Nearshore or Offshore? Comparing Latin America and Eastern Europe for Software Projects

Written by: Monserrat Raya 

Introduction

Choosing the right region for software development isn’t just about cost anymore. In 2025, U.S. tech leaders are facing more complex questions: Where will teams communicate better? Which region offers legal security? How fast can new hires ramp up and integrate? While both Latin America and Eastern Europe remain popular destinations, their strengths—and challenges—differ in ways that can make or break a project.

This guide offers a direct comparison between these two regions, helping CTOs and decision-makers evaluate what matters most for long-term delivery success. Whether you’re scaling a startup or optimizing enterprise delivery, the right regional choice can impact everything from product speed to stakeholder trust.

Why This Comparison Matters More Than Ever in 2025

Over the last few years, the global outsourcing landscape has shifted significantly. Eastern Europe—especially countries like Ukraine and Poland—has long been a stronghold for offshore development. But with geopolitical instability, inflation, and shifting workforce trends, many companies are rethinking their exposure.

The war in Ukraine has disrupted delivery for countless teams and brought new risks to IP protection and operational continuity. Additionally, rising costs in cities like Warsaw or Bucharest have narrowed the price advantage many Eastern European teams once held.

Meanwhile, Latin America has quietly risen from a cost-saving option to a nearshore powerhouse. With growing investment in tech education, thriving startup ecosystems, and a deepening relationship with U.S. business culture, LATAM has become more than just “close”—it’s compatible. Countries like Mexico, Colombia, and Brazil are not only turning out more developers than ever, but they’re also aligning with the Agile practices and communication rhythms U.S. companies rely on.

For companies in Austin, Dallas, and other U.S. tech hubs, nearshoring to LATAM offers a strategic alternative with less friction and more collaboration.

Developer Talent & Availability

Talent availability is one of the most critical factors when outsourcing software development. Both Latin America and Eastern Europe are known for their deep engineering pools—but how do they truly compare in 2025 in terms of scale, specialization, retention, and readiness to integrate with U.S. teams?

Let’s break it down beyond just numbers.

Scale vs. Specialization

While Eastern Europe has long been known for deep academic training in disciplines like systems programming, embedded development, and enterprise-level .NET stacks, Latin America’s tech ecosystem has evolved to meet the demands of global startups and product-driven companies. As a result, LATAM developers are more likely to have hands-on experience with: – Agile SaaS delivery models – API-first development – Mobile-first UX – Cloud-native architectures (AWS, GCP, Azure)

In regions like Guadalajara, São Paulo, Medellín, and Buenos Aires, you’ll find engineers accustomed to CI/CD pipelines, version control best practices, and real-world sprint cadences—all things U.S. teams rely on daily.

Education + Workforce Development

LATAM governments and private institutions have heavily invested in workforce digitalization over the last decade. Brazil and Mexico lead in STEM university enrollment, while Argentina and Colombia show significant growth in bootcamp-trained, job-ready developers. For example: – Brazil graduates over 100,000 tech professionals per year – Mexico has launched public-private initiatives like Talent Land and Platzi partnerships – Argentina maintains one of the highest English proficiency levels in the region

By contrast, Eastern Europe continues to benefit from world-class math and engineering programs, especially in Poland, Ukraine, and Romania but many developers are now being pulled into Western European or UK-based contracts, increasing competition and attrition.

Retention + Ramp-Up

Developer attrition is a silent killer in software delivery. LATAM’s average turnover is around 15–20%, thanks in part to stronger retention incentives and better alignment with North American work culture. In contrast, Eastern Europe has seen attrition spike to 25–35%, especially in markets like Ukraine and Belarus due to war and political uncertainty.

Ramp-up time also matters: LATAM developers, used to U.S. time zones and collaboration styles, typically integrate in 2–4 weeks. Eastern European devs, while capable, may need longer onboarding cycles to adapt to communication norms and stakeholder expectations.

Developer Mobility + Market Access

Remote work has become the norm in both regions, but LATAM developers increasingly work with U.S. clients from the start. Many are fluent in async tools (Slack, Jira, GitHub), and familiar with U.S. product-led roadmaps. This reduces the learning curve and accelerates trust.

In short: Latin America is not only growing in numbers; it’s maturing in readiness. The region is producing more developers every year, but more importantly, it’s cultivating talent equipped for Agile delivery, cross-cultural collaboration, and long-term strategic partnerships.”
— Based on insights from Statista, JoinGenius, and The Frontend Company

Cultural Alignment and Communication

Timezone overlap is often underestimated—but it makes or breaks collaboration. LATAM teams typically share 6–8 hours of the U.S. workday, while Eastern Europe only overlaps 2–3 hours for most U.S. teams.

