IT Technology Industry in Chile: Market Overview

Nikoloz Khotcholava

Last updated on January 10, 2025 | 17 min read

BusinessIT marketLatAmRecruitment

Key insigths:

• Chile emerges as Latin America’s tech hub with advanced infrastructure.
• The article examines Chile’s IT growth, advantages, and global appeal.

Chile’s position as a strategic technology hub, ranked 42nd in the IMD’s Digital Competitiveness Index, signals its growing influence in global tech markets. With IT outsourcing projected to reach 720 Million USD in 2024, the country’s tech sector demonstrates remarkable growth potential, particularly evident in establishing major operations by global giants like Microsoft, Oracle, Google, and Amazon Web Services. This strategic influx of international technology leaders has transformed Chile into a vital platform for global service delivery, connecting Latin America with Asia Pacific markets and solidifying its position as one of the region’s most stable and technologically advanced economies. This market overview examines how Chile’s IT sector, strategic location, and advanced digital infrastructure have established it as a premier technology hub and outsourcing destination in Latin America.

Exploring Chile’s IT industry

Chile’s IT industry is experiencing unprecedented growth, with technology investments forecasted to reach 4.3 billion USD and create 8600 new jobs for digital talent. This expansion is driven by foreign investment and a strategic focus on emerging technologies, positioning Chile at the forefront of Latin America’s digital transformation. The market shows strong financial health, with the average spend per employee in IT Services projected to reach 214.20 USD in 2024.

The country’s technological advancement is particularly evident in its leadership across various sectors, including the Internet of Things, Big Data, and sensor applications. These developments have created fertile ground for innovative tech companies and startups. The IT outsourcing segment exemplifies this growth trajectory, with projections indicating an 8.74% annual expansion (CAGR 2024-2029), potentially reaching 1.09 billion USD by 2029.

Chile’s commitment to technological development is reinforced through multiple government-backed initiatives and programs. Start-Up Chile serves as a prominent incubator for emerging businesses, while Talento Digital focuses on nurturing digital skills among youth. The establishment of tech parks, including Hubtec and Know Hub Chile, alongside progressive policies like the tech visa program, demonstrates Chile’s dedication to fostering innovation. Additional initiatives such as Fundación Kodea and Girls in Tech Chile are actively working to create a more inclusive digital workforce, particularly focusing on youth education and women’s participation in STEM fields.

Chile & US: Tech partnership

The United States maintains its global technological dominance with an IT services market valued at 461 billion USD in 2024, supported by over half a million tech businesses and 9.1 million IT professionals. While Chile’s tech sector operates on a smaller scale, it offers unique advantages for US companies seeking international collaboration, particularly in software development outsourcing.

Chilean developers’ strong multilingual capabilities, demonstrated by the country’s ranking of 47th out of 111 countries in the English Proficiency Index with a score of 524 in 2022, facilitate seamless communication with US clients. This linguistic advantage, combined with cultural proximity and shared business values, makes Chile an ideal collaborative partner for US companies. The complementary cost structures, with US-based developers averaging 102124 USD annually compared to 65,472 USD for Chilean developers, create opportunities for balanced, cost-effective partnerships that maintain high-quality standards while optimizing resource allocation. This economic synergy enables US companies to scale their development capabilities while fostering innovation and knowledge exchange between both markets.

The alignment between Chilean and US business practices creates a strong foundation for successful partnerships. Chilean developers are known for their adherence to international quality standards, commitment to meeting deadlines, and understanding of modern development methodologies. This cultural compatibility, combined with the country’s stable business environment and growing tech ecosystem, makes Chile an increasingly attractive destination for US companies looking to expand their development capabilities while maintaining high professional standards.

Chile’s tech revolution: a comprehensive sector overview

Telecommunications in Chile: A Digital Infrastructure Leader

Chile’s telecommunications sector is experiencing remarkable growth. Its market value was 7.22 billion USD in 2023 and is projected to reach $10 billion by 2029. The country’s digital infrastructure excellence is evident in its fourth-place global ranking for fixed broadband speed in 2024. Most notably, Chile’s pioneering 5G implementation has achieved 92% population coverage, surpassing expectations and serving 17.7 million users.

FinTech: Rapid Growth and Digital Adoption

Chile’s FinTech landscape has experienced exponential growth, expanding from 179 startups in 2021 to approximately 300 in 2023. The sector’s robust development is reflected in the Digital assets market, which is projected to reach 172.80 million USD in assets under management this year. The widespread adoption of digital financial services is evident, with 85% of Chileans now utilizing digital payments and banking services.

eCommerce: The New Era of Digital Retail

Chile’s eCommerce sector has emerged as the 32nd largest globally, with a projected market value of 10,103.2 million USD in 2024. The digital retail landscape continues to expand, serving 12.7 million users who represent 64.8% of the population. This growth trajectory is expected to continue, with user numbers projected to reach 13.7 million by 2027.

