One of the most effective strategies for expanding is offshore development teams, allowing tech companies to tap into international talent pools and access dedicated developers at reasonable rates. For the USA and Canada, the top locations for nearshore expansion and global hires in 2024 are countries in Latin America, as the time zone is relatively close.

For more than 8 years, SD Solutions has been a reliable partner for companies seeking offshore in-house team services and full-cycle IT recruitment in Latin America and Eastern Europe. Our comprehensive guide to hiring software engineers in Colombia is a valuable resource for companies looking for alternative ways to hire and build development teams offshore. It provides insights into realistic salary expectations, the country's tech landscape, benefits and challenges of nearshoring.

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Why choose Colombia

Why Choose Colombia for an Offshore Development Team

Colombia is one of the first four countries in Latin America. At the forefront of software development in the region, it is the most balanced in terms of stability, cost efficiency, and service quality.

While other countries in the region have advantages in terms of the number of developers, they fall dramatically in other lists. For instance, Argentina has significant pools of tech talent but is affected by economic instability and currency fluctuations that threaten foreign investors. Brazil is known for salary rates that tend to decrease the differences with those in the USA every year, and Mexico is the last in English Proficiency Rate among LATAM countries. What makes Colombia unique is that it balances all the benefits of offshore development centers in LATAM while having other strong sides too:

tech hub well-enforced by educational system;
tech-savvy professionals empowered by high motivation and work ethics;
innovation-oriented government;
time zone alignment.

Colombia is one of the major tech hubs in Latin America due to its well-enforced educational system and high-level talent. The country boasts some reputed universities across cities like Bogotá, Medellín, and Cali, which constantly supply STEM graduates. This environment advances the development of interest in foreign start-ups and IT companies, thus solidifying tech-hub reputation.

Tech-savvy state of mind is another attraction for U.S. managers. Colombians are reportedly high on the work ethic scale and have intrinsic motivation to excel. They are flexible enough to learn and grasp new methods and tools quickly; therefore, local developers have become known as efficient team workers.

The Colombian government has placed innovation at the center of its National Development Plan, thus bringing significant reforms and new developments such as the ICT Sector Modernization Law. Within this context, Colombia is investing 2.5 million in tech education for teachers and students. It has also designated free trade zones to facilitate registration and offer tax incentives and subsidies for tech investments.

What is the time zone difference between The USA and Colombia

Colombia's location is just perfect, with GMT-5. It aligns with North American time zones, making it convenient for teams to work together in real time. This allows businesses to run projects smoothly and take care of things across borders. Besides, proximity to the United States makes logistics for traveling and managing teams easier. Colombia is also quite accessible from big U.S. cities. The travel time between Colombia and major U.S. cities is only four to seven hours, allowing companies to coordinate business trips easily.

Software development

Software Development in Colombia

in Numbers

Colombia has established itself as one of Latin America's leading technology hubs, with a dynamic and rapidly growing tech industry. It is home to over 9,323 tech companies, ranging from agile startups to large multinational enterprises. According to ProColombia, the country's cities like Bogotá, Medellín, and Cali are recognized as major tech hubs, driving the industry's growth. Companies like Rappi and Finexus lead this transformation, contributing to the country's reputation as a fintech hub. Often referred to as the "Silicon Valley of Latin America," Medellín boasts over 3,400 tech companies and has been recognized for its innovation and technology-driven environment. Among the most prominent American companies present in the Colombian market are Microsoft, Stripe, Revolut, Adidas, Twilio, Hopper, and others.

Let's take a close look at investment in Colombia's tech sector and its market dynamics. The government's investment in technology is evident, with sales in the government vertical reaching USD 71 million. According to the GovTech Maturity Index 2020 by the World Bank, Colombia is classified in Group A, indicating a "Very High" performance in government technology adoption and innovation. The Medellín city has invested over $389 million in innovation and entrepreneurship through its Ruta N initiative, fostering collaboration between academia, industry, and government.

According to ProColombia Invest, Colombia stands as a top choice for BPO operations globally. It secured the top position in the Offshore BPO Confidence Index and achieved sales exceeding USD 2.6 billion in 2021 in this industry, outperforming markets such as Argentina, Peru, and Chile. This accomplishment represents 19.1% of the region's total sales, as reported by IDC.

How many

How many Software Engineers are there

in Colombia?

Undoubtedly, Colombia is one of the most important players within the Latin American technological landscape. It takes third place regarding the number of software engineers. Close to 110,000* software engineers are currently working in Colombia. The figures keep rising, indicating the growing talent in the country. The tech talent pool in Colombia is rapidly expanding, fueled by the rising demand for digital services and the growing presence of tech companies in the region.

*This numbers are based on various industry reports and estimates, such as those from Statista and ProColombia, which analyze the growth trends in the tech sector.

The country boasts several prestigious institutions known for their strong emphasis on STEM (Science, Technology, Engineering, and Mathematics) education. As of 2019, 31% of students in tertiary education were enrolled in STEM programs — the nation's focus is definitely on cultivating technical expertise. Colombian educational institutions create around 13,000 technology graduates annually. The list includes the most popular and prestigious universities:

University of the Andes;
National University of Colombia;
Pontifical Xavierian University.

