Outsourcing to Peru: Unveiling Cost-Effective Rates and Top Talent Across Tech Stacks

Machu Picchu is a world heritage site that mesmerizes travelers and showcases the genius and skill of Peru’s Incan ancestors.

Today, Peruvians channel that same genius and skill—only now it’s applied to software development and engineering.

American businesses have recognized this talent and are outsourcing tech-based projects to Peru. In return, they’re seeing high-quality work delivered for low costs, with seamless collaboration.

Graphic with Peruvian flag and text "Outsourcing to Peru" by Hatchworks.

If you want, you can too. The trick is to work with an outsourcing partner you trust and follow our simple step-by-step process.

In this article, we’ll show you how.

The Appeal of Outsourcing to Peru

When American businesses look to Latin America for outsourcing opportunities, they find countries like Costa Rica, Colombia, and Brazil brimming with cost-effective, highly skilled tech talent.

It’s the same with Peru.

Let’s see just how cost-effective outsourcing to Peru is and how the country has worked hard to equip their people with a variety of in-demand tech skills.

Cost-Effectiveness of Outsourcing to Peru

When you consider the costs of onshore outsourcing, Peru proves far more affordable.

The average annual salary of a Peruvian software developer, for example, is $25,406. While in the US, the same caliber of talent starts at $84,000. That’s a difference of nearly $60,0000.

Want to see exactly how much you could save by outsourcing to Peruvian software developers through HatchWorks?

Get an instant estimate here with our Nearshore calculator.

Of course, you could save even more on talent by outsourcing to places like India, but that often comes with inconvenient time zones and inconsistent work qualities.

With Peru however, you’ll get high-quality work without burning through your budget. It’s the perfect meeting ground between wanting the quality of an American team with the cost-effectiveness of an Asian one.

Costs in Comparison
Outsourcing to Peru
Outsourcing to India
Outsourcing in the US
Average salary of software developer in Peru:
Average salary of software developer in India:
Average salary of software developer in USA:
Key considerations:
Key considerations:
Key considerations:
  • Highly qualified talent
  • Same or similar time zone
  • Low costs
  • Low costs
  • Drastically different timezone
  • Varying talent quality
  • Highly qualified talent
  • Same or similar time zone
  • High costs

Want to know more about the differences in outsourcing near or far? Check out our article: Nearshore vs Offshore in 2024: A Detailed Comparison of Outsourcing Models.

Quality and Diversity of Tech Talent in Peru

Peru leads Latin America with the highest rate of engineering tertiary degrees.

That’s not surprising, given Peru’s University of Engineering and Information Technology is widely regarded as one of the finest institutions in Latin America, with a collective investment of $100 million.

In fact, it’s so well regarded that Purdue University offers a study abroad program where Purdue students can spend a semester studying there and exploring the city of Lima.

Peru’s universities are committed to producing high-quality tech talent, beyond engineering.

Universities aren’t alone in boosting high-quality Peruvian tech talent. The Government is now building 11 Science and Technology Parks (STPs). These parks will provide state-of-the-art facilities designed to further Peru’s technological development and innovation.

We’re seeing a range of specializations come from these efforts. While some go on to become industrial engineers, others choose to focus on software, business IT processes, or healthcare.

The result? A remarkable pool of talent U.S. businesses can tap into.

📚 You might also like: Top Latin American Countries for Nearshore Software Development [2024]

Why Peru is Becoming a Go-To Destination for Outsourcing Software Development

Given all the above, it’s no wonder Peru is emerging as a go-to software outsourcing destination. But they’re not the only factors prompting this shift.

Significant economic growth along with cultural affinity and timezone alignment also make it an attractive destination for Nearshore Software Development.

Growth of the Tech Industry in Peru

By 2028, the revenue in the IT services market in Peru is expected to increase by 518.6 million U.S. Dollars—that’s an increase of 36.23%.

The graph below shows a breakdown of the projected increase in revenue by tech segment:

Bar chart of IT segment revenues from 2016 to 2028, noting Russia-Ukraine war impact.

But it’s not just projection. The chart also shows how outsourcing software development, among other services, has grown year-on-year since 2016. 2020, the year of COVID, is the only exception and even then the drop in growth was temporary.

Tech companies are on the rise in Peru too thanks in part to the Government’s ‘Startup Peru’ initiative which aims to support Peruvian startups with investment. It’s expected Peru will get its first Unicorn company in the years to come and we’re excited to see who that becomes and the work they do.

Cultural and Time Zone Advantages

When working on a project, cultural differences and lack of timely collaboration can derail and disrupt projects to costly ends.

With Peru and other countries in South America, you avoid all that.

Peruvian culture shares many similarities with American culture, including a strong work ethic, emphasis on punctuality, and open communication.

Coupled with the fact that Peru is in a similar time zone to the U.S., it’s easy to see why companies with software development projects find success working with Peru-based developers.

