With the US tech talent demand projected to hit 7.1 million tech jobs by 2034, nearshoring becomes the only way forward. Colombia shines with its fast-growing IT services market, which is expected to grow to $2.17 billion by 2025. The country also has a strong balance between cost and quality, as the annual software developer salary averages $37,524 for mid-level, $54,816 for senior, and $65,928 for lead.
I’m Maryna Panchuk, Head of IT Recruitment at Alcor, an all-in-one software R&D center solution provider. In as little as 2-3 months, we’ll help your product tech company set up a remote tech R&D center with top 10% talent from LATAM or Eastern Europe.
In the next 10 minutes, you’ll discover the key insights into Colombia’s tech market, alongside the advantages and challenges of working with local developers. With my team of IT headhunters in Colombia, we’ll also shed some light on average software engineer salaries in Colombia and how you can optimize your compensation budget without sacrificing quality.
Colombia’s Software Development Industry in 2025
Colombia has succeeded in the startup scene by demonstrating growth in the tech sector. Ranked as one of the top 2 startup locations in Latin America, the country is home to stars such as Rappi, ADDI, Bold, Platzi, Habi, and LaHaus.
Major Colombian cities are actively developing as startup destinations:
- The capital, Bogotá, the third-largest IT hub in LATAM, accounts for 760 startups.
- Medellín, hosting 272 ventures, climbed 43 spots in the rankings over the past three years.
- Cali, Colombia’s third-tier city, breaks into the top 100 in FoodTech, climbing 87 spots.
Interestingly, the Colombian government strongly supports the country’s tech development. Initiatives like the National Digital Strategy focus on education, digital development, and business innovation, creating a thriving tech ecosystem that benefits both local and international companies. It not only trains future Colombian software developers but also supports startups and entrepreneurs. Moreover, the Colombian government supports tech businesses with tax incentives, regulatory support, and grants.
The IT outsourcing market in Colombia also holds a strong position, estimated to reach $755.29m in 2025. Supported by government initiatives, the sphere of innovation keeps growing, and this is another yes for outsourcing software development to Colombia.
To prove the cost-effectiveness of hiring Colombian software engineers, let’s compare the wages of senior specialists from the key tech markets. The table offers a perspective on the difference between the average software engineer salary in Colombia, the US, Argentina, and Mexico.
| Gross Annual Income of Senior Software Developers | |||||||||||||
| Position | USA | Colombia | Argentina | Mexico | |||||||||
| Java Developer | 114,000 | 60,000 | 57,600 | 66,000 | |||||||||
| Blockchain Developer | 132,000 | 62,400 | 60,000 | 68,400 | |||||||||
| Mobile App Developer | 114,000 | 62,400 | 62,400 | 62,400 | |||||||||
| Python Developer | 126,000 | 60,000 | 56,400 | 62,400 | |||||||||
| Manual/Automation QA | 96,000 | 48,000 | 48,000 | 51,600 | |||||||||
| AI/ML Engineer | 132,000 | 60,000 | 57,600 | 61,200 | |||||||||
| C/C++ Developer | 114,000 | 57,600 | 54,000 | 66,000 | |||||||||
| Cloud Engineer | 174,000 | 54,000 | 68,400 | 68,400 | |||||||||
| Product Manager | 120,000 | 51,600 | 51,600 | 50,400 | |||||||||
| UI/UX Designer | 102,000 | 57,600 | 54,000 | 60,000 | |||||||||
As you can see, the average annual salary in Colombia for a software engineer is $57,360. If we compare it to South America’s pay scales, it’s just $360 higher than Argentina’s and $4,320 lower than Mexico’s. Thus, Mexican developers with the same skills are more expensive to employers than Argentinian and Colombian software engineers.
However, what really makes a key difference is that, in comparison with the United States, software developer salaries in Colombia are more than two times lower. Such software developers’ salaries in Colombia give the US-based tech businesses that are ready to offshore a major cost advantage.
Portrait of a Software Developer in Colombia
Age & Education
The typical tech specialist in Colombia is a 30-year-old professional holding a bachelor’s degree in computer science or related fields. Information and security systems are also popular majors.
Hard Skills
Many Colombian coders take their education beyond formal degrees, as seen in Colombia’s high rankings for programming courses on Coursera. This commitment has helped the country secure a spot in the top 30 of global skill rankings. Local developers are also committed to continuous learning. Among surveyed developers from LATAM, Eastern Europe, and the USA, LATAM specialists prioritized learning and development the most when choosing a workplace.
Speaking about programming languages, Colombia is a hotspot for companies looking to hire experts in JavaScript, SQL, Ruby, and Python.
