Software Development in Colombia: 2025 Overview

Software Development in Colombia Overview

Why is Colombia so attractive to software development business owners from other countries and even continents? There are several major reasons.

A competitive talent pool

One of the most important competitive advantages that the software development sector in Colombia offers is its talent pool. Over 60,000 software developers are working in Colombia, and this number is continuously increasing with new professionals joining the IT sector. This country has significant diversity among professional developers who master different programming languages, from Java and Python to .NET and others, which makes the country so attractive for companies in their search for highly qualitative engineering.

Colombia is continuously ranked high in various global IT industry ratings. According to HackerRank, Colombia is among the top 50 countries, with Colombian software development specialists earning high scores across a number of skills and disciplines, particularly problem-solving and mathematics. It is such talent that attracts numerous foreign companies into the country, making Colombia stand out in the Latin American tech industry.

Salary ranges in Colombia vs. other markets

The developers in Colombia are much cheaper than any of their counterparts in the United States, Canada or Europe. If you're thinking to hire software developers in Colombia, the following comparison of the possible salary ranges might be helpful:

The cost advantage further makes Colombian software development companies an attractive solution for businesses to manage their budgets without affecting the quality.

English proficiency

English proficiency is another factor that has helped to develop the success of Colombia in the software development industry. With an increasing number of developers who possess the ability to speak English, Colombia is considered one of the top Latin American countries with English proficiency. This allows for easy communication between foreign companies outsourcing their software development to Colombia.

Tech companies and startups

The tech industry is also characterized by its dynamic startup ecosystem. Colombia is home to over 5,000 technological companies and startups, with the capital, Bogotá, acting as an innovative software development hub. Other cities, such as Medellín and Cali, have followed Bogotá's example and established their respective technological hubs. Software development companies in Colombia work on everything from AI and machine learning to fintech and cybersecurity, for both local and international IT markets.

Software Development Industry Trends and Forecasts

While IT in Colombia already has favorable conditions for growth, the country is going to develop further in this direction. Let’s see what business owners can expect from this LATAM hub when considering it for meeting their business needs.

Growing industries and technologies

Over the next five years, several sectors of Colombia's software development industry are expected to grow rapidly. The big sectors include fintech, artificial intelligence, cybersecurity, and blockchain. The combination of global digital transformation and Colombia's strong tech ecosystem has attracted significant investment in these technologies.

Fintech stands out as one of the fastest-growing informational technology sectors, with more than 300 fintech companies already operating in Colombia. International investors are betting on the country's fintech potential, and Colombia has embraced this technology to extend banking services to underserved populations.

Meanwhile, traditional sectors such as manufacturing and logistics are experiencing slower growth. This is partly due to automation and digital transformation, which have made these industries more efficient and reduced the need for traditional software development approaches.

Economic and legislative factors

While Colombia's tech sector has been growing, global economic uncertainties and inflation could impact the industry. However, the Colombian government is actively working to foster a business-friendly environment for foreign investors by passing legislation that supports tech growth and protects intellectual property.

Notably, the Orange Economy Law promotes industries related to creativity and technology, which will likely drive further growth in Colombia's software development market. Additionally, increased government investment in tech education ensures a steady supply of skilled developers to meet the rising demand.

Software Developers' Salaries in Colombia

When examining software development in Colombia, it's important to consider salary ranges for different technologies. Here's an overview of average salaries for various roles:

These salary ranges make hiring software developers in Colombia a cost-effective choice for businesses looking to expand their tech teams compared to other countries.

Software Development Hubs in Colombia

Tech industry in Colombia has been rapidly evolving, and specific cities are emerging as important destinations for software development. Each of these centers presents its advantages based on the kind of work or the needs of the company. Following is a summary of some of the key tech centers in the country.

Bogotá

Being the country’s capital and largest city, Bogotá is the leading technological center in Colombia. With a strong infrastructure and access to top-tier educational institutions, Bogotá has numerous global information technology enterprises like Amazon and IBM opening up. The city's developers are good in terms of technical expertise, especially in the fields of web and mobile development as well as the creation of AI applications. Additionally, Bogotá offers competitive salaries that attract experienced software development professionals, making it a key location for high-tech companies seeking stability and a well-connected environment.

Medellín

Medellín has successfully changed from an industrial city to one of the most developed and highly regarded hubs of software outsourcing in Latin America. Thanks to technological development, Medellín nurtures a generous amount of software development start-ups, incubators, and accelerators. This city has focused on technology and innovation hence earning international praise for its smart city initiatives. Living expenses in Medellín are also cheaper as compared to Bogotá: with an average software developer’s annual salary of approximately $20,000, it’s an attractive destination for businesses.

