Why Costa Rica Is a Top Choice for Nearshore Software Development

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Why Costa Rica Is a Top Choice for Nearshore Software Development

Costa Rica is a rising star for nearshore software development. Though it’s one of the smallest countries in Latin America, it has an impressive IT outsourcing presence. In fact, it’s the #1 exporter of IT services per capita in LatAm.

Nearshore software development in Costa Rica achieves excellence through:

  • Top technology infrastructure
  • A stable business environment
  • Well-educated and career-driven tech talent
  • Affordable developer rates
  • …and more!

Find out why this country is becoming a go-to destination in our expert guide. We’ll analyze Costa Rica software outsourcing, including the talent profile, key advantages, feature comparisons, case studies and more.

Content Overview

Overview of Nearshore Software Development in Costa Rica

Nearshoring to Costa Rica is a world-class option. The IT outsourcing market here is thriving, with $215.40 million in revenue this year and an annual growth rate of 9.41%.

Overall, you can choose from 70,000 remote tech specialists located in hubs including San Jose, Heredia, Alajuela and more. Here you’ll find mature infrastructure, a pro-business economy and truly first-rate talent.

In addition, nearshore software development in Costa Rica stands out due to:

  • Ranking 51st globally for outsourcing readiness
  • Achieving the #1 valued-added IT services in LatAm
  • Hosting dozens of Fortune 100 companies

Why Choose Costa Rica for Nearshore Software Development?

Nearshore software development in Costa Rica is booming because of the following key features.

1. Highly Skilled Talent Pool

Costa Rica tech talent is some of the most educated in the world. To give you an idea, this country spends 6+% of its GDP on education. Developers here aren’t just well-trained, they also have high-ranking English skills, appearing 38th globally on the EF EPI test.  

Plus, software developers in Costa Rica are known for low turnover rates, showing their preference for long-term career growth.

2. Top Infrastructure

Costa Rica's advanced infrastructure and numerous tech parks have caught the eye of major corporations such as IBM, Microsoft and Amazon. In sum, this country has a local budding technology scene comprised of:

  • 98 Costa Rica-based startups
  • 92 IT outsourcing companies
  • 119 multinationals with Costa Rican offices
  • An ease of doing business score of 74/190

Additionally, the government has a hand in promoting STEM education and backing initiatives such as innovation incentives, educational programs, startup incubators and more.

3. Cultural Alignment & Communication

Nearshoring to Costa Rica unlocks aligned cultural values. Located in Central America, this country is geographically close to the U.S. Software developers in Costa Rica are well-versed in U.S. workplace practices, including communication styles, expectations, quality standards, etc. With top English, these professionals are able to establish seamless collaboration, too.

4. Stable Political & Economic Environment

Costa Rica software outsourcing offers reliability for North American businesses. Besides a steady economy and political climate, Costa Rica is known for its security. Specifically, it has a high democracy index (8.29/10) and disbanded its army in 1948.

5. Proximity & Time Zone Compatibility With the U.S.

Costa Rica is well-positioned for flawless collaboration. It shares overlapping working hours with the U.S., bringing together nearshore teams for top partnership. At the same time, this country is geographically close, which means it’s a short flight away for in-person visits.

6. Cost Efficiency

Costa Rica
Business climate 51st global outsourcing ranking
74/190 ease of doing business score
IT ecosystem $215.40 million in revenue
9.41% in yearly growth
Stability High democracy index (8.29/10)
Workforce 70,000 developers
92 IT outsourcing companies
Education level #5 rate of tertiary engineering graduates in LatAm
2,400 engineering graduates yearly
Cultural proximity High
English proficiency High (38th globally)
Key Tech Hubs San José
Heredia
Alajuela
Cartago
Escazu
Santa Ana

Nearshore software development in Costa Rica is cost-effective. Generally speaking, rates here are 40-50% lower compared to the U.S. The exact price will also depend on your scope of work and tech stack (see above).

