What Makes Uruguay a Nearshore Standout for US Companies?

‍Strong talent, stable operations, and smooth collaboration are making Uruguay a go-to nearshore destination

‍

How did one of the smallest countries in South America, with just 3.4 million people, become one of the most attractive getaways for US companies? Uruguay isn’t usually the first name people associate with tech, yet in recent years it has established itself as a regional hub often referred to as “the Silicon Valley of South America.”

That shift didn’t happen overnight. It came from early investment in digital infrastructure, a strong technical education system, and a business climate that has stayed stable for years. This progress already appears in the numbers, with the IT sector generating US$ 3.381 billion in 2023 and its contribution to GDP reaching about 4.4%. 

Those numbers, however, only tell part of the story. What’s drawing more US companies to Uruguay is the way collaboration actually works in practice. Daily communication feels natural, teams adapt well to shared processes, and long-term partnerships tend to remain stable.

In the sections ahead, we’ll look at 7 reasons why Uruguay has become a strong partner for US companies expanding their software capabilities.

#1 A Thriving Software Ecosystem

Uruguay’s software industry has been growing steadily for decades. Around 70% of all IT activity in the country is centered on software development, and these services generate nearly 80% of the sector’s exports. This is what helps explain why the country is now the second-largest software exporter per capita in Latin America and fourth in total export value.

Data from the Uruguayan Chamber of Information and Communication Technologies (CUTI) shows that the IT sector grows faster than the rest of the economy and its share of GDP has been doubling every 10 years. As the industry expands, so does its structure: today there are more than 530 IT companies employing over 27,000 professionals in areas such as fintech, cybersecurity, healthtech, AI and more.

#2 High Quality Tech Talent

According to Microsoft Talent Report on the IT Sector in Uruguay, the country has 64 people with IT skills per 10,000 inhabitants, the highest proportion in the region after the United States.

So what makes an IT career so attractive there? Uruguay has spent decades investing in people through high-quality, accessible education, achieving a 99% literacy rate. Its main public university, Universidad de la República (UdelaR), ranks #29 in Latin America and the Caribbean (CWUR 2025) and offers multiple computing and engineering degrees, while private universities complement this with strong programs and internships in leading tech companies.

On top of that, Uruguay became the first country to introduce the One Laptop Per Child program (known locally as Plan Ceibal) in 2007. This initiative provided a laptop to every public primary and secondary school student and teacher, boosting digital literacy across the country.

#3 Easy Communication and Cultural Fit

One of the first things US teams notice when they start working with Uruguayan engineers is how easy communication feels.  Around 68% of IT professionals report having English skills (well above the 52% regional average), and many universities design their programs around international standards. This makes day-to-day collaboration straightforward and allows teams to work comfortably in English-led environments.

On the cultural side, Uruguay fits well with how US teams like to work. Workplaces tend to value collaboration, direct communication, and trust-based relationships, so bringing in a Uruguayan team often feels more like “adding colleagues” than outsourcing.

Most local tech companies already work with US clients (around 85% of IT exports go to the United States) so developers are used to US tools, workflows, and expectations. Together, all of this makes cross-border collaboration feel smooth, familiar, and easy to build on over time.

#4 Reliable Digital Infrastructure

Uruguay is a country where reliable internet is part of everyday life. Internet access reaches almost every corner of the country, with 91% of households connected, most with fixed broadband, and LTE-4G covering about 94% of the territory. In practice, that means teams stay online and reachable whether they’re in Montevideo (the capital) or working from smaller cities and towns.

This level of access is matched by how the country approaches digital development. In the United Nations’ 2024 E-Government Development Index, Uruguay ranks 25th in the world and second in the Americas, only behind the United States. 

For US companies, this makes remote collaboration easier: fewer dropped calls, more stable video meetings, and teams who are already comfortable working in a highly digital environment.

#5 Safe, Stable Place to Do Business

For years, Uruguay has stood out for its long-term political stability and transparent business environment. It regularly ranks among the top countries in Latin America in the Democracy Index, the Rule of Law Index, and Transparency International’s Corruption Perceptions Index, which gives companies confidence in how contracts, regulations, and intellectual property are handled.

This stability also shapes Uruguay’s approach to data protection, as reflected in the European Commission’s decision to recognize the country’s privacy framework as “adequate,” a status granted to only a small group of nations outside the EU and just two in Latin America. For US companies, that translates into clear standards, predictable regulation and a legal environment that is ready to support cross-border software work involving sensitive data.

#6 Time-Zone Alignment

For US teams, the time difference with Uruguay is small, usually just one to two hours ahead of the US East Coast. This limited gap makes coordination much easier, as teams can schedule meetings during normal business hours, keep decisions moving and resolve issues in real time. 

The overlap also supports agile workflows, keeping stand-ups, sprint reviews, and quick feedback loops on schedule without disrupting anyone’s workday.

#7 Balanced Cost and Quality

Uruguay isn’t the lowest-cost market in Latin America, but it offers a strong cost-quality balance. For many US companies, partnering with Uruguayan teams often represents around 60–65% savings compared to hiring equivalent senior talent locally. 

Compared with other Latin American hubs, Uruguay sits in a mid-range salary bracket but stands out for higher English proficiency, stronger institutional stability and a mature engineering culture. That mix helps reduce the “hidden costs” that often show up in cheaper offshore markets, like miscommunication, delays or having to redo work.

Why More Teams Are Looking to Uruguay

Uruguay’s rise as a tech partner didn’t come from one advantage alone, but from the way different strengths evolved together over time. What stands out today is how naturally teams can work across borders, how predictable the operating environment feels, and how much experience the country has built serving global clients. 

For US teams looking south for nearshore support, Uruguay offers a steady ground to build software, with partners who understand cross-border collaboration and integrate smoothly from day one.