Whether you're a founder preparing to expand internationally or a CFO seeking better ROI on your hiring budget, recruiting in emerging markets like Latin America (LATAM) and Southeast Asia is no longer considered thinking outside the box — it's a strategic necessity.
With deepening talent pools, lower labor costs, and rising productivity, these regions present compelling opportunities for companies eager to build cost-effective global teams through remote work without sacrificing talent quality.
Key takeaways:
- Emerging markets offer access to skilled, multilingual professionals in fast-growing tech and service sectors, often at a fraction of the cost of hiring locally.
- Countries like Brazil, the Philippines, and Vietnam produce STEM talent at scale, making them the go-to regions for technical hiring.
- Companies that embrace emerging markets gain more than cost savings (which amount to about 30-50%, even after hiring fees), they also tap into innovation, cultural diversity, and 24/7 productivity potential.
What Are the Benefits of Hiring in Emerging Countries?
Building a global workforce isn't just about saving money; it's about gaining an edge in the recruitment process by tapping into the best talent, no matter where they live. When you expand your hiring horizons to emerging markets, you gain fresh perspectives, cultural insights, and diverse approaches to problem-solving.
You also significantly broaden your talent pool. Instead of fiercely competing for the same candidates in saturated markets, you can access professionals with world-class education, specialized technical training, and the soft skill sets needed to collaborate effectively across borders.
Latin America (LATAM) and Southeast Asia are two regions that particularly shine as talent hotspots. Each offers unique advantages to companies ready to embrace global recruitment strategies.
Broader Talent Access: Tapping Into Growing Skill Markets
The scale and sophistication of talent pools in these regions are expanding at remarkable rates:
- LATAM: Home to over 630,000 software engineers, Brazil boasts Latin America's largest tech talent pool. According to data aggregated from LinkedIn, this number may even be closer to 750,000, with Mexico following close behind at approximately 560,000 software developers and Argentina placing third with about 160,000 developers.
- The Philippines produces a significant number of STEM professionals, with around 200,000 Filipinos enrolling in various engineering programs annually and approximately 40,000 graduating each year.
- Vietnam has one of Southeast Asia's largest tech talent pools, with over 450,000 IT engineers and 58,000 IT students graduating each year.
- Out of all the countries in the world, India produces the most STEM graduates per year, with 34% of its college students enrolled in STEM fields.
If you're having a tough time finding the right talent locally, these regions don't just offer more candidates — they also bring highly specialized skills to the table.
From machine learning engineers in Argentina to mobile developers in Vietnam, emerging markets have become incubators for precisely the skills driving today's innovation economy.
Where to Hire in LATAM
Latin America is a great fit for North American companies. Minimal time zone differences make real-time collaboration easy, and many professionals speak excellent English and are already in tune with U.S. business culture.
Brazil
Brazil offers access to a talent gold mine with over 750,000 software developers — the largest pool in Latin America. With more than 46,000 tech graduates annually, the country delivers a steady stream of skilled professionals at competitive rates.
Brazilian developers excel at complex projects, bringing strong problem-solving skills and the kind of creativity that drives innovation to the table. Brazil delivers outstanding value for companies seeking technical talent with cultural compatibility at significant cost savings.
Colombia
Colombia has transformed into a regional tech leader thanks to government support and major private investments since the mid-1990s. With more than 150,000 IT professionals and major tech hubs in Medellín and Bogotá, companies gain access to a growing talent pool that shares U.S. time zones.
The time zone alignment enables real-time collaboration throughout the workday, which can be a critical advantage for deadline-driven projects that require frequent communication.
Argentina
Argentina stands out for its high-quality creative and technical talent, with approximately 167,000 software engineers and strong English proficiency (ranked #1 in Latin America).
The education system produces professionals who excel in specialized fields like animation, game development, and software programming. Argentina offers a compelling option for companies seeking sophisticated developers with excellent communication skills at a fraction of U.S. costs.
Mexico
Mexico combines NAFTA-proximity advantages with a rapidly expanding digital sector. The country is home to about 700,000 software developers and produces approximately 130,000 engineering graduates annually.
Its proximity to the U.S. enables similar time zones and actual in-person collaboration when needed for complex projects.
Mexican professionals are particularly skilled in manufacturing tech and telecom, making them an excellent fit for companies working at the intersection of hardware and software.
Where to Hire in Southeast Asia
Southeast Asia represents another talent-rich region, with several countries developing specialized capabilities relevant to global businesses.
The Philippines
The Philippines is a standout when it comes to global talent, with over 200,000 tech pros and top-tier English skills, thanks to English being the country's second language. That means smooth communication with English-speaking teams and no translation headaches.
And it's not just tech, Filipino professionals shine in other sectors, including customer support, UI/UX design, and digital marketing. The Philippines is a smart bet if your company values clear communication, strong cultural alignment, and serious cost savings.
Vietnam
Vietnam has rapidly emerged as a powerhouse for technical talent, particularly in software engineering, with a talent pool of 530,000 developers.
