Not every decision in software development comes down to cost. For CTOs and product leaders, it’s about efficiency, alignment, and yes, cost—but only if the trade-off doesn’t compromise delivery. The truth is, outsourcing isn’t new. But the way it’s being done today especially nearshoring is changing the game. Colombia, once an unlikely contender, has quietly built a reputation that demands attention due to its competitive costs. The cost advantages of outsourcing to Colombia are significant, allowing businesses to save without sacrificing quality.

And if you haven’t looked closely yet, you should.

Introduction to Nearshore Technology Outsourcing

Nearshore technology outsourcing refers to the practice of contracting with a company or individual in a nearby country to perform specific technology-related tasks or services. This approach has gained popularity in recent years, especially among North American companies, due to its numerous benefits, including cost-effectiveness, access to a skilled talent pool, and favorable time zone alignment. Colombia has emerged as a top destination for nearshore software development, offering a unique combination of technical expertise, cultural compatibility, and a business-friendly environment. By outsourcing software development to Colombia, companies can tap into a vast pool of highly skilled developers, reduce operational costs, and improve their overall competitiveness in the global market.

Why Colombia, and Why Now?

Time zones are easy to ignore, until they aren’t. Try resolving a production issue with a team twelve hours ahead, and you’ll quickly remember how valuable real-time collaboration is. Colombia sits in either the Eastern or Central U.S. time zones, depending on the time of year, eliminating significant time zone differences. This alignment facilitates seamless communication, ensuring better collaboration and timely project milestones. That means a 9 a.m. stand-up in New York or Austin includes your Colombian engineer: no late-night messages, no lagging responses. Colombia’s cultural similarities and historical ties with the U.S. also lead to smoother integration and collaboration between teams.

Beyond time zone fit, there’s travel proximity. Direct flights from U.S. hubs to Bogotá, Medellín, or Cartagena mean your engineering leadership can visit teams with less effort than crossing the country. Many major airlines connect multiple U.S. cities with Colombian destinations, facilitating easier travel for business interactions. That closeness fosters relationships that distributed teams often lack.

But what really makes Colombia compelling is its workforce: a growing cohort of developers, designers, QA analysts, and architects. The country isn’t trying to replicate Silicon Valley. It’s building something of its own—grounded in solid education, government investment, and a practical approach to growth. Colombian developers are proficient in various programming languages and frameworks, making them highly adaptable to diverse project requirements. Colombia also has an outstanding technical education system that graduates around 13,000 software developers and IT specialists yearly, ensuring a steady influx of skilled professionals.

Education: A Steady Pipeline of STEM Talent

The Colombian Ministry of Education reports that over 13,000 students graduate annually with degrees in computer science, engineering, and other tech-adjacent fields. That number alone puts the country in league with other fast-rising tech hubs.

Dig deeper, though, and the strategy becomes clear. Medellín, once a cautionary tale, has become a model for tech-enabled urban transformation. Its STEM+H initiative introduces hands-on science and technology education in public schools, training thousands of teachers in the process. Programs like Experimento by Siemens Stiftung and Science Clubs Colombia help bridge gaps between theory and practical application, especially in rural areas. Additionally, programming languages like Python are emphasized for their capabilities in data analysis, machine learning, and artificial intelligence.

Yes, Colombia still ranks modestly in international benchmarks like PISA (59th out of 71 countries in 2015 for STEM). And its World Economic Forum ranking in math and science education placed it 100th out of 137. But those numbers miss something essential. Colombia’s real progress is bottom-up. It’s happening in classrooms, coding bootcamps, and hybrid vocational programs where instructors are treating STEM not as a theory—but as a ticket to global relevance. The country's outsourcing industry is also well-positioned to leverage advancements in cloud computing alongside AI and machine learning, enhancing its appeal to North American companies seeking tech-driven solutions.

If you’re an engineering manager who’s worked with developers from Medellín or Bogotá, you’ve probably seen this firsthand. These engineers don’t just code—they problem-solve. They collaborate. They ask questions that make products better.

