Colombia Software Outsourcing Report

For U.S. companies seeking talented software developers at affordable rates, Colombia is a top choice. Colombia is a hotspot for software outsourcing and recruitment due to its booming IT industry, well-educated software developer community, innovative startup culture and more.

Here we’ll go over the main reasons why nearshore Colombia developers can empower any tech team to achieve excellent software development outcomes.

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Ready to hire software developers in Colombia?

Contents

• Colombia at a Glance
• The IT Ecosystem in Colombia
• Why Colombia-U.S. Collaboration
• Software Engineer Salary in Colombia
• Summary of Colombia Software Outsourcing Benefits

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Watch a Video Summary of the Report:

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Colombia at a Glance

• Capital: Bogotá
• Currency: Colombian peso (COL$)
• Time zone: GMT-5
• Population: 50 million
• Software developers: 62,000+
• Software development companies: 11,100+
• Official language: Spanish
• Democracy index: 6.48/10
• Business climate: A4
• Ease of doing business: 67/190

Colombia has seen astounding expansion in the tech sector, with 24.5% cumulative growth since 2010. In 2021 alone, this LATAM country reported $218.8 million in IT exports.

Colombia is well-positioned to provide top software outsourcing with 62,000+ talented developers and 11,100+ tech companies. With an innovative startup culture and government-led tech initiatives, Colombia is ideal for outsourcing relationships with the U.S. and beyond.

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The IT Ecosystem in Colombia

Colombia’s IT ecosystem has all the key factors: excellent tech initiatives, innovative startups and extensive outsourcing experience. Below we’ll go in depth into Colombia’s advantages as a tech hub.

Innovative Tech Infrastructure

Colombia has become a worldwide focal point for innovation, especially its revitalization of Medellín, which is largely considered the “Silicon Valley of Latin America.”

Some government programs and private initiatives that have encouraged tech skills and startup success include:

• MinTIC: Colombia’s IT Ministry offers a range of digital skills programs and events, including Colombia 4.0 and “Un TICket para el Futuro.”
• INNpulsa: INNpulsa funds small business grants and programs such as CEmprende Junior and the Apps.co project.
• $2.5 million investment in tech education: Colombia sponsored IT education for teachers and students with the aim of closing the digital skills gap.
• Tech parks: Tech parks and Free Trade Zones (FTZs) have flourished in recent years. The most famous, the Ruta N Building in Medellín, is considered a hub for innovation.
• ICT Sector Modernization Law: This law boosts the tech industry by easing access to ICT services, modernization and technology.

Robust Startup Scene & Community

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(Source: Statista)

Colombia is known for its extensive startup scene that has led to the success of two unicorn companies: Rappi (valued at $5.25 billion) and LifeMiles (valued at $1.15 billion). In addition, there are currently 189 startups in Bogotá, 56 in Medellín and 44 in Cali. These innovative companies allow talented developers to thrive and learn from their peers.  

In addition, Colombia has one of the largest JavaScript communities in Latin America, with JS-specific meet-ups, including BogotaJS, MedellínJS and six other cities with a total of 3,000+ members.

Colombia developers also take part in regular hackathons and challenges that keep their skills sharp. Developers here are highly active in forums such as Digital Nomads Medellín, Colombia Startup and FCP Innovation, too.

Strong Outsourcing Track Record

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(Source: IMD World Competitiveness Rankings)

Today, Colombia outsources its IT services to countries such as the United States (33%), Ecuador (14.1%) and Mexico (8.3%). It also snags the #3 spot in LATAM for digital skills, just behind Chile and Mexico. For U.S. companies, Colombia’s competitiveness and track record of outsourcing is ideal for tech partnerships.

In addition, many big-name brands have set up shop in Colombia, showing this country’s appeal for multinational companies:

• Amazon
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• Google
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• IBM
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• Oracle
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• Accenture
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• Globant
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• OLX Group

How do you hire a developer in Colombia? Get in touch with TECLA to connect with the best nearshore Colombia software engineers.
The Colombian Software Developer Profile

Colombian developers are some of the finest in LATAM. For one, they’re highly educated, ranking #2 in LATAM for engineering tertiary degrees. These developers are also skilled, have a wide range of abilities and know a solid level of English for agile collaboration. Let’s take a closer look at the typical Colombian software developer profile.

Highly Educated Developer Pool

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(Source: The World Bank – TCdata360)


Colombia has a robust talent pool, with 62,000+ software developers as of 2021. With the aim to expand this number, Colombia created an initiative to train 100,000 new developers by 2022, which has been largely successful so far.

Most importantly, Colombia has one of the highest rates in science and engineering graduates in LATAM, with 23.10% of all tertiary degrees related to manufacturing, engineering and construction.

What’s more, Colombia has excellent universities for training developers with three educational institutions listed in the top 30 in LATAM, including the University of the Andes Colombia, the Universidad Nacional de Colombia and Pontificia Universidad Javeriana.

Skilled Tech Talent

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(Source: Coursera)

According to Coursera’s developer skills tests, Colombian programmers rank highly for areas such as:

• data analysis (93%)
• statistical programming (88%)
• databases (76%)
• mobile development (72%)

In addition Colombian developers have a range of programming skills, including languages such as Java, C++, Python, SQL and Ruby. U.S. companies looking for a rich array of software development skills and technologies can rely on Colombian developers.

Build a robust software development team with professionals from Colombia. Leverage our talent pool at TECLA today.

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Why Colombia-U.S. Collaboration

Colombia offers U.S. companies huge potential in software outsourcing partnerships. Not only are developers highly skilled, but they’ve also mastered cross-border communication. Here are some ways developers here provide high-value Colombia outsourcing.

Overlapping Time Zones

Colombia is located in the GMT-5 time zone, which is the same as EST. This means Colombia has up to 8 hours of overlap during the workday – ideal for staying in contact with U.S. clients, scheduling meetings, getting immediate feedback and more.

Cultural Proximity

Colombia’s booming tech scene shows its successful integration with U.S.-based companies. This country consistently ranks high on Gartner’s key outsourcing locations worldwide, which measures categories including cultural compatibility. Developers here understand U.S. workplace cultures and share expectations for deadlines, quality standards and communication methods.

Ideal for Agile Development

Finally, nearshore Colombia developers are set up for top agile development results, as they have matching time zones, great communication skills and U.S. workplace know-how. Collaboration will be seamless as developers work on iterating products and discussing feedback with clients.

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Software Engineer Salary in Colombia

Though Colombian software developers are highly talented, the cost of hiring them is much lower than regions such as the U.S. and Europe. Let’s go through average salaries for software developers in Colombia so companies can see their cost-effectiveness firsthand.

Salary Range Based on Popular Technologies

Of course, the final salary cost will depend on the developer’s skills, years of experience and specialization. For specific rates according to technologies, check out this salary table here.

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Summary of Colombia Software Outsourcing Benefits

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Overall, Colombia has a booming tech scene with the highest reported IT sector growth in Latin America. Colombia also stands out for its top universities and number of engineering graduates, as well as government initiatives to support tech.

For U.S. companies looking for top developer talent and an innovative mindset, you can’t beat Colombia. As you build a Colombia outsourcing team, leverage our vetted talent pool of developers at TECLA. We’ll give you access to the best talent for your needs – all at affordable rates.

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