Chile is far from being the most popular software destination in Latin America. However, companies building remote software development teams in this zone are certain that it is one of the most attractive destinations for nearshore and offshore software development. In recent years, this country has become one of the main technological hubs in South America. While being a very progressive country, Chile is ready to open its technological potential to the world. What makes outsourcing software development to Chile so popular? And what advantages can Chile offshoring bring to you? Read this article to get everything you should know about Chile as a destination for IT outsourcing.
IT market in Chile: A general overview
Chile is known for its great number of software developers. The country is a talent hub of 61,000 IT experts. Besides, this domain is rapidly growing, as Chile's IT market is expected to grow at an annual rate of 9.3% between 2023 and 2028. Its main directions are the development of web technologies and AI integrations. The nation's main IT hubs are the big cities, like Santiago, Valparaíso, and Concepción. Impressively, Santiago ranks among the top three cities in Latin America, trailing only Sao Paulo and Mexico City, for its exceptional availability of digital talent.
Benefits of offshoring and nearshoring in Chile
What stands behind Chile's popularity as a software development destination? A very critical factor is that Chile has a very impressive global ranking. The nation is featured in the top 25 of the prestigious Kearney Global Services Location list, according to which it has exceptional scores in the realms of financial allure and the business ecosystem (scoring 2.03 and 1.70, respectively). Surely, such impressive metrics mean the quality and reliability of doing business with the companies from Chile. As a result, the country proves to be a very popular nearshoring and offshoring destination among companies from North America and the EU. But, surely, there are many other factors making global businesses embrace Chile's IT market.
Favorable government policies
One of the main factors attracting global tech companies to Chile is that the local authorities are very welcoming to them. One should mention CORFO, a governmental agency in Chile, that extends support to startups through funding. These forward-looking tech enterprises stand to gain grants encompassing up to 50% of the entire project expenditure. This infusion of financial support empowers domestic tech firms. As a result, digital companies from Chile bolster talent acquisition, enhance infrastructure, and improve the overall quality of service they provide.
One more critical factor making nearshoring and offshoring to Chile so attractive is The Digital Chile Agenda. This strategic initiative is centered around nurturing a digital economy within the nation. This visionary program is aimed at developing digital technologies and fostering an environment conducive to innovation. By becoming part of this innovation ecosystem, businesses can work closely with local experts, use cutting-edge technologies, and gain a competitive edge. Thus, outsourcing software development to Chile is a great solution for companies from North America and Europe.
The need for software developers in Chile is rising at an impressive pace. How does the domestic talent pool manage to keep up with this growing demand? A significant factor is the robust ICT education system, which consistently produces a stream of highly skilled professionals. The country is known for its strong emphasis on STEM education, allowing it to keep its IT talent pool very strong. The Chilean government also plays a crucial role in nurturing skilled talent. They provide courses for engineers, bringing in capable professionals and improving development services. Also, local software engineers have strong English skills, ranking 6th in Latin America by the EF English Proficiency Index. This helps ensure clear communication between clients and their remote teams.
A transparent business landscape
An important benefit of outsourcing software development to Chile is the country's business environment. Like Colombia and Brazil, it's among the fastest-growing economies in Latin America. This growth is mainly driven by the services sector, which played a significant role in the country's GDP in 2021 and includes the IT industry. Chile has a strong reputation as a country with favorable conditions for startups. Many software development teams emerge in this Latin American state as startups ready to offer their services to global giants. Transparency and much lower corruption rates than in other South American states make Chile extremely attractive for software development.
Time zone compatibility
Chile nearshoring is very popular among South American IT companies. However, North American states can also cooperate with local teams in a format similar to nearshoring. The point is that Chile is located in the same time zones as the U.S. and Canada. Chile shares either a complete or partial overlap in time zones, being merely two hours ahead of significant cities such as New York, Boston, and Washington D.C. This closeness eases the collaboration between US-based businesses and their remote teams in Chile. Such time zone synchronization means real-time communication and efficient coordination. Such factors, in turn, positively affect the overall efficiency and the flow of any project.
And, surely, pricing is also a valuable factor attracting many foreign companies to the teams from Chile. The country is not the cheapest software development destination in South America. However, the specialists from this country still leverage much less than developers from the U.S. or Western Europe. Besides, the teams from Chile may be very flexible in terms of development costs. Software developers in Chile are ready to negotiate and find the perfect cooperation modes that would be profitable for both them and their employers.
Outsource in Chile with nCube
So, as you may see, Chile is a very lucrative destination for software development outsourcing. This country offers quality, reliability, transparency, and competitive rates.
If you want to reap all the benefits of outsourcing software development to Chile, you may need assistance from a vendor who focuses on building tech teams in this region. nCube, a software development company in LATAM, will help you build a team of the best software developers from Chile. Contact us and start implementing your ambitious goals with professionals from South America's most promising tech hub.