Peruvians are also highly proficient in English. The country ranks 51 out of 113 countries for English proficiency and as you can see in the graph below, is seeing an increase in English speakers.

Infographic with Peru's EF EPI ranking at 51, score of 521, and Latin America position.
All in all, Peru’s cultural affinity, English proficiency, and convenient time zone alignment make a working relationship easier.

How to Get Started with Outsourcing to Peru

Below, we’ve outlined four simple steps to help you get started with outsourcing software development to Peru.

You can also apply these steps to any Nearshore Software Development destination in Central or South America.

To learn more about those, check out our Nearshore Tech Talent Report for 2024.

Step 1: Research and Goal-Setting

First things first, you need to have a clear understanding of your project requirements and objectives.

Take some time to define the scope of your project, the specific skills and technologies needed, and your budget and timeline.

Having a solid grasp of these details will help you communicate your needs effectively and find the right fit for your project.

Step 2: Finding the Right Outsourcing Partner

Most companies don’t want to go through the hassle of hiring software developers on their own. So they use an outsourcing company to do it for them.

And there are plenty of outsourcing companies on the market. To find them, check out online directories and platforms like Clutch or GoodFirms, which provide reviews and ratings of top outsourcing firms in Peru.

You can also tap into your network and seek referrals from colleagues or industry peers who have experience with outsourcing to Peru.

Or you can save yourself the hassle and use HatchWorks.

We connect you with top talent from Latin America to match your exact project and budgetary needs and support you in communication and project management throughout the entire process.

Our team in the US makes sure the developers in places like Peru are well equipped to deliver work that exceeds expectations.

Why technology leaders rely on HatchWorks
Lower cost than onshore
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Step 3: Reaching Out and Due Diligence

Once you’ve identified a few promising candidates, it’s time to reach out and start a conversation.

Share your project details, ask about their experience and expertise, and don’t hesitate to request case studies or references.

It’s important to conduct thorough due diligence to ensure you’re partnering with a reliable and capable team.

Step 4: Evaluating Communication and Cultural Fit

When evaluating potential partners, pay attention to their communication skills, responsiveness, and cultural fit.

You want to work with a team that understands your vision, communicates clearly, and shares your values. Take the time to build a rapport and establish a strong foundation for a successful collaboration.

This is why at HatchWorks we have a US-based team working alongside you and your Peruvian developers. It guarantees cultural affinity and helps to smooth over any possible misunderstandings.

Best Practices for Successful Collaboration

Once you’ve found an outsourcing partner you trust to get the best software development talent Peru has to offer, it’s time to ensure the collaboration goes smoothly.

Below we’ve listed best practices we recommend all our clients follow.

They are:

  • Establish clear communication channels
  • Foster a positive working relationship
  • Embrace Agile methodologies

Establish Clear Communication Channels

Effective communication is the foundation of any successful collaboration.

Set up regular check-ins, whether it’s daily stand-up meetings or weekly progress updates, to ensure everyone is on the same page.

You can also set everyone up on project management tools like Jira to streamline communication, assign tasks, track progress, and enhance remote software development.

And don’t forget to establish clear guidelines for communication, such as preferred methods of contact. Some teams like to keep everything on email threads while others are more comfortable in Slack—whatever works best for you, make sure to communicate to your new developers.

Foster a Positive Working Relationship

You’ll want to build a strong, positive working relationship with your Peruvian outsourcing team. It will make it easier when the time comes to give feedback or if requirements change mid-project.

Treat them as an extension of your in-house team (because they are!) and create an environment of trust, respect, and open communication.

Celebrate milestones and successes together, and don’t hesitate to provide constructive feedback and recognition for a job well done.

Embrace Agile Methodologies

Agile methodologies, such as Scrum or Kanban, have proven to be highly effective in software development outsourcing. These approaches promote iterative development, regular feedback loops, and adaptability to change.

By embracing agile practices, you can foster a culture of transparency, collaboration, and continuous improvement.

Work with your Peruvian team to establish agile workflows that suit your project’s needs and enable you to deliver high-quality results efficiently.

At HatchWorks, we make sure our developers embrace an agile mindset and bring those methodologies into your team.

Dedicated Agile Teams

A specialized software development team that embeds itself within your organization.

Ideal for long-term projects where close collaboration and continuous delivery are key.

Learn more.

Abstract icon of a team cycle with arrows indicating interaction or workflow.

Tap into Peru’s Tech Talent with HatchWorks as your Nearshore Software Development Provider

At HatchWorks, we make hiring skilled developers more accessible and affordable than ever. As your Nearshore Software Development partner, we provide top-tier talent for projects of any size and duration.

We have developers from all across Latin America who have perfected their processes and mastered Generative AI leading to the same high-quality outcomes you’d expect, only faster.

Our method has led to a 30-50% productivity increase for our clients

Find out more about our Generative-Driven Development™. Or get in touch with us directly to talk over your needs.

Built Right, Delivered Fast

Start your project in as little as two weeks and cut your software development costs in half.