Many US-based tech companies looking to add new software developers to their ranks usually turn to Chile, and for good reason. Chile’s software developers are skilled enough to compete with the best of the best in any part of the world, and this was proven when they came 27th in the HackerRank competition, even higher than US Software developers. While the tech market in the region is relatively new compared to other parts of the world, it grew at an 8.8% CAGR between 2014 and 2019.
The IT market in Chile was worth 15.89 billion dollars in 2022, and its value may rise as high as 25.14 billion dollars by 2027. As the IT ecosystem in Chile grows, more foreign companies are bound to visit this country to hire software developers. This region has a lot in store for any brand interested in premium software development.
Why is Chile a Prime Location for Software Development?
For some time now, there’s been an increased demand for Chilean developers due to the country’s reputation as a major tech hub in Latin America. Software developers in Chile are highly sought after because of the robust tech landscape, innovative startup scene, and competitive costs.
Competitive Costs
One of the primary reasons for hiring software developers in Chile is the region’s competitive pricing and potential cost savings available to North American businesses. Hiring software developers in Chile will cost up to 40% less in salaries and living costs. For instance, the cost of hiring intermediate front end developers in Chile costs around 27,669,600 CLP while US front end developers of the same skill level cost around 80,224,440 CLP.
High Software Development Industry Growth Rate
According to information released by Chile’s National Institute of Statistics, there’s been a steady growth in the software development industry, characterized by an annual growth rate of 7% over the past few years. This growth rate is mainly because many foreign companies readily outsource to local software engineers and web developers without them having to leave the country.
Robust Tech Landscape and Innovative Startup Scene
Chile’s government has recognized the potential of a growing tech ecosystem. As a result, they have introduced several initiatives, such as Startup Chile, to support the growth of local tech startups. These initiatives have also attracted several foreign brands to the country’s shores, creating a vibrant ecosystem that fosters the development of local talent. This combination of government initiatives and foreign collaborations ensures that Chilean software developers can compete favorably on the world stage.
Chilean Tech Talent Pool Overview
The first thing to note about Chile’s tech talent pool is the impressive talent diversity in the region. It’s safe to say that Chile has more than 60,000 Tech professionals. This number ranks it the fifth largest tech workforce on the continent, only coming behind Argentina, Brazil, Mexico, and Colombia. Chile also ranks first on the IMD World Digital Competitiveness Ranking in terms of digital skills.
Chile’s vibrant tech ecosystem is facilitated by several local universities offering tech programs to teenagers and young adults. Five of the universities in this region are also ranked among the top 30 in Latin America. These universities include Universidad Técnica Federico Santa Maria, Universidad Diego Portales, Pontificia Universidad Católica de Chile, Universidad de Chile, and Universidad de Concepción. Aside from these universities, Chile also has several education programs that produce talented software developers who are well-equipped to meet modern software development demands. For instance, InvestChile launched Digital Talent Up in 2023, which funded over a thousand boot camps.
Read more: Employee Leave Policies
Pros and Cons of Hiring Software Developers in Chile
Before hiring software developers in Chile, it makes sense to consider the benefits and drawbacks of your decisions. Then, you can determine if the decision is worth it.
The following is a list of benefits of hiring software developers in Chile:
- Language Skills: While English is not the lingua franca of Chile, its software developers are fluent in the language. Because the developers in this region are fluent in English, it is easier for them to work with English-speaking tech companies in North America and Europe. Chilean software developers also have little or no problems adapting to these foreign organizationation cultures because they can speak their language.
- Time Zone Compatibility: It’s exciting to note that Chile has a similar time zone to the United States. The timezone difference between Chile and the United States is only 2 hours. This means that daytime in Chile is also daytime in the US, simplifying collaboration between US and Chilean teams. Communication and meetings between foreign employers and Chilean software developers are also relatively more straightforward.
- High Quality of Education: Government and private establishments in Chile have invested generously in the country’s software development industry, improving it considerably. As mentioned earlier, several good universities in Chile compete favorably against others in Latin America.
- Cost Savings: Chile enjoys a stable political system and has one of the most robust economies in Latin America. As a result, the people enjoy an impressive quality of life. Hence, it costs less to hire developers from Chile than those in Europe and North America.
