Employer of Record Service in Colombia
Build a team of senior software engineers in Colombia without compliance risks and HR overloads:
- Exclusive tech industry-focused Employer of Record solution in Colombia trusted by unicorns
- Local talent navigation from our in-country staff
- Get premium support from a dedicated Customer Operations Manager
- Manage payroll & operations via the AlcorOS™ platform
- More than EOR: tech recruitment, office lease, procurement & other ops
Tech Companies Prefer EOR with Alcor
Alcor’s EOR Solution in Colombia is The Way If You’re
Expanding abroad
for the first time
- Full navigation in Colombia’s talent pool for tech
- 100% compliance & legal shield
- Quick onboarding in 10 business days
Switching from
outsourcing
- Save up to 40% of costs – no markups & buyouts with Alcor
- Get 2-3 tiers better talent
- People finally become your strategic asset
Switching from
outsourcing
- Save up to 40% of costs – no markups & buyouts with Alcor
- Get 2-3 tiers better talent
- People finally become your strategic asset
Colombia for Tech Expansion via EOR
Alcor is Disrupting the Way EOR in Colombia is Managed for Tech
- 100% tech focus We care about your IP and growing HR needs. Get the best practices proven by our other tech customers.
- In-House tech recruitment & ops Scale from 10 to 100 engineers in a year with our 40 tech recruiters. Get extra services in one place.
- 10-day onboarding We commit to onboarding talent in 10 business days.
- Flexible & predictable pricing No prepayment. Transparent invoices. The larger your team grows, the less you pay.
- Automation with quick reaction A platform for easy access. Contract tailoring. Error-free payslips.
- Key customer operations manager One key person to resolve issues & discuss opportunities. 93% of customers are happy. 99% stay for years.
Ordinary EOR
- One-size-fits-all Standard framework for any kind of business. No deep understanding of the tech industry’s needs.
- Partial recruitment & back-office Help you hire via job boards at best. Involve multiple intermediaries for ops.
- 1-month+ onboarding They promise to onboard talent in 7 days, but it takes them months.
- Fixed pricing & hidden fees Prepayment. One price for all, always increasing. Surprise FX & offboarding commissions.
- Automation without customization Automated platform. Generic contracts. Payslip errors.
- Customer support in words only Self-help videos & FAQs. Ping-pong emails among depts. Desire to offboard as soon as you’ve onboarded.
Employer of Record Services in Colombia Include
HR Payroll
Accurate and timely salary calculations and payments for your team of developers
Benefits management
PTO, health insurance, parental leave, mental healthcare, WFH availability, gym membership, etc.
Legal framework
B2B & FTE employment options, compliance with the local law, preparation of NDAs and IP rights agreements (on request)
Onboarding/offboarding
Required employee/contractor information collection, employment & termination contracts preparation, payout of final settlements
Mexico 
Colombia 
Poland 
Romania 
Ukraine Alcor – Package Deal for Tech Expansion
Source and hire abroad within weeks
Get recruitment & ops in one place
Pay less as your team grows
Enjoy automation with a human touch
Colombia’s Labor Regulations at a Glance
Key Things about EOR Services in Colombia
Benefits of expanding with EOR to Colombia
No legal entity
An Employer of Record solution in Colombia enables your tech business to expand into new markets without establishing a local legal presence and navigating the bureaucratic complexities of complying with local laws and regulations. Each employment, payroll, and HR aspect is handled by the EOR platforms, allowing you to focus on business growth.
Cost-efficiency
Expansion into new markets often requires juggling multiple providers for legal compliance, payroll, HR, benefits management, and other services. Global EOR platforms manage everything in one place, but Alcor’s EOR services in Colombia raise the bar. It offers tailored pricing for tech companies and allows them to avoid hefty buyout fees and setup costs by building a loyal team of developers.
Compliant expansion
Offshoring locations come with their own unique legal intricacies that need to be addressed to ensure smooth business operations. Labor laws, tax regulations, and employment contracts are all covered by EOR solutions in Colombia. Alcor’s EOR for tech goes a step further, also covering SLAs, NDAs, IP rights protection, and benefits management for developers – delivered by lawyers with IT law qualifications and experience in Colombia.