Vietnamese universities produce approximately 57,000 IT graduates annually, with particular strengths in back-end development, mobile applications, and QA automation.
Indonesia
With the largest population in Southeast Asia, Indonesia offers scale alongside specialized skills. Thanks to a large, young population with increasing digital literacy, the country's digital economy is among the fastest-growing in Southeast Asia, projected to exceed $130 billion in 2025.
Indonesian talent offers valuable insights for companies targeting Asian market expansion, with professionals who understand regional consumer behavior and digital trends across the world's fastest-growing economic region.
Malaysia
Malaysia offers a uniquely multilingual workforce that bridges East and West, with professionals fluent in English, Mandarin, and local languages. This linguistic versatility creates opportunities for companies targeting multiple Asian markets through a single team.
With 43.5% of graduates coming from STEM fields (the highest percentage worldwide) and a strong infrastructure, Malaysia delivers sophisticated technical talent with global communication capabilities — ideal for internationally focused projects.
The Labor Cost Advantage: Lower Salaries, Higher Value
Professionals in emerging markets often bring impressive academic credentials, global experience, and multiple languages to the table. Yet, their salaries typically reflect local costs, not the global demand for their skills.
This cost differential creates remarkable opportunities for employers:
- According to ZipRecruiter, a mid-level software engineer in the United States earns approximately USD 147,524 annually, while in Brazil, the average is around USD 60,000, a savings of almost 60%.
- UX designers in the United States command an average annual salary of USD 126,541, according to Indeed, while in Brazil, the same role averages just USD 16,800 per Glassdoor — a difference of nearly 87%.
- Virtual assistants in the United States earn approximately USD 41,600 annually, according to Talent.com, compared to just USD 7,375 in the Philippines per Indeed data — a savings of around 82%.
To be clear, these cost differences reflect economic realities, not skill disparities.
Productivity and Output: More Than Just Cost Savings
Global hiring isn't just about cutting costs; it can make your team more productive. Many companies find that bringing in international talent leads to advantages like:
- 24/7 operations: "Follow-the-sun" development cycles advance projects around the clock, solving critical issues without waiting for your local team to log on for the day.
- Expanded capacity: You can build larger specialized teams for less. Three Southeast Asian developers might cost the same as one U.S. developer, and triple your output.
- Strategic coverage: Provide round-the-clock customer support without expensive night shifts, with multilingual teams serving global customers in their native languages.
- Global perspective: Gain fresh problem-solving approaches, local market insights for international expansion, and improved user experience design for global audiences.
The ROI gets even better when you look at output per dollar. Instead of paying premium rates for rush work in one location, global teams can tackle the same projects faster and more affordably by working across time zones.
Calculating ROI: What's the Real Payoff?
Let's take a look at one potential scenario: a mid-sized tech company that needs to build a product development team with five engineers, two designers, and a project manager.
U.S.-Based Team (Annual Cost):
- 5 Software Engineers: USD 737,620 (USD 147,524 × 5)
- 2 UX/UI Designers: USD 253,082 (USD 126,541 × 2)
- 1 Project Manager/Virtual Assistant: USD 41,600
- Total: USD 1,032,302
Globally Distributed Team (Annual Cost):
- 5 Software Engineers (Brazil): USD 300,000 (USD 60,000 × 5)
- 2 UX/UI Designers (Brazil): USD 33,600 (USD 16,800 × 2)
- 1 Project Manager/Virtual Assistant (Philippines): USD 7,375
- Total: USD 340,975
Annual Savings: USD 691,327
Even after you factor in Employer of Record (EOR) fees, payroll tools, and cross-border compliance, the ROI is hard to ignore.
Companies that shift 20 to 30% of their headcount to emerging markets often see 30 to 50% cost reductions while maintaining or even improving productivity.
Overcoming the Complexities of Global Hiring
Even with all the upsides, global hiring isn't without its challenges, such as:
- Worker misclassification risks
- Navigating country-specific labor laws and tax codes
- Managing employment contracts, employee benefits (including healthcare), and global payroll
That's where an EOR can help. An EOR like RemoFirst acts as the legal employer on your behalf in a foreign country — handling compliance, payroll, onboarding, and benefits — while you retain full control over your employee's day-to-day work.
With an EOR managing the legal and administrative complexities, companies can focus on what matters most: finding and hiring the right talent.
Grow Your International Team in Emerging Markets With RemoFirst
RemoFirst enables companies to employ the best talent in 185+ countries and manage and pay contractors in 150+ countries — all without establishing local entities or needing to independently navigate complex international compliance issues.
Our platform handles the entire employment infrastructure, including:
- Compliant employment contracts tailored to each jurisdiction
- Global payroll processing and tax reporting
- Benefits administration
- Employment law compliance and risk management
RemoFirst removes the barriers and hassle from global hiring so you can tap into top talent in emerging markets without worrying about red tape or compliance headaches.
Ready to transform your approach to talent acquisition and build a world-class global team?
Book a demo to see how we can help you employ the best talent, no matter where they're based.
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