Finally, thanks to the bustling startup environment, Colombian programmers have a unique chance to learn the ropes of programming in a startup, which is why they typically have such experience.
Soft Skills
Colombian devs are renowned for their work ethics. They respect hierarchical structures but also value teamwork and collaboration. Colombians are also renowned for their time management skills, as they are dedicated to meeting deadlines.
Colombians bring friendliness, openness, and respect to communication. Together with their way of thinking and adaptability, such personal skills make them a great asset to the team.
Cultural Peculiarities
Colombians value trust and close-knit teams. Coming from a relationship-oriented culture, they include time for casual conversation in virtual meetings. Colombians prefer to balance formality and informality, bringing warmth and friendliness to the workspace.
Not to mention that developers from this region value work-life balance. The research reveals that 62% of surveyed LATAM tech specialists prioritize flexible hours when choosing a future employer.
Thus, Colombian tech employees and contractors show initiative, genuine interest, and polite consideration for their teams. Besides, the value of trust motivates them to stay with one company for longer, reinforcing their exceptional work ethic.
Software Developer Salaries in Colombia
To calculate costs correctly, knowing only the average salary in software development in Colombia is not enough. You also need to factor in Colombian taxes, recruitment fees, and employee benefit packages to get a complete picture.
For a full-time employee, consider the employer’s tax share. It consists of:
1. Social Security Contributions (federal):
- Pension fund – 12%
- Health insurance – 8.5% (applies only if the salary exceeds 10 minimum monthly wages)
- Labor risks system – 0.522%
2. Payroll taxes (local):
- Institute for Family Welfare – 3%
- National Apprenticeship Service (SENA) – 2%
- Family Compensation Fund – 4%
Together, these add up to a total employer tax of 30.02%.
Additionally, hiring a strong team comes with recruitment costs. These services are typically worth 15% of the gross annual salary for a middle tech specialist, 20% for a senior, and 25% for a lead.
Plus, add a standard benefits package. In LATAM, it typically costs $6,500 and includes:
- Health Insurance – $1,000/year
- Education Support (access to learning platforms, course/webinar compensation) – $1,500/year
- Corporate Merchandise – $100/year
- Equipment (laptop, monitor, headphones, etc.) – $3,000 (one-time expense)
- Wellness Program (gym membership, mental health support) – $900/year
With my team of 40+ tech recruiters, we prepared an overview of middle, senior, and lead developer salaries in Colombia. This table includes a standard benefits package, 13th salary, and recruitment services.
| Annual Developer Employment Cost in Colombia, USD | |||||||||||||
| Position | Middle | Senior | Lead | ||||||||||
| Java Developer | 58,825 | 84,500 | 104,000 | ||||||||||
| Blockchain Developer | 61,800 | 87,600 | 105,625 | ||||||||||
| Mobile App Developer | 58,825 | 84,500 | 104,000 | ||||||||||
| Python Developer | 58,825 | 84,500 | 104,000 | ||||||||||
| Manual/Automation QA | 43,875 | 68,900 | 87,750 | ||||||||||
| AI/ML Engineer | 60,300 | 84,500 | 104,000 | ||||||||||
| C/C++ Developer | 58,825 | 81,400 | 100,750 | ||||||||||
| Cloud Engineer | 54,340 | 76,700 | 95,875 | ||||||||||
| Product Manager | 47,600 | 73,600 | 87,750 | ||||||||||
| UI/UX Designer | 48,360 | 81,400 | 95,875 | ||||||||||
| Gross Annual Salary (13th included) + Recruitment Services + Standard Benefits Package | |||||||||||||
Let’s take the senior Mobile App Developer salary in Colombia as an example. The gross annual median wage is around $62,400. Including the fees mentioned, hiring a local specialist will cost $84,500. Meanwhile, in the US market, a Mobile App Developer’s annual compensation averages $114,000, rising to $186,400 with other costs included. Nearshoring to Colombia can save you up to 55%.
As you can see, if you nearshore outsourcing to Colombia, you’ll pay less and still get the most sought-after expertise.
Your Up and Running Software Team in 2 Months
Alcor is your trusted ally in LATAM and Eastern Europe: we build product development teams in Mexico, Colombia, Poland, Romania, and Ukraine from 0 to 100 Silicon Valley-caliber engineers in a year.
Why choose an all-in-one R&D center model instead of traditional outsourcing?
First of all, only senior, lead, and C-level talent will join your team, with 40% cost savings compared to outsourcing. In just 5 days, you’ll receive the first CVs, and in 2 to 6 weeks, you’ll get your first hire. For our client Gotransverse, the results were even more impressive—we helped them build a top-tier Full-Stack development team in just 6 weeks.