Accurate & timely payroll
Wondering how to pay your global team accurately and on time? The answer is – via an EOR partner. With Employer of Record services in Colombia, you can easily navigate local payroll rules, tax obligations, deductions, and currency conversions, ensuring timely and accurate paychecks. Hiring developers on different employment contracts? Alcor’s tech-focused EOR handles payroll processing, tax, and social security contributions for both FTEs and B2B workforce in Colombia.
Is using EOR in Colombia legal?
Absolutely! Employer of Record is your legal gateway to hiring software developers without the complexities of opening a legal entity abroad. Your EOR partner serves as the legal employer of programmers on your behalf, taking care of all the admin functions, like payroll, HR, legal, and benefits management. They also assume full liability for adhering to local labor laws, employment rules, and tax obligations, bearing any potential legal risks.
But make no mistake – you remain the one and only real employer of software engineers. From day one, you manage your team directly and integrate it into your culture and practices. All the bureaucracy? Gone. Legal risks and admin burdens? Off your shoulders. Instead, you focus on what matters the most – developing your software product.
So, an EOR service in Colombia is simply a means for tech companies to swiftly expand into new markets and hire a development team compliantly. Exactly what tech companies like BigCommerce, People.ai, Dotmatics, and Sift did. With the help of Alcor, an EOR provider for tech, they have seamlessly and securely built fully backed teams of 30+ developers and fast-tracked their product growth.
Employment contract in Colombia
There are two prevalent models for hiring Colombian developers: employment agreement and B2B contract.
An employment agreement forms an employer-employee relationship governed by Colombia’s Labor Law. For employers, this type of employment comes with tax obligations, including paying payroll taxes and social security contributions (SSC), as well as withholding income tax and SSC on behalf of the employee. Additionally, it’s full of rigorous working terms and employee termination procedures. That’s where Alcor’s IT EOR in Colombia can serve as your lifeline in the deep employment waters.
For employees, an employment contract serves as a safety net, securing their salary amount, benefits, working hours, paid time off (PTO), and termination terms. The downside? Their salary is paid in a local currency, which may be affected by inflation.
A B2B contract is signed between a hiring technology company and a software developer, establishing a contractor-client relationship governed by civil or commercial law. The programmer must register as an independent professional with the Colombian Tax Authority (DIAN) to provide IT services.
Unlike an employment agreement, in B2B relations, the employer is free from tax obligations, while the contractors handle taxes and social contributions on their own or via an EOR vendor in Colombia. The reward is paid in a foreign currency, so inflation and exchange rate fluctuations are not an issue. However, benefits, PTO, and working terms are typically negotiated individually and are often more restrictive than those outlined in the employment contract.
Taxes & payroll in Colombia
An employment agreement typically entails tax obligations for both the employer and the employee.
What does the employer’s share include?
- Social Security Contributions are the means to cover employee benefits presupposed by the Colombian Labor Law. These contributions are determined at the federal level and should be paid monthly through the PILA system. The due date varies based on the employer’s tax identification number (NIT).
Here is the breakdown of the SSCs:- Pension fund contribution: 12%
– Health insurance contribution: 8.5% (only applicable when salary exceeds 10 min. monthly wages)
– Labor risks system: 0.522% - Payroll tax are the employer’s responsibility. The payroll cycle in Colombia is either monthly or bi-monthly, with payments made on the 15th and last day of each month. Basically, payroll taxes are divided into three categories:
- Institute for Family Welfare contribution: 3%
- National Apprenticeship Service (SENA) contribution: 2%
- Family Compensation Fund: 4%
Now, the employee’s share:
- Personal income tax in Colombia is applied in tax units (UVT) and follows a progressive structure, with rates ranging from 19% to 41%. Both locally registered and foreign tech companies that engage Colombian software developers are required to withhold and remit income taxes on behalf of their employees.
- Social Security contributions are equally divided between the employer and the employee, totaling 9%. The employee part includes:
- Pension fund contribution: 4%
- Health insurance contribution: 4%
- Solidarity Fund: 1% (only applicable when the salary exceeds 4 minimum monthly wages).