Cons of Hiring Software Developers in Chile
While hiring Chilean software developers is beneficial for several reasons, they have a major disadvantage. Hiring software developers in Chile means you’ll have to cope with a few cultural and operational differences. Chilean software developers can speak English fluently and are highly adaptable. However, you have to remember that you’re hiring people from another region whose beliefs and way of life may differ from yours. For instance, developers in Chile pay more attention to a work-life balance and take their holidays or paid-time off work seriously. If you choose to hire remotely, you’ll have to understand the local labor and create room for their numerous public holidays.
Let Globy connect you with the best of Chile’s thriving software development scene.
How to Efficiently Hire Software Developers in Chile?
As mentioned earlier, there are several reasons to hire from this region. According to Statista, the IT outsourcing market in Chile has an impressive annual growth rate of 8.74% and its value will grow to 1 billion dollars by 2029. This information shows that many startups and small companies worldwide add Chile software developers to their workforce. If you also wish to add Chilean software experts to your team, here’s a list of alternatives to do so effectively:
Engaging Freelance Experts
IT outsourcing is a big deal in Chile, an industry worth hundreds of millions of dollars. Several platforms, including Upwork and Fiverr, allow you to outsource tasks to developers from this region. These platforms serve as intermediaries between employers and freelancers. Depending on cost and qualifications, they will enable you to choose from a list of talented tech experts. When hiring developers through freelance platforms, you’ll pay on a project basis.
Leveraging Recruitment Agencies
Hiring agencies are another exciting alternative. These recruitment platforms are usually equipped to connect you with the best talent in the region. All you have to do is submit specifications on the type of software developer you’re interested in. You’ll pay the developer based on a contractual agreement when working with recruitment agencies. You’ll also pay the hiring platform for their service monthly or annually or a percentage of the developer’s fees.
Globy is a reliable hiring agency capable of connecting you with a tech talent pool in Chile. We will help you vet and shortlist the best candidates for your business needs. However, if you can’t hire them directly, we can connect you with a network of EORs that’ll serve as your legal entity and help you handle the legal aspects of hiring software. Our EORs are familiar with Chilean labor law. Hence, they can simplify payroll and tax reporting responsibilities for businesses.
Collaborating EORs
Employers of Records serve as legal partners to startups and medium enterprises. They serve as a legal entity and contribute to the hiring process. Because of their familiarity with local laws, EORs can handle your payroll processing tax reporting and register employee benefits with the proper authorities.
Read more: Employer of Record in Chile and Payroll Taxes & Expenses in Chile
Salary Trends for Software Developers in Chile
If you wish to hire a software developer, it makes sense to find out how much it’ll cost you to do so, depending on the developer you’re interested in. The following list shows how much it costs to hire different software developers per year, depending on their skills:
| Position | Junior Annual Salary (USD) | Middle Annual Salary (USD) | Senior Annual Salary (USD) |
| Front-End Software Developer | 30,000 | 40,000 | 81,000 |
| Back-End Software Developer | 33,000 | 42,000 | 89,000 |
| Mobile App Developer | 24,000 | 30,000 | 38,000 |
| Data Scientist | 19,000 | 42,000 | 77,000 |
| DevOps Developer | 15,000 | 28,000 | 34,500 |
| Position | Chile AverageAnnual Salary (USD) | USA Average Annual Salary (USD) |
| Front-End Software Developer | 50,300 | 109,000 |
| Back-End Software Developer | 54,600 | 122,000 |
| Mobile App Developer | 30,600 | 100,000 |
| Data Scientist | 46,000 | 128,000 |
| DevOps Developer | 25,800 | 125,000 |
The information in these tables show the average annual salary of Chile’s software developers by calculating the mean value of the salaries for junior, middle and senior developers. The average annual salary for Chileans is lesser than the average annual salary of their counterparts in US, regardless of skill level and experience.
Navigating Chile’s Software Development Market
Due to the several benefits of hiring Chilean software developers, many software companies outsource to experts in the country. This type of tech outsourcing is quite popular in Chile because it costs relatively less to hire developers from the region than in some European countries. While Chile’s tech outsourcing market is worth around 700 million dollars, tech is projected to reach 1 billion by 2029.