English Proficiency: A Work in Progress, with a Strong Urban Core

Let’s be clear: Colombia is not Argentina when it comes to English. On the EF English Proficiency Index, the country ranks 74th globally. That places it in the “low” proficiency category overall.

But here’s the thing—context matters. In major urban centers like Bogotá, Medellín, and Barranquilla, English proficiency is rated as “moderate.” The gap between rural and urban regions is real, but most U.S. companies hiring through partners like Azumo aren’t sourcing from the countryside. They’re hiring experienced developers from these cities, where the job market increasingly requires fluent English to effectively serve international clients.

In fact, job postings in Colombia that require English have increased from 30% to 70% over the past five years. Why? Because companies are global now, even when their customers aren’t. Engineers fluent in English earn 25–35% more than their peers. That kind of economic pressure accelerates learning.

Seamless communication is crucial in outsourcing software development, especially when working with teams in similar time zones. Establishing a nearshore presence facilitates better collaboration and timely project milestones, significantly reducing the challenges commonly associated with remote team management.

It’s not perfect, but it’s trending in the right direction. And that matters more than static rankings.

The Tech Talent Hubs: Bogotá, Medellín, and Beyond

Colombia’s population centers aren’t tech backwaters. Bogotá, the capital, is a sprawling metropolis of 8 million with a growing startup ecosystem and a concentration of global companies, coworking spaces, and incubators, fostering both startups and established tech companies alike. The country’s startup ecosystem has experienced a remarkable 28% annual growth over the last five years, further solidifying its position as a hub for innovation and entrepreneurship.

Tech companies have a significant presence in Colombia, portraying the country as a vibrant hub for both startups and established enterprises in the technology sector.

Then there’s Medellín—a city with a narrative arc few others can match. With heavy investment in education, digital infrastructure, and public-private innovation districts, Medellín has earned the nickname “Silicon Valley of Latin America.” It’s not marketing. Companies like Accenture and HP have planted roots here which works well for us as these companies while branded create large diasporas of talented, trained engineers looking for a better place to work. Local startups, supported by government incentives, are scaling rapidly. Colombia is also the third largest IT outsourcing market in Latin America, both in terms of value and the number of developers, making it a key player in the region.

Cali and Barranquilla are also gaining traction. Their smaller size means lower costs for housing and office space—an attractive proposition for companies looking to stretch budgets without sacrificing quality. These cities have also developed tech hubs and innovation centers that promote collaboration and entrepreneurship, further enhancing their appeal as emerging destinations for digital talent.

You’ll also find a strong local tech community, boosted by events like Campus Party Colombia and Seedstars. These hubs aren’t just places to find talent. They’re places where that talent keeps growing.

Economic Climate: Resilient and Forward-Facing

Colombia’s economic story is one of cautious optimism. GDP growth is projected at 2.5% in 2025, rising to 2.9% in 2026. That’s driven largely by fixed investment and domestic consumption. And while sectors like oil and coffee still loom large, the tech sector is fast becoming a standout. Colombia has shown resilience with its stable economic environment, making it a reliable choice for outsourcing. The country's legal framework and actively implemented reforms enhance its appeal for foreign direct investment (FDI), attracting global investors across various sectors.

In fact, Colombia’s IT and software services market is expected to reach $1.57 billion this year and balloon to $35 billion by 2027. That kind of growth doesn’t happen in isolation. It’s the result of policies aimed at attracting foreign investment, building trade relationships, and encouraging digital exports. Colombia's advancements in research and development (R&D), technological innovation, and collaborations with international partners have contributed to its rise in the Global Innovation Index, where it currently ranks 66th globally.

Legal and trade frameworks are also favorable. The U.S.-Colombia Trade Promotion Agreement simplifies contracting, intellectual property protection, and dispute resolution for American companies. That removes a layer of friction often present in offshore partnerships.