Cali

Thanks to its closeness to the Pacific Ocean, Cali is yet another emerging outsourcing hub in Colombia. There has also been a rapid increase in the technological education programs of the city, thus, more and more software developers are coming to the labor market. Cali is also known for its laid-back lifestyle and affordable living costs, which are appealing to companies looking for nearshoring opportunities. Software development companies in Cali benefit from a young workforce that is eager to prove its capability in the international market.

Barranquilla

Due to Barranquilla’s status as a leading port, it has been and remains a great focal point for international trade, and, more recently, tech companies as well. With its developing infrastructure and growing tech ecosystem, Barranquilla has now become one of the best options for companies willing to relocate their software development to Colombia. A combination of affordability, workforce, and business-friendly environment positions this city as one of the emerging regions in the technology landscape in Colombia.

Bucaramanga

Despite being smaller than other cities, Bucaramanga’s software development sector is rapidly gaining attention. Renowned for its quality of life and education, Bucaramanga is increasingly appealing to tech professionals. Thanks to the focus on learning, the city was able to train some of the most competent developers in Colombia, making it a good place for outsourcing firms looking for seasoned tech talents at a reasonable price.

Outsourcing Software Development in Colombia vs Hiring Developers

When collaborating with software development companies in Colombia, businesses are left with two major options ‒ outsourcing or hiring in-house talent. Each method has its pros and cons. No matter if you seek some degree of variability or wish to have complete authority over the entire process in the longer run, awareness of the pitfalls and merits of these alternatives helps you to take a rational step towards the achievement of your business needs.

Outsourcing software development in Colombia

The increasing trend of outsourced software development to Colombia can be attributed to the increasing sophistication levels of the population’s economic sector. Employers are motivated by the nature of delivering highly skilled labor and maintaining the overall budget of the projects low. Also, outsourcing allows for hiring specific talents for only one or a few project phases without the need to hire employees full-time.By choosing to outsource to Colombia, companies can tap into the expertise of well-established Colombian software development firms. They tend to be well-connected, having a proven track record of managing remote teams and coordinating their activities with project management software. Resources saved due to the cheaper costs of outsourcing development services can be diverted to other functions in the organization.

However, there are also downsides to outsourcing. Limited control over the development process can lead to potential miscommunication and wrong project outcomes. Time zone differences or language issues can also cause delays or misunderstandings. Another aspect includes problems with cultural fit where external teams in Colombia may not quite grasp your vision and values of the business.

Hiring developers in Colombia

If businesses have specific objectives for the long term, it can be very profitable for them to consider hiring software engineers in Colombia. With this model, developers are integrated into the core team resulting in better conformity with the company’s principles, values, and goals.

Direct employment also offers the advantage of creating a software development team that already comprehends a product, processes, and corporate objectives within the organization. This results in swifter cycles of product modification and enhanced product development. You may also cultivate a healthy degree of team spirit by enhancing the emotional and loyalty attachment of your Colombian developers to the company.

On the downside, hiring in-house developers typically incurs higher costs, as you are responsible for salaries, benefits, and overhead expenses. Recruitment in Colombia might be slow because of the numerous stages that involve choosing the most suitable candidates, familiarizing them with the company, and onboarding. Finally, there’s the risk of employee turnover, which could disrupt your operations and require additional resources to find and train new talent.

Which Path is Right for Your Business?

As we look ahead to 2025, it's clear that software development in Colombia is on the rise, but what should you choose: outsourcing or hiring in-house developers? 

With 10+ years in the business development and recruitment spheres, I’ll take the risk to say that hiring in-house is a sensible decision. While I have already described some of the advantages of this approach in the previous section, I want to tell you that hiring with Huntly provides you with even more benefits. Being an innovative tech recruitment platform, we’ve built our processes in a way to help you tackle all of the challenges of traditional recruitment, and here’s how:

• higher costs. One of the main ideas I had when creating Huntly was to make quality tech recruitment a cost-effective option for business owners. The Huntly team achieved this thanks to our flexible payment system. When hiring with Huntly, you decide on the amount of a recruitment fee, thus, you are in control of your recruitment expenses. 
• long time to build a team. While hiring one software development specialist on average takes 36 days, Huntly helps to speed up the recruitment process by generating a quality candidate pipeline within 48 hours.
• risk of employee turnover. At Huntly, we understand how important it is to hire the right people, so we ensure a money-back guarantee if a candidate you hire on our platform doesn’t pass a probation period. 

Whether you are considering engaging developers in Colombia, Huntly can help you find the right talent for your business. With our expertise and deep connections within the Colombian software development industry, we make it easy to scale your tech team and tackle your most complex projects.