Why Uruguay is a Top Destination for Outsourcing Software Development

If you’re considering outsourcing your software development needs, you may have already heard about nearshore outsourcing. This practice involves partnering with a company in a close country that shares a similar time zone, sometimes language, and for sure, cultural affinity. While many Latin American countries offer nearshore outsourcing services, Uruguay stands out as a top choice. In this blog post, we’ll explore the key reasons why Uruguay is an excellent destination for nearshore outsourcing of software development projects.

We are in a similar (or the same) time zone:

In comparison to Asian countries, such as India and China, which have around 13.5 hours of difference with the US, Uruguay has a much friendlier time difference. Uruguay is in the UTC-3 time zone, which means it is one hour ahead of the Eastern time zone (UTC-4), two hours ahead of the Central time zone (UTC-5), and three hours ahead of the Mountain time zone (UTC-6). Also, technology has shortened distances, and by arranging virtual calls, or Slacking, you can contact developers in Latin America in as little as a couple of seconds.

This time difference means that when it is afternoon in Uruguay, it is still early in the morning in the United States. For example, if a company in the US outsources a software development team in Uruguay, the Uruguayan team could start working early in the morning and finish in the afternoon, just in time for the team in the United States to start their workday. Additionally, this convenient time zone  makes it easier to schedule meetings and calls between teams, so interruptions in each team’s work schedule are minimized.

The close time zones allows for overlapping working hours and reduced response times, which can be translated to greater efficiency in collaboration and communication between teams, which can improve productivity and project delivery time. You won’t have to wait until the next day to get an answer anymore; your Uruguayan team will be online at the same time as you!

Costs are more competitive than other locations

Uruguay provides significant cost advantages over the United States. Additionally, Uruguay offers competitive rates for software development services compared to other countries in the region, such as Brazil or Argentina. In general, outsourcing software development costs in Uruguay can be up to 40-50% lower than costs in the United States according to PayScale, especially for long-term projects.

Moreover, Uruguay offers  excellent results for the money, as software developers in Uruguay have a strong technical background and software development skills.

Favorable Climate for Foreign Investment: Uruguay has established policies and programs that promote foreign investment and business development in the country, such as the legislation for protecting foreign investment initiatives and the free zones for businesses in Montevideo. This means that companies can expect greater security and stability when establishing operations in Uruguay.

In terms of annual salary rates, according to SalaryExpert and Glassdoor, the average base salary breakdown for junior, middle, and senior software engineers in Latin America are 33% less expensive than in the USA.

Overall, choosing nearshore outsourcing in Uruguay can offer significant cost savings while still getting high-quality software development services from a talented, experienced and technically skilled workforce.

Better work with greater infrastructure 

In 2010, Antel, the Uruguayan company leader in telecommunications, initiated a project to install an optical fiber network throughout the country, providing people with faster internet access. Nowadays, 58% of Uruguay’s population has direct access to the internet, making it a leader in Latin America. Other highlighted countries in internet access are Chile and Argentina (57%), and Colombia (50%).

Uruguay is also known for having the fastest internet speed in Latin America, ranking 54th globally. This is due in part to the government’s efforts to promote technology adoption, such as the Plan Ceibal, launched in 2007. This initiative aimed to provide every child and teacher attending public school with a laptop and internet access, helping promote technological literacy.

Uruguay’s advanced technological infrastructure and numerous technology companies also provide developers with easy access to cutting-edge tools and technologies. The country boasts one of the best telecommunications infrastructures in Latin America, with widespread availability of high-speed broadband services. Additionally, Uruguay has excellent mobile network coverage, with a high-quality communications mobile service and mobile phone penetration rate of nearly 150%.

A culture of innovation and collaboration

Uruguayan developers are well-known for being committed, creative and collaborative, with a strong focus on maintaining frequent contact with their clients. They provide regular feedback and are driven to meet deadlines. Additionally, they are flexible engineers who are open to listening to their clients’ opinions and recommendations. At least, this is how Sparq developers like to work!

Uruguay in general is known for its culture of innovation and its focus on developing advanced technological solutions. Companies can tap into Uruguayan business stories to gain new ideas and perspectives, which can help drive innovation and creativity in their own operations.

Furthermore, the cultural proximity between Uruguay and the Western world fosters a deeper understanding of business standards and processes, making it easier for North American companies to work with Uruguayan developers.

A strong focus on education

Uruguay, despite its small size with a population of 3.3 million and a land area of 176,000 square kilometers, is well-known for its public and private education. The country has been investing in IT education since the 1960s, resulting in  steady growth and progress in the industry. Compared to other countries in Latin America, Uruguay has a strong presence in the technological industry, thanks to its highly skilled workforce.

Uruguayan developers are widely recognized for their outstanding technical expertise and strong background in technology-related fields, as evidenced by the latest talent report released by CUTI (Uruguayan Chamber of Information Technology). According to the report’s graph, which is updated annually, the technical skills of Uruguayan developers consistently rank among the highest in the region.

Graph: Number of people with IT skills per 10,000 inhabitants.
Countries in the region + United States, 2022

Source: Microsoft AI For Good Lab / LinkedIn

The country’s education system is highly valued, with several prestigious universities offering degree and postgraduate programs in technology and computer science. This means that companies can access a highly trained and talented technology workforce.

In addition, English language proficiency is highly emphasized in Uruguay, with many schools teaching the language since kindergarten. According to a survey, 84% of students studying technological careers in Uruguay are fluent in English, making them highly attractive to companies with international operations.

Developing apps, Uruguayan style

Besides talent for coding and cultural proximity with the US, Uruguayan developers are also known for their ability to maintain a fluid communication with their clients. As previously stated, they are proficient in English, which means that language barriers will not be an obstacle to the success of the project. 

Due to the strong growth and stability of the software development industry in Uruguay, and from our own experience, developers in the country are generally very satisfied with their careers. That, connected with the attention  many companies put in toward taking care of their employees, can lead to a higher retention rate among devs –  as is the case with Sparq. This is great news for US companies looking to outsource software development to Uruguay, as they can expect to work with the same group of developers from start to finish, getting a cohesive and efficient team experience.

In conclusion, Uruguay is a top destination for outsourcing software development due to its convenient time zone for North American and European companies, competitive costs, favorable climate for foreign investment, advanced technological infrastructure, and a culture of innovation and collaboration among its technically skilled workforce. By partnering with a Uruguayan software development team, companies can expect to receive high-quality software development services while saving costs and achieving greater efficiency in collaboration and communication.


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