Once an under-the-radar tech player, Colombia is now a recognized powerhouse in the Latin American IT services market. With a projected ICT services market of $35.56B by 2028, the country is capturing global attention among businesses aiming to scale their tech capabilities. In particular, North American companies are increasingly leveraging the advantages of software development outsourcing in Colombia: from cost-efficiency and access to skilled talent to time zone alignment.
In this article, we explore the key drivers behind the rise of software development outsourcing in Colombia. Let’s learn how your business can benefit by augmenting your team or building a dedicated development center in Colombia!
Why global industry leaders choose software development outsourcing in Colombia
Colombia is the third-largest IT market in Latin America. It is unlikely for the Colombian IT market to reach the same size as Brazil and Mexico due to their immense size and population.
However, Colombia is rapidly expanding its technology services, exporting them across the globe. According to Trading Economics, IT exports alone reached $1.6B in 2023, 9.6% more than in 2022. This consistent growth highlights the country’s rising influence in global tech markets and its ability to deliver high-quality digital services to international clients.
The software development sector in Colombia is an established industry, with mature delivery models, and long-term partnerships that extend beyond the country's borders. Due to a considerable number of experienced outsourcing providers in Colombia, the software development outsourcing market is also steadily growing. As more global businesses seek reliable, cost-effective nearshore solutions, the country stands out as a strategic choice for software development outsourcing and staff augmentation in Latin America. Here are the key reasons why industry leaders are outsourcing software development to Colombia:
-
Global investment fueling Colombia’s digital economy
According to the Central Bank, the top five investing countries in 2023 were the United States (32.4%), Anguilla (14.1%), Spain (13.3%), England (8.1%), and Switzerland (6.9%). The sectors receiving the most FDI in 2023 were mining and quarrying (including coal—20.5%), petroleum (18.2%), manufacturing industries (17.7%), financial and business services (16.3%), and commerce (8.4%).
The increasing influx of foreign money into the Colombian economy can be attributed to several factors, such as the growing attractiveness of the local business environment, the maturity of governmental institutions, the growing human capital, market and business sophistication, and more. That points to Colombia quickly becoming a sophisticated technology-driven economy that actively cooperates with foreign partners.
-
Growing talent pool
Colombia’s technology sector employs more than 150,000 IT professionals, and this number continues to grow alongside the country’s steady inflow of tech graduates. In the past decade, Colombia has doubled the number of students graduating from ICT courses. The Colombian Ministry of Education estimates that each year, more than 13,000 students graduate with engineering and IT degrees. Moreover, 24.7% of college students in the country graduate in fields such as engineering, mathematics, science, and technology. Furthermore, computer engineering is one of the most popular majors in Colombia.
For foreign businesses planning to invest in software development outsourcing in Colombia, this means a constant and stable influx of tech talent in the foreseeable future. With this knowledge, many international tech giants like IBM, Amazon, Oracle, SAP, and more have already expanded their operations to LATAM through Colombia.
Read more: Outsourcing to Latin America: benefits, destinations, market overview
-
Booming infrastructure
As a developing country, Colombia has been seeing rapid growth and expansion of its infrastructure, from new highways, airports, and seaports to the emergence of new technology and economic hubs. All of those are the telltale signs of a developing and rapidly growing infrastructure. These factors strengthen the country’s ties to the global community and improve cooperation with international partners.
For businesses that aim to outsource software development to Colombia, a developed infrastructure means ease of travel, communication, and cooperation with local partners. It is also relatively easy to do business in Colombia and/or with Colombian companies. The government has special tax reduction initiatives for foreign businesses that create jobs in the country, which attracts more tech businesses to the country.
-
Progress in innovation and business maturity
There are also benefits for companies that do not plan to expand their operations to the country and just want to partner up with the providers of software outsourcing in Colombia. According to the Global Innovation Index, Colombia is ranked 61st worldwide in terms of business sophistication and maturity. This ranking might not be as high compared to the world’s leading economies, but it reflects the country’s strong position in the region.
The quality of the country’s business network and the services provided by local companies is growing steadily as Colombian businesses become more and more integrated into the global economy. Free trade zones have also strengthened international collaboration, enabling foreign companies to work with local talent without facing excessive regulatory or tax barriers. All of that contributes to the further development of local business practices and the country’s economy.
-
Governmental support
The Colombian government pushes strongly for the digitalization of the country and the widespread adoption of digital technologies by the population. The Ministry of Information and Communication Technologies (MinTIC) runs campaigns like Colombia 4.0 and Un TICket para el Futuro to support nationwide digital skills adoption. The Colombian government has invested over $2.5M in IT training of teachers and students to ensure the future tech talent inflow. The institution of the National Government, iNNpulsa, offers grants for emerging companies, such as Apps.co and CEmprende Junior. Tech parks are also gaining traction, with Medellin’s Ruta N Building becoming an innovation hub. These efforts are reinforced by the ICT Sector Modernization Law, which aims to bridge the digital gap, modernize infrastructure, and enable broader access to emerging technologies.
