There’s high demand for tech talent among the growing businesses in the US. With the limited supply of qualified candidates, the biggest difficulty they face isn’t funding, sales, or operations—it’s finding and hiring enough skilled developers, engineers, and other tech professionals. On the one hand, they are competing with tech giants’ big salaries, while on the other hand - with unreliable, costly freelancers.
Many companies are now turning to nearshore markets to find skilled professionals and not only fill the positions they need, but also lower costs. Mexico and Brazil are often cited as the top US choices for outsourcing in Latin America, with Mexico being popular due to its geographical proximity and time zone alignment, and Brazil for its largest talent pool in the region. Along the way, Colombia has been quietly investing in modern tech infrastructure and producing a large number of STEM graduates every year. It has climbed to second place in South America’s startup ecosystem rankings (per StartupBlink), becoming Latin America‘s serious tech powerhouse, even if many companies haven’t realized it yet.
The article will explore why Colombian developers may be your best nearshore option in 2025 and beyond, and what steps you need to take to hire them effectively.
So, Why Hire Software Developers in Colombia?
Technical Excellence and Sufficient Talent Pool
Currently, Colombia is home to about 150,000 IT and software development professionals who focus on innovation and problem-solving. This talent pool is growing day by day as Colombia produces 20,000-30,000 STEM graduates annually, with a significant portion in IT-related fields, specializing in software engineering, data science, and AI. This influx of talent is supported by top universities such as Universidad de los Andes and Universidad Nacional de Colombia, which rank highly in global engineering programs.
One of the latest available reports from Coursera's on Global Skills positions Colombia first in Latin America and 19th globally in overall skills. Colombian learners score exceptionally well in operating systems, computer programming, and computer networking. While their overall data science scores are lower, they still excel in mathematics, data analysis, and statistical programming.
Colombian developers work across all major modern stacks, from JavaScript frameworks like React and Angular to mobile (Flutter, Kotlin), enterprise (Java, .NET), and advanced fields like AI and DevOps. This versatility means US companies can find teams for virtually any type of project.
Significant Savings Without Compromising Quality
A key reason to hire Colombian developers is that they offer high technical expertise at a
relatively low cost, so businesses get talented developers without paying top-tier US or European rates. For instance, the estimated average salary for a Senior Software Engineer in the Bogota, Colombia area is COP14,600,000 per month, equivalent to $3800 and just about $45K per year vs $100K+ for the same level developers in the US. On Upwork, the hourly rates of software developers in Colombia vary from $10 to $60 per hour, depending on skill set, experience, and project complexity.
This cost difference translates into 50-65% savings, which businesses can use for innovation, product development, or other strategic initiatives. Even though Colombian developers are more affordable, their work quality is still high, which makes them appealing to both startups and larger companies.
Almost Identical Working Hours
When teams are geographically dispersed, people may have to work early in the morning or late in the evening to communicate. It inevitably slows progress and increases fatigue. That’s why having team members in compatible time zones is extremely valuable. Overlapping working hours enable real-time collaboration, on-the-go problem-solving, and trouble-free participation in regular team meetings.
For North American companies, Colombia's UTC-5 time zone is practically identical to the US East Coast time zone and provides sufficient working hours overlap for the West Coast teams. This time zone compatibility minimizes communication delays typical of offshore outsourcing to Asia or Eastern Europe.
Cultural Alignment
If you’ve ever worked with offshore teams, you know how cultural differences can sometimes lead to friction and miscommunication. That’s where Colombian developers really stand out. They share strong alignment with Western business practices and bring a collaborative, team-oriented approach that fits seamlessly with US companies. Many have experience working with US-based companies, understanding nuances like deadlines and iterative feedback. And while English proficiency is not the highest in Colombia, especially in contrast to Argentina, ranking 74 by Education Fist, it is more applicable to the general population. In fact, many tech professionals in Colombia are absolutely comfortable in English and are steadily improving their communication skills.
Government Support and Stable Environment
Colombia’s government has heavily invested in promoting the tech sector, creating a favorable environment for local developers. In 2022, the Ministry of Information and Communication Technologies (MinTIC) of Colombia initiated the Misión TIC Colombia, with the aim of training 100,000 Colombians in programming by the end of 2025. Additionally, Colombia’s government launched a multi-year plan (2023–2026) called the National Digital Strategy to strengthen the country’s digital transformation. It includes eight strategic pillars that include connectivity, data access and use, digital skills/talent, cybersecurity, artificial intelligence, digital economy/society, etc.
