Pros and Cons of Colombia Software Development

Hundreds of US companies nearshore IT services to Latin America. They hire developers in Chile, Argentina, Mexico, and Colombia. This country boasts 3,600 tech companies, 150k IT professionals, and a tech export value of $735 million. Let’s discover what makes Colombia software development attractive for America and if it’s a decent opportunity for international businesses.

Colombia IT Market Overview

The revenue of the Colombian IT market is projected to be around $2bn in 2023 and $3bn in five years. The IT industry growth rate will reach 9.15% and overtake the US CAGR 2023-2028 of 6.70%. The United States is projected to generate $455bn — the most considerable revenue in the tech sector in 2023.

The Colombia Software development outsourcing is expected to bring $1 million in revenue in 2023, or half of the total sales in IT. Such a share is explained by the high level of tech education, budget-friendly rates, and governmental support. The key sectors of the Colombian ICT market are SaaS, system design and integration, and workstations. 

Colombia has become a prominent tech hub in Latin America, so its developers stay updated with the IT trends. Java, Python, Perl, Kotlin, and HTML/CSS are the most popular programming languages in the country. Let’s check the top 5 cities for nearshore software development Colombia.

Top IT Hubs in Colombia

Colombia is vaunted for its growing tech scene and developing IT hub infrastructure. This has happened due to lowered tax rates for tech entities, free registration for young entrepreneurs, and tax deductions for startup investors. Below are the 5 most popular Colombia software engineering locations.  

• Bogotá. Bogota is the capital and the largest city in Colombia. Also, it hosts hundreds of startups and tens of coworkers spaces. IBM, EPAM Systems, Tata Consultancy, Twilio, and other 1,600 IT companies have offices in Bogota. Many tech talents live in this metropolis, and their salaries are adequate. For instance, a software developer Bogota earns around $32,952 per year. 
• Medellin. Colombia’s second-largest city has been a commercial and industrial center for years. And due to the vibrant tech culture and skilled developers, it intends to be the next Silicon Valley. LinkedIn shows around 397 IT-related companies in this region, while the average salary of a software developer Medellin is $32,952. 
• Cali. Cali isn’t only the “Salsa Capital” and the third most populated Colombian city. It also has become an outstanding tech hub in Latin America. Amazon, Google, IBM, Microsoft, and other tech giants opened offices in Cali. The “IT” companies query on LinkedIn returned around 138 entities. $27,200 is what a software developer can get per year in Cali. 
• Barranquilla. This Caribbean-coast city is the principal port and a commercial and industrial center. It also has one of the best tech ecosystems and hosts many startups, accelerators, and incubators in Colombia. If you plan to hire developers Colombia, you can spend around $15,192 for a Barranquilla-based expert or address about 120 companies for IT service. 
• Cartagena. This is another tech-centric city and 5th largest home to IT hubs in Colombia. It has over 1 million inhabitants and nearly 58 IT-related companies. Software developer in Cartagena gets about $7,871 per month. A front end developer in Cartagena gets $8,856. This is almost four times less than what you’ll pay to a front end developer Bogota ($29,520) or a front end developer Medellin ($32,821). 

Advantages and Disadvantages of Colombia Software Development

It’s vital to consider all the critical factors before you decide to hire software developers Colombia for your project. The collaboration is worth it once benefits and financial advantages prevail over possible constraints. And below are the key pluses and minuses of IT outsourcing to Colombia. 

Exploring Colombia software development as a viable option entails evaluating the benefits of outsourcing engineering startup and the potential advantages of outsourcing programming tasks to ensure a cost-effective and successful collaboration. 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 

Though cost-effectiveness is one of the key motivations for software development outsourcing Colombia, it’s only the first item on the list of benefits here. 