Comparing Costa Rica to Other Nearshore Software Development Destinations

Costa Rica
Business climate 51st global outsourcing ranking
74/190 ease of doing business score
IT ecosystem $215.40 million in revenue
9.41% in yearly growth
Stability High democracy index (8.29/10)
Workforce 70,000 developers
92 IT outsourcing companies
Education level #5 rate of tertiary engineering graduates in LatAm
2,400 engineering graduates yearly
Cultural proximity High
English proficiency High (38th globally)
Key Tech Hubs San José
Heredia
Alajuela
Cartago
Escazu
Santa Ana

Costa Rica is a superb destination for nearshore software development. As you can see from the summary above, this country has some key advantages compared to other LatAm locations.

Pros of Nearshoring to Costa Rica

  • Developers with excellent education, English proficiency and focus on career growth
  • A stable, rapidly growing business environment
  • State-of-the-art infrastructure

Cons of Nearshoring to Costa Rica

  • A limited talent pool
  • Talent not as highly ranked on skills tests

Interested in learning more about Costa Rica software outsourcing? Check out our expert report here!

Case Studies: Success Stories of Nearshore Software Development in Costa Rica

Nearshore software development in Costa Rica has a proven track record of success. North American businesses often choose this hidden gem for its talent and reliability. Just consider that big names such as IBM, Microsoft, Amazon, Citrix and NI have set up shop in Costa Rica.  

Yet, the true value of Costa Rica software outsourcing is the niche tech firms offering excellent expertise at cost-effective rates. Get to know a sample of these businesses driving nearshore success in Costa Rica. Recently case studies include:

  • Modernizing Acentra Health’s mental health app (via DNAMIC)
  • Building an AI model to classify scrap metal via photos (via Software Mind)
  • Creating a fan-friendly mobile app for Finish Line (via Gorilla Logic)
  • Redesigning PayPal.com to align with SME business needs (via 10Pearls)
  • Setting up a scalable data platform for a gaming app (via Effective Soft)

Discover even more success stories by checking out Clutch’s best Costa Rican software outsourcing firms here.

The Top Technologies Used by Software Developers in Costa Rica

Software developers in Costa Rica have a reputation for knowing diverse programming languages and next-gen technologies. Specifically, talent here tends to specialize in the following areas:

  • Top languages: JavaScript, Java, C#, Python, .NET and C++.
  • Popular tech areas: Cloud, cybersecurity, AI, big data and R&D.
  • Key services: Mobile app development, web development, IT strategy consulting, IT managed services, web design and IT staff augmentation.  
  • Industries: Financial services, IT, medical, ecommerce, business services and education.

Of course, every nearshore software partner in Costa Rica will have their own core skills and technologies. Check with potential providers during your selection process, as they may vary widely.

Connect With Costa Rica Tech Talent Via TECLA

Nearshore software development in Costa Rica is a top-notch choice for accessing unparalleled talent at affordable rates. It’s also a dependable destination, with a stable business climate and state-of-the-art tech infrastructure.

Now that you know all about Costa Rica software outsourcing, it’s time to search for your ideal developers. At TECLA, we bring strategic recruitment expertise and an impressive talent network to the table. We have leading Costa Rica tech professionals ready to achieve exceptional outcomes for your business. Get in touch with our nearshore hiring specialists today!

Why is Costa Rica a popular destination for nearshore software development?
Costa Rica software outsourcing is a premier choice due to its outstanding tech talent. Developers have a reputation for being well-educated and having great English skills. The business landscape in Costa Rica is also favorable, with advanced infrastructure, startup climate and cultural alignment.
What are the benefits of hiring software developers in Costa Rica?
The benefits of hiring Costa Rica tech talent are numerous. You can build world-class teams with developers who are educated, culturally attuned, English proficient, career-driven and available at affordable rates. This country is also business-friendly with modern facilities and a stable economy. You can even easily visit in person, as it’s geographically close to the U.S.
How does Costa Rica compare to other nearshore software development destinations?
Costa Rica has a smaller talent pool compared to other destinations worldwide. It also doesn’t appear at the top of skills rankings like other LatAm countries. Yet, it has earned its name as a niche location with a dependable business climate. Software developers in Costa Rica are also some of the most educated and English-savvy in LatAm – and can save you half the cost of U.S. talent!

Gino Ferrand
By 
Gino Ferrand
Gino Ferrand
Gino is an expert in global recruitment having spent the last 10 years leading TECLA and helping world-class tech companies in the U.S. hire top talent in Latin America.
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