-
An increasing number of IT vendors in the country
With an increasing interest in software development outsourcing in Colombia, the number of IT vendors is rapidly growing. These are both local companies and international businesses that already have experience working in different locations and are expanding their outreach. As of May 2025, there are 438 IT outsourcing companies in Colombia, and their number keeps growing. Colombian vendors offer a wide range of services to meet the diverse needs of global clients. Most of them (213 companies) specialize in custom software development. Around 200 tech vendors offer IT managed services, while IT strategy consulting takes third place with 195 companies demonstrating a strong focus on operational support and technology advisory. Mobile and web development (each offered by 116 companies) have made it to the top five, rounding out the country’s core IT service offerings.
Local IT companies deliver solutions across diverse industry sectors. Most commonly, they have experience with the financial services (68 companies), information technology (62), and business services domains (46). Many Colombian outsourcing providers specialize in healthcare (40 vendors) and ecommerce (34), which reflects strong demand for digital transformation in these sectors.
More on the topic: Top software development companies in Latin America: A comprehensive review
Get a complete overview of the software development market in Latin America!
Success!
Leading Colombian tech hubs: Bogota and Medellin
Colombia is home to multiple IT hubs, the two most prominent ones being Bogota and Medellin. Bogota is the center for business and finance, and Medellin is a hub for science and technology.
In 2022, 74% of Colombian startups that received either domestic or foreign investment originated from the Bogota region. This is not surprising, as Bogota is the country’s capital and a major hub for software development outsourcing in Colombia. The city has the highest concentration of tech companies, startups, and innovation centers in the country, with a focus on software development, ecommerce, fintech, AI and Machine Learning, cybersecurity, and biotech. According to Clutch, Bogota is home to more than 280 software development companies as of May 2025.
The 2010s saw Medellin transition into one of Latin America's major tech hubs, becoming a popular destination for digital nomads from all over the world because of its tech-friendly economy. After the pandemic and the 2022 tech market downturn, North American businesses started to outsource software development to Colombia, giving tech hubs like Medellin a chance to grow and expand. As of May 2025, Medellin is home to approximately 100 IT outsourcing companies, according to Clutch. Besides established tech vendors, there’s a large number of rising technology companies and startups. The city has become a focal point for innovation in areas such as smart city solutions, urban planning, renewable energy, sustainability, robotics, automation, VR/AR, gaming, edtech, and elearning.
Success stories: Long-standing partnerships between N-iX and US-based clients
The US is the biggest investor in the Colombian IT sector and the biggest consumer of software outsourcing in Colombia. American companies work with partners worldwide, and nearshore destinations like Latin America have always been on the radar due to their geographic proximity. At the same time, N-iX, a global custom software development company, has had a long history of cooperation with US-based businesses and thus expanded its presence to Colombia. We combine the benefits of geographical proximity with over 22 years of experience in technology consulting and custom software development. Our mature business practices and deep industry expertise ensure reliable and effective collaboration.
Over more than two decades of work with clients from across industry verticals, we have helped numerous US companies achieve their technology goals and gain measurable business value by outsourcing software development to Colombia. Let us take a look at some prominent examples of N-iX’s cooperation with American industry leaders.
Reducing infrastructure costs through cloud migration for a stock photography leader
Our client is a leading technology company in the stock photography domain that provides a creative platform for buying and selling premium media assets, such as images, video, music, and custom-branded content.
N-iX partnered with the client to migrate their on-premises SQL servers to a cloud environment. Our engineers also revamped their reporting ecosystem and enabled better data visualization, usability, and accessibility across departments by replacing outdated SSRS reports with Looker. Finally, we modernized the existing CI/CD pipelines by migrating them from Jenkins to GitHub Actions, which, in turn, enhanced decision-making and accelerated development cycles.
Value delivered by N-iX:
- Reduced infrastructure and data management costs by transitioning to a cloud-based environment;
- Accelerated access to business insights through improved data reporting and visualization;
- Enhanced decision-making across departments with more accurate, real-time data;
- Shortened software release cycles and reduced risk of deployment issues.
Streamlining on-demand payments for a top provider of hospitality management solutions
For more than a decade, N-iX has been partnering with a global leader in digital solutions for the restaurant and hospitality industry that boasts around 20 years of market experience. To improve their service quality and boost user satisfaction, the client needed to expand the functionality of restaurant management solutions.
Our engineering team took complete ownership of the implementation of a mobile banking on-demand payment app for both Android and iOS. The app includes Earned Wage Access functionality, enabling employees to withdraw wages from their bank accounts in advance. Additionally, we integrated a branded Visa card for seamless, fee-free withdrawals. To enhance usability, the app features a calendar view of shifts and real-time income forecasting. We also developed a secure, intuitive back-office platform for administrators, ensuring efficient user and payment management, all while adhering to OWASP best practices and PCI DSS compliance requirements.
Value delivered by N-iX:
- Attracted more customers by extending restaurant management capabilities that enhanced employee satisfaction, retention, and productivity;
- Improved process efficiency with a user-friendly and intuitive back-office platform for administrators.
Final thoughts
By outsourcing software development to Colombia, US-based companies can achieve cost optimization, quickly access skilled talent, and utilize the latest or niche technologies in software development. Additionally, the support of the Colombian government, the influx of foreign investment, and the country's strong drive for innovation make Colombia an ideal destination for software development outsourcing. By partnering with a trusted vendor like N-iX, you get the best combination of Colombian talent and mature business practices proven by more than two decades of work with partners from across the globe.
Have a question?
Speak to an expert
