Colombia Dominates the International IT Services Market

By: TEAM International | August 12, 2022 | 15 min

In a world where IT services have become the foundation for continuous business operations, many countries strive to become the technological cluster that industries need. Years back, as we looked for an excellent location to thrive, we established TEAM International Colombia. Since then, the country has evolved into the fourth largest IT market in Latin America. With this continued growth, the title of Silicon Valley Colombia becomes more than mere word play. Moreover, the expectations for the future are promising, since in 2019 the IT services market here exceeded $8.2 billion.

As one of the leading tech-savvy service providers in the region, Colombia has attracted a solid network of incubators and investment funds that are augmenting its innovative ecosystem. Intending to become the next Silicon Valley, Colombia has reduced tax rates to attract foreign investment and facilitated the creation of new innovative companies for entrepreneurs.

silicon-valley-colombia startups

On top of that, the government has made a considerable effort to support the development of its people and has prepared top talent to take over global projects.

silicon-valley-colombia graduates in science and engineering

So, let’s dive deep into what makes this LATAM country relevant in the international IT industry and why many companies are looking to continue investing in the region.

Bright IT talent and the boom of offshore/nearshore software development outsourcing

When we think about what makes a great company thrive, what can come to mind is its people. During our almost 10-year period of working in Colombia, we’ve noticed the strong desire of people to learn and grow together with us.

Recently, the local workforce ranked among the largest in the region and even came ahead of Mexico or Brazil in terms of training and education. The Ministry of Education of Colombia expects that over 13,000 young people graduate from local universities with degrees in IT and engineering. Additionally, almost 28 percent of college students gain diplomas in science and technology, mathematics, and other IT education-related fields. It’s also worth noting that computer engineering is one of the most popular domains in the country.

Human capital in the IT industry has become a priority for the government. Consequently, their effort to increase and reinforce the talent in this sector allowed many students to pursue an IT education. Therefore, investors have gathered well-trained teams to support and run their projects.

silicon-valley-colombia software developers

Top Gun Lab, authored and held by TEAM International Colombia, is one of the programs that contribute to local talent development and growth. Our IT education courses taught by TEAM top performers help students gain necessary hands-on experience and successfully start their career in the IT industry. Moreover, the program is free and available for local technical schools and university students.

All the employees of TEAM Colombia can take advantage of the internal Learning & Development department. Our L&D managers organize tech workshops, trainings, webinars, and other sessions to make it easier for colleagues to obtain and master necessary hard and soft skills. Since the industry advances quickly, we’ve become fully committed to providing our staff with the latest tools and technologies.

When it comes to IT services, Colombia offers a holistic set of solutions and expertise meeting the demand of even the most sophisticated companies. So, it is no surprise that the number of employers and investors in Colombia Silicon Valley is constantly growing.

silicon-valley-colombia software market

Massive investment in IT services and local expertise

With more international companies, such as Amazon or Microsoft, investing in the country, its IT innovation portfolio continues to expand, covering more services and domains. But even now, the variety of IT services Colombia offers benefits thousands of companies seeking to thrive in the ever-changing IT industry.

silicon-valley-colombia investment in IT

For example, Medellin has become the center of it all, housing the Center for the Fourth Industrial Revolution, the first of its type in Latin America. Such a robust IT innovation environment ensures forward-thinking businesses stable operations and modern approaches braced by tech-savvy workforce. As more companies choose Colombia to manage their nearshoring investment, its potential to become a regional IT hub is obvious. Local experience and expertise in software development outsourcing has become the country’s ace in the hole.

As the next promising Silicon Valley, Colombia has become an attractive destination for international companies willing to expand to other regions. In fact, it has the talent, culture, and hands-on experience to help organizations succeed.

silicon-valley-colombia business lines

The role of TEAM International Colombia in the local IT market growth

In 2014, Medellin gave rise to TEAM International Colombia and became our first delivery hub in LATAM. This year, we welcomed our 500th employee in Latin America. The office continues growing along with our other locations including Poland, Portugal, and Ukraine.

Our vast experience in providing IT consulting services and relevant tech solutions to the world’s major players was a strong competitive advantage and driver of stable local growth. No matter where our clients operate, we have them covered. Our strategically located nearshore and offshore delivery centers let us guarantee our customers seamless communication, resilient processes, and quality and timely IT delivery.

The popularity TEAM International Colombia demonstrated within recent years helped us better understand some of the reasons the local IT export market continues booming, including:

  • Nearshore software development: Colombia shares the CST and EST time zones, which serves clients in Canada, Latin America, and the USA well. It also offers quick and easy business trips to and from major business centers like Miami, New York, Buenos Aires, Toronto, and many others.
  • Strong IT education and community: Every year, approximately 6,000 young people go to learn system engineering. Additionally, there are over 50 local tech communities with over 51,000 members focusing on the most popular programming languages.
  • Tech and innovation hub: Medellin is the home for the World Economic Forum’s first Center for the Fourth Industrial Revolution in Latin America. The center empowers innovation to prosper, attracting more companies and investors to the country.

As we continue to expand and strive to provide our staff with higher and more rewarding challenges, we are glad to hear about their experiences, as many of them have been with us from the very beginning. Laura Villegas is a perfect example of perseverance and growth. She joined us as a Technical Recruiter, and over the years, as TEAM International Colombia was growing, her knowledge, skills, and passion turned her into the HR Strategic Talent Management Director. As an HR leader, she helped create a corporate culture where people feel appreciated for their skills and achievements.

silicon-valley-colombia  corporate culture

LATAM IT outsourcing market and the new technological mecca

When it comes to IT services, Colombia has become a top-of-mind destination for the industry. As the local government invests in the creation of an optimal environment to develop all kinds of companies, from startups to business giants with billions of dollars in revenue, Silicon Valley Colombia is becoming the technological mecca of Latin America. In 2020, it was positioned as the second country in Latin America to receive the most funds and private capital investments in this sector, after Brazil.

The talent development strategies we designed for TEAM International Colombia have paid off multiple times. Currently, our LATAM teams not only support customers globally with high-quality IT services and solutions, but also build their own products focused on intelligent business automation, financial services automation, and data management. As we plan to extend our development programs, we’ve witnessed the opportunities and outcomes that have benefited our organization. Undoubtedly, the country is on the right track to becoming Silicon Valley Colombia, and those who have seen its progress are also growing with the possibilities it offers.

In the near future, Medellin alone has an exciting plan to add 20,000 new tech jobs. Meanwhile, skilled tech talent will be trained and attracted to these new positions. Colombia’s ecosystems are gaining more attention and investment, mainly thanks to top-notch and affordable IT talent. As TEAM International plans to open new offices in other LATAM countries, this has become the place to be for IT companies who wish to grow and expand in the region.

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