• Affordable rates. Whether you hire a web developer Bogota or an Android developer Medellin, the cost will be around 30% lower than in the US. The living index and, thus, salaries are much lower in Colombia, so American businesses can save a lot by hiring Colombian IT experts. 
• Access to talent pools. The level of technical education and motivation to learn industry trends makes Colombia-based developers tech-savvy. Their experience grows with the IT market demands, and you can get those skilled technicians on board. This way, you get access to Colombia software engineering talents. 
• Overlapping working hours with the USA. When American companies hire software developers Colombia, they can synchronize the entire working day. This helps all team members stay on the same page and resolve urgent issues promptly. Little to zero time difference allows your squad to maximize performance and achieve goals on time.
• Geographical proximity to the USA. Meeting your developers offline often makes cooperation more effective. Personal communication adds more human touch to tech tasks. For instance, you’ll need around 8 hours to get to your WordPress developer Medellin from LA. On-site, you can discuss strategic plans, short-term targets, and required timelines and respond to feedback right away. 
• Similar work culture and ethics. Hardworking Colombian engineers adopt Western culture in the workplace. This helps US project managers stay business-focused and honest with their teams. For example, they expect developers won’t treat pointing to mistakes as disrespect or take it personally. Also, PMs demand punctuality from more relaxed Hispanics. 
• High-quality internet connection. The average speed of fixed broadband internet is 84.66 and 30.68 Mbps for downloads and uploads, respectively. 4 million entities and homes will get the fiber optic network in 2023. Though Colombia only implements the 5G mobile network, its internet download speed is 10.94 Mbps. So the connection with your Colombian coders will be reliable. 

Cons of Colombia Software Development

Now, let’s check why collaborating with IT outsourcing companies in Colombia can be unproductive. 

• Significant time difference and distance from Europe. Suppose you have a company in Germany, France, Switzerland, or another EU country. Then contracting, for instance, a web development company in Colombia might leave you only a few shared hours. 
• Relatively low level of English. Colombia’s rating by English skills remains low as it’s 77th of 111 countries ranked. Though software developers in Colombia tend to have a good command of English, you still can face some communication issues if you hire programmers yourself.

Alternatives 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 11^th place in HackerRank rating and 14^th in TopCoder.
• Ukraine is 44^th 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.

Salaries of Software Engineers in the Colombia

When you consider hiring a software developer Colombia, the salary might be the first concern. The approximate annual payroll of a junior engineer is $23,965. The mid-level professional might earn around $26,961, while the remuneration of the technician with 4-6 years of experience reaches $35,948. 

US tech experts with similar skills might get $86,376, $96,017, and $102,159, respectively. So for US companies, cooperation with software development companies in Colombia is 3-4 times cheaper than working with local IT specialists. However, if hiring Colombian devs won’t meet your project needs, consider other outsourcing or outstaffing destinations.

Software Outsourcing in Colombia or Ukraine? Overall Comparison

Below, we’ll compare the annual salaries of top tech specialists in Ukraine and Colombia. Moreover, you’ll learn about remuneration levels for programmers with various experience levels. This might help you estimate the budget and decide whether to offshore software development Colombia or Ukraine. 

Please note that the numbers aren’t always consistent. Glassdoor splits salaries into the base and additional pays, and the second part can vary significantly in different companies. 

According to Glassdoor, the payrolls of Ukrainian engineers are, in general, higher than those of Colombian coders. Which makes offshore software outsourcing Colombia attractive for American and Canadian companies. However, European entities can face significant time and cultural differences with Colombian remote teams. Then hiring Ukrainian tech talents cost-effectively is an excellent alternative.

Find out more about:

• Pros and cons of outsourcing software development to Argentina.
• How to nearshore software development in Mexico?
• How to hire developers in Brazil?
• Is it worth to consider hiring software developers Mexico?
• How to find outsource software developers Latin America?

Hire developers in other Countries

Expand your team’s potential by hiring talented developers from different countries, gaining access to a diverse range of skills and cultural perspectives. This approach enriches your projects with global insights and fosters a dynamic, innovative working environment.

