IT Nearshoring in Colombia: The Secret to Success

When discussing cost-efficient strategies for any business, IT nearshoring is the best option for two straightforward reasons: skilled, highly educated, bilingual professionals and low labor cost. Additionally, with IT nearshoring, you'll gain access to professionals in a country with a similar time zone, culture, modern telecommunication infrastructure with fiber-based networks, and solid work ethics, which makes it even better.

Labor Shortage

If it seems like recruiting and building a solid team is hard, it's because we are currently experiencing a worldwide talent shortage.

According to a recent survey, close to 87% of companies are experiencing a talent shortage or preparing for one. Therefore, nearshoring becomes an incredibly beneficial solution since it is not just about working remotely; it's about finding well-prepared professionals abroad eager to take on new and challenging job opportunities.

Why Nearshoring?

Nearshoring means remote work, but it also means a quick flight to a country with readily available talent. It also means better results, as disclosed in different studies. For example, a study published by Prodoscore (May 19th, 2020) reported an increase of 47% efficiency during the last year while working remotely or at a nearshoring facility away from the actual corporation's headquarters. The reason what that while working remotely, professionals were more autonomous, flexible, upgraded their income, and most importantly, they could improve their careers while enjoying different and better work conditions.

Where to nearshore?

The work culture in Latin America is very similar to the United States. For both, prioritizing commitments and responsibilities at the beginning of work relationships is essential, as well as monitoring their compliance during the entire process.

So now, which country to pick?

IT Nearshoring in Colombia

The Colombian Government has been working very hard to facilitate access to higher education and make it more accessible, likewise, to establish enhanced conditions to create Technology and Innovation companies that, as a result, promote global relationships and private initiatives. Due to this, the National Development Plan 2018-2022 reported the intention to invest 6.5 billion Dollars into Science, Technology, and Innovation.

Colombia has already had a wave of nearshore investment for years, allowing developers to have contact with large U.S. corporations and become seniors working remotely at companies such as Disney, Google, Amazon, and much more.

"Colombia has favorable conditions for attracting investors and in the particular case of the United States, the responsible management of the economy and the country's geographical location with air connectivity, allows the country to be used as a platform both to the U.S. and other destinations in the region" - Maria Lacouture, Forbes Colombia.

The demand for IT solutions and software development has grown in the past few years. Therefore, government initiatives and private investments are offering an exciting number of programs to achieve a local and highly educated labor pool.

In the last ten years, university graduates have increased steadily. The number of graduates in Engineering and Technology is 71%, according to the Data Portal of the OCyT (Colombian Observatory of Science and Technology).

‍

Along with more statistics, the Colombian software and IT industry have doubled its sales since 2010, as reported by the IDC (International Data Corporation).

The high Colombian workforce proves that thanks to the IT sector growth, the retention of developers is very high. Meaning that these professionals will most likely stay with the same company for many years, avoiding the constant investment in effort, time, and money related to new employee training.

Colombia promotes itself as a major tech hub, more specifically the city of Medellin. According to the Colombian government and major organizations like the ACI (leading in the internationalization process of the city-region), ProColombia, and Ruta N, which are focused on technology and innovation, as well as the current mayor’s advertising, the city it’s known as the new “Silicon Valley.”

This recognition is based on the fact that the city has a tech-friendly economy that now houses over 300 companies, some of which can generate 1,012 jobs related to science, technology, and of course, innovation in a very short period. Additionally, Medellin was selected in 2019 as the Nearshore Destination of the Year.

“All these numbers are proof of powerful results, showing that foreign countries believe in Medellin because it has the talent and conditions for global businesses to advance their growth plans”- Javier Fernandez, executive director of Ruta N.

The tech industry has also seen significant investment from countries like the United States, which is encouraged significantly by a Colombian tax law that exempts foreign investors from paying Value Added Tax (VAT), making it a perfect destination to nearshore.

The Hiring Process for IT Nearshoring

The hiring process can be a hassle because of the recruitment process, compliance regulations, and in general, all the government legal requirements. When working with us, you can rely on a highly qualified nearshoring company ready to take over and provide the most qualified talent in Latin America. We offer our clients the best of the best and manage indirect cost reductions such as HR, retentions, office spaces, and operation costs in general.

‍

Salaries differ depending on the developer's seniority. But usually, technology professionals in Colombia can be paid at a lower rate or slightly the same as the U.S., but they still meet the requirements and expertise. This becomes mutually beneficial for Colombian tech professionals and foreign companies. Tech professionals get an excellent employment opportunity at a foreign company without going overseas, and foreign companies attain incredible talent at affordable prices.

Cost is always an essential factor. However, it's not as important as actually having the talent available, considering the worldwide labor shortage. Colombian professionals have been working under the nearshoring modality with foreign, well-known companies for years.

Why nearshore in Colombia?

Colombia is definitely a great location to nearshore your business due to its many talented individuals and lower costs, as well as some of the following reasons:

1. Innovation  

In 2013, in a competition organized by the non-profit Urban Land Institute, one of the country's biggest cities, Medellin, was named: "The most innovative city in the world," beating Tel Aviv and New York.

2. Reliability

Colombia has a similar social and work culture to the U.S.

3. Scalability

There are always graduates and even seniors constantly looking for job opportunities and companies like Lean Solutions Group searching for the perfect candidates.

4. Quality

You'll gain access to quality technology services ahead of every other industry that is becoming more and more competitive.

In our current situation, nearshoring is the perfect solution. Colombia is the right location since it has qualified professionals, an energetic approach to problem-solving, and availability, making it the secret to success.

‍