Moreover, with EoR service, you don’t need to open a legal entity to hire from abroad. Forget about paperwork: Alcor will take care of payroll, taxes, onboarding/offboarding, and benefits management. We will also take office lease, equipment procurement, employer branding, and other operational support off your hands.
The best part: no setup and buy-out fees so that you can plan your budget without any unpleasant surprises.
How does it all come together? After you reach out to us, we will provide you with more data on the market, for example, by consulting you on local laws or developer salaries in Colombia. Then, we allocate a team of our tech recruiters to fill your positions. Also, we provide you with lawyers, an accountant, and a payroll specialist to provide the Employer of Record service. After that, we will assign a dedicated account manager to assist you with all your ongoing requests.
Advantages of Hiring Colombian Developers
Numerous & Educated Talent
The Colombian talent pool boasts over 165,000 tech professionals. Among them, computer science majors are in demand: the first five best universities in Colombia alone abound with 20,000+ students enrolled. Moreover, the University of the Andes Colombia, the Universidad Nacional de Colombia, and Pontificia Universidad Javeriana made it to the LATAM top 30.
High Programming Ranking
Colombian software developers top the charts in LATAM and the Caribbean in their overall technology and data science scores, excelling in operating systems, computer networking, and computer programming, namely web and database development, cloud computing, and data analysis.
Additionally, Colombia shines as a JavaScript community hub: it has JS-related meetups in 8 cities and more than 3,000 members. Moreover, in 2025, the renowned JSConf will be held in Medellín for the first time in LATAM, reflecting the growth of the local tech community.
It’s a particular advantage for offshoring since JavaScript programming language reigns supreme, according to the newest Stack Overflow survey. Software developers in Colombia are also prized for their expertise in HTML/CSS, SQL, and Python.
At Alcor, we find qualified developers with different stacks. For one of our clients, a US-based scientific software company, Dotmatics, we managed to hire 30 software engineers in a year, including JavaScript and Java tech stacks, but also Node.js, C++, React, AWS, and Cypress. So, if you’re in need of expert devs to nearshore your business to Colombia, we’re just a click away!
Affordable Developer Compensation
The average software developer salary in Colombia is two times lower than in the US, as American companies pay about $117K annually. Given the high level of expertise of software engineers in Colombia, outsourcing software development allows substantial cost savings while maintaining high quality.
Manageable Time Differences
The central tech hub, Bogota, is two hours ahead of California and one hour behind New York, so staying in touch with your offshore developers in Colombia is easy. Besides, overlapping work hours help you manage the remote team and stay on top of your software production deadlines.
Challenges of Hiring Developers in Colombia
Developing English Proficiency
While the overall level of English in Colombia is not the highest, it is not the end of the world. Such big tech hubs as Bogotá, Medellín, and Cali demonstrate a moderate to high level of English.
At Alcor, we always test our candidates for English skills, so your communication with the team was not a stumbling block.
Intricate Labor Laws
Colombian legislation has several nuances. Generally, the peculiarities concern a 48-hour working week, 25% extra pay for overtime hours, 15 days of paid vacation, and more public holidays than in the US—18 in total.
On top of that, the Colombian classification of contract workers and independent contractors, along with comprehensive employee protection requirements and labor unions, might be confusing. The most practical way for American tech companies here is to seek a trusted partner to handle everything.
What is more, account for cesantía payments—equivalent to one month’s salary per year worked, with an extra 12% interest. There’s also “prima”—the 13th-month bonus.
That’s what a US company, People.ai, did before setting up its development hub abroad. Look at how they achieved full legal compliance with Alcor:
Your Software Development Center in Colombia
At Alcor, we help you build your software R&D center with custom pricing and volume discounts.
We prioritize keeping clients hassle-free, so we included these services in our all-in-one solution:
- Professional Tech Recruitment: We source, assess, interview, negotiate with, and hire top-notch tech specialists. 80% of CVs earn client approval, and 98.6% of the candidates pass the probation period.
- End-to-End EoR Services: HR payroll, taxes, compliance, on/offboarding, benefits management—our team of dedicated professionals will simplify daily tasks.
- 360° Operational Support: Get help with office rent, hardware procurement, employer branding, and other HR services.
Why building a team with us is different from a traditional outsourcing model:
- Time-Oriented: Get your first hire in 2-6 weeks.
- Elite Tech Talent Only: We recruit only hi-tech talent.
- Up to 40% Cost Saved: Significant savings compared to conventional outsourcing models.
- No Buy-Out and Setup Fees: Plan your budget on recruitment confidently, with no hidden fees.
- No Need for a Legal Entity: Handling administrative and legal tasks is fully on us.