Solid policies for foreign direct investment and business growth makes Costa Rica thea Switzerland or a Silicon Valley of Latin America.
Microsoft, Intel, Amazon, and other tech giants started doing business in Costa Rica, setting standards for multiple companies worldwide that wish to outsource web development here.
This article will discuss what makes Costa Rica the world’s leading IT outsourcing center, a strong investment magnet, and a stable tech hub.
You’ll get to know:
- How many IT companies are there in Costa Rica, and what is their main specialization?
- How does Costa Rica cultivate workforce-aligned skills among the graduates?
- What companies invest in the Costa Rican IT sector?
- How does the government support doing business in Costa Rica?
Let’s get started!
Tech Companies in Costa Rica
According to Clutch, Costa Rica is home to 154 IT companies, 74 of which specialize in software development outsourcing.
The country’s primary services are web development (provided by 57 companies) and mobile app development (provided by 66 companies).
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The general overview of the services looks as follows:
IT services provided | Service providers |
Mobile app development | 66, presented by companies like Ancient Tech, Rootstack, TECLA, CodeNinja, DYNAMIC |
Web development | 57 presented by companies: 5e, Luby Software, number8, Kambda |
IT strategy consulting | 30 presented by companies: 5e, Ancient Tech, Rootstack, CodeNinja |
IT managed services | 27 presented by companies: AACROM, Intertec International, Nextly |
IT staff augmentation | 25 presented by companies: 5e, Leanware, Nextly, Crombie, Outcoding an EX Squared Company |
UX/UI design | 22 presented by companies: 5e, Ancient Tech, CodeNinja, HatchWorks AI |
Web design | 21 presented by companies: 5e, AKTEK, CodeNinja, Rootstack, TECLA |
E-Commerce Development | 20 presented by companies: ParallelDevs, Sapiensdev.com, Leanware, Crombie |
Application Testing | 18 presented by companies: Rootstack, Ancient Tech, DNAMIC |
Cloud Consulting & SI | 17 presented by companies: Gorilla Logic, Software Mind, Leanware |
AI Development | 12 presented by companies: HatchWorks AI, AceBuddy, CodeNinja, Ancient Tech |
ERP Consulting and SI | 10 presented by companies: Luby Software, Rootstack, NW Consulting Services |
IoT Development | 9 presented by companies: Luby Software, Rootstack, CodeNinja |
BI & Big Data Consulting & SI | 8 presented by companies: Luby Software, Rootstack, Neural Coders |
Enterprise App Modernization | 7 presented by companies: Excel SoftSources, Near Coding, Creek Software |
Digital Strategy | 7 presented by companies: Leanware, Crombie, CodeNinja |
Search Engine Optimization | 7 presented by companies: 5e, Luby Software, Rootstack |
Content Marketing | 6 presented by companies: Ancient Tech, TECLA, CNET Technology Systems |
Application Management & Support | 6 presented by companies: Intertec International, ProximityCR, CodeNinja |
Cybersecurity | 6 presented by companies: Neural Coders, Leanware, Crombie, Luby Software |
Social Media Marketing | 6 presented by companies: Luby Software, Rootstack, CodeNinja |
Graphic Design | 5 presented by companies: 5e, Luby Software, Rootstack |
API Development | 4 presented by companies: 5e, Nextly, Leanware |
CRM Consulting and SI | 4 presented by companies: Luby Software, Rootstack, TECLA |
Back Office Outsourcing | 3 presented by companies: CodeNinja, Crux Consultores, Rootsack |
Most IT firms in Costa Rica offer affordable pricing, making the country an attractive destination for web development outsourcing. Specifically, almost half of all IT companies in Costa Rica have a rate of USD $25-50$ per hour. According to Clutch, the other half would charge $ 50-99$ per hour, and. 5 companies charge $ 100$ per hour and more. Comparably, most US software development companies charge from $ 100$ to $ 200 USD$ per hour.
Business Growth – Stability and Future Prospects
Costa Rica is ranked 8th in the world for information and communication technology exports in gross domestic product. It is also 33rd for the percentage of high-tech exports in total trade, a credit to the country’s many tech companies. The country also has 72nd place in the number of ISO 9001 quality certificates produced.
According to the Employment Expectation Survey, 43% of companies in Costa Rica are planning to hire in the coming months. The most sought-after specialties include sales and marketing, IT, and data analysis, and customer services. This proves that the country’s IT sector is actively growing.
Costa Rica Education – Cultivating Workforce-Aligned Skills
Doing business in Costa Rica is comfortable, thanks to the highly qualified workforce. Costa Rica’s technology education is one of the best in the world, making the country a stable tech hub.
