Nearshore Outsourcing Software Development to Peru: Why You Should Hire Peruvian Developers

January 12, 2022
Reх Huхford
More US companies are choosing to nearshore their software development to Peru. Learn the benefits of hiring Peruvian developers and how to do it.
Nearshore Outsourcing Software Development to Peru [Full Guide]

For new startups, hiring the right tech talent is often the most crucial as well as the most difficult business challenge. The price of hiring U.S.-based software engineers continues to rise even while the tech skills gap grows. Many companies are seeking to solve both issues by outsourcing tech talent from other countries.

Although Asia is often people's first thought when it comes to outsourcing developers, there are significant advantages to looking at nearshore outsourcing instead. Peru, in particular, has a lot to offer in terms of qualified, economical tech talent. The vibrant culture, growing economy, and robust tech infrastructure of Peru make it a hidden gem for finding untapped potential.

If you're looking to find the best developers for your company at a price you can afford, Peru is worth a second look. In this article, we'll discuss all of the benefits and challenges that come with hiring Peruvian software engineers.

Advantages of Nearshoring Software Development to Peru

The biggest advantages of nearshore outsourcing to Peru revolve around Peru's similarities to the U.S. The work ethic, culture, training, and values of Peruvian developers are similar to what you're accustomed to finding in the U.S. The biggest difference that makes Peru a perfect choice for finding talent is the low cost of living.

This, combined with the favorable currency conversion rate, means that Peru is a great place to find software developers who are trained to the high standards of the U.S. but are much less expensive to hire.

Same time zones as the U.S.

Unlike Asia and Eastern Europe, Peru shares its time zone with the U.S. Depending on the time of the year, Peru's time aligns with either EST or CST time zones. Being able to work with developers in real time is a huge benefit to outsourcing from Peru. You'll be able to deal with issues as they arise instead of having to wait for them to be addressed overnight. Iterations and rapid deployment protocols are also much easier when you can collaborate live instead of having to pass messages back and forth.

Thriving tech scene

Peru ranks among the top 10 countries with the highest percentage of early-stage entrepreneurial activity. Almost one-fourth of adults in Peru have started a business in the past four years. This is a reflection of the rising startup culture in Peru. The government and private sector are heavily invested in creating a flourishing tech culture.

Some of these investments include:

  • UTEC Ventures: This is a startup accelerator program run by the University of Engineering and Technology (UTEC) in Peru. It's among the most active early investors in new businesses in Peru.
  • Innovate Peru: The National Productive Diversification Plan of the Ministry of Production in Peru administers this program, which is designed to increase business productivity by strengthening the companies, entrepreneurs, and support systems involved in the innovation ecosystem.
  • Startup Peru: Peru's Ministry of Production also runs this initiative. Startup Peru works with incubators, accelerators, and angel networks to finance specialized services for startups. They also provide seed capital to innovative startups.
  • MIT REAP: MIT Regional Entrepreneurship Acceleration Program provides opportunities for global communities, including those in Peru, to work within research-based frameworks to strengthen innovation and entrepreneurship.

Educated workforce

Peru's tech education infrastructure is supported by its government and private institutions. The country's rapidly expanding tech industry is driving the increase in tech education. For instance, UTEC doesn't just invest in early startups — this $100 million university is one of the most modern in Latin America and is a big part of the rise in engineering and other tech graduates in Peru.

In addition to UTEC, there are several other universities that offer an excellent tech education, including the Pontifical Catholic University of Peru and the University of the Pacific. Overall, Peruvian developers have world-class skills that make them competitive in the global marketplace.

Although Peru as a whole isn't widely proficient in English, software developers with college degrees are more likely to be proficient than the general population.

Cultural compatibility

Peru is a beautiful country that's rich in diversity. The culture of Peru blends native traditions with European, Asian, and African influences. Over 90% of the country is Catholic. Although there are certainly some differences, the Peruvian culture is similar enough to that of the U.S. that there shouldn't be any major culture shocks.

Additionally, many software developers in Peru have experience working with international companies due to the many foreign tech companies that maintain a presence there. The workday and business practices in Peru largely overlap with those in the U.S.

Cost savings

One of the biggest advantages of hiring developers from Peru is the cost savings. The currency of Peru is the sol, and its exchange rate is favorable for the dollar. the cost of living in Peru is also much lower than in the U.S., allowing Peruvian developers to maintain a similar standard of living for much less. Hiring a Peruvian software developer comes at a fraction of the cost of hiring a comparable U.S. software developer. We'll go into precise numbers in the next section, but overall, developers from Peru are a bargain across tech stacks and skill levels.

