Wondering where to outsource your software development? In the past, many companies got dollar signs in their eyes from the low cost of programmers in Asia. Many have also been burned by bad outsourcing deals where cost was the primary deciding factor.
There are many terrific programmers in Asia but the good ones cost quite a bit more than the U.S. minimum wage rates quoted by some vendors.
Even with the good ones, there is that little problem of a 10 to 13 hour time difference that can really put a crimp in your after-work social hours, not to mention your sleep schedule.
Recent interest in outsourcing to Latin America has grown because of its closeness in distance and time zone compared to other far flung destinations in Asia.
But at a cost.
Software development in Mexico and Costa Rica, two popular destinations, is generally 50% higher than many Asian outsourcing destinations. These rates are offset by the reduced cost of travel and higher productivity because of improved communication and 100% overlap of normal workday business hours.
Besides cost, another factor is the desire to travel to a nice place. Costa Rica is a popular destination for its beaches and ecotourism. As one client said, if we have to fly somewhere to get our software developed it may as well be someplace where I can also work on my surfing. One guide book says Tamarindo, a beach resort town on the west coast of Costa Rica should be called Tamer-gringo because of the all the Americans that live and visit there.
But if a limited budget overrides your surfing desires then Argentina and Chile are excellent Latin American alternatives. The rates are lower rates but it takes significantly more time to get to the far end of South America. The flights are longer but at least you are not staggering through your day because of a time zone difference.
To dispel any confusion, the country of Colombia is spelled with an “o”. The American spelling of Columbia with a “u” is correct for Columbia University, District of Columbia and many other place names in the U.S. Both are named after Christopher Columbus (or is that Colombus?)
And now you have a chance to get the best of both low cost and closeness by outsourcing to Colombia. Colombia has been missing from the radar screens of most U.S. companies looking to outsource their software development. It’s primarily because of Colombia’s lingering bad image of violence and the illegal drug trade.
Colombia is very close to the U.S. with frequent flights from major U.S. cities and has the same time as the Eastern time zone or Central time when the U.S. switches to Daylight Savings time. (Colombia is next to the equator and has no need to switch to Daylight Savings.)
Sure it’s close, but is it safe to go there?
Even as recently as this past February, one publication that was widely reported rated Bogotá, Colombia as the #1 most dangerous place to outsource. Does it deserve this reputation?
Probably not.
Subsequent articles and rebuttals suggest the original report is using old data, poor survey techniques or both.
These surveys play on the fears created by popular American movies like Romancing the Stone from 1984 and the more recent Clear & Present Danger which was in theaters in 1994.
Announcing PSL – Productora de Software S.A.
The first member of the Accelerance Global Partner Network from Colombia. PSL is a nearshore Latin American-based company with development centers in Bogotá and Medellín, Colombia, Mexico City, Mexico and Murcia, Spain, and US business offices in Charlotte, NC and Dallas, TX. They are known worldwide for the adoption of global best practices as demonstrated by being the only Latin American company to be assessed at SW – CMM level 5 (2002) and eighth company in the world to be assessed at CMMi5 in 2003. PSL is also ISO27001 certified for information security management.
In the last few years, Colombia has experienced a tremendous improvement in its internal security, economic performance and stability for businesses. As a result safety has improved dramatically. For example, in 2007 Colombian cities were safer than Washington D.C. and business—legitimate business, including software development services, is booming. Also back in 2007 Business Week reported on Colombia's dramatic rise.
The U.S. signed a free trade agreement (FTA) with Colombia in 2006 which is pending approval by the U.S. Congress. According to the Office of the U.S. Trade Representative, President Obama tasked them with “seeking a path to address outstanding issues surrounding the Colombia FTA.”
Doing business with Colombia has become attractive again. The number of foreign visitors to Colombia doubled between 2001 and 2006 to over a million people. I am planning a trip to be one of them later this year.
On the programming front, Colombia graduates around 13,000 engineering and technical graduates in IT related fields each year and has a sizeable software development workforce. English is widely used and many professionals have attended university in the U.S. and Spanish accent is neutral to other Spanish speakers.
The electrical and telecommunications infrastructure is one of the best in Latin America. The software development workforce is expert in all the modern software technologies and processes including Agile and CMMi. They have an excellent track record of delivering services to many companies in Latin American countries and are now ready to expand their presence in the U.S. market.
The Runtime Bottom Line
As I wrote earlier this year, it seems America is now discovering Colombia as a nearby place for excellent software development at a price that competes well with other global locations. It could be the next outsourcing El Dorado.
Until next time,
Steve Mezak, CEO
Steve@Accelerance.com
Accelerance, Inc.
Risk-Free Outsourcing
+1-877-99-ACCEL (877-992-2235) x101 Toll-Free
+1-650-472-3785 Global Calls + Fax
Or contact me at: http://www.Accelerance.com/contact.htm
Author of the new book -
Software without Borders: A Step-By-Step Guide to Outsourcing Your Software Development
www.Accelerance.com/swb.htm
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