There are more than 60 universities in Costa Rica, many of which enter different regional and world rankings. For example, Universidad de Costa Rica is ranked 19th in Latin America and has been migrating between positions 411-420 in the world ranks in recent years. Given the fact that there are thousands of universities in the world (the close neighbors of Costa Rica, Brazil, and Mexico house 1264 and 1139 universities, respectively), the high rankings of Costa Rican educational centers highlight the country’s focus on the quality of education.
According to the world’s QS University Ranking (one of the most reputable measurements of the quality of education), Costa Rica is listed 59th in the world. It is also 38th for attracting global corporate investors into education development and 10th for government expenditure on education.
More than 3,500 engineers graduate from Costa Rican universities every year. Additionally, 7000 science, tech, and math graduates are ready to enter the work market.
In the Americas, Costa Ricans show the best results in TOEFL tests after Canada and Paraguay. The country is dedicated to building a bilingual nation, with its students and school graduates ready for international collaboration.
While Canadians have an average score of 97, Paraguayans reach 94, and Costa Rican students have 92 points. The closest followers are Brazil, with a score of 89, and Curaçao, with 90.
Investment in the Costa Rican Technology Market
After Intel selected Costa Rica to outsource part of its operations, the country has become a popular investment destination.
Costa Rica outperforms other countries in attracting foreign direct investment (FDI). In 2022, the FDI index for Costa Rica was 13.4, meaning that the country received 13 times more investment than was predicted, given the size of the country’s gross domestic product.
Most of the investment (63%) was attracted to technology, business and professional services, and life sciences.
Leading world’s tech companies have established their presence in the country, including:
Intel: The company has kept its manufacturing and assembling facilities in Costa Rica since 1991. In 2023, it announced plans to invest $1.2 billion more in its Costa Rica business.
Hewlett-Packard (HP) outsources Costa Rica customer support, business processes, and technology services.
IBM: IBM’s technology series delivery center based in Costa Rica provides IT support to its clients worldwide.
Microsoft: the company keeps its customer support center in Costa Rica.
Amazon: the company also keeps its customer service centers in Costa Rica, providing services to companies worldwide.
Accenture: one of the biggest service delivery companies in the world, Accenture provides technology and delivery services from its center in Costa Rica.
Infosys: an IT services company keeps its delivery center in Costa Rica.
Dedication to Building Strong Partnerships
Doing business in Costa Rica is free from other economies’ drawbacks when attracting foreign investors. When Intel selected Costa Rica as the outsourcing destination to build their plants, they opened several points that influenced their selection process:
- Tthe government and economy’s ability to quickly mobilize the resources to promote investment.
- Tthe absence of side deals.,
- Aabsence of firm-specific concessions.
Additionally, the country is known for its legal policies that favor doing business in Costa Rica. It is ranked 36th in the world for favorable business conditions.
Tech Skills: Dedication to Growth
Back in 2020, the online training platform Coursera partnered with the International Development Bank to train 50,000 people in technical skills like Python, SQL, HTML, and Google Analytics. The country hired tutors from Yale University, Princeton University, Google, IBM, and Amazon to reinforce the training. That move supports Costa Rica’s dedication to developing into a rising tech hub and a nearshore outsourcing destination for the US market.
According to Coursera, the country’s tech specialists have strong skills in computer networking, computer programming, databases, and mobile development. The region also performs exceptionally well in operating systems.
Altogether, these factors favor doing business in Costa Rica, and most of the leading tech companies worldwide are well aware of this.
Culture, Time Zone, and Connectivity
Over 88% of the Costa Rican population have access to the internet, and the number is growing, as the government prioritizes this sphere. This factor fuels local businesses to develop and enter the international arena.
Also, the country has integrated many work style elements from the US, including democracy, flexibility, and open-mindedness. It fosters a working culture where employees can voice their opinions.
Costa Rica’s time zone proximity to the United States makes it a perfect place to outsource software development. There is no need for early-morning or late-night calls, long waits, or feedback.
Summing up
Costa Rica is a strong technological hub with solid growth and development indicators in the LATAM region and the world. With powerful government support and a steady flow of foreign investment, doing business in Costa Rica provides the needed support and conditions for growth and quick profits.
Interested in outsourcing software development to Costa Rica?
Contact 5e to discuss your business idea and receive support and advice from skilled tech specialists. Our company has a decade of expertise in web development and design, and toens of successful projects in its portfolio. Book a meeting now!