Puerto Rico to Discover IT Nearshore Outsourcing in Uruguay

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In today’s globalized world, and considering the IT talent shortage, IT nearshore outsourcing has become an increasingly popular option for businesses worldwide looking to reduce costs and access specialized IT talent.

Software development projects in the rapidly evolving technology world require agile, competent, and cost-effective solutions.

So, outsourcing software development projects has become an increasingly popular option for many companies.

According to Statista, the IT outsourcing market was worth around $395 billion in 2022. But with the continued increase in global adoption rates, the IT outsourcing market is growing at a CAGR of 8.26% and is estimated to gross $587.3 billion by 2027.

Additionally, the Global Shared Services and Outsourcing survey by Deloitte found that nearshore outsourcing is becoming increasingly popular, with 55% of companies reporting that they had utilized nearshore IT services in the last year.

As per a Microsoft survey regarding Digital Transformation in Puerto Rico:

  • More than 25% of companies reported talent attraction and retention as one of their main challenges in digital transformation.
  • 37% considered a top priority for digital transformation, attracting talent with technological skills (this figure raises to 52% among digital native companies)

If you’re a company based in Puerto Rico, turning to Uruguay for IT outsourcing could be a strategic move that fuels your success.

Let’s understand why.

Why Outsourcing Your Software Development?

Outsourcing software development allows you to leverage specialized skills and expertise that might not be available in-house.

A Deloitte report noted that 57% of businesses outsource to focus on their core business. Outsourcing allows companies to tap into a global talent pool and gain expertise in specific areas they may lack in-house.

It also allows you to scale your team up or down based on project requirements while it enables cost savings you can achieve by avoiding recruitment, training, and overhead expenses.

A recent study found that outsourcing software development can save businesses up to 60% in labor costs.

Considering the above, not surprisingly, the same Deloitte report noted that 59% of businesses that outsource do so as a cost-cutting tool.

On top of that, outsourcing can also provide access to cutting-edge technology and expertise. By partnering with a (trusted) software services company, businesses can leverage the latest tools and techniques to develop innovative solutions to help you stand out in a crowded marketplace.

Last but not least, through outsourcing with trusted partners, companies reported a significant increase in operational efficiency and experienced an improvement in the quality of their output.

But where should you outsource? There’s one destination that stands out from the crowd: Uruguay.

Uruguay: A Nearshore Paradise for IT Outsourcing

Nearshoring, as opposed to offshoring, offers advantages such as reduced time zone differences, cultural affinity, more accessible communication, and increased opportunities for collaboration.

Uruguay, a tech hub between Argentina and Brazil, is a shining star in nearshore outsourcing.

a computer keyboard reflecting Uruguay map, indicating Uruguay as an IT nearshore outsourcing option
Uruguay : an IT Hub, known as the “Silicon Valley of South America”

Here’s why Uruguay makes for an excellent nearshore IT outsourcing partner:

Rich Talent Pool

Uruguay has a flourishing tech ecosystem that boasts a rich talent pool. With a strong educational focus on IT and technology, Uruguay consistently produces highly skilled, creative, and tech-savvy professionals ready to handle complex software development projects.

Uruguay has exceptional talent that surpasses all indicators in the region regarding technological skills

Jaime Galviz (General Manager of Microsoft’s South Andean Region)

Time Zone Alignment

Unlike offshoring to far-off countries, Uruguay’s time zone closely aligns with Puerto Rico (just one hour ahead). As we know, more overlapping working hours and smoother real-time communication lead to more efficient collaboration and quicker problem-solving.

Language and Cultural Similarities

A big concern when considering staff augmentation companies is language and communication barriers.

Uruguayans are Spanish speakers, just like Puerto Ricans. This shared language enhances communication efficiency.

When working with a remote team that speaks a different language, it’s easy for misunderstandings and miscommunications to occur, leading to delays, errors, and project failures.

The cultural similarities foster a better understanding, making collaboration feel more like working with an extended in-house team.


While cost is a critical consideration, you should prioritize quality over cost. Select a supplier that provides high-quality services at a reasonable cost.

Unlike onshore staff augmentation companies, Uruguayan software companies provide more competitive rates while ensuring a high-quality product.

So, why negatively impact your budget or compromise quality when you can select a supplier that provides high-quality services at a reasonable cost?

Strong Tech Infrastructure

Uruguay is recognized as a tech-savvy country with a robust digital infrastructure.

  • Uruguay is the regional leader in technological infrastructure, both in terms of connectivity, internet access and ICT development index.
  • Is at nearly 100% fiber optic coverage as a country, guaranteeing a fast download speed
  • 100% of public educational centers have Internet access
  • Via an investment project by Google, since 2017 Uruguay has an underwater direct fiber optic cable connection with the US, which means a major advance in infrastructure for sovereignty and knowledge.

Reliable internet and advanced tech facilities enable Uruguay’s tech professionals to deliver high-quality work consistently.

Favorable Business Environment

Uruguay enjoys political stability, strong legal protections, and favorable business policies.

Uruguay is a country with a history of political, democratic and social stability, and macroeconomic strength. According to The Economist Global Democracy Index (EIU) is ranked #13.

Digital giants as Microsoft and Google have chosen Uruguay for their latest investments; Microsoft chose Uruguay as the location for its new artificial intelligence and Internet of Things lab. It is the first lab in Latin America and the third outside the United States, joining the Shanghai and Munich labs.

Google has chosen Uruguay to expand its projects in Latin America; the company will install a data center and build the world’s longest submarine cable.

The country’s strong commitment to software export has resulted, as well, in various benefits for foreign companies partnering with Uruguayan tech companies.


Nearshore outsourcing can be a valuable strategy for businesses in Puerto Rico looking to expand their talent pool and reduce costs.

However, choosing the proper IT outsourcing partner is a crucial decision that can significantly impact your business outcomes.

With its skilled talent, convenient time zone, robust tech infrastructure, and favorable business environment, Uruguay emerges as a compelling choice for Puerto Rico companies seeking to outsource software development.

If you are ready to harness the power of Uruguayan tech talent for your business success, let’s talk.

Switch offers, since 2009, a comprehensive suite of IT outsourcing solutions to support your goals, including end-to-end development, IT Managed Services, or dedicated teams.

We pride ourselves on being more than just a software development firm. We are strategic partners to clients, working closely with them to understand their unique business needs and deliver solutions that drive success.

Wondering if we could be the reliable tech partner you are looking for? Check out our Clutch profile to understand first-hand from our clients how we have collaborated with them with our unique nearshore experience.

Make the strategic move today! Let’s get started!


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