The Cost of Outsourcing Software Development to Peru

The total cost of hiring a developer from Peru will depend on several different factors, but we've included base salaries for different skill levels and categories below. However, note that your final cost will be higher since it will include other expenses.

Average yearly salary rates for Peruvian software developers

According to Salary Explorer, the average software developer salary in Peru is 82,920 soles (S/) per year. In U.S. dollars, this is approximately $20,968. This is a fraction of the $88,280 per year that U.S.-based software developers earn.

Junior salary rate

Developers who are just getting started or have up to two years of experience earn around S/67,320 ($17,018) per year.

Mid-level salary rate

Mid-level software developers generally have between three and five years of experience. They still need supervision, but they can work more independently and take on more responsibility than junior developers. Accordingly, they earn more, averaging around S/82,920 ($20,968) yearly.

Senior salary rate

Senior developers have over five years of experience and are highly qualified. They can run their own teams, so they command the highest salary. Peruvian senior software developers earn an average of S/114,000 ($28,827).

Average monthly salary rates by tech stack

The average monthly salaries for Peruvian developers based on tech stack are as follows:

  • Android developer: S/6,990 ($1,767)
  • Angular developer: S/6,190 ($1,565)
  • C# developer: S/7,800 ($1,972)
  • C++ developer: S/7,620 ($1,926)
  • CMS developer: S/5,780 ($1,461)
  • Front end developer: S/5,750 ($1,454)
  • Full-stack developer: S/7,190 ($1,818)
  • Game developer: S/6,570 ($1,661)
  • GIS developer: S/6,860 ($1,734)
  • Graphics programmer: S/6,110 ($1,545)
  • IOS developer: S/7,390 ($1,868)
  • Java developer: S/8,010 ($2,025)
  • JavaScript developer: S/6,900 ($1,744)
  • Node.js developer: S/7,330 ($1,853)
  • Python developer: S/7,180 ($1,815)
  • Salesforce developer: S/5,310 ($1,342)

Average hourly rates to outsource to Peruvian senior developers

If you're interested in hiring developers by the hour, the average hourly rate is S/40 ($10).

Disadvantages When Hiring Peruvian Developers

Although there's no doubt Peru has a lot to offer when it comes to outsourcing tech talent, including a rapidly growing pool of high-quality talent at a much lower cost, you'll also face some challenges.

Difficult for foreign entities to reach local talent

One of the biggest hurdles you'll face is connecting with local talent. Unless you're fluent in Spanish, reaching out to developers on job boards and websites will be a challenge. You also probably don't know the best places to search for qualified talent. Even if you're able to craft an effective ad in Spanish, without knowing where to find qualified developers, you're likely to be flooded with unqualified applicants. If you try to hire developers on your own, make sure you budget enough time to screen applicants.

Navigating local compliance

Understanding the local labor and tax laws is critical when you're planning to hire developers from another country. It's a good idea to consult with an attorney who specializes in Peruvian labor and tax law so you can be sure your IP rights are protected. An attorney will also help to protect you from the fines and penalties that could result from noncompliance.

A full review of Peruvian labor laws is beyond the scope of this article, but here is a general overview:

Employee entitlements

All employees in Peru are entitled to certain benefits, including:

  • 20 days of sick leave paid for by the company
  • 30 days of paid vacation each year
  • 98 days of paid maternity leave
  • 10 days of paid paternity leave
  • Bonuses equal to one month of their salary in July and December

Hiring contractors

Many companies try to avoid the hassle associated with hiring employees by hiring them as independent contractors instead. If you hire a Peruvian developer as an independent contractor, they're responsible for their own taxes and aren't entitled to any benefits. However, you can't simply decide you want to hire an independent contractor and then treat them as an employee.

Whether a developer is an independent contractor or an employee depends on the nature of your relationship and how they perform their work, not simply what you call them. The penalties for misclassifying an employee as an independent contractor are hefty, so you'll want to be sure you're in compliance. Briefly, an independent contractor meets the following criteria:

  • Non-exclusive to the company
  • Controls their work hours
  • Charges a fee for a service rather than getting paid a salary

Revelo: We handle the hurdles of finding and hiring Peruvian developers

If you want to reap the benefits of outsourcing from Peru while avoiding the hassles, Revelo can help. We make it easy to hire the top Peruvian tech talent you need to move your business forward. We prescreen candidates so you can rest easy knowing that you're hiring qualified applicants. If establishing a local entity sounds overwhelming and you don't want to violate Peruvian labor laws, let us manage your payroll, benefits, compliance, and more. You can focus on fulfilling your business goals instead of sifting through resumes and consulting with lawyers.

