Nearshore Backend Development in Monterrey vs. Medellin

If you are looking for nearshore backend development, two cities that stand out are Monterrey, Mexico and Medellin, Colombia. Both have significant technology ecosystems that attract U.S. companies looking for skilled backend developers with API design, microservices, and cloud computing expertise. Monterrey benefits from its proximity to the U.S., a mature IT industry, and universities specializing in backend technologies such as CI/CD automation and scalable architectures. Meanwhile, Medellin is an emerging innovation hub with competitive costs and a growing pool of talent skilled in database optimization, DevOps, and modern backend frameworks.

In this blog, we'll compare these two cities across seven key factors, including cost, time zone alignment, and talent availability, to determine which offers the best environment for building a high-performing backend team.

Find out more about nearshore software development: The Complete Guide.

Nearshore Backend Development in Monterrey vs. Medellin

The following chart provides a visual comparison of nearshore backend development in Monterrey and Medellin based on five key factors: cost, time zone alignment, available talent, technology infrastructure, and English proficiency. These factors directly impact the efficiency and success of remote development teams.

Below, we will explore these factors in detail to better understand the benefits of nearshore backend development in Monterrey and Medellin and how they can impact the decision-making of companies seeking talent in Latin America.

Cost Comparison

Nearshore backend development in Latin America not only reduces costs but also improves productivity. U.S. companies that have outsourced to the region have reported savings of up to 50% and production efficiencies of up to 30%. Monterrey and Medellin stand out as competitive options but have key differences in cost and technical specialization.

Monterrey: In Monterrey, salaries for backend developers range from $3,750 to $6,250 per month, depending on their level of expertise in tools such as REST/GraphQL APIs, SQL/NoSQL databases, and cloud deployments. In addition, the city has companies that use microservices architectures and CI/CD, which can affect hiring costs.

Medellin: Medellin offers a more cost-effective option, with monthly salaries ranging from $3,125 to $5,625. Its growing technology ecosystem has driven demand for developers with skills in database optimization, API integration, and backend process automation. This cost difference may be relevant for companies with tight budgets or looking to scale their teams without compromising quality.

Time Zone Alignment

Time zone compatibility plays a critical role in nearshore backend development as it directly affects real-time collaboration, meeting schedules, and response times. Both Monterrey and Medellin offer favorable time zone alignments for U.S. companies, but there are some key differences to keep in mind.

Monterrey: Monterrey operates on Central Time (CT), which is the same time zone as cities like Chicago, Dallas, and Houston, and is only two hours ahead of San Francisco (PT) and one hour behind Miami (ET), making it an excellent choice for companies on both coasts. Teams working with Monterrey developers can expect a full workday overlap, ensuring seamless communication and minimal delays in project timelines.

Medellin: Medellin, meanwhile, follows Colombian Time (COT), which coincides with Eastern Time (ET) for most of the year, and is a good option for companies based in New York, Miami, or Washington, D.C., as it allows for real-time collaboration with no time difference. For West Coast companies in San Francisco or Los Angeles (PT), Medellin is two hours ahead.

Learn more about why time zone overlap matters for LATAM outsourcing.

Time Zone Alignment — Source: https://www.timeanddate.com/time/map

Talent Pool

When considering nearshore backend development, the availability of qualified professionals and the quality of educational institutions are key factors. Both Monterrey and Medellin have made great strides in cultivating technology talent, and each offers unique advantages.

Monterrey: It stands out as one of Mexico’s leading technology hubs, and it is supported by a strong educational infrastructure. The city is home to prestigious institutions such as Tecnologico de Monterrey and the University of Monterrey. The expansion is being driven by the city's emphasis on engineering and technology programs, ensuring a steady influx of skilled backend developers.

Medellin: Often referred to as Colombia's innovation capital, Medellin has also invested heavily in education and technology infrastructure. The city is home to prestigious institutions such as EAFIT University, which is known for its high-quality technology programs. The city's focus on innovation and entrepreneurship has fostered a vibrant community of skilled developers. Initiatives such as Ruta N have further enhanced Medellin's attractiveness by promoting science, technology, and innovation, attracting both talent and investment.

Technology Infrastructure

Technology infrastructure plays a critical role in the success of nearshore backend development. Monterrey and Medellin stand out as two of the most important technology cities in Latin America.

