Costa Rica has recently emerged as an outsourcing hotspot in the Latin American tech scene, attracting major industry players like Amazon, Intel, HPE, and VMware. The country has gained recognition due to its stable business climate, skilled workforce, and governmental support of the ICT domain. What are the other key reasons major organizations opt for software development in Costa Rica? And what aspects should you keep in mind when partnering with local vendors to build a custom solution? Read on to find out.
Tech talent pool in Costa Rica: Key insights for businesses
Costa Rica has become a go-to destination for many businesses from North America and Europe looking to access a large pool of skilled technology professionals. The local workforce is highly skilled in software development, cloud computing, legacy system support and cybersecurity. But what else besides the diverse tech expertise makes Costa Rican tech talent stand out in the Latin American market?
A large number of ICT professionals
One of the key reasons for staff augmentation in Latin America are extended talent pools, and Costa Rica is not an exception. The country has over 45,000 tech specialists, concentrated mainly in major IT hubs such as San Jose, Heredia, Alajuela, and Cartago. Investments from both the government and private sectors in tech education and training programs have played a key role in the growth of the local talent pool.
Vast tech expertise
Another factor driving companies to opt for software development in Costa Rica is the diverse expertise of local engineers. Many local engineers specialize in more than one programming language. The most popular are JavaScript and Java, with 15K and 14K local developers specializing in the languages. They are followed by C# and Python–the primary technologies for 10K Costa Rican engineers. Furthermore, there are 7,100 software developers with expertise in .NET and 6,300 experts who focus mainly on C++.
Strong English proficiency
The communication barrier is one of the key concerns of companies that decide to set up engineering teams or development centers in remote locations. However, enterprises that choose Costa Rica for software development can find common ground with local developers. According to the EF English Proficiency Index, Costa Rican ICT specialists have a good command of English. For businesses opting for software development in Costa Rica, it translates into fewer misunderstandings between local teams and international stakeholders.
Software development vendors in Costa Rica: Characteristics of local potential tech partners
By partnering with a reliable outsourcing vendor like N-iX, businesses can access the top talent pool of Latin American countries, including Costa Rica, Colombia, Chile, and others. Moreover, according to Clutch, there are 156 tech companies in Costa Rica as of July 2025. Let's take a closer look at the local tech market and break down Costa Rican tech companies by their size, delivered services, domain expertise, and client type.
Vendors' size
According to Clutch, the majority (around 66%) of Costa Rican vendors are small companies with under 50 tech specialists. Furthermore, over 22% of local enterprises employ up to 250 experts. Around 10% of tech vendors in Costa Rica are midsize vendors, with 250-999 ICT specialists on board. As of July 2025, there are 4 large tech enterprises in the country.
Service offerings
The range of IT services delivered by Costa Rican tech vendors is quite diverse. Around 43% of 156 vendors in Costa Rica specialize in mobile app development, while around 36% focus on building web applications. In addition, approximately 20% of companies provide IT strategy consulting services, which typically include technology roadmapping and digital transformation planning. Local tech vendors also handle IT staff augmentation requests, with over 20 companies delivering this service.
Industry focus
Information technology, healthcare, and financial services are the top three industries that Costa Rican vendors cater to. Local tech enterprises also have experience in delivering projects to businesses that operate in ecommerce, business services, as well as consumer products and services. Among other industries that benefit from cooperation with Costa Rican vendors are education, advertising and marketing, as well as retail and energy.
Client type
Organizations of various sizes and financial scopes opt for software development in Costa Rica. The lion's share of clients are midsize and small businesses with revenues up to $1B. Around 28% of Costa Rican software development companies deliver engineering and consulting services to large enterprises.
More on the topic: Software development outsourcing to Costa Rica
Software development in Costa Rica: Market overview
In recent years, the export of ICT products from Costa Rica has increased. By 2026, the exports of ICT products are expected to reach $1.75B. To compare, in 2021, the country ranked 46th globally, exporting $1.4B. What factors contribute to the growth of the software development market in Costa Rica?
Favorable business climate
Researching the business environment of your outsourcing destination is crucial, as it has a direct impact on the success of your engineering projects. Risks of project disruption and operational stability are related to the outsourcing country's economic conditions. In this context, Costa Rica offers a business-friendly environment that makes the country attractive for foreign partnerships and investments. The services sector, which also includes ICT, makes up around 67.9% of the country's GDP. Besides economic growth, the ICT domain in Costa Rica greatly contributes to creating new job opportunities. Between 2016 and 2020, local tech enterprises generated an average of around 118,000 job opportunities.
