Nearshore outsourcing to Latin America has surged as U.S. companies seek cost-effective tech talent without the drawbacks of far-off time zones. Experts even dub Latin America (LatAm) the “next Silicon Valley” due to its high-quality developers and strong growth; the region’s tech market is projected to grow ~6.5% annually through 2030.
Colombia and Brazil have emerged as top contenders in this space. Both offer a friendly time-zone overlap, cultural affinity, and significant cost savings (hiring in Latin America can be up to 70% cheaper than U.S. rates).
But how do they stack up against each other? In this article, we’ll compare Colombia and Brazil across key factors to help you determine which country is the best nearshore outsourcing destination for your tech needs in 2025.
Talent Pool and Education
Developer Population
Brazil boasts the largest tech talent pool in Latin America, with roughly 750,000 software developers. Its sheer size means you’ll find expertise in almost any stack. Colombia’s pool is smaller but growing fast. Industry reports estimated around 85,000 developers a few years ago, and more recent sources cite 150,000+ tech professionals in Colombia as the ecosystem expands.
In other words, Brazil offers quantity and breadth, while Colombia’s talent pool, though more limited in absolute numbers, is on a strong upward trajectory.
New Graduates and Skills
Both countries continually refresh their talent pipelines. Brazil produces over 100,000 IT graduates each year from its universities and technical institutes – a massive annual influx of new developers. Colombia’s output is smaller in comparison, adding around 13,000 software engineering graduates per year, but still significant given its population.
Education quality is a highlight in both locales. Brazilian universities have renowned computer science programs that consistently churn out highly skilled developers. Meanwhile, 68% of Colombian developers hold a Bachelor’s or Master’s degree, and the country ranks 4th in Latin America for the proportion of STEM graduates – a testament to Colombia’s focus on technical education.
Major Colombian universities (e.g., Universidad Nacional, Uniandes) are well-regarded, and nine made it into the Best Global Universities ranking for LatAm.
English Proficiency
Communication is key in outsourcing, so language skills matter. Here, Brazil has a slight edge on average. Brazil falls into “moderate” English proficiency overall, with many tech professionals, especially in São Paulo and other hubs, speaking moderate to high English. In fact, it’s common for Brazilian engineers to take English courses (it’s taught from 6th grade onward), and many are quite fluent in major cities.
Colombia historically ranked lower in English (EF’s index classifies both Brazil and Colombia in the “low” proficiency band globally). However, the gap is closing as younger Colombian tech workers often have better English skills than older generations. Most Colombian universities require English courses, meaning a large majority of recent graduates are at least conversationally bilingual.
In summary, neither country is Argentina-level in English, but Brazilian devs tend to have a higher English comfort on average, while Colombian devs are rapidly improving, especially if you hire in urban areas where English is more common.
Cost of Hiring
Cost is often the make-or-break factor in outsourcing decisions. Both Colombia and Brazil offer dramatic savings compared to U.S. salaries, though Colombia generally comes out a bit cheaper for equivalent roles. Let’s look at average annual salaries (in USD):
As the table shows, Colombian salaries tend to be slightly lower across the board. For example, a senior engineer in Colombia might earn ~$54k, whereas in Brazil, a senior engineer could cost $70–100k, depending on region and expertise. Junior and mid-level devs follow a similar pattern, with Colombian rates often a notch below Brazilian.
Part of this is due to currency differences and local cost of living. The Colombian peso has devalued somewhat in recent years (making labor cheaper in USD terms), and Colombia’s overall lower cost of living translates to lower salary expectations. Brazil’s salaries, while higher than Colombia’s, are still 50% + lower than U.S. equivalents for most roles – a huge cost advantage when you consider a U.S. senior developer easily costs $120k+.
It’s worth noting that the ranges in Brazil are quite broad. In São Paulo (Brazil’s priciest tech hub), you’ll pay the upper end of those ranges, whereas hiring in smaller Brazilian cities might land in the lower end. Colombia has a bit less regional variance; Bogotá and Medellín salaries may be ~10-15% higher than smaller cities, but overall the gap isn’t as large. Either way, both countries let you stretch your budget. Companies often realize savings of 40–70% compared to hiring stateside for similar talent levels.
One more consideration on cost: Brazil’s employment law tends to include more mandatory benefits (13th month salary, various taxes, etc.), which can add to the total cost if you hire full-time employees. Many U.S. firms work with contractors or an Employer of Record in Brazil to simplify this. Colombia’s labor costs and benefits overhead are comparatively straightforward, and the government offers some incentives (like tax breaks in IT sectors) to keep tech hiring attractive.
