5 reasons engineering is moving nearshore

800 of you answered the engineering survey.

You are hiring engineers this year.

Here is why more of that hiring is landing in Latin America.

5 reasons US companies build engineering teams nearshore

1. Your standup happens live. Most of LATAM overlaps the full US workday. No overnight handoffs. No 24-hour bug cycles. You review code the same afternoon it ships.

2. Senior output at a different cost base. An AI or GTM engineer in LATAM runs $3,500 to $5,500 per month. The comparable US hire anchors near $140K per year plus benefits.

Senior Top 1% in LATAM will run $8,000-12,000 USD; these are comparable to $250,000 USD Engineers in SF and NYC, the demand is extremely high here! Placements are not 48 hours.

Managed Staffing hires come at one all-in monthly rate.

3. English that holds up. Every candidate is vetted for strong, near accent-free English. Bilingual by default. The failure you are insuring against is the hire who says yes without understanding. That does not pass our screen.

4. People stay. 85% of hires stay past 90 days. A competitive LATAM salary funds a strong local life, so tenure follows. Managed Staffing adds a 24 month replacement guarantee. Replacements are not capped.

5. They build with AI, not around it. Claude Code came up on 40 of our last 44 buyer calls. The engineers we place are already shipping with these tools daily.

Some of you got burned by hires 10 time zones away. Some of you have a product ready and nobody in the seat. Nearshore solves both. We have made 10,500+ placements since 2016, and most buyers add a second seat after the first one works.

Next week: the Barbell

One startup founder told NBC that inventing something new is "really hard to do that over Zoom." He is half right. The best CTOs now run a barbell. They keep 1 or 2 leaders onsite in SF or NYC. They build the full team in LATAM. Next Monday I will show you the math, the org chart, and the mistake that breaks it.

Salvador Rodriguez, CNBC

Salvador Rodriguez is a CNBC technology reporter covering Facebook and social media.

I read every reply, so tell me which engineering role you are hiring next.

Amir - Book time with me