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Top 5 Reasons U.S. Companies are Nearshoring to Colombia  

Table of Contents

    In brief

    • Nearshoring to Colombia has emerged as a standout choice – ranking #1 among companies already operating in Latin America and #2 among those exploring the region.
    • Real-time collaboration, modern infrastructure, pro-business policies, and strong cultural and language alignment – combined with the region’s highest financial attractiveness – make Colombia one of Latin America’s most business-ready environments.
    • Colombia ranks #11 among the world’s top 78 shared services destinations, surpassing long-established hubs like the Philippines.
    • Colombia ranks #2 for skilled talent availability in LATAM – and #1 for digital skills – with multiple cities delivering scale and specialization across functions.

    Nearshoring is no longer just an alternative to offshoring – it’s a competitive advantage. As U.S. companies face persistent talent shortages, rising operational costs, and pressure to modernize faster, many are rethinking where work gets done.

    In this environment, nearshoring to Colombia has emerged as a standout choice. Combining real-time collaboration, cultural alignment, and agility with one of Latin America’s most business-ready, talent-rich, and affordable markets, Colombia ranks #1 among companies already outsourcing in Latin America – and #2 among businesses exploring the region (SSON/Auxis State of the GBS & Outsourcing Industry in Latin America report).

    Its popularity reflects a broader shift in global sourcing. Tholons predicts 50% of companies will adopt hybrid sourcing models that include nearshoring by the end of 2026, driven by the need for greater agility and resilience (2025 Top 10 GCC GBS Trends Report). Over the past decade, Latin America’s role in supporting North American operations has nearly doubled – jumping from 44% to 84% of shared services delivery – with North America now the #1 market supported (SSON/Auxis report).

    But even amongst Latin America’s fastest-rising stars, Colombia stands out. Kearney’s latest Global Services Location Index (GSLI) ranks the country 11thamong the world’s top 78 outsourcing hubs, surpassing traditional offshore destinations like the Philippines.

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    Colombia also earned a Top 4 confidence rating (85.6%) in Ryan Advisory’s Offshore CX Confidence Index 2025 (formerly the Offshore BPO Confidence Index), earning the highest scores for skilled talent availability at all job levels and strong infrastructure.

    Whether you’re considering launching your first nearshore hub or expanding existing operations, shared services in Colombia offer a powerful combination of skill, scale, and strategic alignment. In the sections ahead, we’ll explore the advantages that make Colombia a nearshoring powerhouse – and how the right outsourcing partner can help you capture its full potential.

    Outsourcing to Colombia, the nearshore powerhouse

    Once known mainly for outsourced IT due to its robust tech industry, Colombia has become a leading nearshoring hub supporting a wide range of business functions, from IT and finance to HR, customer service, and more. Its business process outsourcing (BPO) services market is the third-largest in Latin America, contributing 3.5% of the country’s GDP, generating nearly 1 million direct jobs, and growing at 6% year-over-year.

    Market projections are equally strong, with the Colombia outsourcing market forecast to reach $2.67 billion by 2030 (2025 Colombia BPO Industry Market Overview).

    That momentum is already reflected in corporate investment. One in three organizations operating shared services in Latin America have established Colombian operations – the highest concentration of any country – particularly among North American companies expanding their regional footprint.

    Colombia leads in evaluating Shared ServicesGBS with 33 followed by Mexico and Costa Rica at 29 and 25 respectively

    Colombia’s ability to support large-scale operations is reinforced by its diverse network of delivery locations. The country offers six metropolitan areas with 1 million+ inhabitants and 15 with 500,000+, enabling enterprises to build distributed operations across multiple major cities such as Bogotá, Medellín, Cali, Barranquilla, Bucaramanga, and Cartagena.

    This geographic diversity allows organizations to tap specialized talent pools while maintaining operational flexibility. Auxis, for instance, operates its main delivery hub in Barranquilla with additional hubs in Bogotá and Medellín, strategically aligning capabilities and market strengths with client needs.

