If you’re exploring nearshore expansion in Latin America, you’ve likely considered established Colombian hubs like Bogotá and Medellín. But there’s a rapidly emerging tech destination that offers compelling advantages for nearshore staffing and Latin American delivery centers: Cali, Colombia.
With increasing interest from US and European companies looking for nearshore staffing solutions in Latin America, Cali is rapidly gaining attention. It offers a powerful combination of talented bilingual professionals, competitive costs, excellent infrastructure, and significant tax incentives, making it a smart choice for your next Latin America delivery center.
In a recent episode of the Scaling Tech Podcast (sponsored by AgilityFeat), Emerging Tech Markets in Colombia: Cali, host and AgilityFeat CEO Arin Sime sat down with Valery Sanclemente of Invest Pacific, a nonprofit investment promotion agency for the region. Valery brings deep local insights and a strong passion for connecting businesses to Cali’s growing tech ecosystem.
Beyond Bogotá and Medellín: What Makes Cali Stand Out
When people talk about Colombian tech hubs, the conversation usually revolves around Bogotá and Medellín. As Arin found in a recent visit to the region, this emerging city has compelling advantages and should be on your radar for BPO and nearshoring.
Why Cali is Great for Nearshore Tech Outsourcing
Strategically located near the Pacific coast, Cali is Colombia’s third-largest city and a major logistics hub. But more importantly for tech teams, it offers:
Competitive Costs and Lower Market Saturation
Valery points out, “We offer a very competitive cost for the companies… We are the third most important city in the country. That means that we have a lot of talent available here in Cali.” Compared to Bogotá and Medellín, Cali has lower labor market saturation and cost advantages.
World-Class Infrastructure and Connectivity
The city benefits from “some of the best internet connectivity in all of Colombia… some of the best internet connectivity in the entire Pacific coast of South America,” thanks to its proximity to submarine fiber optic cables. It also houses a Tier IV data center, one of only two in Colombia, boasting 100% uptime.
Tax Incentives Through Zonamerica Free Trade Zone
Cali’s free trade zone, Zonamerica, offers significant tax breaks and import duty reductions. Valery explains, “Normally in the country you pay 35% tax, but if you establish your company in the free trade zone you will have 20% tax… That is a very good benefit.”
Companies need to have 50% of their staff working in Cali, but “none of them has to be in the free trade zone at the same time… you can start with two people working inside Zonamerica and then grow,” Valery adds.
Cali Has a Strong Talent Pipeline and a Bilingual Workforce
Cali’s talent pool is as vibrant as its salsa scene. The region has been building English proficiency over the years, with “bilingual graduates rising from 25% in 2013 to 40% now in 2025,” Valery shared.
The city boasts 18 universities, 15 of which offer tech programs. One standout is Universidad Icesi, where students are required to complete six-month internships before graduating. “Universidad Icesi’s students are required to finish a six-month internship at the end of their four years… these are types of experienced students that you can hire in Colombia.”
These internships are win-win: “Companies benefit from access to trained talent, and students gain hands-on experience, making them job-ready at graduation,” Valery explains.
Cali Has a Collaborative In-Office Culture
Unlike many major cities where remote work dominates, Cali offers a vibrant culture and willingness to work onsite perfect for companies with security requirements and collaboration wishes. Valery says, “The people love to go to the office, connect with other people, and after the office make plans because the weather at 5 p.m. in Cali is beautiful. So Cali is very ideal for companies that want people working on-site.”
Cali Lifestyle and Quality of Life: An Added Bonus for Talent Retention
Cali isn’t just great for business. It’s a city that offers a high quality of life. Valery shares, “Cali offers a very bright and light lifestyle. We have a lot of green spaces…great food because we have the influence from the Pacific and the center…lower cost living compared to other cities.” The city’s warm climate, cultural vibrancy, and excellent healthcare, including top hospitals and international schools, make it highly attractive for local and expat talent alike.
Looking Forward: Cali’s Vision as a Rising Nearshore Tech Hub
Valery envisions Cali as a Latin American innovation leader:
“Our vision is to position Cali as a top destination in Latin America in tech-driven services like artificial intelligence, digital health, climate tech, and analytics. We want to scale our bilingual talent…and attract more nearshore and high-value operations.”
AgilityFeat’s Build-Operate-Transfer Model Makes it Easy to Set Up in Cali
As companies increasingly look beyond traditional nearshore hubs, Cali offers a compelling combination of talented bilingual professionals, competitive costs, and business-friendly incentives that make it an ideal location for your next Latin American delivery center. AgilityFeat’s Colombia office is uniquely positioned to help you capitalize on this opportunity.
AgilityFeat’s BOT model provides a proven pathway to establish operations in Cali (or elsewhere in Colombia or LatAm). You can achieve significant cost savings, enhanced control, and a seamless transition to full ownership. It has three distinct phases:
Build Phase: Team Establishment / Legal and Accounting Setup
During this phase, AgilityFeat initially employs your team using our own entities under a staff augmentation model, removing the upfront investment and risk for you. At the same time, we work with local legal and accounting experts to establish a subsidiary for your company.
Operate Phase: Management and Training
We manage the subsidiary transparently, allowing your staff to learn how to operate it. Our team handles day-to-day operations while your team receives comprehensive training on managing the subsidiary, ensuring a smooth transition when the time comes.
Transfer Phase: Handover and Available Support
Once you’re ready (and only IF you are ready, this phase is always optional) we transfer the subsidiary to your ownership for a previously agreed upon fee. After the transfer, we remain available for support to ensure your ongoing success.
Ready to explore how Cali can fit into your nearshore strategy?
Further Reading:
- Colombia: An Ideal Nearshore Hub for US Companies
- Colombia’s Top Cities for Tech Talent & AI Development: Bogotá, Medellín, Cali & Barranquilla
- Why Build your Software Development Team in Colombia?
- The Rise of Micro-Centers: Why SMEs are Establishing Nearshore Hubs
- Exploring the Build-Operate-Transfer (BOT) Model: A Strategic Approach to Building Your Development Team
