6 Reasons Why US Companies Choose Uruguay for Software Development Outsourcing

6 Reasons Why US Companies Choose Uruguay for Software Development Outsourcing

In today's context and globalized world, outsourcing software development has become a common practice for US companies. One country that has emerged as a popular destination for nearshoring services is Uruguay. With its favorable time zone, highly skilled professionals, reliability, strong IT industry, cultural fit, and cost-effectiveness, Uruguay offers numerous advantages for US companies seeking software development outsourcing. In this article, we will explore these six key reasons why US companies are choosing Uruguay for their software development needs.

1. Time Zone

Uruguay's time zone aligns well with the US Eastern Standard Time (EST) and Central Daylight Time (CDT). With just a one-hour difference from EST and a two-hour difference from CDT, the time zone compatibility allows for seamless collaboration and synchronous work. This eliminates the challenges of working across different time zones and facilitates effective communication and real-time interaction between US companies and Uruguayan software development teams.

2. Reliability

Uruguay has earned a reputation for being a reliable country, making it a trusted partner for US companies looking to outsource software development. The country ranks first in Latin America in various key rankings, including the Democracy Index, Rule of Law, and Low Corruption Index. These rankings reflect the country's stable political environment, strong legal system, and transparent business practices. US companies can have confidence in the reliability and stability of Uruguay as a long-term outsourcing partner.

3. IT Excellence in Uruguay

Uruguay excels in the field of Information and Communication Technologies (ICT). The country ranks first in the E-Government Development Index and IT adoption in Latin America. Uruguay has achieved nearly universal internet penetration, with 87% of households having access to optic fiber. In fact, the country ranks fourth in the world for mobile internet speed. These factors contribute to a highly connected and technologically advanced environment that is conducive to software development outsourcing.

Furthermore, IT services exports account for 3% of Uruguay's GDP, highlighting the country's commitment to the IT industry. Since 2007, the government has been dedicated to the "One Laptop per Child" initiative, providing laptops to every child in the country. This commitment to technology and education ensures a skilled workforce and a thriving IT ecosystem.

4. Cultural Fit

Uruguay's cultural fit with the United States is another compelling reason why US companies choose this country for software development outsourcing. Thanks to its shared social history, proximity, and ongoing communication, Uruguayans have minimal cultural differences in terms of work culture and values. Most Uruguayans are comfortable with being direct at work and are not afraid to speak up when a task isn't viable. Additionally, 98% of IT workers in Uruguay are fluent in English, ensuring smooth collaboration and effective communication with US companies.

5. Cost-Effectiveness

One of the most significant benefits of outsourcing software development to Uruguay is the cost savings it offers compared to in-house hiring. By leveraging Uruguayan developers, US companies can reduce the cost of salaries, benefits, and other overhead expenses associated with in-house hiring.

According to a report by Deloitte, companies can save up to 40% on labor costs by outsourcing software development to countries like Uruguay. This cost savings is primarily due to the lower wages and labor costs in Uruguay compared to the United States. US companies can access highly skilled professionals at a more affordable rate, allowing them to optimize their budget while maintaining the quality of their software development projects.

6. Wide Pool of Professionals

Uruguay boasts a large pool of highly educated professionals, making it an attractive destination for software development outsourcing. The country offers high-quality, free education from school to college, ensuring a steady supply of skilled talent. The emphasis on education has resulted in a workforce that is well-trained and adept at cutting-edge technologies. US companies can benefit from the availability of a diverse range of professionals with expertise in various programming languages and software development frameworks.


Uruguay has emerged as a favorable destination for US companies seeking software development outsourcing. With its advantageous time zone, wide pool of professionals, reliability, IT excellence, cultural fit, and cost-effectiveness, Uruguay offers a compelling proposition for US companies looking to leverage the benefits of nearshoring services. By partnering with Uruguayan software development teams, US companies can access top talent, save costs, and ensure successful software development projects.

A good example of this is Kreitech, which with 10 years of experience has served hundreds of companies from the US augmenting their teams or building their products in a collaborative way. We enjoy taking on new challenges and taking ownership of things until they are done for our clients, and we know they feel the same way.

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