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With a projected value of $35.5 billion by 2028, the software development industry in Colombia continues its steady rise. As US companies strategically target LATAM countries when looking for talented software developers, this surge doesn’t come as a surprise. How could your tech business benefit from the burgeoning Colombian IT industry?
I’m David Gomez, Lead IT Recruiter at Alcor, software R&D center accelerator in Latin America and Eastern Europe. At Alcor, we guarantee high-quality tech recruitment and can hire developers from Colombia from 10 to 100+ within a year for your tech product company. And not only that—our solution also covers Employer of Record services and full operational support.
In this article, you’ll see the big picture of the Colombian software development industry, discover its latest news, trends, and thriving tech hubs, as well as learn how and why you could expand your tech business there.
Key Takeaways
- Colombia’s tech market is growing faster than Brazil and Mexico, with a 6.27% CAGR and a projected value of $2.77B by 2029.
- The country is investing heavily in digital talent, AI, and infrastructure, while its top startup hubs, Bogotá and Medellín, advance fintech & data computing.
- In 2024, the Colombian startup ecosystem attracted 36% more VC funding than in the previous year and climbed 2 spots higher in regional rankings.
- Colombia shows potential in e-commerce, with forecasts to exceed $11 billion of market value by 2029. Blockchain is another promising sector, especially given the official plan on new crypto regulations.
- By scaling to Colombia, a product tech company can save up to 40% on software engineers’ salaries, using an R&D center model.
- Other factors that attract tech product companies to Colombia include highly educated and numerous tech talent, favorable tech taxes, and a strategic location in proximity to the US.
Software Development in Colombia: Overview
The Colombian software development market proudly claims leading positions in the region. In 2025, the IT services market in Colombia should reach a projected value of $2.17 billion. Driven by cloud computing and cybersecurity and growing at a 6.27% CAGR rate, it should hit $2.77 billion by 2029.
How does Colombia’s IT sector stack against other regional leaders? If you compare, it grows faster than the markets in Mexico and Brazil over the same time period, with a 5.40% and 5.95% CAGR, respectively. Therefore, although the Colombian tech market is smaller, it demonstrates rapid and steady growth.
At the heart of this evolution lies the government‘s bold vision to position Colombia as the Silicon Valley of Latin America by skyrocketing its digital economy. In 2024, the country revealed its National Digital Strategy for 2023-2026. Key initiatives center around developing digital talent, enhancing connectivity, encouraging e-government, establishing secure data infrastructure, and promoting AI.
Latest News on Colombian Software Development Industry
Ratings & investments
- +2 spots in the South American startup ecosystem ranking. In 2024, Colombia outpaced Chile and rose to the 2nd regional position in the Global Startup Ecosystem Index. As of May 2025, the land of Eldorado is home to 1582 startups, spanning three main sectors—e-commerce & retail, software & data, and fintech.
- +$137 million of VC investment within one year. In comparison with $376 million in 2023, Colombian startups raised $513 million in 2024 — a more than 36% increase. Top tech verticals? Fintech and IT Services, Data & Computing.
Top-funded startups
As indicated by LAVCA, the major VC developments for startups in the Colombian software development sector include:
- Considerable Fintech funding in 2024—$95 million for Finkargo and $186 million for ADDI.
- Investment in AI-powered digital finance solutions, such as Simetrik, which raised $55 million from Goldman Sachs, Mercado Libre, Simma Capital, and others.
- Strategic rise to an IPO in the US is being prepared by Rappi, while Platzi, La Haus, and Lulo Bank plan to follow.
Software development in Colombia Forecasts & Trends
The software development industry in Colombia shows potential across other tech segments, such as:
E-commerce
Current state: Colombia’s e-commerce sector is the third-largest in Latin America and 44th globally. In 2025, it is projected to hit $9 billion. Most online shopping in Colombia still happens through local retailers, who make up 85% of all e-commerce sales, but buying from international stores is catching on—cross-border sales are expected to grow by 18% in 2025.
