without administrative delays. With increasing connectivity, growing technical communities, and government-backed digital infrastructure, these cities are evolving into reliable long-term partners for tech delivery.

How to Approach Nearshore Expansion Strategically

Organizations looking to tap into Latin America's emerging nearshore markets should begin by identifying 2 to 3 countries that align with their technical and operational priorities. Conducting a pilot project in one or more of these cities allows companies to assess talent quality, infrastructure readiness, and cultural fit before committing to a broader engagement.
Combining traditional hubs with newer cities also helps create a more flexible and resilient delivery model. Established cities can anchor high-volume delivery, while emerging locations provide specialized skills or serve as lower-cost extensions. This blended approach enables companies to optimize for both scale and specialization.
According to a recent Harvard Business Review, organizations that thoughtfully integrate geographically diverse teams gain not only cost savings but also improved problem-solving through cross-cultural collaboration.
Why Latin America’s Next Tech Cities Deserve Your Attention
Latin America’s rising nearshore hubs represent a compelling strategic opportunity for North American tech companies. These cities offer the right mix of affordability, skill, and alignment to support modern software delivery at scale. As public and private sectors continue investing in digital infrastructure and education, these emerging locations will only grow stronger.
Forward-looking companies that explore and invest early in these markets can secure access to high-quality talent and build long-term, adaptable delivery partnerships. As nearshoring evolves, it’s clear that the future of tech collaboration in Latin America will be shaped not just by its traditional centers, but increasingly by its rising stars.
TechCrunch recently highlighted the rapid funding growth across secondary Latin American cities, underscoring their growing relevance in the global tech economy.