Time Zone Compatibility
Both Colombia and Brazil are firmly located in the Western Hemisphere, which means real-time collaboration with U.S. teams is easy, a core reason nearshoring to Latin America (LatAm) beats outsourcing to Asia or Eastern Europe in many cases. But let’s get specific:
Colombia’s time zone
Colombia operates on GMT-5, which is equivalent to U.S. Eastern Time for half the year (Colombia doesn’t observe daylight savings). For a U.S. company on Eastern Time, your Colombian developers will be on the exact same clock during winter months, and just 1 hour behind in summer.
If you’re on Central, Mountain, or Pacific Time, Colombia is only 1–3 hours ahead of you, meaning a California team could have a daily stand-up at 9 am PT and their Colombian colleagues are joining at 11 am local time.
In practical terms, a Colombian team can overlap a full workday with East Coast offices and a significant portion (5-6 hours) with West Coast offices. There’s no “night shift” scenario; you won’t be waiting until the next day for answers, as often happens with teams in India or the Philippines.
Brazil’s time zones
Brazil is a bigger country with multiple zones, but its key tech centers like São Paulo, Rio de Janeiro, and Brasília are on GMT-3. That puts them 2 hours ahead of U.S. Eastern Time for most of the year (and 1 hour ahead during U.S. daylight savings).
For East Coast teams, this alignment is almost as good as Colombia’s – a 9 am meeting in New York is 11 am in São Paulo, easily within normal working hours. West Coast (Pacific) teams have a larger gap (GMT-3 is 5 hours ahead of Pacific Time). For example, an 8 am stand-up in San Francisco would be 1 pm in Brazil.
Even so, you still get a solid overlap of roughly 6 hours in the middle of the day. Brazilian devs can work late mornings into early evenings to cover Pacific hours if needed, so you can manage a normal collaboration window. In fact, all LATAM countries allow at least ~6–8 hours of overlapping work time with the U.S. – far better than the 0–2 hours overlap typical with South Asia.
In short, time zones are a win-win for both Colombia and Brazil. If your team is mostly on the U.S. East Coast, Brazil aligns slightly more of their afternoon with your morning. If your team is on the West Coast, Colombia’s GMT-5 (closer to the Pacific) might give a bit more overlap.
But the difference isn’t huge – either country lets you have real-time Slack chats, same-day turnaround on requests, and scheduling that doesn’t require odd hours. As one outsourcing firm nicely summed up: no more overnight delays or 12-hour gaps; LatAm teams work “in the same or similar hours” as their U.S. counterparts for smooth communication.
Language and Culture Fit
Beyond time zones, a successful outsourcing relationship depends on how well teams communicate and mesh culturally. The good news is that both Colombia and Brazil score high on cultural compatibility with U.S. companies.
English Communication
We touched on English proficiency earlier – it’s moderate in Brazil and improving in Colombia. Within the tech sector, you’ll find many fluent English speakers in major Brazilian and Colombian cities.
Brazilian devs often self-report comfort with English, and it’s now common for Brazilian IT professionals to take private English courses to boost their skills. Colombia’s English levels, while lower on average, shouldn’t be a barrier if you recruit from top urban talent pools.
Bogotá’s universities require English, so a large majority of young graduates are bilingual, and Medellín’s growing tech community often has English-speaking returnees from abroad or self-taught developers.
The key is to vet language skills during hiring – there are plenty of candidates in both countries with strong English, but don’t assume every engineer is fluent. Many U.S. companies conduct interviews in English or use language assessments.
Overall, everyday work communication (daily stand-ups, Slack messages, project discussions) can happen in English without much trouble in either locale. Accent and idioms may vary, but with a little patience in the early days, teams usually find a good rhythm.
It helps that Latin American tech workers are very used to working with U.S. clients and colleagues, so they’re accustomed to American business terminology and expectations.
Work Culture
Culturally, Colombia and Brazil bring a lot of positives to the table. Latin Americans in tech tend to share a relationship-oriented, collaborative work style that gels nicely with U.S. teams.
For example, Brazilian workplace culture is often described as friendly and team-centric – Brazilian devs pride themselves on being creative problem solvers and enthusiastic collaborators (don’t be surprised if they celebrate team successes with genuine excitement!). They value personal relationships at work, which can translate into strong team cohesion and loyalty.
Colombians are similarly known for a strong work ethic and professionalism. In fact, U.S. managers often find that working with Colombian engineers “feels like an extension of your U.S. team” because of the high cultural affinity.
Both cultures prioritize open communication and aren’t overly hierarchical, which is good for agile development environments.
One minor difference: Brazil, with its huge domestic market, has many devs who’ve worked at large multinational companies (Google, IBM, etc.). Those folks are very familiar with Western corporate culture and agile methodologies.