With its strong educational foundation and rapidly growing tech ecosystem, Colombia is all set to become one of the most important players in the global technology industry.

Colombia in Global Programming ranking

Colombian software developers have consistently ranked among the top performers in Latin America and the Caribbean, showcasing exceptional skills and expertise in various technology domains.

In the HackerRank global rankings Colombia is highly ranked in domains such as web and database development, cloud computing, and data analysis. This proficiency has positioned Colombian developers as highly sought-after professionals in the international tech market.

According to the latest Stack Overflow Survey, JavaScript remains the top programming language, with developers using it for everything from front-end development to back-end services. Colombia stands out as a thriving hub for the JavaScript community, with active JS meetups in eight major cities, attracting over 3,000 industry experts.

Moreover, Colombian software developers are highly esteemed for their mastery of HTML/CSS, SQL, and Python. With its favorable location, unique work ethic, and focus on STEM technologies, Colombia provides strategic growth and the finest services.

How much does

a Software Engineer

in Colombia earn?

In Colombia, the salaries for junior software engineers in different technology stacks are relatively level and close to the median wage in the country.

Depending on the level of their expertise and the stack they work with, junior developers average from $14,000 to $20,000 a year.
Mid-level software engineers have higher competitive wages, which range in rates between $25,000 and $34,000 annually. The middle and higher levels are very much in demand, as such engineers usually have the skills and necessary experience to lead projects and guide junior staff.
Senior software engineers can expect to earn from $40,000 to $72,000 per year, with some roles paying even higher based on their level of expertise and the complexity of the projects they take.

Compared to other Latin American countries, the average software engineer salary in Colombia remains a cost-effective option for businesses seeking skilled talents. Let's look closer at potential salaries of chosen positions.

Junior front-end developers (JavaScript, HTML/CSS): salary start somewhere around $15,000 annually, but it can go further with experience and other skills.
Junior backend developers (Java, Python, Node.js): expect to pay slightly higher, on average around $16,000 per year, reflecting the demand for server-side development skills.

Mid-level DevOps Engineer usually earns up to $34,000 a year. This remuneration is based on the skill required to handle and streamline development and deployment pipelines for optimized performance.
Machine Learning Engineers draw paychecks that accumulate into $36000 annually
and are often at the top end of the salary range.
Senior Ruby and Mobile App Developers: the salary for this position ranges around $40,000-$48,000, reflecting the demand for experience in both mobile and
web development.
Senior DevOps Engineer: among the highest salary positions, a senior DevOps
engineer receives a maximum of $72,000 annually.

Look at the table comparing average salaries in Colombia with other popular offshore destination in LATAM.

Colombia in Global

How much

While salary is a significant factor when considering the cost of hiring software engineers in Colombia, it is not the only direct expense. Businesses must account for a range of costs that can impact the total cost per hire if hiring without a scaling partner. These include onboarding costs, training and development, benefits and perks, and infrastructure.

Challenges in hiring

a software engineer

in Colombia

Besides the immense business opportunities for companies looking to hire skilled software engineers in Colombia, there are also some challenges that may occur in the process.
Significant time difference and distance from Europe. For most companies in Europe—Germany, France, Switzerland, or any other EU country—the time zone difference can be an obstacle when working with Colombians. Colombia is on Colombia Time (COT), five to six hours behind Central European Time (CET), based on daylight saving settings in Europe. This translates into very tight overlaps in hours, possibly leading to time actually being cut from real-time communication and collaboration. One possible solution is to have a flexible work schedule so that there might be more than 2 overlapping hours.

Relatively Low Level of English Proficiency.Colombia is ranked 77th out of 111 countries in the EF English Proficiency Index, representing a relatively low level of proficiency among the population. While many Colombian software engineers have a good command of the English language, overall proficiency can be relatively low, and you may still face some communication issues building a Colombian office by yourself.
Drawing on our experience, the need for Bilingual Staff in the office is a must and ensures that language gaps are overcome and nothing is lost during translation.

Challenges

Employment conditions for software engineers in Colombia

Hiring abroad involves navigating the country's legal and regulatory framework, which can be complex for foreign companies unfamiliar with local labor laws. Understanding employment contracts, tax regulations, compliance requirements, and many more details is essential to avoid potential legal pitfalls. Those are some peculiarities that businesses will face while hiring in Colombia:

Mandatory Intern Hiring. Colombian labor law requires companies to hire at least one intern for every 20 employees. This policy encourages businesses to provide opportunities for young professionals and students to gain practical experience in their chosen fields.
Public Health Insurance. In Colombia, all employees must be enrolled in public health insurance, known as EPS (Entidades Promotoras de Salud). This system provides comprehensive healthcare coverage, including medical consultations, treatments, and hospitalizations. Employers are responsible for registering their employees with an EPS and contributing a portion of the healthcare premiums as part of the social security contributions.
Prima de Servicios (13th Month Pay). Colombian labor law mandates a Prima de Servicios, which is an additional month's salary paid to employees each year. This 13th-month pay is typically distributed in two installments: one in June and the other in December.
Probationary Period. Employment contracts typically include a probationary period of up to two months. During this time, both the employer and employee can evaluate whether the working relationship is a good fit.
Mandatory Severance Payment. Colombian labor law requires employers to provide a severance payment, known as Cesantías, to employees upon termination of employment. The amount is based on the length of service and the employee's salary.