The second employment model is the B2B contract, which enables tech companies to hire Colombian software engineers as contractors. In this case, paying payroll taxes is not mandatory for the company. Hence, developers should cover:
- Personal income tax under the B2B contract is calculated under the Simple Taxation Regime, which ranges from 5.9% to 14.5%.
- Social Security contributions, including:
- Pension fund contribution: 16%
- Health insurance contribution: 12.5%
- Occupational risks: 0.522%
- Solidarity Fund: 1%
Developer salaries in Colombia
Colombia is a goldmine of skilled software engineers offering a competitive advantage without the Silicon Valley price tag. The average senior developer salary here constitutes about $63,800 per year, with the most in-demand tech talents, such as Mobile Developers, AI Engineers, and Cloud Developers, making from $54,000 to $79,200.
Even the highest-paid tech experts don’t break the bank in Colombia. For instance, senior DevOps Engineers get about $69,500, while a Site Reliability Engineer receives only $88,200 annually.
That’s about 48% savings compared to the US. See yourself:
| Senior Position | Colombia | USA |
| Mobile Developer | $79,200 | $165,000 |
| AI Engineer | $69,000 | $171,600 |
| Cloud Developer | $54,000 | $146,400 |
Annual developer employment cost in Colombia
So, how much should you really budget to hire a software developer in Colombia? To break down the total cost beyond just salary, you need to include:
- annual income of a software engineer,
- taxes, social contributions, and additional payments presupposed by the local labor laws,
- employee benefits package, which typically includes health insurance, professional training, hardware, and corporate merchandise, totaling about $6,500 in Colombia and $15,400 in the US per developer/year,
- recruitment fee, which is typically 20% in Colombia and 30% in the US of the senior developer’s gross annual salary.
Have a sneak peek at the figures:
| Senior Position | Colombia | USA |
| Mobile Developer | $101,540 | $229,900 |
| AI Engineer | $89,300 | $238,480 |
| Cloud Developer | $71,300 | $205,720 |
| These calculations exclude taxes, SSC, payroll taxes, and other payments, as they differ depending on the employment model. | ||
Contact Alcor, your EOR service provider in Colombia, to get precise payroll calculations for your tech positions and discover your true savings.
Employee benefits in Colombia
When hiring software engineers in Colombia, as an employer, you must comply with statutory employee benefits outlined in federal labor laws. They are mandatory for tech specialists working on the employment contract. Failure to provide these benefits may lead to legal troubles, penalties, and fines.
So, what are these statutory employee benefits?
- Social security (covered by Institute de Seguros Sociales), including healthcare, pension, retirement plan, occupational risk insurance, parental leave, survivors benefits;
- Prima de Servicios (13th-month salary) is equivalent to one month of the worker’s annual wage and is paid twice a year, on the 15th day of each six months.
- Cesantía payment is equivalent to one month’s salary per year worked, and Cesantía interest corresponds to 12% of the Cesantía payment.
- Annual leave consists of paid days off, calculated based on the number of years an employee has worked.
- National holidays, including Christmas Day, New Year’s Day, and Independence Day, are all set out in the Colombian Federal Labor Law.
- Severance pay is paid to an employee in the event of termination and varies depending on the reason for termination.
- Transportation allowance for employees earning ≤2x the minimum wage.
There are also supplementary employee benefits, which are optional but good to have if you want to attract top software engineers in Colombia, like:
- Private medical insurance is a common addition to national basic medical coverage, typically covering hospitalization, vision and dental care, emergencies, and other related services. Both employee-only plans and family coverage options are available.
- Life insurance provides financial protection to employees’ beneficiaries in case of death or accidental disability.
- Internet allowance, relevant for international dev teams working remotely;
- Tech courses & English classes to promote professional development;
- Stock options are predominantly offered to C-level experts.
Probation period, working hours & overtime
According to Colombia’s labor law, the standard workweek in the country is 46 hours, with the possibility of overtime, which should not exceed 2 hours per day and 12 hours per week. The overtime compensation is generous – 125% of the standard rate during regular hours and 175% during the night. Additional rates apply for work on Sundays or national holidays.