Monterrey: With an ecosystem of 121 startups, Monterrey is home to nearly 11% of Mexico's startups, consolidating its position as the second most important technology hub in the country. In addition, more than 70% of foreign direct investment linked to nearshoring has been directed to Monterrey. The city stands out for its highly productive and specialized workforce, making it a key destination for innovation and technological expansion.

Medellin: Established as a center of innovation and technology in Latin America and named "City of the Year" by the Wall Street Journal, Medellin is the second largest prop-tech ecosystem in the region, attracting investment and specialized talent. Its potential has been recognized by industry leaders such as Andrew Ng, founder of Google Brain, who chose Medellin to establish an artificial intelligence operations center.

Learn more about the top 10 outsourcing cities in Latin America.

Language Proficiency and Communication

Communication is essential when working with a nearshore backend development team, as clear technical discussions help ensure smooth collaboration on API design, database optimization, and DevOps workflows. English proficiency plays a crucial role in bridging the gap between U.S. companies and nearshore developers.

Monterrey: Ranked 87th in the world for English proficiency, with an EF English Proficiency Index of 556 points. Most of the city's tech workforce can communicate effectively in English, which is particularly important when discussing backend architectures, debugging issues, and writing clear documentation for APIs.

Medellin: Ranked 74th in the world, it has an EPI score of 509, reflecting a moderate level of English proficiency. The city's growing emphasis on bilingual education and international partnerships has resulted in more English-speaking backend developers. Medellín's tech talent tends to be proficient in technical English for programming, database queries, and API documentation.

Transparency for Nearshore Development with Teilur Talent

At Teilur Talent, we believe that hiring nearshore backend development teams should be simple, transparent, and cost-effective. Unlike traditional agencies that add hidden fees or inflated margins, we operate with full transparency - our pricing model ensures that companies know exactly what they are paying for. We openly disclose our margins and only charge up to 20% of the developer's gross salary, allowing companies to maximize their budget while still accessing world-class backend talent.

Beyond pricing, we focus on seamlessly matching developers to your business needs, ensuring that the talent matches not only your technical requirements but also your time zone and work culture. Whether you're in Miami, San Francisco, or anywhere in between, our nearshore backend developers are strategically located to ensure real-time collaboration and minimal workflow disruption. With Teilur Talent, you get highly skilled backend developers without the complexity or unpredictability of traditional hiring models.

Learn more about Teilur Talent's pricing disruption with transparency in recruiting.

Our thoughts on the pricing structure of Toptal

While it's not possible for us to find details about how much of what a client pays ultimately goes to a candidate, we believe clients looking for transparent and straightforward pricing may want to look at other alternatives.

Our opinion is that if they are charging a client more than $12,000 monthly for a developer, they should at the very least be giving $9,600 to the candidate, but it's likely that it's even less than that.

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What Hiring Managers Should Ask Before Choosing a Talent Partner

Before partnering with any talent provider — whether Toptal, Teilur, or others — hiring managers should consider asking the following key questions:

What percentage of the fee actually goes to the talent?
Are replacement or satisfaction guarantees included in the contract?
How are regional salary benchmarks determined?
Is there full transparency in how rates are broken down?
What is the long-term cost difference between hiring directly and through a platform?
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These questions can help businesses make informed decisions and ensure that pricing aligns with both market realities and ethical compensation practices.

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Toptal vs Teilur Talent Comparison

Concept	Toptal	Teilur Talent
Transparency	Pricing details are not publicly disclosed. Clients see a blended hourly rate that includes both Toptal’s fee and the freelancer’s pay.	Fully transparent rate breakdown. Clients see exactly how much goes to the talent and how much is retained by Teilur as a service fee.
Commission / Markup	Estimated at up to ~50% based on third-party reports and client testimonials. The exact markup percentage is not officially stated.	Capped at 20%, ensuring that at least 80% of the client’s payment goes directly to the developer.
Monthly Subscription Fee	$79/month, non-optional, grants access to Toptal’s vetted talent network. (Source: Toptal website).	No subscription fees. Clients only pay when hiring or engaging talent.
Initial Deposit	$500 refundable deposit required to begin a talent search.	No upfront deposit required to start the matching process.
Trial Policy	Two-week no-risk trial. Clients are billed only if satisfied with the match.	N/A (direct matching) – Teilur focuses on pre-vetted, long-term placements with transparent trial terms discussed case by case.
Pricing Range (Developers)	$60–$200+ per hour depending on experience and project complexity (includes platform markup).	$6,000–$7,000/month for senior LATAM developers, equivalent to ~$35–$45/hour — transparent, with no hidden markups.
Payment Structure	Bi-monthly invoices; payment terms like Net 10. Includes blended rate.	Monthly invoices with clear cost breakdown (talent pay + Teilur fee).