Businesses can avoid the complexities of navigating local labor laws and employment conditions by operating with a staffing partner. SD Solutions handles all aspects of employment, including compliance with legal intricacies, global payroll management, and the entire employee journey through the expert scaling team. This partnership allows companies to focus on their core business objectives while ensuring that their crew is managed effectively and in full compliance with Colombian regulations. Book a call with an expert to learn how this model may benefit your business.

Public Holidays in Colombia

Colombia celebrates 18 public holidays annually, the highest number of official
days off for holiday celebrations globally.

January 1 — New Year’s Day
January 6 (observed on the following Monday) — Epiphany
March 19 (observed on the following Monday) — St. Joseph’s Day
Date varies (part of Holy Week) — Maundy Thursday
Date varies (part of Holy Week) — Good Friday
May 1 — Labour Day
40 days after Easter (observed on the following Monday) — Ascension Day
60 days after Easter (observed on the following Monday) — Corpus Christi
68 days after Easter (observed on the following Monday) — Sacred Heart
June 29 (observed on the following Monday) — St. Peter and St. Paul’s Day
July 20 — Independence Day
August 7 — Battle of Boyacá Day
August 15 (observed on the following Monday) — Assumption of Mary
October 12 (observed on the following Monday) — Columbus Day
November 1 (observed on the following Monday) — All Saints’ Day
November 11 (observed on the following Monday) — Independence of Cartagena
December 8 — Immaculate Conception
December 25 — Christmas Day

Building a successful international team goes beyond hiring the right talent; it involves embracing and understanding diverse cultures and values. When you hire in another culture, recognizing and respecting their unique holidays and traditions is essential. This cultural sensitivity is not just a modern HR trend but a necessity in 2024, shaping an inclusive workplace where every team member feels valued and respected.

Medellin as a Software Development Hub

Medellin, Colombia's second-largest city, is rapidly gaining recognition as a leading software development hub in Latin America. This city has transformed from an industrial center to a dynamic tech ecosystem, often compared to Silicon Valley for its ambitious vision and thriving startup scene.

Medellin's evolution into a tech hub has been driven by a combination of factors, including government support, a solid educational foundation, and the presence of major technology companies. Medellin has its startup ecosystem, with numerous tech startups emerging across various sectors, including fintech, health tech, and e-commerce. Programs like CreaME and Founder Institute Medellin offer mentorship and funding to early-stage startups, helping them scale their operations and reach new markets.

The city regularly hosts tech events and conferences like Colombia 4.0 and Medellin Innovation Week. In turn, it has attracted the interest of various international tech companies that have established engineering centers in the city. According to LinkedIn, there are approximately 397 IT-related companies in Medellin, reflecting the city's robust and expanding tech industry.

Remarkable companies with a presence in Medellin include:

McKinsey & Company. Medellin office focuses on digital and analytical transformations, leveraging local talent to deliver innovative solutions for clients worldwide.
Huge. The company works with leading brands to develop digital experiences, leveraging Medellin's skilled professionals to drive its projects and initiatives.

The average salary of a software developer in Medellin is approximately $32,952 per year. Competitive wages, combined with the city's lower cost of living compared to other tech hubs in the Latam region, make Medellin a location for companies seeking cost-effective nearshoring and outsourcing software development solutions without compromising quality.

Technical stack found in Colombia and terms to hire

Hiring software engineers in Colombia can be a strategic advantage due to the country's skilled workforce and diverse technical stack. However, the time to hire can vary significantly depending on several factors.

The more specialized the skills and expertise required, the longer it may take to find suitable candidates. Niche technologies or highly specialized roles can extend the hiring process, as the pool of qualified candidates may be smaller. The availability of skilled professionals in the local job market also makes a difference. Cities like Medellín, known for their robust tech ecosystems, generally have a higher concentration of qualified candidates, which can reduce hiring time. The key aspect often missed during estimations is the efficiency of the hiring strategy. To reach the following terms, companies need advanced recruitment tools and a streamlined interview process or an experienced staffing partner.

Technical stack

Medellin as a Software

Hire a Development team in Colombia with SD Solutions.

SD Solutions provides a full suite of services to help you quickly and seamlessly establish and manage a development team in Colombia. Our solutions are tailored to your specific requirements, ensuring you have the right talent and resources to achieve your business objectives.

You do you —

we take care of everything else

Learn more about a NEARSHORE IN-HOUSE TEAM with SD Solutions

Imagine having a team that feels like they’re just in the next room, even though they’re halfway across the world. These are professionals who seamlessly align with your company’s culture and are fully dedicated to your goals. While you focus on driving your business forward, we handle all the infrastructure and logistics, making it effortless for you to build and manage a global team.