Colombia's Dominance On the Emergent Tech Space
By Maria Montes
A decade ago, the idea that this country would go from an economy based on its notorious drug trading history to a quickly growing environment for the technology industry would have sounded ludicrous. That's why nowadays this country has become an emergent space for technologies Today, technology giants such as Google, Microsoft, and HP have now opened their innovation centers in Colombia. Colombia now also boasts a robust ecosystem for technology startups. In the first quarter of 2016, some $4.3 billion in FDI flowed into Colombia, which is almost 160% more than in the same period of 2015, according to the data provided by ProColombia, a government agency in charge of promoting export, tourism, and foreign investment. Why should you also consider this country as your destination for outsourcing software development? Apart from the reasons that are common to the whole Latin American region, there are those that are specific for Colombia. Economically prosperous country Colombia is one of the six favored emerging markets countries (so-called CIVETS countries). The main qualities of these countries are a diverse and dynamic economy; sophisticated financial systems; controlled inflation; a young and growing population; increased foreign direct investment, and geostrategic locations. Colombia has the fourth-largest economy in Latin America. In the World Bank's Ease of doing business index, in 2016 it took second place among Latin American and Caribbean countries. Furthermore, Colombia carries out the biggest infrastructure program in Latin America (around $5.5 billion). Therefore, the country provides multiple opportunities to foreign investors. All these factors, plus the fact that the government has eased the financial requirements for business start-ups, contribute to considering Colombia as a very favorable business location and an emergent space for technologies. This trend is evident also in the software development and outsourcing market. High level of IT education Colombia has more than 50 universities. Seven of them are listed among the best in the world. More than 13,000 engineers and technical professionals graduate in Colombia every year. Also, these professionals join the workforce in the IT field, which already counts for more than 340,000 IT professionals. Given the high level of IT education and talented workforce, the variety of technologies, and development processes. The American research and advisory firm Gartner identified the country as one of the top 30 countries for offshore services worldwide since 2010. Government support of IT sector and development There are more initiatives that support the IT sector, as well as the technological development of the country. We're mentioning here two of such initiatives that started at the highest level: Software and IT services make part of the Productive Transformation Program, a government initiative aimed to facilitate and support the Colombian services sector and to promote the strategy of development and growth. Vive Digital Plan was created in 2010 by The Ministry of Information and Communication Technologies. It is aimed at supporting IT and technological development by bringing the internet to the public, and by driving digital platforms and their 4 main components: infrastructure, IT services, software, and users. The statistics show that an impressive percentage – 99.8% of businesses in Colombia have gone digital since the plan's initiation. Optimism and enthusiasmRead More
How much should you pay for an outsourced developer?
By Maria Montes
An important question to ask yourself in 2021 is, “What is a good rate when paying for an outsourced developer?” Upfront, this may seem like a simple question, but rates may vary according to the Outsourcing Software Development companies and their location. Many companies will choose outsourcing as a way of saving money. However, it's important to highlight that saving money is not the only reason for outsourcing. If you can get good value for less money – why not follow that road! In this blog post, we're bringing you an overview of the average rates for developers around the world. Rates in Asia – inexpensive offshore programmers Asian countries are among the locations with the lowest rates in the world. India is probably the best-known offshore programming country. The average rates for outsourcing IT services in India range between $18–25. The country is a wide pool of talents that can give your project a successful take-off for a low cost. But also be aware that cooperation can be impacted by difficulties in time zone differences, cultural differences, as well as by poor working conditions. Similar to India, China rose in the IT market as a source of IT software developers available for lower rates. However, hourly rates for high-quality projects in China are rising up to $40, which is more similar to the situation from outsourcing software development companies in Eastern Europe and Latin America. Other Asian countries worth mentioning when talking about outsourcing IT services are Indonesia, Malaysia, and Vietnam. Their average rates vary between $30 and $40 for top-quality developers. Africa – a new destination for outsourcing software development companies at low rates. During the last few years, Africa has been present in the IT outsourcing market as a rather cheap and growing destination. But be aware that Africa is not a synonym for a cheap workforce for outsourcing software development companies. Countries such as Egypt, Morocco, and Kenya do have quite low hourly rates for offshore programming jobs – around $20 or less. But Nigeria and South Africa, for example, are not that cheap. Average rates for hiring software developers there are $40–50. Eastern Europe – somewhere in the middle. Average hourly rates for hiring IT freelancers in Eastern Europe are between $25 and $40. If you're insisting on a lower cost, then search for your software developers in Ukraine, Belarus, and Armenia, while in Poland, Hungary, Bulgaria, Romania, and the Balkans you will pay a higher rate. However, the rates are not defined only by a developer's country of origin. According to market surveys, the rates can vary significantly given the engagement grade. They can be between $50 and $80 per hour for a mid-market grade, and go up to $80-110 per hour for an enterprise-grade. The important fact to take into account with outsourced software developers in Eastern Europe is that they can offer you high education, advanced programming knowledge, good English skills, and cultural affinity. Latin America – at par with Eastern Europe The rates for outsourcing IT freelancers in Latin America are similar to those in Eastern Europe. The average hourly rates in Latin America are between $30 and $50 for an experienced software developer. But again, they can vary according to the grade of engagement. The surveys show practically the same results as for Eastern Europe – $30-50 per hour for a start-up grade, $50-80 for a mid-market grade, and $80-110 for an enterprise-grade. The top countries for outsourcing IT services in Latin America are Argentina, Mexico, Brazil, and Colombia. If you are ready to pay a bit higher rates in exchange for the benefits of workday overlap, fluent English language skills, cultural affinity, and travel proximity, search for your freelance programmers in Latin America. The most expensive outsourcing software development companies are in: The fact that the US, Australia, and Western Europe are sources of the most expensive freelance developers is not surprising information at all. Their hourly rates go from $70 to $250. Their value is backed up by the fact that they come from some of the biggest tech-hubs in the world. They have access to top universities and resources that can provide them with knowledge about the latest trends and technology innovations. Average rates according to job titles and experience levels In the table below you can see the average outsourcing rates in 2017, according to job titles and experience levels (source: 2017 Guide to Global Software Outsourcing Rates, Accelerance, Inc.). Average global outsourcing rates for 2017 show a wide variety of hourly pay based on where you are looking for talent. The future of the outsourcing market The competition is tough, but the future for freelance developers is still bright. 25 years ago, the outsourcing market made up 17% of the total US workforce. Today, this percentage is 36%, and according to Intuit´s forecast, the percentage will continue to grow up to 43% by 2020 What do you think – who would you rather go with? Leave a comment below.Read More