70% of U.S.-based companies are struggling to fill tech roles today. Given the fierce competition, it often feels like a rat race to capture top professionals – only to lose them mid-project, interrupting your development cycle.
That’s why nearshore technology outsourcing can be a game-changer for your business. Choosing career-driven developers based in Latin America means that you can keep up fuller teams and elevate your product quality, time-to-market and overall outcomes.
Yet, getting started with nearshoring to Latin America and selecting where to outsource can be tricky to navigate. Specifically, it’s not uncommon for businesses to be deciding between Colombia vs. Argentina for nearshore technology outsourcing.
Though both Colombia and Argentina offer elite talent at affordable rates, each country has a unique nearshoring identity and advantages. Below we’ll rigorously analyze Colombia vs. Argentina for nearshore technology outsourcing to support your decision-making process.
Content Overview
Why LatAm Nearshore Technology Outsourcing?
Latin America has it all when it comes to nearshore technology outsourcing. This booming developer hub is currently expected to grow 9% in yearly revenue – and for good reason.
Robust IT Ecosystems
With top-tier educational programs and startup investments, developer communities here are thriving. Dozens of LatAm cities are even globally ranked for innovation.
Industry-Best Talent
Developers in Latin America are truly at the top of their fields. Overall, they tend to be well-educated, highly skilled, English-savvy and keen on long-term engagement. You’ll also have a range of options for specializations and experience levels.
Top Cost-Benefit Ratio
Though you’ll get access to world-class talent, you won’t pay top dollar. Technology rates here are high-value, offering you savings of 40-50% compared to the U.S.
Seamless Logistics
Nearshoring to Latin America just makes things simple. With overlapping time zones and cultural proximity, professionals here are able to undertake smooth, real-time agile processes.
Colombia for Nearshore Technology Outsourcing
Let’s take an insider’s look into nearshoring to Colombia. On the whole, this country has built up a reputation as an innovative, fast-expanding market with truly world-class talent.
Overview of Outsourcing Climate
One of Colombia’s greatest strengths is its economy. In the last decade, it has seen steady growth, including:
- A business climate score of A4
- An ease of doing business score of 67/190
- Regulations such as the ICT Sector Modernization Law, which is aimed at nurturing ICT services beyond Colombia’s borders
On the flip side, nearshoring to Colombia has the disadvantage of low security. If you’re keen on in-person visits, keep in mind that two regions of Colombia are flagged as “Do Not Travel.”
In addition, cybercrime in Colombia is fairly rampant. This country accounts for 9% of successful cybercrime in LatAm and is rated 6th globally for the most ransomware attacks.
Current State of the Technology Sector
(Source: 2023 Global Startup Ecosystem Index)
Colombia’s technology market is rapidly expanding at a rate of 14.6%. Specifically, it’s estimated to earn $690 million in revenue this year.
Additionally, Colombia is rated #4 in LatAm for startup ecosystems and has 11 cities ranked on the 2023 Global Startup Ecosystem Index. The three most popular are:
- Bogotá (3rd in LatAm)
- Medellín (9th in LatAm)
- Cali (17th in LatAm)
All of these locations have new tech parks, a dynamic startup scene and robust developer communities. Yet, Medellín in particular is home to a cutting-edge technology climate, including the famous Ruta N.
Analysis of the Tech Workforce
Although Colombia has a smaller talent pool compared to Argentina, it still offers a wealth of options such as:
- 62,000+ developers
- 11,100+ software companies
- 350+ IT providers listed on Clutch
Specifically, Colombian developers have earned a reputation as being highly educated, with the #2 rate of tertiary engineering graduates. They also top skills charts, coming in 6th globally for technology skills by Coursera.
Key Government Tech Initiatives
You can expect strong support from the government when nearshoring to Colombia. This country has invested significantly in the technology market by pushing initiatives such as:
- MinTIC (Colombia’s IT Ministry)
- INNpulsa tech grants
- New tech parks
- $2.5 million investment in tech education
Insights into Business Practices & Logistics
(Source: Kearney Global Services Location Index)
Finally, Colombia is a convenient nearshore technology outsourcing destination for U.S. companies. It’s located in GMT-5 (the same as EST), which allows for a full day’s overlap.