Where to Find and Hire Peruvian Software Engineers

You can find Peruvian software developers in a variety of places. Some options, such as public job boards, require a lot of hands-on work from you, while others, such as a talent marketplace like Revelo, provide access to a vetted supply of qualified talent.

Peruvian Job Boards

Peruvian job boards, like their U.S. counterparts such as Monster or Indeed, let you publish a job ad. You'll then have to sort through the resumes to find qualified applicants.

Computrabajo Perú

This is the largest job board in Latin America. You can post for free if you're hiring up to 10 candidates. If you need to post more than 10 ads, you'll have to sign up for a membership.

Bumeran Perú

Some ads are free to publish with Bumeran Peru, but for tech jobs, you have to contact them to set up an account.

Indeed Perú

This is the Peruvian branch of Indeed. It's free to post a job, but paying to sponsor your job will give it more visibility and help you attract more candidates.

Remote freelancing sites

International remote freelancing sites also offer you the opportunity to hire developers from Peru. These sites include developers from all over the world, so you will probably attract people from many different countries, not just Peru.

Upwork

When you join Upwork, you can post jobs for free. Contractors can then send you a cover letter and bid on your job. If you'd like an account manager to help with sourcing talent and job upgrades, it will cost you $49.99 per month.

Fiverr

On Fiverr, you can browse through services (called gigs) offered by freelancers. Most freelancers offer a package for a set price, and you can upgrade for custom options. For instance, a basic package may include developing a simple mobile app with a menu of options to choose from for $100. A premium package from the same freelancer may include a 30-screen, fully functional app with the source code and professional graphics for $2,000.

Talent marketplaces

If you know exactly what you need and you'd rather not invest so much time in finding qualified talent, you can go through a talent marketplace. These platforms can provide you with a pool of vetted, highly qualified candidates. They're prescreened and tested so you know they have the skills you need.

Revelo

Revelo is one of the best tech talent platforms in the world. You can find, hire, and manage top tech talent from all over the world through one platform. Revelo tests and screens software engineers so you can focus on more important things, such as running your business. All of Revelo's developers are proficient in English. We even offer a risk-free trial so you can make be the developers you hire will fit in well with your team.

We also take care of all of the headaches associated with international labor law compliance. Our team of human resources and legal experts make sure you're in compliance with all applicable labor and tax laws. We also offer perks and benefits to your remote hires that will keep them happy, reduce churn, and make them feel like a valued part of your team.

Key Takeaways

Peru is rapidly becoming a major tech talent hub. It's not yet as competitive as India, so now is the perfect time to hire Peruvian software engineers. With its growing economy, healthy IT infrastructure, and low cost of living, Peru's talent pool consists of thousands of qualified developers for your next project. Here are the top benefits you can expect when you hire Peruvian developers.

1. Compatible work hours

Integrating Peruvian developers into your team will be easy since the time difference is minimal. Real-time collaboration will boost your productivity and increase your company's organizational agility.

2. Cost efficiency

Due to the lower cost of living, it's much cheaper to hire developers from Peru than from the U.S. Whether you're paying them hourly or a salary, you'll pay a fraction of the price.

3. Educated workforce

Private firms and the government have heavily invested in creating an educated tech talent pool in Peru. Innovation and entrepreneurship are highly valued in Peru. Colleges such as UTEC are turning out bright, ambitious software engineers who are accustomed to working in the global marketplace.

4. Compatible culture

The Peruvian culture is rooted in a rich history while looking towards the future. Peruvian business practices and values are very similar to those in the U.S. Innovation, professionalism, and excellence are prized in both countries.

5. Flourishing tech infrastructure

Peru ranks among the top 10 countries in terms of early-stage entrepreneurs. The government, foreign private institutions, and other accelerators have invested a lot of money and resources into promoting an innovative, entrepreneurial ecosystem in Peru.

If you're interested in hiring developers from Peru, reach out to our team to find out how we can help you.  


Need to source and hire remote software developers? Get matched with vetted candidates within 3 days.

Get the best insights on remote work, hiring, and engineering management in your inbox.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Table of contents

Recent blog posts