When you hire a software developer in Colombia, their probation period lasts 60 days. Usually, this time is enough to test the skills and assess the performance of the new hire. We at Alcor guarantee only high-quality tech talent, with 98.6% of our hires passing probation with flying colors. And in the rare case someone doesn’t meet your expectations, we provide a replacement free of charge.
Types of leaves in Colombia
Software developers working on an employment contract in Colombia are entitled to the following paid time off (PTO):
- Annual leave is granted for a minimum of 15 working days after one year of service has been completed. The employment agreement parties may agree to pay up to half of the vacation in cash when certain conditions are met.
- Sick leave is covered by the employer at 100% of the salary for the first two days. Then, from the third day, the Social Security Institute (EPS) covers 66.67% of the salary for up to 90 days and 50% from the 91st to the 180th day.
- Maternity leave lasts for 126 calendar days, which must commence 7 days prior to the expected due date.
- Extraordinary paid leave includes cases of paternity leave, which lasts 14 days and is covered by the Social Security Institute (EPS). Moreover, the employer covers bereavement leave of up to 5 days and education leave (for taking exams) of up to 10 days per year.
- Public holidays in Colombia include 18 paid holidays, as per the annual leave entitlements for the year 2025.
US visas for Colombian developers
When a US-based tech company hires software developers in Colombia, it should consider visa requirements. To travel on a business trip to the United States, a Colombian programmer should obtain a B1/B2 visa, which permits a stay of up to 6 months, depending on the visa’s validity. It allows business-related activities, such as attending conferences and meetings, participating in short-term training or team-building sessions, and exploring partnerships, but not permanent work in the United States.
To get it, a Colombian citizen should
- Complete Form DS-160,
- Pay the application fee of $185,
- Schedule and pass the interview at the nearest U.S. embassy/consulate,
- Prepare documents, including a valid passport, proof of corporate ties, and financial proof (bank statements, sponsor letter, etc.).
But no need to stress over these visa challenges. Alcor, your Employer of Record service provider in Colombia, can seamlessly handle all aspects of visas for your software engineers, just like we did for US tech company ThredUP.
Termination laws in Colombia
The termination of an employee in Colombia is governed by federal labor law, which establishes strict guidelines for the termination process, thereby protecting workers’ rights and posing risks for employers. Luckily, there are EOR companies in Colombia like Alcor that serve as your compliance buffer, ensuring a smooth employee offboarding process.
General termination rules:
The notice period is at least 15 days, unless a severe reason for dismissal (such as violence, revelation of industrial secrets, etc.).
Dismissal can be justified or without cause.
Termination payments:
- Compensation for unused vacation days, pro-rated 13th-month salary, and any pending compensation for days worked but not yet paid;
- 30 days of salary per worked year (Cesantía);
- Severance payments:
- 20 days’ salary for the first year of service and;
- 15 additional days for each subsequent year.
Pregnant women, union members, or employees with health conditions have enhanced stability and cannot be terminated without Ministry of Labor approval or just cause.
Setting up a software company in Colombia vs EOR services
Expanding your development team abroad often means establishing a local legal entity, which varies from country to country based on the local laws of business incorporation. Generally, you would need to navigate complex legal requirements, including selecting the type of entity, registering with relevant authorities, opening bank accounts, and ensuring compliance with local tax and social security laws.
The business incorporation process can drag on for months, draining tens of thousands of dollars in legal fees, registration, and insurance. What is even worse, failing to comply with local laws and practices can expose your tech company to hefty fines or even legal actions, putting your expansion plans at risk.
The EOR solution in Colombia allows you to bypass the lengthy and expensive route of setting up your own entity abroad. For instance, with Alcor EOR for tech, you can hire developers through our readily established legal entities in LATAM or Eastern Europe, saving an average of 3.5 months on business incorporation. Plus, manage admin and legal complexities hassle-free. It’s a faster, safer way to expand your business compliantly without the financial burden.
Alcor EOR in detail
Alcor’s Employer of Record for Tech is a 360-degree solution devised for the compliant and seamless hiring of software engineers in Latin America and Eastern Europe. With no need to open a legal entity, it saves tech companies an average of 3.5 months and tens of thousands of dollars in setup costs. This means you can skip the red tape and build your own team of 30+ developers in just three months, accelerating your software development and unlocking faster growth.