At the same time, Colombian developers are seasoned in working with U.S.-based companies, as 33% of IT exports end up there. In fact, this country is ranked 13th globally on the Kearney Global Services Location Index, falling just behind Brazil and Mexico for outsourcing-friendliness.
Get a detailed report on nearshoring to Colombia in our expert guide.
Argentina for Nearshore Technology Outsourcing
Nearshoring in Argentina is a top choice for your next software project. In sum, this country has a large, best-in-class talent pool and #1 English skills, as well as a booming startup scene.
Overview of Outsourcing Climate
Argentina’s economy has experienced ups and downs in recent years. While it’s the #3 largest economy in LatAm, this country is facing a massive inflation crisis.
In fact, software companies reported inflation as their #1 challenge in 2024. For this reason, Argentina is rated relatively low for business-friendliness, including:
- A business climate score of B
- An ease of doing business score of 126/190
In contrast, Argentina has top security and democracy stability compared to its LatAm peers. However, it lags in cybersecurity, with 10% of successful cybercrime occurring here.
Current State of the Technology Sector
Nearshoring in Argentina offers a large-sized IT outsourcing ecosystem estimated to reach $435.80 million in revenue in 2024. In general, this country is seeing:
- 84.2% growth in software exports since 2015
- A yearly growth average of 9.90%
- $2.4 billion in software exports in 2023
Buenos Aires and Cordoba are the two most prominent locations for nearshoring in Argentina. Here you’ll find cutting-edge tech parks such as Buenos Aires IT Hub and the Córdoba Technology Cluster.
In addition, Argentina has a strong startup scene that involves:
- 45% of total startup value in Latin America
- #5 in LatAm on the 2023 Global Startup Ecosystem Index (just below Colombia’s #4 rank)
- 11 unicorns to date
- Programs such as Startup Buenos Aires and IncuBAte
Analysis of the Tech Workforce
(Source: 2023 Global Skills Report)
Argentina has a large and skills-rich talent pool that’s defined by:
- Between 115,000 and 141,900+ IT professionals
- 3,800+ software companies and 500+ startups
- 275+ IT outsourcing companies listed on Clutch
- 41% spike in the number of new programmers (the #1 growth rate in LatAm)
Argentina developers are also unparalleled in their skills. For example, this country has:
- A technology skills rank of 93%, which is 3rd in LatAm and within the top 12 globally (as rated by Coursera)
- The #1 ranking for English skills in LatAm according to EF EPI
Key Government Tech Initiatives
Argentina has solid government-backed support for the IT sector, including:
- Argentina Programa to level up technology skills in young people, as well as provide them with a laptop/internet.
- Regulations such as the Teleworking Law (promoting work-from-home for the tech sector) and the Entrepreneurs’ Law (easing red tape and granting special IT tax breaks).
- CESSI initiatives to strengthen the tech workforce through internships, job training and job insertion.
Insights into Business Practices & Logistics
Despite suffering inflation and a low ease of business score, Argentinian developers are well-equipped to provide top nearshore technology outsourcing, including:
- A strong track record of outsourcing to the U.S., with 43.8% of software exports going there
- Experience integrating with U.S. workplace culture
- Elite English skills to maximize collaboration
- Located in the GMT-3 time zone (1 hour ahead of EST)
- Expertise in remote teaming, with 80% of software companies working fully or mostly remotely
Get an in-depth look into Argentina’s software development profile in our report.
Comparing Colombia vs. Argentina for Nearshore Technology Outsourcing
All in all, Colombia and Argentina are both exceptional nearshore outsourcing destinations.
While your final decision of Colombia vs. Argentina for nearshore technology outsourcing will hinge on your exact goals, both countries offer:
- Flourishing IT ecosystems. Both have dynamic communities, developer programs, startup scenes and government policies that encourage IT outsourcing.
- Top-ranked talent. Both have a reputation for elite developers who are educated, experienced and well-versed in Western communication styles.