    Colombia’s strategic location further strengthens its appeal. Nicknamed the “Gateway to South America,” Colombia offers shared time zones with North America and short travel times that support seamless collaboration. This accessibility – combined with a globally recognized tech industry, attractive business environment, deep talent pools, and the greatest financial attractiveness among LATAM’s top destinations – gives Colombia one of the best cost-to-value ratios in the global outsourcing market.

    With more than 500 multinational companies already running shared services in Colombia, the country has earned its place as one of Latin America’s most trusted, business-ready destinations.

    Global companies like Amazon Oracle and Johnson  Johnson have business operations in Colombia

    So, what exactly makes Colombia a premier destination choice for nearshore outsourcing?

    1. A scalable, skilled, and tech-ready workforce

    Long a powerful solution for standardizing transactional tasks and lowering labor costs, enterprises are now looking to shared services and outsourcing to provide strategic value. In this changing environment, demand for nearshore advantages is on the rise – and Colombia offers one of Latin America’s most dynamic, multi-hub labor markets, combining scale, specialization, and technology readiness to support high-performance operations across industries.

    LATAM outsourcing processes show higher performance rates compared to global averages especially in Procure to Pay and Record to Report

    Key advantages of Colombia’s talent market include:

    Scale and geographic reach

    Talent availability stands as one of Colombia’s biggest strengths. With nearly 52 million people, the country offers the second-largest pool of skilled talent in Latin America, according to the 2025 IMD World Talent Report.

    While talent is often concentrated within certain areas in many markets, BPO outsourcing to Colombia offers scalability across more than 20 hubs, providing diverse, cost-effective options for outsourcing tasks or building and expanding shared services.

    Youthful, tech-savvy talent

    Colombia’s outsourcing sector employs nearly 1 million people, with 57% of BPO workers under 29 – bringing adaptability, digital fluency, and energy to global-facing roles. In fact, the country ranks #1 in Latin America for digital skills in the 2025 INSEAD Global Talent Competitiveness Index (GTCI).

    A strong work ethic, cultural alignment with the U.S., and solid multilingual capabilities, particularly in English, further enhance service quality.

    Overall, Colombia ranks 69th globally in talent competitiveness on the GTCI, outpacing major outsourcing hubs such as India (100th) and the Philippines (75th) in every category, including the ability to enable, attract, grow, and retain talent. As labor markets in traditional offshore locations become increasingly saturated, Colombia’s talent pipeline is gaining attention from U.S. companies seeking skilled, future-ready workforces.

    Three of the top five reasons ranked as Latin America’s biggest advantages over Asia and Europe are related to talent in the SSON/Auxis State of Latin America report:

    Survey results show perceptions of LATAM's value over Asia/Europe, highlighting factors like time zone and talent quality.

    Strong education pipeline

    Colombia’s government has made talent development a national priority, investing heavily in education and workforce initiatives to ensure business growth. Public-funded programs and incentives – including scholarships that cover as much as 80% of costs for students pursuing IT careers – help ensure a steady pipeline of skilled professionals, reinforced by strong investment from multinational organizations operating in the country.

    As a result, more than half of Colombia’s high school graduates pursue higher education, producing an average of 535,000 graduates annually – and the numbers are steadily growing.

    About a quarter of graduates earn degrees in high-demand fields such as engineering, mathematics, science, and technology, according to 2025 Organization for Economic Cooperation and Development (OECD) data.

    Finance-related degrees are also expanding rapidly, growing about 13% annually – the fastest of any educational area, according to Invest in Bogotá. More broadly, business, administration, and law account for the largest number of Colombian graduates at 37%.

    Colombia’s education system is further strengthened by globally recognized institutions. Two Colombian universities rank among the Top 100 in Latin America (QS World University Rankings) – helping ensure a steady flow of qualified professionals for both transactional work and specialized functions, and addressing talent shortages in sectors like accounting, IT, and HR.

    #1 up-and-coming market for hiring tech talent

    Colombia’s capabilities extend well beyond traditional business process outsourcing. With a strong, tech-savvy workforce, high English fluency, and strategic alignment with U.S. time zones, Colombia is one of the fastest-growing hiring markets for tech talent globally – with demand surging 55%, according to a 2025 Bloomberg report.

