Colombia is one of Latin America’s most attractive locations for outsourcing services. Companies from around the world outsource software development to Colombia because it offers a great balance of affordability, proximity to the US, and high-quality work.
The Ins and Outs of Software Development Outsourcing to Colombia
Outsourcing software development is now standard practice for businesses across industries, types, and sizes. And one of the most important steps of outsourcing is choosing the best region and country for your needs.
While there are several regions all over the world to choose from, business leaders often choose to outsource software development to the LatAm region. Colombia is one of the most popular countries for software development services because it offers easy access to expert software developers at lower prices. US-based companies working with Colombian outsourcing providers also operate within a similar time zone, which means they enjoy seamless communication and collaboration.
Why else is hiring Colombian developers so appealing? Colombia continuously invests in and develops the outsourcing industry, attracting foreign investors and contributing the to country’s growth. The government pushes heavily for the improvement of infrastructure and education, encouraging a move toward data and knowledge-based solutions.
Defining Software Development Outsourcing
Software development outsourcing involves a client company hiring software developers from a third-party vendor to develop software solutions externally for them, fulfilling all project-related responsibilities. This process can range from hiring specialized individuals to contracting entire teams, depending on the project’s requirements.
Oftentimes, companies only need outsourcing providers to handle specific steps or aspects of the development process. Common items for companies to outsource include feasibility studies, UX design, software architecture, or software testing.
There are three main types of outsourcing concern the location of the outsourcing provider: onshoring, nearshoring, or offshoring.
Onshoring occurs when the outsourcing provider and the client company work within the same country. This is the closest type of collaboration because it makes it possible for quick check-ins to ensure all processes run smoothly throughout development. However, it’s also generally the most expensive type of collaboration.
Nearshoringinvolves companies deciding to hire Colombian software developers or those from neighboring countries that share a similar time zone. This approach provides clients with a larger pool of professionals at more competitive prices while still facilitating easy communication and the possibility of in-person check-ins.
Offshoring takes place when a client company outsources software development to a vendor located in a more distant country. This is often the most cost-effective option that also offers access to an even wider pool of experts. However, companies must handle large time zone differences as well as potential language and cultural barriers.
Advantages of Software Development Outsourcing
Companies of all types and sizes benefit greatly from software development outsourcing for a multitude of reasons. Some of the greatest advantages of software development outsourcing include:
- Reduced costs: Seventy percent of companies outsource their software development work do so because it helps them save money. Companies also bypass the costs of hiring and investing in new technology, equipment, and infrastructure.
- Filling gaps in the development team: Outsourcing software development is a great way to bring in the skills lacking in-house. Companies can gather a full team of professionals that help their project come to life while only paying for the required expertise.
- Access to global talent: Outsourcing development means that geographical location doesn’t limit companies—they gain access to talent from all over the world. This provides a significant advantage over competitors since it helps bypass the local shortage of IT developers.
- Scalability: Outsourcing vendors can easily handle changes in project scope and the need for team expansions. Scaling is never an issue, as vendors have access to a wide pool of trained staff with unique skill sets that can take care of growing project demands.
- Focusing on core business tasks: As the outsourced development team handles all of the stages of the software development project, the in-house team is free to focus on core business tasks that help the client company grow.
Why Outsource Software Development to Colombia?
Companies outsource software development to Colombia because of the country’s great potential in the field. By turning to Colombian software engineers, you’ll have access to superior talent at affordable prices. It also shares a great time zone compatibility with the entire United States.
The State of Colombia’s Tech Industry
One of the biggest factors that lead companies to outsource software development to Colombia is the country’s stable economic conditions. Experts estimate that Colombia’s gross domestic product will increase by 27.52% between 2023 and 2028.
A major factor driving this growth is the country’s robust technological ecosystem. Because the Colombian government values the tech industry, there are several laws and regulatory policies in place that play a role in maintaining a competitive business climate in Colombia.
Another factor contributing to Colombia’s rich IT ecosystem is the extensive outsourcing experience and large number of highly-skilled professionals. As of 2022, there are over 62,000 software developers in the country working to provide the best software development outsourcing experience.
Skilled Talent Pool
Another reason why companies outsource software development to Colombia is because of its skilled talent pool of software developers. The country has a very large population of technically skilled professionals. With a competitive workforce and a robust talent pool, it’s no surprise that this country has a significant impact on the global software development community.
Colombia has great universities for computer science and engineering. Three of its universities rank among the 30 best global universities in Latin America, and the country has one of the highest graduation rates in science and engineering in the entire region.