Colombia’s tech scene, while rapidly maturing, is newer, so you might encounter teams that are earlier in the learning curve of large-scale agile processes. That said, Colombia’s outsourcing industry (especially in Medellín and Bogotá) has been booming; many Colombian devs have prior experience with U.S. clients/projects through outsourcing firms or startups.
The bottom line is that cultural fit is a strong point for both. You won’t need to overcome vast cultural gaps – on the contrary, your Colombian or Brazilian team will likely slide into your company’s style with relative ease.
Language in daily life
Outside of work-related English, it’s worth mentioning the local languages: Brazil’s native language is Portuguese, Colombia’s is Spanish. If you or your team speaks some Spanish, you’ll find it easy to pick up bits of Colombian Spanish and bond with your colleagues (many similarities to other Latin cultures).
Brazilian Portuguese is different, but not a big issue since business communication will be in English. In both places, making an effort to learn a few greetings or understanding cultural references (football/soccer is a universal passion!) can go a long way in building rapport.
Overall, Colombia and Brazil offer a comfortable cultural fit and communication channel for U.S. companies. Neither is a “low-cost but hard to manage” location – instead, they’re nearshore in every sense, with aligned working style and improving English capabilities year by year.
Infrastructure and Tech Ecosystem
A country’s tech infrastructure and ecosystem determine how effectively your remote team can work and grow. Here’s how Colombia and Brazil compare on key aspects like internet connectivity, coworking spaces, the startup scene, and government support:
Internet and Facilities
Modern tech work demands fast, reliable internet, and both countries have invested heavily here. Colombia has quietly become a connectivity leader: Bogotá boasts the 4th fastest internet in Latin America, with broadband speeds outranking most cities in Argentina, Mexico, and Peru. Major Colombian cities have widespread fiber-optic and 4G/5G coverage, so your developers can easily handle video calls, large git pushes, and cloud deployments.
Likewise, Brazil’s urban internet is solid (while Brazil isn’t #1 in the region, its big cities enjoy high-speed connections; Brazil overall has an average fixed broadband speed around 100+ Mbps, and it is climbing each year). In São Paulo and Rio, tech workers typically have home fiber or can use modern coworking hubs with business-grade internet.
Essentially, connectivity won’t be an issue in the urban hubs of either country. Do note that extremely remote areas (rural Amazon, etc.) might have spottier service, but you’re unlikely to hire developers from those locales.
Coworking Spaces and Remote Work Culture
In both countries, coworking spaces and tech hubs are plentiful, especially in the capitals and tech cities. Colombia’s cities have embraced coworking – Bogotá alone has many co-working spaces where developers, digital nomads, and startups congregate.
This is great if you plan to hire a few remote Colombian devs and want to give them the option to work in a shared space (some U.S. companies will sponsor a coworking desk for their remote hires). Medellín, dubbed the “City of Eternal Spring,” is another hotspot with a vibrant digital nomad scene and coworking cafes, thanks to its pleasant climate and lower cost.
Brazil likewise has no shortage of coworking; São Paulo has dozens of options (WeWork, local chains, etc.), and secondary tech hubs like Florianópolis or Curitiba also cater to remote professionals.
The presence of coworking is a sign that the remote work infrastructure is mature – your team will have access to backup power, conference rooms, and a community of other techies if they choose. Additionally, power supply and utilities in major cities are reliable (occasional outages can happen, as anywhere, but it’s not a frequent disruption in the business districts).
Startup and Tech Ecosystem
Here, Brazil shines simply due to scale. Brazil’s tech ecosystem is the largest in Latin America – it has the most startups, the most venture capital, and by far the most unicorns. As of 2024, Brazil had 16 unicorn startups (valued $1B+), 12 of which are based in São Paulo.
The country’s domestic market of 210+ million people has fueled successful companies in fintech, e-commerce, and SaaS (e.g., Nubank, Brazil’s digital bank, is a regional giant). São Paulo is often compared to Silicon Valley in its density of tech talent (~350,000 tech professionals in that city alone).
Beyond São Paulo, cities like Rio de Janeiro, Belo Horizonte, Florianópolis, Recife, Campinas, and Curitiba are notable tech hubs with universities and startup clusters producing skilled developers.
Brazil also hosts offices of many global tech companies – Google, Amazon, IBM, Microsoft, Oracle, and others have large engineering or R&D centers in Brazil. This means Brazilian developers often bring experience from working at these top firms, and they’re comfortable with international best practices.
Colombia’s tech ecosystem, while smaller, is very dynamic and rapidly growing. The country is now home to 5,000+ tech companies and startups, with Bogotá leading as a tech hub and Medellín not far behind. In fact, Bogotá alone has over 1,000 startups and 50+ VC firms fueling innovation.
