Why You Should Consider Colombia for Nearshore Technology Outsourcing

Outsourcing tech roles has become a popular option for businesses looking to optimize their operations and cut costs. Nearshore outsourcing—hiring remote talent from nearby countries—has proven to be a successful strategy for many employers. 

In recent years, US-based companies have been increasingly choosing Colombia for nearshore technology outsourcing due to strategic advantages like its highly skilled professionals and competitive pricing.

If you are an employer considering nearshore technology outsourcing, it is important to compare different options to make an informed decision on which country best suits your needs. 

This article will highlight why Colombia should be at the top of your list when hiring remote tech talent and how it compares with some other popular nearshore destinations.

Why Choose Colombia for Nearshore Technology Outsourcing?

There are quite a few reasons why Colombia stands out in nearshore tech outsourcing, even in LatAm. Here are the top three reasons companies choose this nation for nearshoring:

1. Vast talent pool: As a major LatAm tech hub, the country has a deep talent pool in the technology sector, particularly in software development, IT services, and digital marketing.
2. Motivation and tech savvy: Colombian professionals are known for their strong work ethic and adaptability to cutting-edge technologies and changing business processes.
3. Time zone similarities: The time zone in Colombia matches Eastern Standard Time in the United States (though it is one hour behind in daylight saving time). This makes real-time collaboration easier, especially if your business is on the East Coast.

Colombia vs. Other Latin American Countries for Technology Outsourcing

When it comes to countries for technology outsourcing, LatAm offers a plethora of options for employers. However, Colombia stands out in several key areas. Let’s see how it stacks up against other LatAm countries.

Colombia vs. Argentina for nearshore technology outsourcing

Colombia has a larger pool of tech talent, with over 150,000 professionals in the field, compared with Argentina’s over 115,000.

The Colombian government has invested heavily in technology and innovation, with initiatives such as ProColombia and Apps.co promoting the growth of the industry. Likewise, the Argentine government has also invested in initiatives with similar aims and now boasts 11 of the 34 unicorns in LatAm.

Salaries for tech roles tend to be lower in Colombia than in Argentina, making it a more cost-effective option.

Colombia vs. Brazil for nearshore technology outsourcing

The cost of living in Colombia is lower than in Brazil, meaning that salaries for tech roles are also more affordable for employers.

While Brazil may have a larger overall tech industry, Colombia’s focus on developing and investing in its IT sector makes it a competitive option for outsourcing.

Colombia vs. Costa Rica for nearshore technology outsourcing

Colombia has more universities offering degrees in technology and engineering and a higher number of ICT graduates than Costa Rica, providing a larger pool of qualified tech professionals.

Living costs in Colombia are lower than in Costa Rica, resulting in lower salary expectations for IT roles.

Both countries have strong government support for the technology industry, but Colombia’s initiatives are more focused on attracting foreign investment.

Colombia vs. Peru for nearshore technology outsourcing

The Colombian government offers attractive tax incentives for companies investing in the tech sector, making it an attractive option for businesses looking to outsource.

Colombia has a larger tech talent pool than Peru, which may make it easier to find professionals with the right specialized technical skills.

The cost of living in Colombia is slightly lower than in Peru, resulting in lower salary expectations among tech professionals.

Colombia vs. Uruguay for nearshore technology outsourcing

Colombia has significantly more tech professionals than Uruguay.

Moreover, living costs and salaries in Uruguay are much higher than in Colombia, making it a more expensive option for employers.

Colombia also has better infrastructure and connectivity, meaning its workers tend to be better equipped for remote work than Uruguayan residents.

Colombia vs. Mexico for nearshore technology outsourcing

Thanks to its larger population and developed infrastructure, Mexico has a more extensive pool of tech talent than Colombia.

However, technical professionals tend to offer more competitive rates in Colombia.

English language proficiency is also higher in Colombia than in Mexico, making effective communication with remote workers easier.

How To Pick the Best Country for Nearshore Technology Outsourcing

When deciding which country to outsource tech roles to, there’s no one-size-fits-all answer. That said, you can deduce which choice is best for your business needs by considering several important factors:

Time zone compatibility

One of the key factors to consider when outsourcing tech roles is the country’s time zone compatibility with your company.

Colombia is in the same time zone as many major cities in eastern North America during standard time, making it easier to communicate and collaborate with your nearshore team without significant time differences.

Language proficiency

If most of your internal team primarily speaks English, you need a workforce well versed in the language. Colombia has a highly educated and skilled talent pool, with English being widely spoken and taught in schools. 

This makes communication between your business and outsourced workers much smoother, eliminating potential language barriers.

Cultural affinity

Cultural compatibility is also important when outsourcing tech roles, as it can affect collaboration and team dynamics. Colombia shares many cultural similarities with North America, including a strong work ethic, similar business practices, and English proficiency.

Education system

Many tech roles require deep knowledge that can sometimes only be obtained from higher education.

Colombia has a strong education system, with a high percentage of its population having access to higher education. This means you can expect to find a rich pool of highly skilled and qualified tech professionals in the country.

Cost advantages

Even though cost savings are often a major goal of nearshoring, expenses can vary widely. Compared with other popular nearshore outsourcing locations like Mexico and Costa Rica, Colombia offers highly competitive pricing for tech outsourcing services. 

This means you can save significantly on overhead costs while getting top-quality talent.

Government support

While not a dealbreaker, it’s always easier to recruit outside the country if there are incentives in place to make it a more attractive business environment.

Colombia has made significant efforts to attract foreign investment and develop its tech industry and economic growth. The government offers various incentives for companies looking to outsource in the country, such as tax breaks and streamlined visa processes. 

Additionally, Colombia has a stable political climate, which provides a sense of security for employers.

Final Thoughts

Colombia is a strategic location for nearshore technology outsourcing and offers numerous benefits for employers. 

Thanks to its highly skilled workforce and competitive pricing, hiring remote talent from the country can be a game changer if you’re looking to optimize your operations without breaking the bank.

At Near, we specialize in recruiting top tech talent from LatAm, including Colombia. Our team of experts can help you find the perfect fit for your company’s needs and guide you through the entire hiring process.

Don’t miss the opportunity to tap into Colombia’s vast pool of talented professionals. Schedule a free consultation call to learn more about our services and how we can help your business thrive with nearshore technology outsourcing.