Nearshoring to Colombia is at its all-time high. The boom of the IT industry in Colombia and its staggering growth has created an attractive prospect for companies to nearshore their software development.
For several years, Latin America has been popping up in the international radar (especially in the US) as a hot spot for tech innovation and top-quality IT services. The transformative effect that IT has had on the region in the past decade has laid the ground for exponential growth in IT products and nearshoring talent. Countries like Brazil, Chile, and Colombia, take the cake, the latter being the new hub for outsourcing nearshore IT services.
For the United States, where the shortage of talent has caused prices to skyrocket, the attractiveness of nearshoring to Colombia and tapping into all the talent of cities like Bogotá and Medellín is too good to pass up. The benefits of nearshoring to Colombia are manifold, and for companies seeking to outsource top-of-the-line talent, Colombia is the ultimate gold mine. Here’s why.
Booming IT industry
The IT and software development industry growth in Colombia is undeniable. According to the International Data Corporation (IDC), Colombia is the third-largest provider of IT and nearshoring services in Latin America, with a 19% growth in the software development sector in the past ten years.
As of December 2019, the IT industry in Colombia had exported and outsourced USD 433 million worth of computer products and IT and telecommunication services, with a total net income of 9.500 million USD mark in 2017.
Growing IT-Focused Talent Pool
Colombia houses an always-growing pool of talent of IT-focused workers. The country has the third-largest IT workforce in Latin-American. Bogotá concentrates 25% of the total labor force of the country, followed by Medellín with 14%.
Also, as of December 2019, Bogotá boasted a staggering talent pool of approximately 84,000 graduates of engineering careers related to the IT sector. These numbers are a direct result of the support coming from NPOs, big businesses, and entrepreneur groups who make it easier for students to get access to top-quality education. They are also encouraged and supported to become developers regardless of their economic or educational backgrounds.
Here at Foonkie Monkey, for example, we have a skilled workforce of professionals from various backgrounds that represent the perfect cost-efficient opportunity of nearshoring to Colombia. We work with the same quality as any onshoring team but with competitive hourly rates and top-grade business processes.
Government laws and regulations have been implemented to attract foreign investors and have created a wholesome business environment in Colombia. The simplification of processes, new legislation, tax exemptions for foreign companies, and the liberalization of trade measures have created a more flexible and competitive business climate. According to the World Bank, Colombia has the third-best business environment in Latin America, preceded only by Chile and Mexico by a minimal margin.
It’s no secret that the cost of IT specialists and developers in the US is at its all-time high and only getting higher, which makes onshoring very expensive. IT products and services coming from Colombia are lower in costs but have the same (if not better) quality, reliability, and efficiency as any workforce on the planet. Moreover, nearshoring to Colombia not only reduces costs but ensures the employment of a top-quality workforce.
Additionally, there is the fact that in-person meetings (when necessary) that require air traveling are closer, therefore faster and cheaper. Airlines have several direct flights and weekly routes, accommodations are comfortable and affordable, and internet access in all the main cities is as reliable as any on the planet.
Of course, at Foonkie Monkey, we always make sure our clients get the best out of their investment with our pocket-friendly principle of Shared Responsibility. This principle is result-oriented and will ensure the proper use of any budget by reducing costs to 50% until tasks or objectives get fulfilled. Furthermore, our strategic location in the Caribbean means that any necessary in-person meetings are a reality at very affordable costs and short traveling times.
The cultural rapport that exists between the countries in the continental Americas is an undeniable advantage when it comes to nearshoring. First, companies can work with teams in countries located closer to their own, which not only offers cost-cutting benefits but also means a greater cultural alignment, higher compatibility, and better understanding among the parties involved.
Second, nearshoring also annuls the language and time-zone barriers that often come with outsourcing to faraway countries like India or China, for instance. Bogotá concentrates 71% of the bilingual talent within the entire Colombian labor market, with software development companies, such as Foonkie Monkey, having a completely bilingual staff.
Finally, as far as time zone goes, Colombia overlaps with most Central and North American time zones, which is very convenient for our clients.
Nearshoring: The Future of the IT Market
The benefits of nearshore software development are too many and too attractive to ignore, especially when remote work has become so essential. When it comes to getting full access to the best professionals in design, engineering, and programming, the superiority of opting for nearshoring is undeniable. Now more than ever, nearshoring is at the forefront of software development for any company, and Colombia should always be at the top of their priorities when the time comes to consider a nearshore provider.
Foonkie Monkey is very proud to offer top-quality nearshore services with the best staff of professionals. So, if you’re looking into nearshoring software development and have questions, contact us!