Outsourcing to Chile for Software Development (Report)

It’s no secret that LatAm has experienced unprecedented technological growth, particularly in countries like Chile. “Chilecon Valley” is a go-to spot for finding elite developer talent. Not only do programmers in this country have top skills and a high level of education, but it also has a thriving tech scene - powered by its strong economic growth, key IT initiatives, and a world-class ecosystem for doing business.

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Today we’ll look at Chile as a potential destination for recruiting highly skilled talent for software development outsourcing. We hope you can use this report as your go-to guide to hiring Chilean developers.

Contents

• Chile at a Glance
• The IT Ecosystem in Chile
• The Chilean Software Developer Profile
• Why Chile-U.S. Collaboration
• The Cost-Effectiveness of Hiring Developers in Chile
• Summary of Chile Software Development Outsourcing Benefits

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Watch a Video Summary of the Report:

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Chile at a Glance

• Capital: Santiago
• Currency: Chilean peso (CLP)
• Time zone: GMT-4
• Population: 19 million
• Software developers: 61,000+
• Software development companies: 4,000+
• Official language: Spanish
• Democracy index: 7.92/10
• Business climate: A3
• Ease of doing business: 59/190

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Ranked #1 in LATAM for ease of business, Chile has an excellent environment to promote software development outsourcing. In addition, this country has a top-tier developer pool, with 61,000+ professionals and 4,000+ companies involved in software services. In 2022 alone, Chile reached $1.4 billion in software industry revenue.

The IT Ecosystem in Chile

Chile’s business environment is the perfect setting for the IT industry to thrive. The core of Chile’s tech success is its solid infrastructure, innovative business practices and extensive outsourcing experience. Here’s what makes Chile’s IT scene so powerful.

Strong Business IT Infrastructure

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‍(Source: IMD)

Chile has a variety of exciting programs designed to jumpstart its tech scene. These government programs, startup investments and more have led Chile to achieve the #1 score in LATAM for digital skills (as ranked by IMD above). Here are some of the highlights of Chile’s technology development:

• Start-Up Chile: An incubator that supports start-ups during their initial stages through generous grants and investments.
• Talento Digital: A government-led program to train young people in digital skills.
• Tech parks: Chile is a hub for new tech parks, including Hubtec, HUB Apta, Enel Innovation Hub Chile and Know Hub Chile.
• Tech visa: Chile offers a tech visa for entrepreneurs and investors in order to facilitate partnerships and talent hiring.
• Fundación Kodea: This program is teaching teens coding and other digital skills in the classroom to prepare them for digital-first jobs.
• Girls in Tech Chile: A female-led organization to promote women in STEM fields.  

Innovative Startup Scene & Community

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‍(Source: Statista)

Chile also has an innovative startup and developer community, mainly based in the bustling capital of Santiago. In recent years, it’s produced three unicorn companies: Betterfly, Cornershop and NotCo, becoming a regional leader in digital transformation compared to other Latin American countries.

In addition, there are currently 345 startups in Chile, representing a wide range of industries, including software, fintech and more.

What’s more, developers in Chile are active in the community through hackathon challenges, including Impact Chile Hackathon and the ACHS Hackathon. Developers also participate in groups such as NodersJS, Women Who Code and more.

Solid Outsourcing Track Record

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(Source: Statista)

Chile is also a top contender in LATAM for software revenue and estimated to reach $1.9 billion in revenue by 2026. The sheer size of its software development outsourcing market speaks to the high quality of Chilean programming skills.

In addition, numerous U.S. multinational brands are leveraging talent here by opening offices in Chile, including:

• Google
• IBM
• Cisco
• Microsoft
• Oracle
  
  

How do you hire a developer in Chile? Reach out to TECLA to get matched with the best IT talent in Chile.

‍The Chilean Software Developer Profile

Chilean software engineers strike the perfect balance of being well-educated, proficient in English and skilled in a wide range of programming languages. Let’s go over what companies can expect from Chilean outsourced developers.

Highly Educated Developer Pool

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(Source: The World Bank – TCdata360)

With 61,000+ software developers, Chile has fewer programmers than giants like Brazil and Mexico. Yet, it still has a competitive, highly educated talent pool to draw on.

Overall, Chilean software developers have strong educational backgrounds. The university system in Chile is high-quality with five of its educational institutions – Pontificia University Católica de Chile, University of Chile, Universidad Técnica Federico Santa Maria, University of Concepción and University Diego Portales – ranked in the top 30 for LATAM.

In fact, 95% of computer science graduates in Chile get a job within a year of graduation – whether in app development, software engineering or another related area. Chile also has one of the highest rates in science and engineering graduates in LATAM, with 20% of all tertiary degrees related to manufacturing, engineering or construction.

Top Tech Talent

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(Source: Coursera)

It’s no surprise that Chilean programmers rank highly in Coursera’s developer skills tests, including areas such as:

• statistical programming (98%)
• computer programming (97%)
• data analysis (96%)
• mobile development (78%)
  
  

Developers in Chile are especially talented at statistical programming and computer programming, but have a wide range of software engineering skills. Some of the most popular programming languages here include PHP and ASP.NET, as well as Java, Python, Node.js, and Perl.

Great English Proficiency

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(Source: EF EPI)

Chilean developers have excellent English skills and are ranked within the highly proficient bracket (according to EF EPI). U.S. companies will be able to seamlessly collaborate with Chilean talent to get top agile results.

Create a powerful software development team with top professionals from Chile. Leverage our LATAM talent pool at TECLA today.

Why Chile-U.S. Collaboration

Why outsource to Chile? Chile has an excellent ecosystem for doing business that supports software outsourcing partnerships. Developers here are able to build strong relationships by leveraging their communication skills and workplace know-how. Here’s how Chilean developers can help streamline any company’s IT needs.

Overlapping Time Zones

Located in GMT-4 (same as EST), Chile has overlapping time zones with the U.S. For the best project outcomes, developers in Chile can have up to 8 hours of overlap with U.S. companies. This allows for real-time collaboration and efficient product iteration.

Cultural Proximity

As an innovative country with a booming tech scene, Chile has the cultural capital to work with countries worldwide. Gartner listed Chile as a key software development outsourcing location in Latin America, showing this country’s cultural compatibility with U.S. workplace culture. Overall, Chilean developers share expectations for quality standards, deadlines and more.

Ideal for Agile Development

In today’s fast-paced business environment, developers in Chile are well-positioned to develop products using the agile method. With matching time zones, top English skills and cultural know-how, they’re able to move quickly, iterate, get feedback and advance products in record time.

The Cost-Effectiveness of Hiring Developers in Chile

Chilean developers have world-class programming skills, but keep IT budgets low. The cost of hiring developers in Chile is significantly lower than other regions, especially the U.S. and Europe. Let’s take a closer look at the typical Chile software engineer's salary below.

Salary Range Based on Popular Technologies

For an accurate idea of salaries in Chile according to key technologies, see this table below based on specialization.

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Summary of Chile Software Development Outsourcing Benefits

Overall, Chile has a thriving tech scene that’s producing first-rate programmers. In addition to a high-quality educational system, Chile stands out for its ease of doing business and innovative start-up culture.

If you’re looking for top software development, outsourcing to Chile may be the perfect fit. To make the most of world-class talent here, connect with vetted LATAM developers on TECLA. We’ll match you with the ideal candidates according to your tech needs, so you can exceed your IT goals in the long term.

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FAQs About Outsourcing to Chile