The IT Industry in Ecuador: 2021 General Portrait
In the last decade, Ecuador has managed to improve it’s educational, social, and infrastructural systems despite the regional context - the LatAm has become one the least stable regions for investors. Also, even with small steps, the Ecuadorian economy registers positive growth, 0.6% per year, which gives a ray of hope to already existing foreign investors in the country.
All these factors, helped the local IT industry to overcome challenges and difficulties that the entire region confronts, and thus, placing Ecuador in the top digital services providers in the region.
According to Payscale, the average salary in the IT system in Ecuador reaches 24K USD/year, even if the country, like many others in the region transformed into a BPO center for North American companies, especially from the US and Canada.
Investors have access to cheap skilled professionals, cheap real-estate, and also to fiscal facilities established by the government to stimulate the IT industry’s growth.
Why you should work with Ecuadorian IT companies
Human resources - plenty, educational level - relatively high compared to the region, IT infrastructure - decent, but could be better. These are the key factors that attract both companies and clients to the Ecuador tech market.
Yes, probably it’s not the brightest choice, but for North American companies and investors, Ecuador can be considered a gold mine.
For a long time, Ecuador has been a BPO center, locals also started to develop their own businesses in the IT sector, benefiting from not already skilled, but now even experienced workforce that is able to handle almost all types of digital projects. Even if we are not talking about a startup boom, the already existing IT companies from Ecuador can compete with North-American companies at certain levels and services.
What you should pay attention to when working with IT companies based in Ecuador
One thing that Ecuador misses is the business culture, and along with it - low project management and communication skills that are vital to attracting clients. This is rather a challenge than a missed opportunity, but by the time this challenge will be overpassed, Ecuador companies will lose their competitiveness.
Are Ecuadorian Companies reliable?
In terms of reliability, Ecuador has an important advantage. Professionals that worked for international companies in the BPO are now working for their own companies. The rich experience and connections gained previously, help Ecuador companies find clients and partners for their digital projects.
How does Ecuador tech industry relate to the neighboring countries?
With Colombia and Peru as neighbors, the Ecuadorian IT industry is in full development. But even so, it will take some time to get ahead of them. According to the Global Innovation Index 2020, Ecuador is in 99th position out of 130 countries, while Colombia is in the 68th position and Peru at 76.
Nonetheless, in the digital era, overnight transformation is real and, if implemented correctly, the reforms in the IT industry can make Ecuador one of the most developed countries in LatAm.