Over the last decade, the Chilean government has introduced several incentives to boost the growth of Chile’s tech ecosystem. One of these initiatives is StartUp Chile, an incubator program launched in 2010. Since its inception, this incubator has provided equity financing and support to startups in Chile. This program significantly contributes to Chile’s reputation as the Silicon of Latin America. Startup Chile has supported the growth of 1,600 startups since 2010. Chile also offers several tax incentives for tech companies, thereby creating an environment that promotes the growth of local software developers and other tech professionals. Here’s a list of different initiatives that have been instrumental to the development of Chile’s tech ecosystem:
- Talento Digital: A government initiative to train young people on trending digital skills.
- Tech Visa: Chile offers tech visas to investors and entrepreneurs to connect software developers with collaborators.
- Tech Parks: Chile has its fair share of tech parks, including Hub Apta, Hubtec, Know Hub Chile and Enel Innovation Hub Chile.
- Girls in Tech Chile: Chile’s female-led organization created to support Chilean women in STEM fields.
- Fundacion Kodea: This program trains teens on coding and other digital skills in a formal setting to enable them to get trending digital jobs.
Chile has become a development and testing ground for emerging technologies because of its strong tech presence. You’ll find several tech products in the e-commerce, fintech, and renewable energy industries. Many tech companies are eager to operate in this region due to its solid telecommunication infrastructure, high innovation acceptance and high internet penetration rate.
Venture capitals worldwide are also keen to invest in Chilean startups because of the country’s political stability, stable economy, and track record of successful startups. Consequently, many foreign tech companies are open to collaborating with software developers in Chile.
Chile has the largest tech workforce in Latin America. Its tech hubs like Santiago attract the most prominent tech brands, including Amazon, Starlink, Google, and Microsoft, who wish to leverage the region’s cast tech infrastructure. Aside from Santiago, other key tech hubs include Valparaiso and Concepcion. These parts of the country also attract big names like Google, Uber and IBM. Concepcion is also renowned for its diversity, focusing on other fields, including cybersecurity, commerce, and digital marketing.
What You Need to Know to Hire a Chilean Developer In-House
By now, you’ve learned many impressive details about why you should hire a Chilean software developer. Here’s a list of things to note when hiring a Chilean developer in-house:
- Taxes: Chilean software developers are expected to pay a progressive rate of 4% – 35.5% depending on the taxable income earned.
- Leaves: According to Chilean labor law, developers in Chile are entitled to maternity and paternity, sick, and annual leave. However, they may also be offered additional days off, like childcare and bereavement leave.
- Working Hours: Chile currently runs a 44-hour work week. The working hours will be reduced to 42 hours per week in 2026 and 40 hours per week in 2028.
- Employee Benefits: Chilean employees are entitled to statutory benefits, including a minimum wage, social security contributions, pension, work accident insurance, disability and survival insurance, gratification and unemployment insurance.
Globy’s expertise ensures seamless hiring, from compliance to onboarding.
Read more: Work Hours in Chile
FAQs
Top platforms to hire software developers in Chile include LinkedIn, GitHub, and local job boards like Laborum and Computrabajo. Additionally, specialized tech platforms like Get on Board and Freelancer.cl are excellent resources for finding qualified software developers.
To find freelance software developers in Chile, use platforms like Freelancer.cl, Upwork, and Fiverr. These sites allow you to review profiles, portfolios, and ratings, ensuring you find skilled developers suited to your project’s needs. Networking through LinkedIn and local tech communities is also effective.
When hiring a software developer in Chile, look for candidates with relevant education (such as a degree in Computer Science), proficiency in programming languages, experience with specific technologies or frameworks, and a strong portfolio of past projects. Soft skills like problem-solving, communication, and teamwork are also crucial.
The hiring process for a software developer in Chile typically takes four to eight weeks. This timeline includes sourcing candidates, conducting interviews, assessing technical skills, and negotiating terms. Using specialized recruitment agencies or EORs can help streamline the process and reduce hiring time.