Belgium

Cyprus

Germany

Singapore

Switzerland

Mobilunity is a Reliable Provider in Ukraine

Mobilunity specialists also have broad experience in hiring IT professionals in Latin America. Our recruiters will find a full stack developer Medellin, Bogota, Barranquilla, or other Colombian cities locally within 5-8 weeks. You’ll leverage our in-depth understanding of tech recruiting and proven approaches to searching for candidates. 

Our hiring process will run smoothly and comfortably; you’ll choose when to join it. We’ll help you find experts to run tech interviews once needed. Mobilunity offers outstaffing and recruiting services so that you can contract coders directly or through us.

5 Reasons to Hire Developers in Colombia with Professional IT Recruiters 

Even if you have an in-house recruiter, it might be challenging to hire software developers in Colombia. These are the 5 benefits of delegating the search to professionals.

• You’ll hire your team faster. Skilled tech recruiters can hire a software developer Bogota within 5-8 weeks. This is possible due to appealing vacancies, relevant promotion channels, own talent pools, and vast networks. Advanced tools and teamwork allow professionals to optimize time for searching and interviewing. 
• You’ll get best-fit devs on board. When, for instance, a professional recruiter sends you the CV of a WordPress developer Medellin, this is a programmer who meets all your requirements. Moreover, chances are high that this coder will perfectly fit your working environment. This way, you won’t have to search for a new programmer in a week.
• You’ll save time and effort by delegating recruiting. You might think that finding an Android developer Medellin should be fast and pretty easy. But it’ll take hours to craft a catchy job description, post it to tech job platforms, run interviews, and assess candidates. By contracting professionals,  you save time and energy for business tasks. 
• You’ll get guarantees. Let’s imagine that after several weeks of searching and interviewing candidates, you hired a front end developer Bogota. But in a week, this engineer decides to quit for personal reasons. You’ll have to spend more time and budget finding the new one. But contracted professionals will do this for free and ASAP. 
• You’ll be able to grow your team promptly. Tech projects often evolve rapidly, so soon, you may urgently need more software developers in Colombia. This can take months to find them on your own, while niche IT recruiters can do it within weeks. So cover this risk by hiring professionals, and don’t switch your project to “standby mode.”  

3 Ways to Hire Software Developers in Colombia with Mobilunity 

We’re not a web development company in Colombia to deliver the turnkey IT project; our expertise is finding the right technicians. Let’s imagine you’re looking for a senior web developer Medellin. And when turning to us, you get three ways to hire this professional. 

• You get a full-time dedicated team. This option is ideal for long-term projects with a full load on programmers. We find, hire, equip, and maintain your remote dedicated team while you functionally manage it. We contract Colombia or Ukraine-based developers, transfer payrolls, and keep our cooperation compliant with local laws. You pay a monthly bill which includes salaries and all related operational expenses.
• You contract a part-time consultant. Does your team need top-level consultancy, expert supervision, or a tech talent’s advice? In this case, a specialist available on an hourly basis is the best solution. This format doesn’t require long-term commitments or extra expenses. You pay only for the hours worked optimized for your schedule. We’ll send you invoices once a month. 
• You outsource recruiting to us. If you don’t intend to turn to outsourcing companies in Colombia and only need to delegate the recruiting function, our experts will help. They have experience hiring technicians in Croatia, Albania, Serbia, Azerbaijan, Tajikistan, Kazakhstan, and Peru. With our progressive searching methods, we find the best-match candidates within several weeks. We can hire locally in Colombia and contract candidates in Eastern Europe.

Cost-Effectiveness. Quality. Speed. Nearshore Software Development Colombia with Us!

Written by:

Anastasia Stefanuk

Market Researcher

Disclaimer: All salaries and prices mentioned within the article are approximate NET numbers based on the research done by our in-house Recruitment Team. Please use these numbers as a guide for comparison purposes only and feel free to use the contact form to inquire on the specific cost of the talent according to your vacancy requirements and chosen model of engagement.