Nearshore software development

Why Uruguay is the next capital for Nearshore Software DevelopmentBy now,

most people have heard of the Nearshore software development as an alternative to

Asian or European development locales. When we speak of Nearshore software

development, we mean Americas based IT talent, from any one of our friendly

neighborhood countries. Traditionally, for high tech services, this has meant Costa

Rica or México. What many people may have overlooked though is the

tremendous talent and capability in Uruguay, a modern, stable and progressive

country on the South Atlantic Ocean nestled between Argentina and Brazil in

South America.

Uru who?

While almost everyone has heard of Uruguay, many people know little about the

South American country. World Cup soccer fans may know that Uruguay, a

country of 3.4 million, slightly smaller than the city of Los Angeles, kicks far

above its weight. Social scientists will tell you that Uruguay has the lowest social

inequality and one of the highest levels of education in not just the hemisphere, but

the entire world. Gourmands will cite Uruguay’s grass fed beef as ranking with

Japan’s Kobe or the USA’s Wagyu cattle.

One reason why Uruguay is less well known than its neighbors is that there simply

is not much bad news coming out of the progressive nation. The last president

drove his old Volkswagen beetle back and forth to work in the capital of

Montevideo, and back to his humble rural farmhouse. The new president arrived in

an old pickup truck. Uruguay was the first country to guarantee “One Laptop per

Child” for its primary and secondary school students, and perhaps this is why it has

such a strong talent pool for nearshore software development. The country’s youth

are hands-on with computers from the beginning.

A track record of nearshore software development success

Companies such as Sabre and Tata Consultancy Services opened up operations and

knowledge work centers in Uruguay over a decade ago. Tata has been operating in

Uruguay since 2002, providing advanced nearshore software development, IT

implementations, and BPO (Business Process Outsourcing) services from the

country. Sabre provides advanced technical support for its software that runs

airline and hotel bookings from Montevideo, where it has operated since 2004.

Sabre employs over 850 people, who provide support to 400,000 travel agents,

125,000 hotels, and millions of individual travelers.

In this country with a 98.16% literacy rate and 14 years of compulsory education

(compared to the US normal of 12*), there is a thriving technology sector, with

plenty of innovative startups, and its ownventure capital ecosystem. Uruguay’s

nearshore software development community is well versed in methodologies such

as AGILE, DevOps, and have been educated in Uruguay’s world class universities.

As an American nation, Uruguayans are culturally congruent with North

Americans, and practically all Uruguayan professionals speak English.

The Future

While Uruguay has lots of things going for it, there are certain indicators that point

to Uruguay as a rising Nearshore Software Development powerhouse. For

starters, it has a 24% lower labor cost than traditional nearshore software

development destination Costa Rica.

*determined at the state level, no national standard.

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