Advanced tech infrastructure
Due to the high rate of innovation adoption and developed technological infrastructure, many leading international enterprises choose Costa Rica for software development. The country has made it to the top six in the Global Innovation Index among 20 Latin American and Caribbean countries. Сosta Rica outperforms the regional average in five areas, including institutions, human capital and research, knowledge and technology outputs, business sophistication, and infrastructure. As for the latter, the country's internet penetration rate is 92.5% of the total population, which is a relatively high figure compared to other outsourcing locations.
Governmental support for the IT industry
The Costa Rican government encourages technological advancement. It has launched several initiatives to support foreign investment and the growth of the tech sector:
- The National Council for Scientific and Technological Research, or CONICIT, is a governmental institution that provides grants and financial aid for projects related to tech research. It funds both startups and established companies in their R&D activities.
- Costa Rican Coalition for Development Initiatives (CINDE), a private organization, focuses primarily on attracting foreign investment and supporting businesses that choose to set up operations in Costa Rica. This institution provides a wide range of support services for companies, including helping with legal procedures, licensing, and finding suitable locations for operations.
- Development of an Artificial Intelligence strategy rooted in the agreement between Costa Rica and UNESCO. According to the document, the Costa Rican government agrees to create an AI strategy in compliance with the UNESCO "Recommendation on Ethics in Artificial Intelligence".
Tech hubs
Most of the country's tech talent and software development enterprises are сoncentrated in major tech hubs. These cities boast many coworking spaces, training programs, and tech conferences, serving as magnets for tech talent and software development companies. The leading technology centers in Costa Rica are:
- The country's capital, San Jose, is home to a wide variety of tech enterprises and R&D centers of industry giants like Microsoft, IBM, and Intel. Key specializations of local tech enterprises include software development, IT services, and digital marketing.
- Known for its high-tech industries, such as biotechnology, Heredia is located in Costa Rica's Central Valley and hosts diverse technology companies. Heredia has many companies, from startups to multinational corporations like Amazon, Cisco, and Procter & Gamble.
- Alajuela is another big spot for tech in Costa Rica. Alajuela’s specialists are well-versed in fintech, digital marketing, and cybersecurity.
- Cartago is another prominent Costa Rican IT hub, with local IT experts primarily specializing in software development and managed IT services. Well-known companies operating in Cartago include IBM, Accenture, and DHL.
Time zone advantage
The time zone overlap is a big reason companies choose Costa Rica for software development. The time zones in Costa Rica fully or partially match those in North America, making real-time communication and collaboration easier. This, in turn, leads to efficient project management and teamwork, as well as quick problem-solving.
Outsourcing software development to Costa Rica: Business considerations to take into account
Despite numerous advantages, enterprises that сhoose software development in Costa Rica should also be aware of the potential challenges and know how to deal with them. Here's a list of some key considerations:
- You will have to deal with cultural gaps. According to Hofstede's report, Costa Rican engineers significantly differ from specialists from the US and the UK in terms of individualism, long-term orientation, and other factors. Therefore, even if you do nearshore software development in Costa Rica, the work culture and expectations of stakeholders and a remote team may vary.
N-iX tip: We recommend conducting cultural training for both teams to align work styles and avoid misunderstandings in the long run. - Intellectual property rights and data protection laws may differ. In Costa Rica, relying solely on US trademark and patent registrations may not provide adequate protection for your intellectual property. To gain complete legal protection, you have to register the contract under Costa Rican laws, such as PRODHAB.
N-iX tip: Partnering with a trusted LatAm outsourcing company like N-iX can ensure adherence to relevant data protection regulations. Check the compliance of your potential partner to ensure that they are well-versed in both the US and Costa Rican intellectual property and data protection laws. - Maintaining consistent quality standards when the team is remote can be difficult. Some common concerns of businesses that plan to outsource software development are misalignment in coding practices, documentation, or testing approaches, which can lead to technical debt or delayed delivery.
N-iX tip: An effective way to ensure code quality is to perform regular code reviews and rigorous quality checks, as well as use project management tools to keep everyone on the same page.
Wrap-up
Overall, Costa Rica is a prominent location for outsourcing software development, offering a range of business benefits, such as a highly skilled workforce, stable economic conditions, and advantageous time zones for US-based companies.
With a trusted software development partner by your side, you can get access to top expertise in prominent LatAm locations like Costa Rica and avoid cultural, legal, and project management issues. Here, at N-iX, we deliver solutions tailored to your specific needs, aligning the project requirements with your budget and timeline.
Due to our presence across 25 locations in Europe, the Americas, and India, and a delivery center in Medellin, Colombia, we can help clients tap into the talent pool of top experts from all major outsourcing regions, including LatAm. Moreover, N-iX is well-renowned in the industry: it was mentioned on numerous rankings, such as the CRN Fast Growth List, IAOP Global Outsourcing 100, and more.
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