Future insights: Forecasts on the Colombian e-commerce market indicate a continuous growth at a 7.28% CAGR, ultimately resulting in the value of over $11.9 billion by 2029.
Blockchain
Current state: In 2025, revenue in the cryptocurrency market is forecasted to reach $385.9 million. Digital currencies are becoming more widely accepted as a form of payment, encouraging 95% of all LATAM crypto owners, including the Colombian ones, to plan on buying more assets.
Future insights: The Superintendencia Financiera de Colombia (SFC) announced stricter AML and KYC regulations for 2025. The goal is positive—to align the country’s crypto market with global standards and boost investor confidence.
Proficiency of Software Development Companies in Colombia
With over 11,000 IT companies, the Colombian software development landscape is thriving. Non-tech businesses also reap the benefits of the informational technology sector in the country. As of February 2024, there are approximately 400 software development companies in Colombia that offer IT outsourcing services. Most of them specialize in custom mobile app and web development, cloud consulting & SI, as well as UI/UX design services.
Comparatively, Mexico hosts around 470 outsourcing providers, the IT market in Argentina has approximately 420, and software development outsourcing in Chile shows the smallest number, with 155 companies in the sector.
Currently, some of the top-ranked Colombian software development companies, according to Clutch, include:
- Luby Software
- Rootstack
- Wawandco
- 99x Americas
- Ballast Lane Applications LLC
Thus, non-tech companies leverage the cost-effectiveness of outsourcing to Colombian vendors, tapping into the expertise of the country’s skilled developers.
However, for tech product companies, outsourcing can pose challenges such as data security risks, hidden costs, and communication barriers. That’s why many product software companies decide to do software development in Colombia with an in-house team of software developers.
Typically, such tech businesses partner with local service providers who can assist with tech recruitment, legal compliance, office leases, and other back-office operations. To give you an example, see how Alcor approached a similar request to build an elite mobile development team for Franki, a US experience app:
Top Software Development Hubs in Colombia
Bogotá
Bogotá is Colombia’s leading tech hub. It’s home to 62% of the country’s tech companies and 791 startups, with a strong focus on food tech. Ranking 1st in Colombia and 2nd in South America, Bogotá is supported by top universities like National University of Colombia, University of America in Colombia, University of the Andes Colombia, Pontifical Javeriana University.
Apart from the thriving startup scene, Bogotá also hosts the offices of such global companies as Google, Dell, HP, Uber, Meta, and the list doesn’t stop here. Finally, Colombian capital hosts annual tech conferences, such as Bogotá DevDay, Bogotá Tech Summit, Blockchain Summit, and Cybersecurity Forum, as well as events like GoFest and Startup Week to support tech networking and knowledge exchange.
Hire top software developers with the help of IT headhunters in Bogota!
Medellín
Medellín is Colombia’s second-largest tech hub and ranks 7th in South America, with 459 startups and strengths in e-commerce and fintech. It hosts major players like Amazon, Huawei, and Tuya Smart, and is backed by top universities such as EAFIT, University of Antioquia, and Pontificia Bolivariana. The city is also Latin America’s third-largest and fastest-growing tech talent hub, home to over 100,000 top-market software engineers.
Like the capital, Medellín frequently holds annual tech conferences and events, with Ruta N Summit leading efforts to drive entrepreneurship and investment. Other notable events include the IoT Medellín Conference, AI Summit, Blockchain Summit, UX/UI Design Conference, and Startup Weekend.
Reasons to Expand Your Tech Business to Colombia
Seasoned tech talent
The Colombian software development industry is rich in skilled software engineers. With a population of 51 million, the nation is home to more than 150,000 developers. Among them, the most favored programming languages are Java, C++, Python, SQL, and Ruby.
What’s more, local developers top the regional charts for tech expertise and skills in their technology and data science scores. They excel in operating systems, computer networking, and computer programming, as well as demonstrating exceptional proficiency in web development, cloud computing, and data analysis.