When it comes to skills, Colombian developers rank highly in several different areas, such as data analysis, statistical programming, databases, and mobile development, according to Coursera’s 2022 Global Skills Report. Colombian software developers are proficient in a wide range of programming skills.
Competitive Costs
A major reason that heavily influences business leaders to outsource software development to Colombia is the competitive costs. Even though Colombian software developers are very skilled, the cost of hiring them is significantly lower than hiring developers from the United States or Europe.
The final cost of outsourcing software development to Colombia depends on the developers’ skills, years of experience, and specializations. However, the final cost of outsourcing to this country typically remains affordable for many countries with a significantly higher cost of living, such as the US and Canada.
Time Zone Compatibility
There’s a great time zone compatibility between the United States and Colombia. It’s part of the northwest coast of South America—therefore Colombia shares a time zone with the entire east coast of the US. Colombian and US-based software development teams have up to eight hours of overlap during the workday.
US-based companies choose to outsource software development to Colombia because of this compatibility, which leads to seamless communication, smarter productivity, and higher-quality products. Because the in-house and the outsourced teams work during the same hours, for the most part, it’s easier for them to tackle any problems together at the same time.
For business leaders who prefer a closer connection with their software development outsourcing company and the opportunity for increased supervision, nearshoring software development to Colombia is a great option.
Strategies for Successful Outsourcing
To maximize the potential of outsourcing software development to Colombia, companies need to follow a few strategies that will ensure a successful outsourcing process. This includes finding the right outsourcing partner, setting clear expectations and milestones, and prioritizing quality and security.
Finding the Right Outsourcing Partner
The first step in finding the right outsourcing partner is thoroughly investigating the vendor’s profile. Companies need to check their case studies to better understand the developer’s experience and expertise. Business leaders should work with outsourcing vendors that have previous experience in a relevant area or industry for the project at hand.
Another important way to evaluate potential outsourcing providers is by checking reviews and testimonials and asking for references. Good vendors provide consultations, offer detailed proposals, and encourage meetings to better understand the clients’ business.
Finding the right outsourcing partner often dictates the entire experience with this business model. Companies need to take time and do their due diligence before confidently choosing an outsourcing agency to work with.
Setting Clear Expectations and Milestones
Before companies begin working with an outsourcing provider, they must establish clear goals and expectations. Knowing why they need an outsourcing vendor and what they expect from them helps make the entire outsourcing process a much smoother venture.
Clear expectations, specific goals, and set milestones are crucial building blocks for the success of software development outsourcing. The more the outsourced team members know and understand the project’s requirements and goals, the better their ability to meet the company’s expectations. The conversation between both parties should include a foundational explanation of the required product or application, user needs, and business goals.
Companies should try to maintain constant and clear communication throughout the entire development process and not only at the beginning. Project scope and requirements might change during development and so can the goals of the client company.
Prioritizing Quality and Security
The best way to ensure quality and security in software development outsourcing is by selecting a trustworthy and reliable outsourcing provider. Doing so involves researching their market reputation, track record, and commitment to data protection.
Choosing outsourcing agencies with certifications guarantees that they’re compliant with international standards for information security management. This helps save companies time, money, and reputational damage by mitigating cybersecurity risks.
Another great source of security comes from implementing robust confidentiality agreements. These should clearly state the scope of the project, ownership of IP rights, restrictions on data usage, and consequences of breaching confidentiality obligations. For added security, contracts should also include other agreements such as DPAs and NDAs.
Not all countries follow the same laws and regulations on data protection. For instance, companies that want to outsource software development to Colombia should understand that the country’s data protection laws differ from international standards.
The Different Outsourcing Models
Another great benefit of outsourcing software development is the fact that companies get to choose different outsourcing models that better suit their needs. Depending on the project’s scope and the business’ resources, BairesDev offers three main engagement methods based on the needs of the client: outsourcing development, staff augmentation, or hiring dedicated teams.
Outsourcing Development
Software development outsourcing to BairesDev involves having a client company delegate an entire project to a third-party provider. The BairesDev team takes on the responsibility of providing staff, equipment, and infrastructure as well as managing the entirety of the project. The outsourced team then handles all steps of development from design to pre-launch support.
Advantages of using this outsourcing model include gaining access to talent and technologies that are unavailable within the client company organization at affordable prices. Moreover, it’s a scalable model since you can always alter the development team by extending resources as needed.