    The Future World of Work predicts the country’s tech market could reach $35 billion by 2027, growing at a 13.6% CAGR as global demand for its skilled workforce accelerates.

    CBRE’s 2025 Scoring Tech Talent report reinforces that growth. It ranks Latin America as the #1 up-and-coming market for hiring tech talent – with Bogotá ranking #5 among Latin America’s top emerging tech hubs.

    Top tech talent markets in Latin America showcase job growth and employment figures across major cities

    Colombia also stands among the Top 100 Digital Nations (4th in Latin America and the Caribbean) in the World Intellectual Property Organization (WIPO)’s latest Global Innovation Index (GII), emphasizing its rapidly expanding digital capabilities and growing role in global digital transformation initiatives.

    This momentum is fueled by Colombian government-supported programs such as the Ministry of Information and Communication Technologies (MinTic)’s $25 million investment in AI centers – launching AI hubs, training experts, and boosting research and development in AI, analytics, and cloud. Other programs like Mission TIC have already trained 100,000+ software development professionals, while broader investments in digital infrastructure and STEM education continue to strengthen Colombia’s position as a future-ready outsourcing partner.

    2. A fast-growing shared services hub in a business-ready environment

    As a trusted, multi-function delivery hub for 500+ multinational companies – including Johnson & Johnson, UPS, Diageo, Stanley Black & Decker, and Delta Airlines – Colombia’s success comes down to a combination of strengths that make it one of Latin America’s most business-ready outsourcing destinations.

    Modern infrastructure and digital maturity

    Colombia ranks among Latin America’s most digitally advanced outsourcing destinations. On the January 2026 Speedtest Global Index, Colombia ranked 29th worldwide for internet speed, up from 33rd in 2025. With an average fixed broadband speed of 208.11 Mbps, it significantly outpaces major offshore destinations like India (61.67 Mbps) and the Philippines (103.91 Mbps).

    Broadband speed comparison for 2026 showcasing top countries and their Mbps rates

    Connectivity is even stronger in major cities. Bogotá reaches download speeds of 240.14 Mbps with latency as low as 5 ms, ranking 31st globally. This level of performance supports stable connectivity and seamless real-time collaboration with global teams.

    The country’s digital infrastructure is further strengthened by robust cybersecurity capabilities, affordable internet access, and about 10 operational submarine fiber optic cables – among the highest in Latin America – providing secure, high-capacity global connectivity.

    Together, these factors enable reliable distributed operations and reinforce Colombia’s growing role as a remote-work-ready hub for nearshore service delivery capable of high-quality global services delivery.

    Pro-business and rising investor confidence

    Ranked 3rd in Latin America for ease of doing business by the World Bank, Colombia’s pro-investment policies, legal protections for investors, international trade integration, and mature business ecosystem combine to make it one of the region’s most business-friendly markets for multinational companies.

    Kearney points to the country’s strong combination of talent, cost competitiveness, digital capabilities, and business environment as the reason it climbed to 11th out of 78 countries on its latest Global Services Location Index.

    Colombia offers Free Trade zones, tax incentives for hiring first-time employees younger than 28, and flexible labor laws that make scaling more cost-effective than in other markets. It also provides one of the most stable economies in LATAM and strong government support for foreign investment through organizations like ProColombia, which helps companies navigate market entry, incentives, and regulatory requirements.

    Colombia ranked 20th globally in Kearney’s 2025 Foreign Direct Investment (FDI) Index – the only Latin American country to climb – signaling investor trust in its workforce, infrastructure, and stability. And with 18 active trade agreements, including an FTA with the U.S., deals with the EU, and membership in the Pacific Alliance and Andean Community, Colombia provides preferential access to over 1.5 billion consumers and lowers export costs for nearshore outsourcing companies.

    Cultural alignment that drives outsourcing success

    More than 70% of international ventures fail due to cultural misalignment. Seemingly minor discrepancies in approaches to completing tasks, communication styles, attitudes toward conflict, and decision-making can lead to miscommunication and frustration between U.S. and offshore teams.