- Alignment with North American & European markets. Both are ideal for the U.S. market due to overlapping time zones, cultural know-how and English skills.
- High-value rates. Both provide top-tier talent at 40-50% the cost of U.S. developers. (See our rate averages by country below!)
Main Differences of Colombia vs. Argentina
That said, there are some major contrasts between Colombia vs. Argentina for nearshore technology outsourcing.
Argentina
Nearshoring in Argentina offers a deep pocket of outsourcing-ready talent.
Pros
- A large, fast-growing talent bank. Right behind Brazil and Mexico, Argentina has 140,000+ developers at the ready – and more every year. Currently, it has the fastest-growing talent pool in LatAm.
- Highly skilled & experienced developers. Argentina is ranked within the top 12 globally in technology skills. Plus, developers here have extensive experience with American clients as nearly half of software exports go to the U.S.
- Top-ranked English & cultural proximity. Argentine developers are first-ranked for English in LatAm. In turn, their strong communication skills means that they’re more attuned to cultural nuances.
- Booming startup scene. This country generates 45% of startup value in LatAm. Plus, here you’ll find 11 unicorns (and counting)!
- Solid country-wide security. Compared to other LatAm destinations like Mexico, Argentina has no “Do Not Travel” zones and good security overall.
Cons
- Major inflation. Argentina’s greatest disadvantage is a fluctuating currency that’s experiencing extremely high inflation (249% in 2024). Yet, keep in mind that Argentina has truly excellent talent that you can hire through a trusted partner (like us!) to avoid the pitfalls of inflation.
- Fluctuating developer costs. As a result of inflation, Argentine software companies are also suffering from rising and unpredictable labor costs.
- Low cybersecurity. Argentina has experienced significant cyber-attacks in recent years, becoming the target of 10% of cybercrime in LatAm.
Colombia
Nearshoring to Colombia is an innovative and fast-growing option for U.S. businesses.
Pros
- Strong business climate & a stable economy. Colombia is a business-friendly destination, with a steadily growing economy and a politically stable climate.
- Fast-growing IT market. Colombia is experiencing a booming IT market with a growth rate of 14.6%. This speaks well of Colombia’s future as an outsourcing destination.
- Slightly higher rankings for skills & education. While both Argentina and Colombia have excellent talent, Colombia comes out on top in skill rankings such as Coursera and Kearney.
- Reputation for innovation. Colombia is known as a hotspot for IT outsourcing and hosts state-of-the-art buildings and programs.
Cons
- Significantly fewer developers & companies. Although Colombia has a slightly larger population than Argentina, it has fewer developers, software companies and startups to choose from.
- Not as strong English country-wide. Colombia’s English skills aren’t well-rated by EF EPI (75th globally). That said, these rankings are country averages and software developers often demonstrate top proficiency in comparison.
- Some security issues. If you’re planning on site visits, you may face some security problems when nearshoring to Colombia as two regions are currently listed as “Do Not Travel.”
- Low cybersecurity. Like Argentina, Colombia is facing elevated levels of cybercrime. You’ll want to pay special attention to cybersecurity when selecting an IT partner.
Average Nearshore Outsourcing Rates
Cost is always a major factor for your technology budget. Fortunately, nearshoring to Colombia or Argentina can give you access to reduced rates.
Check out our chart above to see rate ranges according to country and technology. No matter which location you choose, you’ll enjoy significant cost savings compared to the U.S. To estimate rates by experience level, leverage our pricing tool, too.
Choose the Right Nearshore Country for Your Business
Stay informed about Colombia vs. Argentina for nearshore technology outsourcing in our guide above. At this point, you should be better prepared to kick off your partner selection process.
Even within the same country, partner quality can vary significantly. Be sure you factor in your unique project specs and goals, as they will lay the foundation for key decisions such as your tech stack and team size.
Ready for nearshoring to Colombia, Argentina or another LatAm country? We’ve got you covered at TECLA. Our powerful talent pool comes from 18+ Latin American countries, so we can match you with the ideal developers.
Get in touch with our nearshore specialists today!
LatAm Making?
.avif)
.jpg)
.jpg)
