The expertise of Latin American talent, geographical proximity to the US, and competitive rates make IT staff augmentation in Latin America an attractive option for companies looking to outsource. When considering the specific countries, Colombia stands out as a leading country in innovation and growth. Peruvian IT outsourcing is also growing fast and has changed to no recognition, becoming home to skilled and ambitious professionals. Let's compare Colombia vs Peru for nearshore technology outsourcing on four parameters to make deciding between the two easier.
Overview of the Colombian and Peruvian IT outsourcing markets
Both are in the East Coast time zone, making communication easier. They have strong technology sectors with skilled IT professionals and reasonable costs. Both have invested in technology education and infrastructure, resulting in a growing number of experts in the latest tech trends and programming languages. Colombia vs Peru for nearshore technology outsourcing are both excellent choices.
In 2023, the IT sector in Colombia expanded by 13.6% [1]. This growth is largely due to the outstanding balance of cost and quality offered by companies in Colombia.
Peru has also carved out a substantial role in the IT export market. As of 2022, the value of Peru's ICT market stood at $9B, and it's projected to surge to $16B by 2027 [1]. This is evidence that Peruvian developers offer quality and reliability when delivering outsourcing projects.
Talent pool
Colombia's tech industry employs over 150,000 specialists, including more than 360 firms dedicated to software development. According to the IMD World Talent Ranking 2022, Colombia features one of the largest and fastest-growing workforces in Latin America [2]. Peru is home to over 38K developers and 77 software development companies.
The breakdown of services is similar in both countries. Most software outsourcing companies offer mobile app development services. There are also differences: web development is more common in Colombia, while Peruvians are more interested in BI and big data consulting.
According to Coursera's report, Colombian developers are the most skilled in the region and the 19th most skilled globally. Peru ranks 5th most proficient in Latin America and 38th worldwide [3]. Developers are ranked based on their understanding of business processes, general tech skills, and knowledge of data science. Colombia rises to the top of this ranking due to its developers' grasp of business operations. This proficiency allows them to design software that aligns with strategic goals and provides foresight into business requirements. They are also more likely to suggest strategies looking at the big picture.
Business climate
The US International Trade Administration (ITA) recognizes Colombia as an appealing destination for ICT sector trade and investment, noting the government's commitment to reforms that boost its attractiveness to American businesses. These reforms include strategies to keep the currency value competitive in 2024 and enhance Colombian exports' competitiveness, including services.
The Ease of Doing Business index highlights Colombia's progress in contract enforcement, showing promising improvements relative to the region. Although settling a court claim takes just over three years, slightly longer than the OECD average of under two years, Colombia's judicial practices are commendably rated at 9 out of 11.7 [4], demonstrating a good trajectory toward enhancing legal processes.
Despite challenges, Peru is acknowledged for its contract and intellectual property rights protections, which are crucial for IT outsourcing partnerships. Its affiliation with the United States-Peru Trade Promotion Agreement (PTPA) since 2009 has strengthened US relations, enhancing its attractiveness for business. The judicial system in Peru is efficient, with claims resolved in 478 days on average and a commendable overall practice score of 9.5, indicating a swift and effective legal environment for conducting business.
Tech climate
Colombian tech is growing quickly and has changed to no recognition in the last few years. Education and tech infrastructure have been priorities for the Colombian government, leading to a remarkable increase in the quantity of ICT graduates. Figures from 2021 highlight that over 13,000 people have earned ICT degrees. This trend is expected to continue growing in the next ten years.
The PUCP university in Lima, the capital of Peru, ranks 336th in the world and 10th in Latin America. Over 31K students attended this university in 2024 [5]. According to UNESCO, around a third of Peru's graduates specialize in science, technology, engineering, or mathematics.
Peru cherishes its people's entrepreneurial spirit and startup culture. In 2018, according to GEM, Peru was one of the most entrepreneurially active countries in the world, with every fourth Peruvian having started a business. Now, multiple successful programs are run by major universities to support technological startups in Lima.
English proficiency
English proficiency is similar in both Colombia and Peru. IT hubs in Colombia are as proficient as Peru's general level (521), with Lima scoring slightly higher. Collaborating with a team that is fluent in English and culturally aligned can be pivotal for successful cooperation. For comparison, this level is somewhat lower than France (531) or Ukraine (530).
Wrap up
In conclusion, comparing Colombia vs Peru for nearshore technology outsourcing, both countries offer attractive opportunities. They have strong educational systems producing a growing number of ICT graduates. While Colombia stands out for its high growth in the IT sector and its developers' proficiency in understanding business operations, Peru shines with its strong contract and intellectual property rights protections. English proficiency is similar in both countries, making communication with teams in either country relatively easy. Overall, the choice between the two may come down to specific needs and preferences.
Why should you choose N-iX as a nearshore technology outsourcing partner in Latin America?
- N-iX has a proven track record of successful partnerships with global enterprises and Fortune 500 companies.
- We offer a wide range of tech expertise, including Data, Cloud, IoT, embedded software, and intelligent platforms.
- Our team consists of over 2,200 in-house tech specialists, and we have access to over 200,000 CVs in our database.
- We strictly adhere to international regulations to ensure the highest level of security and compliance.
References:
- Statista
- World Talent Ranking – IMD business school for management and leadership courses
- Global Skills Report, Coursera 2023
- Ease of doing business by World Bank
- QS World University Rankings
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