The Main Benefits and Possible Risks of Offshoring Software Developers to Colombia

Colombia has an exciting and quickly growing software development industry that’s taking the development world by storm. This mid-sized country in South America is churning out extraordinary new software projects and products, and pushing the boundaries of tech innovation.

If you’ve been wondering why so many companies have started looking to Colombia for offshore software development services, here is the top factors to consider:

📌 Large and growing talent pool

Colombia boasts one of the largest populations of skilled software developers in Latin America. These engineers also span a wide variety of programming languages and technologies, ensuring that companies can find the specific development talent they need.

And perhaps even more importantly, the Colombian government is doing a fantastic job of supporting its technology sector. This support comes in the form of tax incentives, venture capital funding, loans, and grants, as well as educational events to encourage innovation. The Vive Digital program is a great example of this commitment to igniting growth through special technical and financial resources dedicated to startups and tech companies. Thanks to increasing investments by the government, Colombia is becoming a hub for software development that presents many opportunities for those looking to expand their business globally.

📌 Convenient time zone for U.S.-based startup and tech companies

Colombia is an ideal destination for companies looking to outsource software development services due to its convenient time zone (Eastern Standard Time) for U.S. based companies. This means that companies in the US can rest assured that communication delays and other problems caused by time differences won’t be a problem. Not only that, but the strong English proficiency in Colombia makes it easy to ensure the message is getting communicated properly.

📌 High retention of local tech talent

Staying ahead of the competition in the tech sector can be difficult, especially when recruiting local talent. Fortunately, by taking advantage of software development in Colombia, companies can tap into an incredible pool of expert engineers and creative coders. Colombia’s well-established tech community also ensures that high retention rates of talent can be maintained as experienced developers prefer working with experienced peers. This means that companies won’t have to worry about losing their best talent and can spend more time focusing on their projects instead. Ultimately, Colombia is a great option for those looking to build successful tech teams with real diversity and longevity.

📌 Cost Effective Salaries and Labor Rates

Colombia is becoming an increasingly appealing destination for software development projects, in large part thanks to the comparatively lower labor rates of software developers there. Colombia’s software development industry has been growing steadily since 2012 and its software developers offer high quality services. Offshoring software development efforts to Colombia not only helps you cut software development costs but also improves your overall software development efficiency as Colombian software developers are well-trained professionals whose expertise often exceeds that of their peers from other countries.

📌 Excellent price-performance ratio

Software development in Colombia offers the perfect balance between economical pricing and excellent, up-to-date software development skills. Colombian software developers have a unique standing in the software development market; their software engineering capabilities are highly sought after, yet they are available at very competitive prices.This unbeatable price-performance ratio means that software projects will be completed with speed, cost, and expertise in mind—a triple win for any organization looking to offshore software developer resources.

📌 Extensive software development infrastructure

Colombia is a software development powerhouse. With 11 submarine communications cables, it ranks second in the Americas for telecommunications infrastructure, and its pool of software developers boasts top talent. And if that weren’t enough to get your attention, the US-Colombia Trade Promotion Agreement supports software efforts too.

📌 Thriving startup ecosystem

Colombia’s software development scene has been experiencing significant growth in recent years, with investors pouring in and the government introducing numerous initiatives to fuel innovation. Startups are raising significant venture capital, and large companies (like Gilead Sciences , Google and Vestas ) have made sizable investments in Colombia to support software development projects.

📌 Strong reputation among tech investors

Colombia has become one of the shining software stars of South America due to its robust economic standing and improved security. Its growing trade and investment ties with many countries have been fuelling foreign direct investment (FDI). And in order to attract even more investors, Colombia has actively implemented a number of crucial reforms that reduce bureaucratic red tape, streamline taxes, and open its economy up for foreign investors.

Finding software developers that you trust to bring your software project to life can be difficult, and developing software in a foreign country can be even more nerve-wracking. If you’re considering hiring software development services in Colombia, here are some of the risks you should be aware of, including:

❗️Potentially lower English proficiency

Lower English proficiency is a definite risk to consider when hiring software development teams in Colombia (or anywhere outside the United States for that matter!). In software development, technical communication is paramount, as team members need to be able to clearly exchange ideas and collaborate on products. If there’s a language barrier due to low English proficiency, it can obstruct progress — causing delays and errors that could potentially cost the company dearly.

❗️Politically unstable past

Despite the inherent software development talent in Colombia, political instability remains one of the main risks associated with software production in this country. Like many Latin American nations, Colombia has experienced periods of civil unrest, making it difficult to maintain a consistent software production schedule due to sudden outages or power interruptions. This could result in software projects taking longer than expected and delays in launching products on time. The political context can also prove unpredictable meaning feasible software development contracts can suddenly change without warning, putting investors at risk. All of this said, however, the Colombian government has gone to great lengths over the last 10 years to put these fears to rest.

❗️Complicated labor laws

For software projects undertaken in Colombia, employers must adhere to laws around wages, working hours, and other terms of employment that can be difficult to navigate. Additionally, software developers may be subject to taxation if they are classified as permanent employees rather than independent contractors – another tricky situation.Although proper research and planning can help avert potential issues, any risks should be carefully weighed against the benefits of offshoring software development to Colombia.

P.S. WITH TURNKEY, YOU DON'T HAVE TO WORRY ABOUT HUNTING FOR DEVELOPERS OR DEALING WITH LEGAL OR ADMINISTRATIVE HEADACHES IN COLOMBIA. Call us today!

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