    Colombia mitigates this risk with professionals trained in U.S.-based systems, familiar with North American business norms and culture, and known for collaborative, autonomous work styles – making it easier to build integrated, high-performing teams and deliver successful outcomes.

    Nearly 70% of organizations rank cultural affinity as LATAM’s greatest advantage over outsourcing to Asia or Europe on the SSON State of the GBS and Outsourcing Industry in Latin America report.

    National safety & security

    Colombia is earning strong marks for safety and stability, further cementing its reputation as a trusted nearshore destination. In the 2025 CX Offshore BPO Confidence Index, the country scored 85.1% in overall security confidence – one of the highest ratings in Latin America.

    Respondents expressed high confidence across the board, including 87.8% confidence in the safety of foreign business travelers.

    These results, alongside surging nearshoring interest from global enterprises, reflect a modern perception of Colombia as not only a business-ready market with strong talent and infrastructure, but also as a stable and secure environment for both global delivery teams and visiting executives.

    3. Geographic proximity and real-time collaboration

    Colombia’s strategic location offers U.S. businesses both physical and operational closeness. The U.S. is Colombia’s largest and most important source market, connecting 12 U.S. cities to seven Colombian destinations through 350+ flights per week and 64,500+ seats at affordable rates (Aviation Week).

    Direct flights from New York to Bogotá take under six hours, and no visa is required for short business stays.

    Map illustrating nonstop flight durations from JFK International Airport to major outsourcing destinations

    Colombia operates in U.S. time zones, allowing teams to work in sync with U.S. business hours. This real-time alignment enables faster decisions, quicker escalations, and seamless integration – an advantage 60% of U.S. leaders cite as their top outsourcing priority (SSON report).

    By comparison, working with offshore teams often requires early-morning or late-night meetings, leading to less-efficient collaboration and slower turnaround times. Colombia’s proximity also avoids the high attrition and less-experienced talent that often impact consistency and performance when teams in distant time zones work overnight shifts to align with U.S. business hours.

    Due to fewer operational challenges, proximity ranks as the #1 factor for choosing an outsourcing company in the latest IT Outsourcing Statistics report – even if a lower cost could be achieved in a more distant location.

    Global time zones for outsourcing destinations compared to 900 AM EST highlighting key cities and their local times

    4. Low-cost labor market

    For businesses considering nearshoring, Colombia offers one of the strongest labor arbitrage opportunities among LATAM’s top shared services markets, combining attractive labor costs with high-caliber talent. In Kearney’s latest Global Services Location Index, Colombia ranks as the most financially attractive location in the region, just a fraction behind offshore leaders like the Philippines.

    For U.S. enterprises, Colombia translates to an average 30-60% cost savings in key roles compared to domestic hiring – and even more in high-cost markets like New York or San Francisco.

    While base salaries may be higher than in some parts of Asia, the total cost of nearshoring to Colombia is often lower when you factor in hidden offshore expenses such as high turnover and costly travel. With less saturated labor markets, a strong work ethic, and a workforce highly engaged in supporting multinational organizations, the average employee tenure at Colombian call centers is three to five years, for example – far exceeding the contact center services industry norm of 12-18 months, according to a 2025 Outsource Accelerator report.

    This continuity minimizes disruption, improves productivity, and delivers higher ROI, especially for complex, domain-intensive processes.

    Operating costs beyond wages – such as rent, utilities, and transportation – are significantly lower than the United States and generally lower than other nearshore locations, helping organizations further reduce overall operational costs. Government incentives, tax breaks, and ProColombia’s investment support further enhance cost efficiency, especially for technology and digital sector investors.

    In addition, nearshoring’s focus on driving strategic efficiencies through automation, process improvement, and best practices delivers average savings of another 10-20% and sometimes more – depending on how much room for improvement and automation existed before the outsourcer took over.

    When comparing salaries for common roles, the savings are clear as highlighted in the following chart:

    Labor cost comparison highlights significant savings for US companies outsourcing accounting and IT roles to Colombia

    Accounts payable and accounts receivable clerks earn roughly 50% more in the U.S. than in Colombia, while higher-paying positions like senior network engineer still see a 36% cost gap. Across these six common roles, labor arbitrage delivers between $24,220 and $62,270 in annual savings per FTE.