Colombia has produced its own unicorns like Rappi (on-demand delivery) and Habi (proptech), and major U.S. tech players are increasingly establishing operations there (for instance, Amazon and Microsoft have both set up shop in Colombia in recent years). The startup scene benefits from a younger generation of entrepreneurs and strong government backing.
Medellín is often highlighted for its transformation into a tech and innovation hub (sometimes called the “Silicon Valley of South America” in the media), with programs that foster entrepreneurship.
For U.S. companies outsourcing, these ecosystems mean a rich talent pool and support network. Your nearshore team in Colombia or Brazil will be part of a local tech community – attending meetups, continuously learning, rather than isolated contractors.
There are also many local outsourcing firms and international providers, so if you’re looking to partner or scale up quickly, both countries have established vendors that can help.
Government Support and Business Environment
Both governments actively promote the tech sector, but via different means. Colombia’s government has been very proactive in making the country attractive to foreign tech investment. They implemented the “ICT Modernization Law” to ensure legal certainty for tech investors and to fund the expansion of tech infrastructure nationwide.
Colombia also offers tax incentives and simplified regulations for tech companies (e.g., software exports can get tax breaks). The creation of a dedicated Ministry of Science/Technology, as well as government-backed incubators, shows a commitment to building the industry.
Moreover, Colombia ranks relatively high on ease-of-doing-business metrics (it was #67 globally in the World Bank’s 2020 rankings, one of the best in LatAm), meaning setting up operations or contracts there is comparatively straightforward.
Brazil, on the other hand, has a more massive but sometimes bureaucratic environment. The Brazilian government has invested in tech via programs like Start-Up Brasil (a $500M initiative) to spur new ventures and innovation clusters. They also nurture IT parks and tech clusters; for example, Campinas (near São Paulo) hosts a major tech park, and cities across Brazil have federations to promote local IT industries.
Brazil’s domestic tech market is huge – its IT services market is projected at over $22 billion and growing, which has drawn many multinationals to establish local subsidiaries. The downside is Brazil’s notorious bureaucracy: labor laws, taxes, and paperwork can be complex for newcomers. The country ranked only #124 in ease-of-doing-business, reflecting challenges like lengthy processes to open a business, higher tax complexity, and regulations that require good local guidance.
However, many U.S. companies overcome this by partnering with local firms or using employer-of-record services. And once you’re set up, Brazil’s huge talent pool and market make it worthwhile. The government has been simplifying some processes and offering incentives (for instance, certain export-oriented tech services can enjoy tax exemptions). Also, Brazil’s political environment stabilized in the past year with a pro-business administration, which has reassured investors.
Infrastructure Summary
If having an on-the-ground presence is in your plan, both countries have the necessary infrastructure. Colombia offers modern office spaces at lower costs (e.g., office rent in Bogotá or Medellín is far cheaper than in São Paulo), reliable power and internet in cities, and easy travel access – Bogotá’s international airport is a major hub just a few hours from Miami.
Brazil’s São Paulo is a longer flight (around 8-10 hours from the U.S. East Coast) but also well-connected. Internally, travel in Colombia between cities is quick (1-hour flights), while Brazil’s size means a 3-4 hour flight from north to south. This might matter if you plan to visit your team or bring them to a central location periodically.
In a nutshell, Brazil offers the biggest, most mature tech ecosystem in LatAm, whereas Colombia offers a fast-growing, well-supported ecosystem with slightly leaner infrastructure needs. Neither will leave you worrying about technical basics like internet or office space. It comes down to whether you value Brazil’s immense scale and experience or Colombia’s nimbleness and ease of operations.
Political and Economic Stability
Outsourcing decisions also hinge on the stability and business climate of a country. You want to minimize risks related to currency swings, legal changes, or political upheaval. Here’s how Colombia and Brazil fare on those fronts:
Economic Stability and Currency
Both Colombia and Brazil are considered stable, middle-income economies, but both have seen currency fluctuations recently. The Brazilian Real (BRL) has historically been volatile; for example, in 2024, the Real depreciated about 28% against the U.S. dollar, moving from roughly 5 BRL/USD to around 6.2 BRL/USD.
Such shifts can actually benefit U.S. firms paying in dollars (your dollars go further), but they also reflect inflation and economic pressures internally. Brazil’s inflation has been moderate (~4-5% in 2023), and the central bank is credible, but fiscal concerns (government debt, etc.) do influence the exchange rate.
The Colombian Peso (COP) has also fluctuated – it dropped about 12% in value in 2024 (meaning the USD appreciated ~13%). Colombia faced higher inflation (peaking around 10-12% in 2022, then easing), and the peso’s value reflects oil price changes and political signals.
