The Benefits of IT Outsourcing in Costa Rica

Outsourcing software development in Costa Rica has become an attractive option for businesses seeking high-quality IT services at competitive rates. Costa Rica has positioned itself as a premier destination for software development outsourcing. The remarkable educational system, a skilled workforce, and a strategic location further bolsters this position. The country offers an ideal blend of technological expertise, strong English proficiency, and cultural alignment with North American and European companies. In this article, we will explore Costa Rica’s thriving IT outsourcing industry, key economic factors, top tech hubs, and major employers in the sector.

Costa Rica as an Economy

Costa Rica, despite its name meaning “Rich Coast,” is neither notably wealthy nor as impoverished as many of its neighbors, with a more equitable wealth distribution. Though economic stagnation and inflation impacted living standards in the 1980s, by the 1990s the country rebounded, competing for the region’s highest per capita GNP. Government-controlled utilities and free healthcare coexist with strong private enterprise. Economic diversification has reduced reliance on traditional agricultural exports like coffee, bananas, and beef. While inflation is largely controlled, the government operates at a deficit, contributing to one of Central America’s highest per capita national debts.¹

The economy of Costa Rica at a glance

	Gross Domestic Product
Annual GDP		USD 86 Billion (2023)
GDP Per Capita		USD 16,942 (2023)
Income Category		Upper-middle Income (2025)
	People
Population		5.1 Million (2024)
Literacy Rate		98% (2021)
EF English Proficiency Index		Moderate Proficiency (2024)
	IT Sector
IT Services Market Size		USD 482 Million (2025)
IT Outsourcing Market Size		USD 238 Million (2025)
Registered Software Companies		550+ (2019)
	Business Environment
Ease of Doing Business		Score: 69/100 | Rank: 74 (2020)
Political Stability Indicator		Percentile Rank: 84 (2023)
Corruption Perceptions Index		Score: 55/100, Rank: 45/180 (2023)

The Software Development and IT Landscape in Costa Rica

For decades, Europe and Asia have led the offshore software development market. In recent years, however, Central American countries, particularly Costa Rica, have made significant progress in claiming a share of this thriving outsourcing industry. IT outsourcing in Costa Rica preferred for businesses from North America and Europe seeking access to a vast pool of skilled technology professionals. The local workforce excels in software development, cloud computing, legacy system support, and cybersecurity.Costa Rica’s IT services market is projected to generate $448.2 million in 2024, making it a top destination for software outsourcing globally. Its proximity to the U.S., cultural similarities, favorable time zones, and vibrant developer community minimize outsourcing challenges. The presence of Fortune 100 companies like HP and Intel further bolsters its IT talent pool.

One major challenge for companies establishing engineering teams or development centers in remote locations is overcoming communication barriers. However, businesses opting for IT outsourcing in Costa Rica can benefit from a shared understanding with local developers. According to the EF English Proficiency Index, Costa Rican ICT specialists possess strong English skills, reducing the risk of misunderstandings between local teams and international stakeholders.

Companies outsourcing IT in Costa Rica enjoy several advantages. The country’s strategic location makes it a prime choice for nearshore software development outsourcing. While offshore outsourcing to distant countries may suit round-the-clock operations, Costa Rica’s position in the Central Standard Time Zone offers overlapping work hours with US companies, enabling real-time communication and smooth collaboration. Additionally, its proximity reduces travel costs for in-person meetings, fostering stronger partnerships.

Costa Rica’s tech ecosystem is centered in key hubs, including San Jose, Heredia, Alajuela, and Cartago. San Jose hosts major R&D centers for companies like Microsoft and Intel. Heredia thrives in high-tech industries, with firms like Amazon and Cisco. Alajuela excels in fintech and cybersecurity, while Cartago specializes in software development and IT services.

Top Software Development and IT Employers in Costa Rica

Costa Rica, with a population of nearly five million, values education and aims to become fully bilingual within the next decade. The country promotes tech careers, leading to impressive results. Costa Rica is home to high-tech exports, and hundreds of tech companies, including 29 out of Fortune 100 firms like Amazon, Intel, and IBM, have established their operations in the country. Here, we have sorted the top software development companies in terms of employee size that are operating in the country.

Reputed Institutions in Costa Rica Known to be the Top Sources of IT Graduates

Here is a list of the top universities in Costa Rica, ranked based on their research performance in Computer Science by EduRank. The rankings were determined using a graph of 66.3K citations from 7.5K academic papers published by the Costa Rican universities, with ratings adjusted for publication dates and incorporated into the final scores. The rankings do not differentiate between undergraduate and graduate programs, nor consider the current majors offered. For details about granted degrees, refer to the university’s page, but always verify with the official university website.

We have sorted the list in terms of the number of alumni in IT and engineering roles. Please note that the alumni in engineering roles may include other engineering domains other than computer science or software engineering since we have taken the filtered count from their LinkedIn pages.

Conclusion

IT outsourcing in Costa Rica stands out as an excellent opportunity for outsourcing software development, providing key advantages like a highly skilled workforce, stable economic conditions, and favorable time zones for U.S.-based companies. Its growing tech sector, bolstered by skilled professionals and a strategic location, positions it as a key player in nearshore software development outsourcing. With top-tier global companies and a vibrant developer community, Costa Rica continues to thrive as an attractive destination for technology-driven investment and innovation.

If you’re looking to outsource in Costa Rica and tap into its thriving IT sector, let us help you connect with the best companies through Enosis Outsourcing. Contact us today to learn more and explore the opportunities Costa Rica has to offer!

References

[1] Economy of Costa Rica ↩

[2] IT Services – Costa Rica | Statista Market Forecast ↩