Digital Security & AI: Chile’s Growing Sectors

Chile’s commitment to technological advancement is evident in its comprehensive AI National Policy. However, cybersecurity concerns have intensified, with approximately 14 million attempted cyberattacks in 2022. The cybersecurity market is projected to grow at a CAGR of 10.5% during 2022-2024, and 70% of local companies already implement AI tools to enhance their operational processes.

What to be Aware of When Outsourcing to Chile

Cross-border operations demand careful attention to regulatory frameworks and compliance standards. Chilean outsourcing partnerships, while advantageous, require a thorough understanding of both local and international requirements. From robust data protection protocols to intricate business regulations, maintaining compliance across borders demands meticulous oversight and proper documentation.

Consider marketing operations as an example: Despite operating from Chile, your company is fully responsible for GDPR compliance when handling European customer data. Geographic distance doesn’t diminish regulatory obligations, making thorough compliance measures essential for all international operations.

Key regulatory considerations include:

Contract Framework: Chilean outsourcing agreements operate under dual jurisdiction. Your partnership must satisfy domestic and Chilean legal requirements, demanding careful attention to contractual details.

Data Protection Standards: Selecting partners with proven track records in data handling becomes crucial. Your company’s reputation depends on proper data management, making verifying your partner’s security protocols and compliance history essential.

Personnel Management: Cross-border team operations require a clear understanding of employment regulations in both territories. Proper documentation and compliance with local labor laws protect both employer and employee interests.

These compliance requirements might seem daunting at first glance – and they should. Operating across international borders inherently carries complex legal obligations. However, established outsourcing providers bring valuable expertise in navigating these requirements, helping transform regulatory challenges into manageable processes.

Interesting to know

Major IT hubs in Colombia

Santiago

As Chile’s capital and primary tech ecosystem, Santiago stands as the country’s foremost technology hub. The city hosts numerous innovation centers and tech parks, including the renowned Hubtec and Ciudad Empresarial, where established companies and startups coexist and collaborate. Santiago’s robust infrastructure supports a thriving digital economy, with high-speed internet connectivity and modern office facilities. The city’s strategic location and advanced financial district attract major global tech companies and foster a dynamic startup environment. Regular tech events, hackathons, and industry conferences like Chile Digital Summit and Tech Week Santiago contribute to its vibrant tech community.

Time Zone: GMT-3
Population: Approximately 7 million
Major Companies: Oracle, Amazon Web Services, Microsoft

Valparaíso

Known for its creative atmosphere and innovative spirit, Valparaíso has emerged as a significant tech hub focusing on digital innovation and software development. The city’s unique cultural blend attracts creative tech talent, particularly in UX/UI design, digital marketing, and software development. Its coastal location and historic significance as Chile’s principal port city have influenced its evolution into a center for maritime technology and digital logistics solutions. The town actively participates in government-backed innovation programs and hosts numerous coworking spaces and tech incubators.

Time Zone: GMT-3
Population: Approximately 950000
Major Companies: Regional tech startups, digital agencies

Concepción

As the industrial heart of southern Chile, Concepción has transformed into a technology center specializing in industrial automation and digital transformation. The city’s strong focus on manufacturing technology and industrial solutions has created a unique ecosystem where traditional industries meet digital innovation. Concepción’s tech sector particularly excels in developing solutions for resource management, industrial automation, and sustainable technology. The city’s Digital Innovation Center supports local tech initiatives and promotes collaboration between industry and technology sectors.

Time Zone: GMT-3
Population: Approximately 1 million
Major Companies: Industrial tech firms, automation specialists

Top 3 tech universities in Chile

Chile’s educational institutions are vital in fueling the nation’s rapidly expanding IT sector. These universities have adapted their curricula to meet the demands of the digital age, emphasizing practical skills alongside theoretical knowledge. Their strong industry connections and focus on innovation make them instrumental in developing the next generation of tech talent. Here are the three standout institutions:

University of Chile
At the forefront of Chile’s technical education, the University of Chile’s Faculty of Physical and Mathematical Sciences leads in computer science and software engineering education.
The University of Chile ranks #1 in Chile and #5 in Latin America for computer science. Their Faculty of Physical and Mathematical Sciences has produced 21,986 computer science publications with 487,410 citations, specializing in Artificial Intelligence (AI), Neuroscience, Computer Vision, Machine Learning, and Telecommunications. Their programs emphasize cutting-edge technologies and research-driven learning, particularly in areas like artificial intelligence and data analytics. The university’s strong industry partnerships and modern facilities ensure graduates are well-prepared for the demands of Chile’s growing tech sector.

Pontifical Catholic University of Chile
Recognized for its excellence in technological innovation, the Pontifical Catholic University of Chile ranks #2 in Chile and #9 in Latin America for computer science education. With 16770 computer science publications and 412102 citations received, their program focuses on Artificial Intelligence (AI), Neuroscience, Computer Vision, Machine Learning, and Computer Networking. As a world-class research university, it has produced 57925 scientific papers with 989592 citations, demonstrating its significant impact on technological advancement in the region.

