Within the software space, Colombia has emerged as a promising contender. Its diverse economy continues to grow, with the software industry alone poised to hit US$2.05 billion come 2029.
While much of its growth is attributed to its location and robust infrastructure, there’s so much more to the country than just this. In this article, we dive deeper into the reasons why Colombia is being considered a hotspot for software investment, covering everything from talent to market potential.
Skilled and affordable workforce
Colombia has a well-educated and skilled workforce, especially in the fields of computer science, engineering, and information technology. Universities and technical institutions produce graduates who are proficient in multiple languages, including English.
In comparison to many other countries, the cost of labour in Colombia is considerably competitive, providing high-quality services at lower prices.
Government support and incentives
The Colombian government has introduced several policies and incentives to attract foreign investment in technology. Programmes like the Orange Economy Law provide tax benefits for companies in creative and digital industries, while innovation centres like Ruta N have been set up to create favourable conditions for business and entrepreneurship.
Additionally, free trade zones and regulatory changes have also been introduced, which are aimed at streamlining business processes.
Strategic location
Sitting south of North America, Colombia’s location provides easy access to markets in the Western Hemisphere. The country’s time zone aligns well with a number of major U.S. cities, facilitating real-time collaboration and communication, which minimises delays and boosts productivity.
Growing technology infrastructure
Significant investment in infrastructure, such as high-speed internet and modern telecommunications networks, has positioned Colombia as an esteemed member of the global value chain that actively participates in the international tech exchange. Cities like Bogotá, Medellín, and Cali are all becoming innovation hubs with tech parks, supporting startups and tech companies. The rise of co-working spaces and tech communities has also fostered collaboration and innovation.
Thriving start-up ecosystem
Colombia’s start-up ecosystem is flourishing, with many tech start-ups driving innovation. Venture capital firms, angel investors, and government-backed funding programs offer plenty of financing opportunities. Events like Colombia 4.0, a major digital and technology summit, are bringing industry leaders, investors, and start-ups together, creating a supportive environment for growth.
Market potential
When considering Colombia’s cultural connection with other Latin American countries and its growing middle class, this presents significant market opportunities for software products and services. The increasing adoption of digital technologies in various sectors, such as finance, healthcare, and education, provides numerous openings for software companies to meet local and regional demands. It’s because of this and the country’s focus on digital transformation that businesses can stay competitive and relevant.
Vesta’s view
The team here at Vesta are excited at the prospect of investing in Colombia. The country’s market potential makes it a particularly attractive destination for investment, driven by impressive technological advancements and a growing stream of skilled workers.
As we look to supercharge our expansion strategy in this area, we would love to speak with more software companies who are poised for expansion. Get in touch with our team today and let’s explore how we can achieve remarkable growth for your company.
