Colombia Software Development: Is It Worth Trying?
Latin America becomes a popular outsourcing destination when it comes to IT software development. Many US businesses hire developers in Chile, Mexico, Argentina, and Colombia. It is financially beneficial and convenient in terms of time zones. What makes Colombia software development a valid option for international companies?
The Colombian ICT industry has been growing steadily for several years. Internet penetration cover 65.5% of the population and the market value was estimated at $6.38 billion in 2019. Outsourcing in Colombia is supported by a government that endorses international investment with initiatives like Free Trade Zones.
Software development in Colombia is one of the main destinations in Latin America as it is the oldest democracy in South America and has 81.2% trade freedom. Software development outsourcing rates in Colombia are significantly lower than in the US, which makes it a lucrative opportunity for international partners.
The main sectors of Colombia IT market are:
- Cloud computing and cybersecurity;
- Hardware updating and production;
- Software development Colombia with a focus on ERP solutions, web and mobile app development, cloud environments, and Business Intelligence solutions.
Software outsourcing in Colombia is also powered by the highest number of engineering graduates in Latin America and a good educational system.
Time zone: GMT+5
Largest Tech Hubs: Bogotá, Medellín, Cali, Barranquilla, and Cartagena.
Number of Programmers: 64,000
Advantages and Disadvantages of Colombia Software Development
Offshore services in Latin America overall and specifically in Colombia have their pros and cons. Before you decide to outsource to Colombia, it is better to know them all to make an educated choice
Pros of outsourcing software development to Colombia:
- Colombia outsourcing is affordable because of the relatively low salary rates. There is also a decent talent pool to choose from;
- Colombia custom software development companies are popular among US clients because of the little time difference and proximity. The longest flight from the US takes 7 hours and there is a huge working day overlap, which makes cooperation easier.
- Local companies and developers are adopting western work culture and ethics.
- Software developers in Colombia usually have a decent knowledge of English and many local companies endorse it.
- The IT community is young and innovative; Medellin city is to become a part of the Fourth Industrial Revolution movement. And there is a stable and fast internet connection.
Now, let’s list come cons of Colombia software development:
- Software outsourcing Colombia is not easy for EU clients because of time zones and proximity. What works for the US doesn’t work the same for Europe.
- Despite the best effort, English knowledge is still quite low in the country, with 77th place on global ranking (very low category).
- Offshoring Colombia might be risky because of crime rates, labor and trade unions that do not support international investment, and complicated labor legislation.
- Outsourcing Bogota or other hubs can be challenging in terms of finding top talent. Colombian developers are not that high on international coding rankings when it comes to the quality of work. They are in 38th place on TopCoder and in 45th out of 50 in HackerRank. So Colombia software development might not be suitable for some companies regarding the quality of delivery.
The choice to hire a software development company in Colombia or another country depends on the budget and requirements but it is important to know the alternatives.
Alternative to Software Outsourcing in Colombia
Software development outsourcing Cartagena Colombia can be attractive for some US companies, but it doesn’t work for everyone. Location, business culture similarity, and time zone are essential factors for choosing an outsourcing destination. So if Bogotá, Colombia outsourcing is not for you, you’ll be glad to know that there is a great alternative.
Eastern Europe is gaining momentum when it comes to quality IT outsourcing. And one of the main countries in this is Ukraine. It offers lower rates than US and EU developers, a great talent pool, a comfortable location, and top-notch services. Here are the main benefits of Ukraine as an IT outsourcing destination:
- Ukraine is located in Europe, the time zone is GMT+2, and it is incredibly convenient to work with EU partners. There is little to no time difference and there is a workday overlap with the US too.
- Ukraine has a stable economy and there are no natural disasters that can add risk to the project.
- It has a great talent pool with over 200,000 software developers and 16,000 graduates per year.
- Ukrainian developers are highly skilled and have an international reputation for the quality of delivery. They scored 11th place in HackerRank rating and 14th in TopCoder.
- Ukraine is 44th in Global English proficiency level. And local programmers have a good command of English. It makes international cooperation easy and direct.
- It is a European country that has extremely similar business values, culture, and ethics. It also complies with GDPR and is known for the strong education of its professionals.
Ukraine is an excellent choice when it comes to ease of doing business and quality to price correspondence.
Software Outsourcing in Colombia or Ukraine? Overall Comparison
|Size of a tech talent pool||64,000||200,000|
|English proficiency||Low to moderate, 77th worldwide||Good, 44th worldwide|
|Education level||Higher education, BA or MA||Higher education, BA or MA|
|Risks related to natural hazards||High||Low|
|Average monthly rate for middle developers||$840||$917|
|Data safety and insurance||Not GDPR compliant||GDPR compliant|
|Quality to price correspondence||Moderate, 38th place on TopCoder and in 45th out of 50 in HackerRank||High, 14th according to TopCoder, 11th by HackerRank|
|Ease of doing business||Moderate, smaller talent pool and complicate labor legislation||Easy and low taxation|
The final decision on where to outsource depends on individual requirements and expectations, as well as many other factors, like the scope of the project. The next essential step is to find a suitable service provider to make the hiring process smooth and easy.
Mobilunity is a Reliable Provider in Ukraine
If you want to hire a dedicated development team in Ukraine, we are here to help. Mobilunity is an experienced outstaffing provider that gives access to top talent among Ukrainian programmers.
We have been working in this industry for more than a decade and have 40+ satisfied customers from all over the world. Our team is ready to find experts suitable for the scope of your project that will ensure flawless delivery.
Mobilunity is all about putting the clients’ needs in the center and making the hiring process extremely comfortable for you.