Software Developers in Colombia: The Hiring Process

Hiring software developers in Colombia can be a strategic move for companies looking to outsource software development projects. The country boasts a large and talented pool of developers, with over 150,000 engineers and more than 400 companies specializing in nearshore software development. Colombian software developers are known for their proficiency in programming languages such as C# and C++, as well as their expertise in business processes, enabling them to deliver software solutions that align with corporate strategies. Additionally, the Colombian government has implemented various initiatives to support the tech industry, including investments in tech education and innovation centers, making it an attractive destination for companies looking to hire software developers.

Colombia Outsourcing Software Development Industry

The Colombia outsourcing industry has experienced significant growth in recent years, driven by the country’s favorable business environment, government support, and highly skilled talent pool. The industry is expected to continue growing, with total revenue from software development outsourcing to Latin America projected to reach $2B by the end of 2024. Colombia’s outsourcing market offers a range of services, including software development, nearshore software development, and nearshore software solutions, making it an attractive destination for companies looking to outsource software development projects. The country’s strategic location, cultural similarities, and significant cost savings make it an ideal nearshore outsourcing destination for North American companies. By outsourcing to Colombia, companies can leverage the country’s cutting-edge technology, highly skilled developers, and favorable business environment to drive innovation and growth.

Hiring Software Developers in Colombia: Why the Partner Matters

Finding exceptional software developers can be challenging. Discovering engineers who grasp your business context, communicate effectively, and make meaningful contributions from day one is even more difficult. In Colombia, the hiring process typically begins by defining project goals, clarifying technical requirements, and selecting the appropriate engagement model—whether that involves integrating individual developers into an existing software development team or establishing a dedicated nearshore software development unit.

However, many companies face challenges when attempting to manage this process independently. Evaluating talent based on technical proficiency, communication skills, cultural compatibility, and time zone availability is no small feat. Even after hiring, onboarding, compliance, and retention pose additional challenges.

We have already undertaken the hard work by building a pre-vetted roster of top Colombian developers, refining a process that identifies high performers, and supporting U.S.-based clients with engineers who deliver. Whether you’re augmenting your software development team or embarking on a complete build, Azumo makes nearshore hiring in Colombia straightforward, fast, and effective.

Colombia’s Nearshore Outsourcing Ecosystem

Colombia’s outsourcing industry has experienced significant growth over the past decade. Government-backed digital initiatives, a steady influx of tech graduates, and increasing investor interest have positioned the country as a regional technology leader. The broader Latin American software outsourcing market is projected to reach $2 billion by the end of 2024, with Colombia playing a pivotal role in this growth trajectory.

As mentioned for U.S. companies, Colombia offers the perfect blend: time zone alignment, cultural familiarity, and significant cost savings. However, infrastructure alone doesn’t create successful teams. Execution is key.

We bridge the gap between potential and results. Our Colombia-based developers specialize in AI, data engineering, web platforms, and enterprise software. We offer three flexible models—staff augmentation, dedicated teams, and project-based delivery—allowing customers to engage in a manner that best suits their operational and financial objectives. With our management and customer success teams based in the U.S., there’s always a clear line of communication.

So How Does It Stack Up?

Let’s not pretend every offshore model is broken. India and Eastern Europe still have immense value. But context is key.

Offshoring often introduces complexity. The time gap leads to fragmented communication. Cultural differences, while not insurmountable, can slow things down. And legal protections? Variable.

Onshoring, meanwhile, is simple—but expensive. Engineering salaries in the U.S. are skyrocketing. And with the ongoing tech talent crunch, finding and keeping top talent is harder than ever.

Here’s where Colombia fits: somewhere in the middle. But it’s not a compromise. It’s balance. The software development market in Colombia is booming, with a large pool of skilled developers and strong government support for the tech sector.

And that balance makes a difference—especially when product delivery timelines are tight and team integration is non-negotiable. The advantages of software outsourcing in Colombia include access to a skilled talent pool, cost-effectiveness, and high-quality work delivered by dedicated engineering teams.

