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 Mxico. 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 Uruguays grass fed beef as ranking with
Japans Kobe or the USAs 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 countrys 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. Uruguays
nearshore software development community is well versed in methodologies such
as AGILE, DevOps, and have been educated in Uruguays 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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