On top of this, the country enjoys a growing economy, controlled inflation, and a good investment environment. The government offers tax incentives to attract investors. Specifically, businesses hiring developers as contractors can pay a 20% corporate income tax instead of the usual 35%, further reducing costs. Colombia has become more economically stable in recent years - the country has seen consistent GDP growth, projected at 3-4% for 2025. This stability, combined with improved infrastructure (e.g., high-speed internet in major cities), makes it a reliable outsourcing destination. The country's commitment to cybersecurity and data protection laws, aligned with GDPR standards, ensures compliance for global projects. In short, US businesses in Colombia get skilled, affordable talent plus potential tax savings.
Innovation Mindset
Colombian developers are not just technically skilled but also adaptable and forward-thinking, so their creativity and fresh perspectives can give companies a competitive advantage. Local online learning platforms like Platzi and Crehana help developers continuously upgrade their skills in areas such as blockchain and machine learning. Colombian developers often show an innovative mindset—participating in hackathons and contributing to open-source projects. Additionally, the COVID-19 pandemic pushed remote work in Colombia, so many developers are now totally comfortable working in distributed, international teams.
How Colombia Compares to Other LATAM Nearshore Destinations?
Before choosing where to hire developers from, you should compare Colombia with other popular destinations in Latin America like Brazil, Argentina, or Mexico to see how they differ in costs, skills, time zones, and government support.
Each country in the list has its own perks, for instance, Brazil has the largest talent pool, while Argentina lowest fees, and Colombia provides the optimal balance of cost, quality, time zone alignment, and government support. It makes Colombia a strategic choice for businesses seeking the full package of nearshore advantages without compromises.
Practical Steps for Hiring Colombian Developers
1. Clearly Determine Your Needs
Before you start to search for a developer, your company should establish clear requirements for the specialists it truly needs. For example:
Do you need a front-end developer to enhance the user interface or a back-end developer to develop server-side logic?
Do you need a highly specialized specialist (AI, blockchain, cloud technologies) or a more generalist full-stack developer?
Should this position be freelance, full-time, or on-staff?
What is the expected skill level (junior, mid-level, senior)?
What budget, communication style, and project scope work best for your company?
In simple words: the more precise you are about your requirements, the easier it will be to find the right person and avoid wasting time interviewing people who don’t fit.
2. Choose the Right Hiring Model
Direct Hire: You hire a person as an official employee of your company. They receive a payroll, and you provide them with benefits (health insurance, paid time off, etc.) and handle tax withholding. This hiring approach requires a legal entity in the country (or you can use an Employer of Record if you don’t have one). To find candidates, post vacancies on Colombian job boards like Computrabajo, elempleo.com, or on LinkedIn to find full-time employees. Partnering with local recruiting agencies that understand the local market, salary expectations, and cultural fit can also be helpful. They can expedite the process of finding pre-screened candidates.
Contractor Hiring: The developer works as an independent contract specialist. They send invoices for their services (not payroll) and are responsible themselves for their own taxes, benefits, and insurance. This hiring option is more flexible: it can be part-time, project-based, or permanent, and is best suited for short-term or project-based work. Freelancers are a type of contractor, usually engaged for short-term or one-off projects. Platforms like Upwork, Toptal, Deel, and Workana can help you find skilled freelancers from Colombia.
Outsourcing or Outstaffing: With outsourcing, you outsource an entire project or function to a company, which manages the entire process and delivers results. With outstaffing, you hire developers through an agency but manage their day-to-day work as part of your team, while the agency handles contracts and compliance. You can search for software development companies at Clutch.co, G2, Good Firms, Selected Firms, or UpCity.
3. Conduct interviews assessing technical & soft skills
When you interview candidates, don’t just look at resumes — check their real skills with coding tests, technical interviews, and real-world assignments to evaluate technical abilities.
Ask about their past experience working with US clients, since it shows if they’re comfortable with your market. Test their English skills, both written and spoken, because clear communication is critical in remote work. Make sure they know how to use tools like Slack, Jira, GitHub, or Zoom if those are part of your workflow. Don’t forget soft skills - communication, problem-solving, and collaboration are extremely important when working remotely. And finally, check if their work style and personality fit well with your existing team.