How Azumo Makes It Work

Placing a job ad in Bogotá doesn’t make you a nearshoring expert. Finding a great engineer is one thing. Keeping them engaged, onboarded, and productive in a U.S.-centric team? That’s something else entirely. Effective project management is crucial in optimizing workflow and communication when working with remote developers.

Azumo helps American companies build high-performing teams in Colombia through three engagement models. Partnering with organizations or individuals who have a proven track record, particularly in legal compliance and technical qualifications, ensures successful outsourcing relationships and informed hiring decisions.

1. Staff Augmentation

You bring the roadmap. We bring the engineer. Our pre-vetted developers integrate into your team, tools, and workflow—reporting to your managers, collaborating during your business hours, and pushing your product forward.

2. Dedicated Teams

Need more firepower or operational consistency? Azumo assembles long-term Colombian teams managed by us. Think of it as your remote branch office, minus the HR, payroll, and compliance headaches.

3. Project-Based Delivery

For customers who prefer outcomes over headcount, we also run full project builds. From planning to testing to launch, Azumo drives delivery with Colombian-based developers and U.S. oversight.

Each model includes language testing, technical vetting, and compliance processes that meet SOC 2 standards. It’s not enough to hire. You need to hire right—and manage well. That’s where we come in.

Frequently Asked Questions (FAQ)

What is nearshore software development in Colombia?

Nearshore development means partnering with software engineers in Colombia to build or extend your team. These developers work during U.S. hours and collaborate directly using your tools and workflows. Reliable internet connectivity is crucial for seamless communication and project execution, especially in rural areas where connectivity may be less dependable.

How much can I save working with Colombian developers?

Typical savings range from 30% to 60% compared to U.S.-based engineering salaries. For senior roles, the savings can be even greater without compromising on code quality or productivity. The growing appeal of hiring software development services in Colombia is driven by access to a large talent pool, cost-effective labor rates, and a supportive government environment for technology businesses.

Is Colombian tech talent any good?

Yes. Colombia has a growing pool of highly capable developers. Many come from rigorous academic backgrounds or coding academies focused on modern software stacks. More importantly, they’re used to working with U.S.-based teams.

How does Colombia compare to India or Eastern Europe?

Colombia offers better time zone alignment and closer cultural familiarity than most offshore markets. While India may offer lower costs, the communication overhead and time delays can negate those savings in certain types of projects.

Where are Colombia’s main tech hubs?

Bogotá and Medellín lead the pack. Both cities have strong infrastructure, top universities, and active startup communities. Cali and Barranquilla are also emerging destinations for digital talent.

What is Azumo’s process for working with Colombian developers?

We vet developers on technical and communication skills, then match them to roles based on your specific needs. You can work with individual engineers, full teams, or hand off an entire project. We handle compliance, contracts, and team continuity.

Do Colombian developers speak English well enough?

In urban areas, most developers speak English at a functional to fluent level. Azumo screens for communication as rigorously as technical skills, ensuring your team can collaborate without friction.

Are there legal risks in outsourcing to Colombia?

Not significant ones. Colombia has strong IP laws, and the U.S.-Colombia TPA simplifies contracting. Working with a partner like Azumo adds another layer of legal clarity and compliance.

Ready to Think Nearshore?

Colombia isn’t perfect. No market is. But it offers a smart mix of cost-efficiency, talent, and accessibility that’s hard to beat. It’s not about cutting corners—it’s about building smarter, faster, and with fewer blockers while aligning with your specific business needs.

A significant advantage for software developers in Colombia is the low cost of living, which greatly enhances their purchasing power. Additionally, government support and regulatory frameworks contribute to a favorable environment for innovation and business operations, making the country an attractive location for technology outsourcing.

Azumo helps you make that shift with confidence. Whether you’re augmenting your team, launching a new product, or scaling a startup, we’ll bring the people and processes to help you build well—with developers in Colombia who know how to get the job done.