Business leaders don’t have to worry about training the outsourced team, thereby gaining the ability to focus on core business tasks. Outsourcing development reduces time to market because outsourced professionals complete entire projects much faster than in-house development teams.
This model is best for companies with complex projects and tight deadlines that also need to maintain core business operations. Companies that want to quickly scale software development operations also greatly benefit from outsourcing to BairesDev.
Staff Augmentation
IT staff augmentation involves temporarily extending an in-house development team with outsourced professionals from Bairesdev to fill a particular skill gap or adjust to new business conditions. These professionals complement the existing staff, using their unique skill set to help complete a project.
The client company has complete control over the project, and the outsourced members adhere to the company’s methodologies and practices. Business leaders only pay for delivered services, and the development process moves much faster.
This outsourcing model allows companies to find employees quickly and decide which roles they will play throughout development. Businesses have the ability to scale resources as needed whenever the scope of the project changes.
Staff augmentation is best for businesses that need to fill skill gaps within their in-house team but don’t want to recruit more in-house employees. It’s a particularly good model for companies looking for developers with specialized skills and tech stacks to help them meet tight deadlines.
Dedicated Teams
A dedicated development team is a team of specialists put together by BairesDev to meet the requirements of a client company’s project. Depending on the scope of the project, a dedicated team may include designers, developers, business analysts, QA engineers, and more.
The outsourced dedicated team works under the direction of the client company, but the outsourcing vendor takes care of all financial and administrative responsibilities, such as compensation, taxes, insurance, infrastructure, and software licenses. This outsourcing model is very easy to scale, depending on the company’s needs. It allows for good collaboration and communication between team members and also helps reduce time to market.
BairesDev dedicated teams work best for companies with long-term projects, early-stage startups that need long-term cooperation, companies that work in a narrow development niche, or businesses that can’t afford to recruit and train an entire in-house development team.
Other Great Outsourcing Locations in LatAm
Latin America is an extremely popular outsourcing destination. LatAm’s geographical location and time zones make this an extremely convenient nearshoring region for US-based companies. Apart from Colombia, there are a few other great outsourcing locations in LatAm, such as Chile, Argentina, and Mexico.
Chile
Companies choose to outsource software development to Chile because it is a hub for technological innovation. The country offers companies access to tens of thousands of software engineers at low hiring costs. Behind the significant development of several IT areas is the Chilean government, which heavily contributes to the development of new technological and innovative solutions. It’s currently highly invested in blockchain and fintech.
Argentina
US-based companies often see nearshoring development to Argentina as an attractive option. The country has one of the largest talent pools in Latin America, along with a highly educated workforce, an excellent IT infrastructure, and very low labor costs compared to the United States and Europe.
In Argentina, the government attracts and supports the investments of international businesses through innovative legislation and initiatives. Argentinian outsourcing vendors comply with international standards regarding IP and personal data protection.
Mexico
Mexico has the second-largest software developer talent pool in Latin America. This county is an engineering and software development hotspot and a source of affordable and highly skilled professionals. The country’s proximity to the United States makes it a convenient destination for outsourcing software development. The Mexican government boosts the IT sector and high education standards through multiple initiatives. It also has an advanced infrastructure and a large workforce with numerous bilingual speakers.
Colombia: A Prime Location to Hire Software Developers
Among the countries in Latin America, Colombia is rising as one of the go-to destinations for businesses looking to hire software developers. It’s not just about its innovative technological environment or the affordable access to a skilled talent pool; the nation’s time zone compatibility with most areas within the United States is a major advantage for Agile work environments.
The popularity of Agile software development practices emphasizes real-time collaboration, making this time zone alignment especially significant. For companies aiming to hire Colombian developers, this means more synchronized working hours, facilitating smoother project management and timely feedback loops.
Software development outsourcing providers in Colombia like BairesDev offer high-quality, cost-effective services to their client companies. This includes providing different outsourcing models depending on the project’s requirements. Companies can choose among outsourcing development, staff augmentation, and dedicated teams models.
Although Colombia is one of the best regions in LatAm to outsource software development, there are a few other countries to choose from. Businesses can also outsource their projects to countries such as Chile, Argentina, or Mexico.
FAQ
How does Colombia compare to other Latin American countries for software development outsourcing?
Colombia has a robust technological ecosystem and policies in place that help maintain a competitive business climate. There are over 62,000 developers in the country’s talent pool, with access to high-ranking universities. Colombian developers specialize in different areas such as data analysis, statistical programming, databases, and mobile development.