    5. Strong English proficiency and multilingual capabilities

    Colombia is steadily building a bilingual workforce. The depth and quality of English-speaking talent in its major business and tech hubs make it a strong nearshore contender.

    While Costa Rica is known for having one of the highest English proficiency rates in Latin America – earning one of the region’s top scores in the 2025 EF English Proficiency Index (EPI) – Colombia’s larger population provides significantly greater scale. Government estimates place Costa Rica’s bilingual workforce at 1.5-2 million English speakers, while Colombia’s is estimated at 5-7 million, based on workforce and education surveys.

    Government-led initiatives, such as the Foreign Language Competencies Development Program and Colombia Bilingüe, are focused on expanding this pipeline – mandating English instruction across schools and universities and English training for teachers.

    In practice, this means a strong supply of bilingual professionals ready to support U.S.-facing roles. The U.S. is now the largest destination for Colombia’s business process outsourcing, KPO, and ITO exports.

    And Colombia’s English proficiency continues to grow. Its EPI scores have risen steadily over the past decade, with the largest gains in ages 21-40. While Colombia’s overall EPI score of 480 ranks 76th out of 123 countries, major cities significantly outperform the global average of 488.

    Top English proficiency scores in Colombian cities with Bucaramanga leading at 518 surpassing the global average of 488

    When analyzed by profession, proficiency levels are even higher. Colombia’s customer service professionals scored 570 on the EPI, with key functions like procurement (526), HR (516), and IT (512) also showing high results.

    Colombian professionals further stand out for their neutral, American-friendly accents, which improves customer experience and reduces miscommunication – particularly in voice-based call center services. Beyond English and Spanish, Colombia offers multilingual delivery for customer inquiries in other languages such as Portuguese, French, and German, enabling multinationals to serve markets across North America, Latin America, and Europe from a single strategic location.

    Why Auxis: The right partner for Colombia outsourcing success

    Nearshoring to Latin America is quickly becoming a cornerstone of modern global delivery strategies, with 90% of enterprises already operating in the region or planning to within the next three years (SSON/Auxis).

    Colombia has emerged as one of the region’s most compelling destinations, combining a large skilled workforce, strong English proficiency, robust digital infrastructure, and close alignment with U.S. business culture and time zones. These advantages are reflected in 87% customer satisfaction with Latin American shared services operations – well above Asia (53%) and North America (69%) in the SSON/Auxis report.

    Recognized by leading analyst firms like Everest Group and ISG as the nearshore outsourcing leader, Auxis brings the technical expertise, regional scale, and AI-driven innovation needed to unlock the full value of nearshoring. Our integrated platform spans top nearshore hubs such as Colombia, Costa Rica, and Mexico, leveraging the strengths of each market to help organizations modernize operations, access top talent, and scale efficiently in a rapidly evolving global marketplace.

    For companies looking to move beyond cost savings toward true operational transformation, Colombia – and Auxis – offer a powerful path forward. With Auxis, you’re not just outsourcing to Colombia, you’re partnering with one of Latin America’s most experienced, innovation-driven providers.

    Ready to see how Auxis can transform your operations with Colombia outsourcing? Schedule a consultation with our team today or visit our resource center to learn more about our nearshoring operations and success stories.

    Frequently Asked Questions

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    https://www.linkedin.com/in/fabiana-corredor-8aa6b93a/
    Fabiana.Corredor@auxis.com

    Written by

    Vice President of Marketing & Growth, Auxis

    Fabiana leads the marketing organization at Auxis, supporting all practices including consulting and outsourcing. Her areas of expertise include Finance Transformation, Shared Services, Nearshore Outsourcing, and Intelligent Automation. Fabiana started her career in Management Consulting in Ernst & Young in Latin America, and then transitioned to the Consulting team at Auxis, supporting the delivery of multiple client transformation initiatives across different industries before moving into marketing and business development. Fabiana is very passionate about helping CFOs and senior executives design customized back-office solutions to operate at peak performance. Originally from Venezuela, Fabiana moved to the United States in 2012 when she started working for Auxis.
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