Outsource AI development to Medellin vs. São Paulo

If you are looking to outsource AI development, you have probably considered Latin America as a cost-effective and talent-rich region. Two cities that stand out in this regard are Medellin and São Paulo. Both offer strong technology ecosystems, skilled AI professionals, and growing innovation hubs.

In this blog, we'll compare Medellin and São Paulo across six key factors: cost, talent availability, time zone compatibility, and cultural fit. Whether you're a startup looking for AI development or an enterprise looking for scalability, this breakdown will help you weigh the pros and cons of each city before making a decision.

Learn more about hiring AI developers in Latin America.

Outsource AI development to Medellin vs. São Paulo

If you want to outsource AI development in Latin America, choosing the right city is critical to ensuring project efficiency and effective collaboration. Medellin and São Paulo stand out as two of the top destinations for outsourcing tech talent in the region. Each offers unique advantages in terms of time zones, costs, tech ecosystems, and the quality of talent available.

Next, we will dive deeper into these key factors and explain how each impacts the decision to outsource AI development to Medellin and São Paulo.

Time Zone Alignment

Time zone compatibility is a critical factor when you outsource AI development because it directly affects communication, collaboration, and project efficiency. The closer the time zone, the easier it is to schedule meetings, manage workflows, and ensure real-time responses.

Medellin: Operating on Colombian Time (COT), which coincides with Eastern Standard Time (EST) for most of the year; if your company is based in Miami or elsewhere on the East Coast of the United States, your Medellin AI developers will be in the same time zone. Even for teams on the West Coast, such as in San Francisco (PST), Medellin is three hours ahead, making overlapping work hours manageable.

São Paulo: Follows Brasilia (BRT), which is typically two hours ahead of Miami. However, for companies based in San Francisco (PST), São Paulo is five hours ahead, which may require more flexibility in scheduling meetings and real-time collaboration.

Medellin and Sao Paulo time zone alignment map with EU — Source: https://www.timeanddate.com/time/map

Cost Comparison

When outsourcing AI development, cost plays a significant role. Medellin often provides a more budget-friendly option, while São Paulo offers competitive rates with a slight variation. Below is a comparison of mid-level AI developer salaries in both cities.

Medellin: Budget considerations are always crucial. Outsourcing AI development to Medellin may be more cost-effective. The average salary for a mid-level AI developer ranges from $4,000 to $7,000 per month.

São Paulo: In São Paulo, salaries are slightly higher, with mid-level AI developers earning between $3,750 and $6,500 per month.

Find out more about the top 5 benefits of outsourcing DevOps in Latin America.

Tech & Startup Ecosystems

Medellin: Initiatives such as Ruta N have made the city a magnet for innovation and startups by promoting science, technology, innovation, and entrepreneurship. The city was named "City of the Year" by the Wall Street Journal and made it into the world's top 100 in food tech with an impressive leap of 22 positions.

In addition, Medellin is the second largest prop tech ecosystem in the region, strengthening its ability to attract talent, investment, and development in key industries.

São Paulo: It is a key hub for innovation and entrepreneurship in Latin America. The city is home to 12 of the 17 current Brazilian unicorns. According to the Startup Ecosystem Report 2024, São Paulo ranks 23rd in the global fintech ranking, consolidating its position as a benchmark in the sector. It is also one of the main centers of the SoftBank Latin America Fund and the birthplace of venture capital firms such as Kaszek, one of the most prestigious in the region.

Talent Pool and Expertise

When looking to outsource AI development, finding the right talent is essential. Both Medellin and São Paulo stand out as key hubs for highly skilled professionals, each offering a strong technology ecosystem backed by research institutions and a thriving startup scene. Here’s how these cities compare in terms of expertise and innovation.

Medellin: Medellin has a growing pool of highly skilled developers. It is one of the two cities with the largest number of technology communities, supported by research institutions, where 80% of Colombia's startups are concentrated. In addition, EAFIT University has established itself as one of the best institutions in the country for those seeking a high-level education in technology.

São Paulo: The Brazilian software market employs about 133,000 professionals, most of them in this city. Thanks to its attractiveness as a technology hub, São Paulo brings together experts from all over the country and offers a solid foundation in AI and software development. It is also the leading city in the EdTech industry in Brazil, with a strong focus on the domestic market. A significant portion of EdTech companies are concentrated in the Southwest region (58%), while 37.8% are located in the state of São Paulo.

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

Language Proficiency

When choosing where to outsource AI development, language proficiency plays a crucial role in ensuring smooth communication and collaboration. While both Medellin and São Paulo have strong tech communities with English-speaking professionals, overall fluency levels vary, which can impact workflow efficiency.

Medellin: Spanish is the primary language in Medellin, but English is widely spoken in the technology sector. Colombia ranks 74th out of 116 countries on the EF English Proficiency Index, with an EF score of 485, slightly above the global average of 477. Within Colombia, Medellin scores 509, above the national average, making it one of the best cities to hire English-speaking talent.

São Paulo: São Paulo's primary language is Portuguese, and although English is spoken in the technology industry, proficiency levels are generally lower than in Medellin. Brazil ranks 81st out of 116 countries in the EF EPI, with an EF score of 466, below the global average. São Paulo, in particular, has an EF score of 501, making it one of the best cities in Brazil for English-speaking professionals.

Cultural Compatibility

Medellin: Cultural alignment can influence project success. Colombian culture, especially in Medellin, emphasizes warmth and collaboration. Building strong personal relationships is often key to effective teamwork.

São Paulo: Brazilian culture in São Paulo is dynamic and diverse. The city's fast-paced environment reflects its status as a business hub. Understanding local business etiquette can enhance collaboration.

Teilur Talent's transparent pricing model

Teilur Talent is changing the international recruitment landscape through its commitment to fair and transparent pricing. Unlike traditional agencies, Teilur Talent openly discloses its margins and only charges up to 20% of gross salary. By prioritizing honesty in pricing, Teilur Talent creates a win-win scenario for both companies and AI professionals seeking remote opportunities.

Transparency in pricing is at the core of Teilur Talent's mission, ensuring fairness in every hire. The model is based on two key principles: first, the distribution of payments between companies and talent is always clear, so companies know exactly where their investment is going. Second, clients are informed of the fees for services in advance, eliminating surprises and allowing them to make informed decisions. By publishing projected salaries on its website, Teilur Talent is setting a new industry standard, challenging outdated hiring practices, and making remote AI hiring more accessible and predictable.

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

Deciding where to outsource AI development depends on your business priorities, whether it's cost, talent availability, time compatibility, or cultural fit. Medellin and São Paulo offer thriving technology ecosystems, but each city has unique advantages that may better suit your specific needs.

If your company prioritises real-time collaboration with US teams - especially those based in Miami. -especially those based in Miami (EST), Medellin's perfect time alignment makes it an ideal choice. In addition, Medellin offers competitive salaries for developers, a growing pool of AI talent, and slightly better English proficiency, which facilitates communication. On the other hand, São Paulo is the largest technology hub in Brazil, with a larger talent pool and strong investment in AI.

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!

Outsource AI development to Medellin vs. São Paulo