University of Concepcion
The University of Concepcion ranks #3 in Chile and #35 in Latin America for computer science education. Their engineering faculty has contributed 7266 publications with 150317 citations in computer science, focusing on Artificial Intelligence (AI), Computer Vision, Machine Learning, Computer Networking, and Neuroscience. Their engineering faculty specializes in software development and digital systems, with particular emphasis on innovative technologies and practical applications. The university’s strong focus on research and development, coupled with industry partnerships, ensures graduates are well-equipped to contribute to Chile’s dynamic tech ecosystem.

Time zone differences

You can find more time zone comparisons on this website.

The average salary of IT professionals in Chile

Tech salaries across Chile showcase the country’s dynamic IT market, where companies compete intensely for skilled developers and digital specialists. Regional differences play a significant role in compensation packages, with Santiago’s tech corridor setting national salary standards benchmarks. Experience level, technical stack expertise, and industry specialization drive substantial variations in earning potential, while multinational tech firms have elevated local market rates through competitive offerings. Below is an overview of the estimated annual salaries for key IT positions in Chile.

DevsData LLC—your partner for IT staffing and software development in Chile

Website: https://devsdata.com/
Team size: ~60 employees
Founding year: 2016
Headquarters: Brooklyn, NY, and Santiago, Chile

With 8 years of dedicated presence in Santiago, DevsData LLC has established itself as Chile’s leading IT talent acquisition specialist. Through their government-certified recruitment procedures and performance-based fee structure, they connect elite technical professionals to prominent organizations worldwide. Their carefully curated talent pool encompasses 65000 pre-screened experts, distinguished by their exceptional technical capabilities and strong communication abilities. The company’s flawless ratings on Clutch and GoodFirms underscore their successful collaborations with both multinational enterprises and emerging startups across the US and Israeli markets.

Technical evaluation at DevsData LLC centers on an intensive 90-minute technical assessment administered by US-based software professionals. This rigorous screening maintains selective acceptance standards, ensuring only exceptional candidates advance. Their comprehensive vetting process, coupled with an extensive guarantee period, provides clients with hiring confidence while minimizing recruitment risks. Senior technical specialists oversee these evaluations, applying their extensive industry expertise to candidate assessment.

DevsData LLC’s impact on Chilean tech recruitment is evident through its diverse international placements. Its Santiago location provides direct access to Chile’s flourishing tech ecosystem, enabling it to identify professionals who excel in global work environments. The company’s methodology incorporates a detailed analysis of Chile’s technology hubs, focusing on candidates combining technical expertise and business acumen.

The organization maintains an efficient operational structure and competitively delivers premium services. Its comprehensive support includes legal compliance assistance and employer of record (EoR) solutions, streamlining international hiring processes. This integrated approach, combined with its deep understanding of Chilean and global markets, establishes DevsData LLC as the preferred partner for accessing Chile’s premier technology talent.

In addition to recruitment services, DevsData LLC has carved a unique position in the global software development arena. This tech powerhouse successfully merges high-end custom software solutions with strategic talent acquisition, delivering over 100 projects ranging from intricate backend architectures to comprehensive web solutions. Elite global corporations and agile startups, particularly in the LatAm, US, and Israeli markets, rely on DevsData LLC’s expertise across diverse sectors, including technology, fashion, healthcare, eCommerce, and financial services. Their impressive client roster features industry giants like Cubus, Skycatch, Varner, and Novartis, while their distinguished technical team comprises google-caliber in-house engineers and an extensive network of senior contractors who bring Silicon Valley standards to every project.

For support in building your Chilean technology team, reach out to DevsData LLC at general@devsdata.com or visit www.devsdata.com.

Address:
DevsData IT Recruitment Agency Chile
Av. Providencia 1208, Providencia,
Santiago, Chile
chile@devsdata.com Copy email

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Final thoughts

Chile’s remarkable tech sector advancement positions it as Latin America’s emerging digital powerhouse. From pioneering telecommunications infrastructure to sophisticated FinTech solutions, the country showcases exceptional capability across diverse technological domains. This achievement stems from strategic investment in digital infrastructure and an unwavering commitment to technical education.

DevsData LLC’s operations at Santiago exemplify how specialized recruitment firms bridge global companies with Chile’s talented developer pool. Their methodical talent acquisition process enables organizations to build robust technical teams while maintaining excellence standards. This strategic talent matching creates enduring collaborations that enhance both international business operations and local professional growth.

The strategic benefits of partnering with Chilean tech professionals translate into tangible business advantages. Geographic proximity to North American markets, coupled with cultural alignment, facilitates seamless project execution. As technology continues reshaping global commerce, Chile provides an ideal foundation for establishing capable, forward-thinking development teams.

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Nikoloz Khotcholava Copywriter and Marketer

Nika Khotcholava is a dedicated copywriter with four years of experience crafting engaging content across various platforms. His background in social media management has sharpened his ability to communicate ideas effectively and collaborate closely with designers to bring creative visions to life. Nika thrives in fast-paced environments and enjoys learning something new every day.

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