Beyond just time zones, cultural fit plays a huge role in software delivery. LATAM teams often share U.S. values around ownership, collaboration, and feedback. Developers in Mexico or Colombia are more likely to speak up in standups, participate in retrospectives, and contribute beyond assigned tasks.

In contrast, Eastern European teams—while highly competent—tend to take a more formal, task-based approach. Feedback may be seen as criticism, and cultural norms can discourage open challenge. This doesn’t mean teams can’t perform—it just means communication expectations need more calibration.

Many U.S. managers worry about cultural friction when outsourcing. Here’s why it matters.

Cost Comparison: Is One Region Actually Cheaper?

At first glance, Eastern Europe may appear slightly cheaper—but total cost of delivery tells a different story. When you factor in handoff delays, rework, and developer turnover, Latin America often provides better value.

Hidden cost alert: Time zone drag, long feedback loops, and low visibility into progress can add 10–15% more time to offshore sprints. LATAM’s overlap enables same-day iteration, improving velocity and predictability.

Retention also plays a role. High churn in Eastern Europe—driven by startup migration and regional competition—can increase costs related to onboarding, ramp-up, and knowledge loss.

Understand the real cost of hiring developers

Legal, IP, and Risk Factors

In 2025, legal and geopolitical risks are top of mind for CTOs and compliance leaders. LATAM offers growing maturity in contract enforceability, IP protection, and data compliance—especially in Mexico and Colombia.

Eastern Europe’s alignment with EU law is a strength—but also a risk in unstable regions. Countries like Ukraine face real infrastructure risks. LATAM, while still maturing, has shown strong improvements in legal clarity, especially with partners operating under U.S.-compliant models.

Agile Delivery: Who’s Really Built for Speed?

Both regions have adopted Agile, but delivery rhythms and team structures vary.

Latin America tends to: – Prioritize collaboration across roles (QA, DevOps, Product) – Embrace pair programming, async updates, and demos – Match Agile ceremonies to U.S. cadences

Eastern Europe teams are often technically strong but may favor hierarchical structures or less feedback-oriented planning.

Agile is not just process—it’s participation. LATAM teams often integrate with U.S. product workflows more naturally, enabling smoother iterations and faster course correction.

Final Verdict: Which Region Fits Your Strategy?

No region is a silver bullet—but for U.S. companies prioritizing collaboration, clarity, and agility, LATAM checks more strategic boxes.

Ultimately, the right choice comes down to what your team values most: cost, speed, cultural fit, or long-term reliability. If you’re looking for a development partner that operates in your time zone, communicates with clarity, and integrates seamlessly into your Agile workflows, Latin America stands out as a strategic match for U.S. companies in 2025.

Want to explore how a culturally aligned, high-performing LATAM team could support your roadmap?
Let’s connect and talk about how Scio can help you scale with confidence.

1. Is Latin America better than Eastern Europe for software development?

It depends on your priorities. Eastern Europe may offer slightly lower hourly rates and deep technical expertise, but Latin America provides stronger cultural alignment, better timezone overlap, and often faster team integration. For U.S. companies, LATAM is often the better fit for Agile delivery and long-term collaboration.

2. What region offers better legal protection for IP and contracts?

Eastern Europe offers EU-level protections, but enforceability varies by country. In contrast, Latin American countries like Mexico and Colombia offer clear IP clauses, U.S.-style NDAs, and increasing contract transparency through U.S.-based providers.

3. How do communication styles differ between regions?

LATAM teams tend to be more collaborative, proactive, and fluent in Agile ceremonies like standups and retrospectives. Eastern European teams may lean more formal, with less spontaneous feedback. Both can deliver well—if expectations are aligned early.

4. Which region has more developers ready to work with U.S. companies?

Both regions have over 1 million active developers, but Latin America has stronger presence in product-driven roles and startup-ready environments. Developers are often trained with U.S. standards in mind and work on distributed teams from early in their careers.

5. What’s the biggest hidden cost when choosing Eastern Europe?

Time zone drag and turnover. Limited overlap with U.S. hours delays decisions and slows QA cycles. Higher attrition also creates re-onboarding costs and lost domain knowledge over time.

6. Are Latin American software teams ready for enterprise-level projects?

Absolutely. Teams in Mexico, Brazil, and Colombia are delivering for fintechs, healthcare, and government clients. They’re using modern stacks, CI/CD pipelines, and Agile practices to support large-scale transformation efforts.