Exceptional tech education
Each year, over 15,000 graduates bolster the Colombian software development industry. As a result, Colombia ranks fourth among Latin American nations in terms of the highest proportion of graduates pursuing STEM careers.
Noteworthy, 9 Colombian universities feature in the Best Global Universities in Latin America list, while 25 higher education institutions from the country are recognized as top global universities in the prestigious 2025 QS World University Rankings.
Moderate costs
Lower labor costs and advantageous business taxes in Colombia also encourage Western tech product companies to consider the location for nearshoring. As a rule, Colombian, as well as Argentinian software developers and other Latin American tech specialists, earn around 2.7 times less than their counterparts in the US.
The table below represents software developer salaries in Colombia for different roles and positions:
| Position | Gross Annual Salary, USD | ||
| Middle | Senior | Lead | |
| Blockchain Developer | 44,400 | 62,400 | 73,200 |
| Mobile Developer | 42,000 | 62,400 | 72,000 |
| Python Developer | 42,000 | 60,000 | 72,000 |
| Cloud Engineer | 38,400 | 54,000 | 66,000 |
| AI Developer | 42,000 | 60,000 | 72,000 |
| DevOps Engineer | 42,000 | 69,600 | 78,000 |
| ML Engineer | 44,400 | 60,000 | 72,000 |
As you can see, the middle developer salaries for most popular positions in Colombia range from $38,400 to $44,400. Senior Colombian devs make from $54,000 to $69,600, while lead software engineers earn from $66,000 to $78,000 a year.
In the US, the average annual salaries for middle, senior, and lead positions are $97,140, $118,640, and $142,000, respectively. Thus, your savings on software developer salaries in Colombia could reach:
- 57% in middle positions,
- 48% in senior positions,
- 49% in lead positions.
If you nearshore in Colombia with a provider, you should also take into account potential recruitment fees. In the US, they range from 25% to 35%. In Colombia, they vary by role seniority:
- 15% of gross annual salary for mid-level specialists
- 20% for senior-level roles
- 25%+ for lead and executive-level positions
In conclusion, even with recruitment fees considered, you can still save up to 40% by outsourcing software development to Colombia.
Favorable location
Nestled in South America, Colombia is a perfect destination for nearshoring. With a shared UTC-5 time zone with cities like New York, Miami, and Washington D.C., coordinating schedules and conducting business across borders becomes seamless and efficient.
Simpler Than Outsourcing Software Development to Colombia
Interested in doing software development in Colombia? Look no further, as Alcor stands ready to guide you through this journey!
Alcor is a software R&D accelerator provider with tech-focused experience, offering full-cycle IT recruitment in Medellin, Colombia, and other cities and countries in Latin America and Eastern Europe.
The best part is that there’s no need to set up your legal entity as we provide Employer of Record (EOR) support, which encompasses legal employment, payroll, taxes, employee benefits, and onboarding. But we don’t stop there!
We’re not a typical IT outsourcing agency—we find you Silicon Valley-caliber talent without the Silicon Valley price tag or buy-out fees. What’s more, you retain full control over your team and core operations while we handle the rest.
Let me show you how that works in practice.
A US-based company, People.ai, planned to go offshore with its own team of software developers. To enter the foreign IT market fast and seamlessly, the company turned to Alcor to launch its R&D center.
Results?
- Our team secured 25+ proficient tech talents, with half of them advancing their skills in AI engineering.
- Our legal and finance teams streamlined the legal framework for People.ai’s establishment in their preferred destination.
- In just 4 weeks, People.ai launched its brand-new office with full operational support.
Apart from People.ai, Alcor has earned the trust of renowned tech companies like Sift, Ledger, Gotransverse, and other prominent tech companies.
Ready to try it out yourself? Contact us for more details!
References on Software Development in Colombia
- GlobalData
- Statista
- International Trade Administration
- StartupBlink
- LAVCA 2025 Trends in Tech
- Payments CMI
- CoinDesk
- CoinTelegraph
- Clutch
- U.S. News
- QS World University Ranking 2025