For outsourcing, currency risk means the salaries you set today might need revisiting if there’s major inflation locally, but it’s usually manageable. Many contracts include adjustment clauses if inflation is high.
From a U.S. perspective, both currencies have generally trended weaker over the years, which has continuously improved cost competitiveness. The key is to pay fair local-market salaries (your local partners can guide on that) and keep an eye on currency trends if budgeting long-term.
Political Climate
In terms of governance, Colombia has been quite stable politically in recent years. It has a pro-business outlook overall, regardless of administration. In 2022, Colombia elected a new president (from the left for the first time in decades), which initially caused some investor uncertainty.
However, the government has largely maintained a moderate approach, and the country remains very welcoming to foreign business. As noted, Colombia’s predictable regulatory environment and improvements in security over the past decade have built trust – the U.S. State Department rates Colombia as a favorable environment for investment with freely convertible currency and strong legal protections for foreign companies.
One area to watch is potential labor reforms being debated in Colombia’s congress (as of 2024), which aim to strengthen worker protections. For example, proposals could impose stricter rules on outsourcing certain labor or require more benefits for contractors.
These reforms haven’t passed yet, and even if they do, they’re expected to impact low-wage outsourcing more than specialized IT roles. Still, it’s a reminder that labor laws can evolve – keeping compliant (via a good local legal advisor or an EOR service) is important.
Brazil’s political and legal environment is a bit more complex but still fundamentally stable. Brazil is Latin America’s largest economy, and while it has cycles of political drama, it has solid institutions. The recent transfer of power (2022 election) was peaceful, and the current government is focused on economic growth and social stability.
For businesses, the main challenges in Brazil are bureaucracy and legal complexity, not unpredictability. Contracts, taxes, and labor regulations in Brazil can be intricate (the “Custo Brasil” or “Brazil cost” is a known concept reflecting regulatory burden).
For instance, starting a business in Brazil involves multiple steps and can take much longer than in Colombia. However, these are known quantities – thousands of multinationals operate successfully in Brazil by navigating the system. Using local experts or partners is key.
Brazil also has robust legal protections for contracts and intellectual property, so your IP and operations are safe under law (Brazilian courts can be slow, but they are formal and follow the rule of law). One should also be mindful of compliance with Brazil’s data protection law (LGPD, similar to GDPR), which could come into play if your outsourced work involves user data – but that’s a one-time setup concern.
Outsourcing Risk Factors
One risk with any emerging market outsourcing is potential changes in government policy on outsourcing itself. Neither Colombia nor Brazil has shown hostility to tech outsourcing – in fact, they encourage it as it brings in foreign revenue. Both have free-trade agreements or special visa arrangements that make it easier for U.S. companies to engage (e.g., Colombia has free trade agreements with the U.S., and Brazil allows various tech services exports freely).
Another factor is security: Colombia has improved vastly since the early 2000s; the days of widespread conflict are over, especially in the cities where your teams would be. Brazil’s public security can be a concern in certain areas (higher crime rates in Rio favelas, etc.), but companies mitigate this with common-sense precautions. It’s unlikely to affect remote developers, but if you open an office, you’d choose a safe business district as you would anywhere.
Finally, ease of doing business can be a deciding factor for companies that want to set up their own subsidiary vs. just hiring through a partner. On the World Bank’s now-discontinued ranking, Colombia outranked Brazil significantly (67th vs 124th).
Practically, this means it’s generally easier to start and run a business unit in Colombia – registering a company, hiring employees, and dealing with paperwork will have fewer hurdles and costs compared to Brazil. If you never plan to open your own office/entity, and will use third parties or contractors, this may be less of an issue. But it’s something to keep in mind if your long-term strategy might involve expansion in the region.
Verdict on Stability
Colombia offers a slightly more business-friendly and straightforward environment with steady economic growth (its ICT sector is growing ~8-10% annually) and strong government support. Brazil offers a massive market and talent base but requires patience with its bureaucracy and economic ups and downs.
Both are politically stable democracies where the rule of law is solid. The “risk” profile for typical outsourcing is low in both, with the caveat that currency volatility is something to budget for (perhaps build a buffer or pay in USD when possible).
Many companies hedge by paying contractors in USD or through platforms, which shifts currency risk to the worker (who might actually prefer local currency if USD is strong). In any case, neither Colombia nor Brazil is considered a high-risk bet in 2025; it’s more about operational convenience versus scale trade-offs.
Case Studies or Success Stories
Sometimes the best way to choose between two countries is to see how other companies have succeeded there. Here are a few real-world examples of U.S. (and global) companies leveraging Colombian and Brazilian tech talent:
General Motors (Colombia & Brazil)
An unexpected tech outsourcing tale comes from this automotive giant. General Motors has long utilized Latin America for both manufacturing and IT support. They opened operations in Colombia and Brazil decades ago.