Conclusion

Both Monterrey and Medellin are excellent choices for nearshore backend development, offering great technology talent, competitive pricing and favorable time zone alignment. Monterrey has a well-established technology ecosystem, top-ranked universities, and strong business ties to the U.S. Medellin is emerging as an innovation hub with cost-effective solutions and a fast-growing community of skilled developers.

The best choice depends on your specific needs: if you prioritize proximity to the U.S. and a high level of English proficiency, Monterrey may be the best option. If cost savings and a thriving innovation scene are more important, Medellin might be the right choice.

To help you make the best decision, use the calculator below to estimate your costs and potential savings. For more details and personalized advice, please contact us.

Toptal vs Teilur Talent Comparison

Concept	Toptal	Teilur Talent
Business Model	Global freelance marketplace connecting clients with vetted professionals in software, design, and finance.	LATAM-focused recruitment company connecting businesses with full-time remote developers and tech professionals.
Selectivity Claim	Claims to accept less than 3% of applicants, based on its internal screening process.	Works only with pre-vetted, bilingual professionals in LATAM, selected for technical and communication skills.
Recruitment Process	Multi-stage: timed skills test → English interview → real-world project → live screen evaluation.	Direct evaluation of experience, portfolio, and communication ability. Matches candidates by vertical (QA, Software, Cybersecurity, Data & BI) and company culture.
Trial or Test Period	Offers a two-week trial, refundable if client isn’t satisfied.	No fixed trial period — focuses on long-term retention and transparent onboarding.
Contract Type	Typically weekly contracts (20 or 40 hours) with limited flexibility for short-term projects.	Flexible monthly agreements, allowing scalability per project scope and company needs.
Transparency	Pricing details not publicly disclosed. Clients see a blended hourly rate including Toptal’s markup.	Fully transparent pricing model. Clients see how much goes to the developer and how much is Teilur’s service fee.
Commission / Markup	Estimated around 40–50%, based on user reports and external reviews.	Capped at 20%. At least 80% of client payment goes directly to the developer.
Initial Deposit	Requires a $500 refundable deposit to start the search process.	No upfront deposit required.
Client Support	Account managers available during hiring and engagement. Support quality varies by project.	Personalized support from start to finish, ensuring alignment for both client and talent.
Developer Pay Transparency	Developers are contractually restricted from disclosing their actual pay rates.	Developers know their full compensation and see transparent rate breakdowns.
Geographic Focus	Global, with talent from Eastern Europe, Asia, and LATAM.	Exclusive to Latin America, optimizing time-zone alignment and cultural fit.
Turnover Rate	Not publicly disclosed.	Reported below 15%, reflecting strong retention and satisfaction.
Best For	Large enterprises or teams needing globally distributed freelance specialists.	U.S. and international companies seeking transparent, long-term partnerships with vetted LATAM developers.

We are incredibly pleased with Teilur Talent as our talent partner. Their expertise has allowed us to recruit qualified candidates from abroad, making the hiring process smooth and efficient - highly recommended for any company looking to expand their talent pool!

⭐⭐⭐⭐⭐

Carolina Penuela

Justo

"Great for recruiting"
What do you like best about Teilur Talent? Recruiting tool for connecting talent in South and Central America to job postings in the USA.
What problems is Teilur solving and how is that benefiting you? Vetted candidates that we are able to use in our agency.

Review collected by and hosted on G2.com.

Teilur Talent helped me land a high-paying role, and everything has been great so far. If you ever have the opportunity to work with them, do so. I highly recommend it!

Eddie Santiago

Review collected by and hosted on Trustpilot.

I have heard of Teilur Talent, and I think it is a very innovative and socially responsible company. I also think it has a very positive culture and cares about its employees and customers.

Daniel Oviedo

My experience with Teilur Talent has been overwhelmingly positive from the start. Transparency and clear communication were standout features throughout my journey with the company. Highly recommended!

Nearshore Backend Development in Monterrey vs. Medellin