4. Consider Legal & Compliance Aspects
Hiring Colombian developers requires attention to local labor laws, taxes, and contracts. Many companies simplify this by working with Employer of Record (EOR) services that handle compliance and HR or by outsourcing the entire project to save time, reduce legal risks, and minimize administrative effort.
Some key considerations for US companies hiring in Colombia include:
US–Colombia Free Trade Agreement (FTA):
The FTA provides certain protections and frameworks for businesses operating between the two countries.
It can help reduce trade barriers, ensure smoother cross-border contracts, and provide legal clarity for services and payments.
While it doesn't eliminate all compliance requirements, it does create a safer legal environment for employing and paying foreign workers or contractors.
Payment methods and taxes:
Companies must decide how payments will be made—bank transfer, PayPal, or through platforms like Deel or Upwork.
Colombian tax law requires contractors or employees to pay local taxes; US companies may have obligations too. Planning ahead avoids double taxation, penalties, or delayed payments.
It’s also important to understand currency exchange and transaction fees to ensure realistic budgets.
Intellectual Property (IP) rights:
Any software, designs, or digital assets created by Colombian developers need clear ownership clauses in the contract.
It ensures your company exclusive rights to the work to prevent code, invention, or proprietary process litigation.
IP clauses need to cover patents, copyrights, and trade secrets, especially if the developer is working on products that are core to your business strategy.
5. Prepare a Competitive Offer
Attracting top Colombian developers isn’t just about hiring—they need support and clear communication to maximize success, regardless if you’re working with employees, contractors, or an outsourced team. Start by defining communication protocols: which tools to use (Slack, Zoom, Jira, etc.) and how often meetings should occur. Provide clear documentation of processes, standards, and project workflows so everyone can follow them without confusion. Take steps to integrate new team members - introduce them to colleagues, explain your company culture, and, if possible, assign a mentor or point of contact. Finally, schedule regular check-ins during the onboarding period to ensure alignment, address questions early, and keep projects on track.
Final Thoughts
Finding skilled tech talent is one of the biggest challenges for small and medium-sized businesses. Competing for costly local hires often results in frustration, budget strain, and project delays. As tech talent shortage in the US deepens, Colombian developers emerge as a nearshore powerhouse that brings technical excellence, cost savings of more than 50%, time zone alignment, cultural fit and strong government backed innovation. Colombia offers a combination that Mexico’s proximity, Brazil’s talent pool or Argentina’s low fees alone can't match. It’s not just about filling positions, but establishing a resilient and innovative team that will propel your business without the pitfalls of offshore risks or domestic premiums.
FAQ
Why should I consider hiring developers from Colombia?
Colombia offers a growing pool of skilled IT professionals, high technical expertise, cost-effective rates, time zone alignment with the US, and strong government support for the tech sector.
How many developers are available in Colombia?
Colombia has around 150,000 IT and software professionals, with 20,000–30,000 STEM graduates entering the workforce annually.
How do Colombian developer salaries compare to US or European rates?
Senior developers in Bogotá earn around COP 14,600,000/month (~$3,800 USD), roughly 50–65% less than equivalent US salaries.
Will time zones affect collaboration with US teams?
No. Colombia is in UTC−5, closely matching US East Coast hours and offering significant working hours overlapping with the US West Coast. Such time alignment enables real-time collaboration and easier participation in team meetings.
What are the main hiring models for Colombian developers?
You can hire via direct employment, independent contracting, or outsourcing/outstaffing through agencies that handle compliance and payroll.
How can I assess Colombian developers’ skills and fit?
Conduct remote interviews and use coding tests and real-world assignments to evaluate technical abilities.
How does Colombia compare to other Latin American nearshore destinations?
Colombia offers a balance of quality, cost, time zone alignment, and government support, making it a strong alternative to Brazil, Mexico, and Argentina.
Can I hire Colombian developers for short-term or long-term projects?
Yes, freelancers on Upwork or Toptal are ideal for short-term or project-based work. Direct hires via LinkedIn or agencies suit long-term roles, while outsourcing firms handle ongoing projects with managed teams.