Over the years, GM outsourced various software and IT services to these locations, benefiting from the skilled engineers at a lower cost. This helped GM remain competitive – as one report noted, outsourcing allowed GM to strive for efficiency and remain one of the largest in its industry. The takeaway: Even old-school U.S. companies trust Colombia and Brazil for critical tech functions.
Spotify (Brazil)
The streaming innovator Spotify tapped into Brazil’s developer scene to expand its platform. A global company like Spotify needs diverse talent, and Brazilian developers played a role in enhancing Spotify’s platform and localizing it for Latin American markets.
By partnering with Brazilian teams, Spotify was able to build features that catered to regional users and handle the scale of Latin America’s user base. This is a great example of a U.S.-headquartered tech company leveraging Brazil’s combination of skill + local market knowledge – they not only got the engineering work done cost-effectively, but also benefited from Brazilians’ understanding of what Latin American customers wanted.
Airbnb (Brazil)
Another Silicon Valley company, Airbnb, also found success with Brazilian developers. Airbnb partnered with Brazilian engineers to develop fintech and payment solutions for the Brazil market.
Brazil has some unique online payment habits and regulatory requirements, and local talent helped Airbnb quickly adapt its platform (for example, integrating local payment methods) to grow its user base. This shows that Brazilian outsourcers can handle complex, core product work for top-tier tech firms.
Google, Amazon, IBM, Microsoft (Brazil)
These tech titans all have a significant engineering presence in Brazil. Google’s Latin America headquarters and R&D center in São Paulo employs many Brazilian developers working on global products.
Amazon’s AWS division has offices and labs there as well. While these aren’t “outsourcing” in the traditional sense (they’re direct operations), it underscores Brazil’s credibility – the fact that Google and Microsoft hire Brazilian engineers by the hundreds means you can too. It de-risks the talent quality concern: if it’s good enough for the world’s top tech companies, it’s certainly good enough for building your app or IT system.
Evernote (Colombia)
Evernote, the U.S. productivity app company, is an example of a tech firm that built a remote development team in Colombia. A few years back, Evernote hired engineers in Bogotá and reported great results in productivity and integration with their U.S. team (citing timezone alignment and solid skills).
This case wasn’t widely publicized, but it’s known among outsourcing circles as a success story for building a satellite agile team in Colombia that took on core product features. Evernote’s experience mirrored that of many startups: they found that Colombian devs could work seamlessly with their in-house engineers, contributing code to the main product with no quality issues, and at a fraction of the Bay Area cost.
Allstate (Colombia)
The large U.S. insurer Allstate opened a technology and operations center in Bogotá back in the mid-2010s. They chose Colombia for its talented workforce and bilingual professionals. That center grew to hundreds of employees handling software development and back-office processes.
It’s a classic BPO/outsourcing win: Allstate cut costs while maintaining high service quality, and Colombia gained jobs. The center has been so successful that Allstate expanded its Colombian operations over time. This shows Colombia’s strength in not just dev talent but also in wider tech-enabled services (where bilingual skills matter, e.g., support roles).
Teleperformance (Colombia) & Accenture (Brazil)
These are outsourcing providers rather than the end-client, but noteworthy: Teleperformance (a global BPO firm) has tens of thousands of employees in Colombia serving U.S. clients (mostly call centers and support, but increasingly IT services).
Accenture and other big consulting firms have large delivery centers in Brazil, serving Fortune 500 clients’ IT projects. Their presence and success give you confidence that a robust outsourcing ecosystem exists. If needed, you could even outsource through these intermediaries in either country.
Tech Startups & Scaleups
Many U.S. startups have built their dev teams entirely in Colombia or Brazil via staff augmentation. For instance, a Texas-based healthcare startup might hire 5 Colombian developers through a nearshore agency, getting a team that works U.S. hours and integrates into their workflows.
Or a San Francisco SaaS company might contract a Brazilian software firm to build their MVP. These scenarios are extremely common now. Companies like Mercado Libre and Globant (though Latin-founded) serve U.S. clients with nearshore dev teams and have grown into multi-billion-dollar enterprises by proving the model works.
In summary, success stories abound: from Fortune 100 companies to scrappy startups, many have thrived by outsourcing tech work to Colombia or Brazil. The common theme is that these companies achieved cost savings and high-quality output, often accelerating their growth. Just as important, they did so without disrupting their operations – thanks to the cultural and time-zone alignment we discussed.
Whether it’s a well-known name like Spotify/Airbnb leveraging Brazilian talent, or major corporations like GM and Allstate tapping Colombian expertise, you’re in good company whichever country you choose.
Pros and Cons Summary Table
To recap the key comparisons, here’s a side-by-side summary of Colombia vs. Brazil for nearshore tech outsourcing. Each country has its strengths and drawbacks – this table highlights them across major factors:
As the table suggests, Colombia offers a leaner, simpler operating environment and slightly lower costs, whereas Brazil offers sheer scale and a very deep talent pool, with some trade-offs in cost and complexity. Next, we’ll give our final verdict and recommendations for which types of companies might prefer one over the other.
Final Verdict: Which to Choose?
So, Colombia or Brazil? The “winner” really depends on your company’s priorities and project needs. Both are excellent nearshore destinations, but each shines in different scenarios. Here’s our take:
Choose Colombia if…
You are a small to mid-sized company (or startup) looking to maximize cost savings and ease of setup. Colombia is ideal when you want quick wins with minimal red tape.
For example, if you need to hire a scrappy team of 5–10 developers fast, Colombia’s talent market can supply great candidates at lower rates, and you could get them onboarded without dealing with complex regulations. Colombia’s time zone fit is perfect if your team is spread across U.S. time zones (especially if you value Pacific overlap).
Culturally, if you prefer a team that might have slightly stronger bilingual communication (on average) or if having a closer cultural similarity is paramount, you’ll find Colombians extremely easy to integrate.
Also, for companies that may eventually consider setting up a physical presence or bigger operations, Colombia’s higher ease-of-doing-business and government incentives could smooth that path.
In short, Colombia is the best bet for cost-conscious companies, those new to outsourcing, or those who value a plug-and-play experience. It’s a rising star where you can still be an early mover and attract top talent relatively easily.
Choose Brazil if…
You need scale and specific expertise. Brazil’s enormous talent pool makes it the go-to if you must hire larger development teams or very niche specialists.
A Fortune 500 or fast-scaling tech company that needs, say, 50 developers including rare skillsets (data scientists, AI engineers, etc.) will likely find more options in Brazil. The presence of so many experienced developers (some with backgrounds in big tech firms) means you can assemble a senior-level team in Brazil that rivals a U.S. team in skill – still at a big cost saving relative to hiring locally.
Brazil is also a great choice if your projects relate to the Latin American market itself – having Brazilian team members can offer insights into regional users and markets, given Brazil’s influence in LatAm.
Companies that can navigate or outsource the compliance aspect (perhaps using an Employer of Record to handle local HR) will find Brazil immensely rewarding. In short, Brazil is worth the slightly higher cost and effort when you need the “big guns” – a huge, experienced workforce and robust tech ecosystem to tap into.
It’s a Tie if…
You just need solid software development done at a good price, and don’t have extreme requirements. Honestly, for many typical web/app development projects, either country will do the job well. Both offer high-quality engineers, good English, time overlap, and cultural fit.
Many companies actually utilize both – for instance, you might have a core team in Brazil and overflow or specialized roles in Colombia (or vice versa). The beauty of nearshore outsourcing is that you’re not limited: nothing stops you from hiring in Colombia and Brazil to get the best of both worlds (some firms use Brazil for front-end experts and Colombia for QA engineers, for example).
If you’re undecided, you might pilot with a small engagement in each country via outsourcing vendors and see which aligns better with your workflows.
In our view, small startups and first-time outsourcers often find Colombia to be a gentler entry point – the relationships feel very personal, and the process is straightforward. Larger enterprises or those needing specialized skills might lean toward Brazil for its depth and breadth.
But there is no one-size-fits-all. Both countries have overlapping strengths and are part of a broader Latin American tech renaissance that U.S. companies are smart to leverage.
Getting Started: Tips for Outsourcing in Colombia or Brazil
Ready to dive in? Here are some actionable tips to help your company kick off a successful nearshore outsourcing partnership in either Colombia or Brazil:
1. Define Your Outsourcing Model
Decide whether you want to hire through a third-party agency, set up your own remote team, or use an Employer of Record (EOR). For a quick start, many opt to contract developers via a nearshore staffing firm or outsourcing provider – this reduces your hassle with local compliance.
If you plan a long-term presence and larger team, exploring an EOR or even opening a small subsidiary might make sense (note: Colombia is faster to set up than Brazil on this front).
2. Leverage Local Partners
A local recruiting partner or marketplace can connect you with vetted talent. Interview candidates thoroughly, just as you would at home – test their technical skills and English. The talent is out there, but a good local partner will help navigate salary expectations and find a cultural fit.
Additionally, if navigating Brazil’s labor laws sounds daunting, engage a local consultant or EOR service to handle contracts, taxes, and payroll – it’s a common practice and worth the cost.
3. Start Small (Pilot Project)
It can be wise to start with a pilot project or a smaller team to get a feel for working with the country’s talent. For instance, begin by outsourcing one module of your software or hiring 2-3 developers as a trial. This allows your U.S. team to adjust to remote collaboration across borders.
Both Colombians and Brazilians will be enthusiastic to impress – use this phase to establish communication norms and gauge productivity.
4. Visit (if possible)
Consider a visit to your outsourcing partner or team once travel and schedules allow. Visiting Bogotá’s tech scene or São Paulo’s startup accelerators can be eye-opening and helps build trust. While not mandatory (plenty of teams succeed 100% remotely), an in-person meet-up or onsite kickoff can solidify relationships.
If travel isn’t feasible, do extended video meet-and-greets. Little cultural touches – like learning a few words of Spanish or Portuguese, or understanding local holidays/festivities – also go a long way in bonding with your nearshore team.
5. Align Work Hours & Communication
Since time zones align, make sure to integrate the remote team into your daily routines. Have them join your stand-ups, planning meetings, and Slack channels. Treat them as an extension of the onshore team.
Clear communication of tasks (consider agile methodologies – both cultures are comfortable with Scrum/Kanban) and regular check-ins will ensure accountability. Because English might be a second language, encourage a culture of asking questions and clarifying doubts – you’ll avoid miscommunications that way.
Luckily, the cultural communication style in both countries is usually polite and not confrontational, so you may need to explicitly ask if anything is unclear to get issues on the table.
6. Be Mindful of Labor Norms
Understand local labor norms and holidays. For example, both countries have a decent number of public holidays (Brazil has Carnival, etc., and Colombia has many Catholic holidays). Discuss how those will be handled (many outsourced teams follow U.S. holidays if required, but it’s nice to give some local ones off too).
Also, if you’re directly employing someone, know that in Colombia a standard workweek is 48 hours and overtime laws apply; in Brazil a lot of companies give an extra month’s salary as mandated by law (13º salário). When working via a provider, they handle this, but knowledge is power.
7. Security and IP Protection
Just as you would with any remote team, ensure you have the proper NDAs, IP agreements, and secure access controls in place. Both countries have IP protection laws and are signatories to international agreements, but your contract should clearly state that your company retains intellectual property for work produced.
Use tools and protocols (VPNs, gated repositories, etc.) to protect sensitive data. This isn’t a specific Colombia/Brazil issue – just good practice.
8. Scaling Up
Once your pilot or initial hires are successful, scale up gradually. Word spreads fast in the developer community when a good foreign company is hiring – soon you’ll have referrals knocking on your door.
Make sure to maintain your company culture across borders: include the Colombian/Brazilian team in all-hands meetings, consider occasional visits or bringing key team members to the U.S. for onboarding if possible (both countries’ developers can obtain U.S. travel visas for business with some preparation). Many companies bring their nearshore teams for an annual summit or hack week – this pays off in loyalty and cohesion.
9. Community and Growth
Support your outsourced team’s growth. Latin American developers appreciate opportunities to learn. Perhaps sponsor some training, or let them attend (virtually or locally) conferences and workshops on your dime. This not only improves their skills for your benefit, but builds retention – they’ll stick around if they feel invested in.
Given the tech ecosystem in each country, there are plenty of local events (e.g., Colombia’s JSConf, Brazil’s Campus Party) where your team can engage – encouraging this shows you care about their professional development.
10. Evaluate and Optimize
Finally, continuously evaluate the collaboration. Gather feedback from both your U.S. team and nearshore team about what’s working or what needs adjustment. Maybe you’ll find that daily video calls improve alignment, or that you need to adjust work hours by an hour or two for better overlap.
Being flexible and responsive to feedback will help you get the most out of the partnership. If any challenges arise (e.g., slight language misunderstanding or differences in approach), address them openly – Colombians and Brazilians are generally receptive to constructive feedback and keen to meet expectations.
The Takeaway
In conclusion, whether you start your nearshore journey in the vibrant innovation hubs of Colombia or tap into the vast talent reservoirs of Brazil, you’re making a smart move. Both countries can deliver world-class tech output in your time zone and budget.
By understanding their nuances and leveraging their strengths, you’ll position your company to innovate faster and more affordably – truly a win-win. Here’s to finding your perfect nearshore match in 2025.
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Whether you're eyeing Colombia for its cost-efficiency and agility or Brazil for its scale and specialized talent, the key to success is having the right hiring partner. At South, we connect U.S. companies with pre-vetted tech professionals across Latin America — fast, easy, and fully remote.
- Cut hiring time by 70%
- Access bilingual developers in your time zone
- Scale your tech team without breaking the bank
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