With our Employer of Record solution in geo, you get more than just HR & payroll:
- Tech-focused services: from FTE or B2B employment options and tax incentives to R&D deductions and tailored benefits for developers.
- 100% compliance: get shielded with guidance from our lawyers, who have expertise in IT law.
- Customized pricing: volume discounts, no hidden costs or pre-payment.
- Ongoing in-country support: our Dedicated Customer Success Managers go above and beyond to simplify your business expansion.
- All-in-one place: manage everything in one place, no need for multiple vendors.
But EOR is just the beginning…
You can upgrade it to our software R&D center solution, which includes:
- In-house tech hiring is handled by our 40 recruiters, who headhunt the top 10% of the market developers across LATAM and EE. With our 80% CV pass rate and 2-6 weeks to fill a vacancy, you can scale your team from 0 to 100 engineers in a year.
- Operational support encompasses additional services, including leasing office or co-working space, procuring equipment, setting up IT infrastructure, and employer branding.
The result? A fully backed tech R&D center with a software development team that’s 100% yours from day one.
FAQs
What does an Employer of Record (EOR) in Colombia do?
An EOR in Colombia (Employer of Record) is a trusted third-party partner that legally employs software developers and tech specialists on behalf of international companies expanding to Colombia. The best EOR services in Colombia handle every aspect of local employment – from payroll and tax management to onboarding, benefits administration, and IP protection – enabling businesses to operate compliantly without establishing a local entity. A reliable Employer of Record company in Colombia ensures smooth team scaling, transparent processes, and full compliance with Colombian labor laws.
At Alcor, we go beyond standard EOR solutions in Colombia by combining legal employment with Silicon Valley–grade tech recruitment and comprehensive operational support – helping global product companies expand confidently, hire top local engineers, and stay 100% compliant.
What is the cost of EOR services in Colombia?
The cost of EOR services in Colombia varies depending on the provider and the level of support included. Most EOR companies in Colombia charge a fixed fee of up to $599 per employee per month, covering payroll, legal compliance, and other operational functions.
At Alcor, our Employer of Record solutions in Colombia follow a fully transparent pay-as-you-go model – no hidden fees, no deposits, and full cost control. Plus, as your development team grows, your EOR expenses can decrease thanks to our scalable and flexible pricing structure.
How secure is the EOR in Colombia?
The security of EOR services in Colombia depends on how effectively the provider safeguards your company’s intellectual property, employee data, and compliance with local regulations. A trustworthy Employer of Record company in Colombia ensures full adherence to Mexican labor laws, GDPR, and data privacy standards, minimizing legal and financial risks. The best EOR service providers also include airtight IP rights transfer and NDAs in all employment contracts to keep your innovations secure.
At Alcor, we go beyond standard EOR solutions in Colombia – our in-house legal team provides a full compliance and data protection framework, ensuring 100% transparency and security at every stage. With Alcor as your personal IT EOR in Colombia, your operations remain legally protected and fully compliant – from hiring and payroll to offboarding.
How do you choose the right global Employer of Record for your business in Colombia?
When choosing the right Employer of Record company in Colombia for your tech business, several factors are crucial for ensuring a seamless and compliant global expansion:
1) Tech specialization: Your EOR services in Colombia should have expertise in the tech industry, from hiring software engineers to managing developer contracts, IP rights, and stock options. This ensures they understand the needs of fast-growing IT businesses and meet them.
2) Legal entity availability: Verify that your EOR service provider in Colombia has a registered entity to legally employ developers, handle payroll, taxes, and ensure compliance with local labor laws.
3) Compliance protection: Make sure your chosen EOR vendor in Colombia has a solid in-house legal team capable of mitigating risks like worker misclassification and ensuring GDPR/CCPA data protection compliance.
4) Transparent pricing: Go for an EOR solution in Colombia that provides clear invoices with no hidden fees or buyout costs; such tech EOR providers typically operate on a clear flat-fee or percentage-based structure.
5) Proven reliability: Check the Employer of Record service provider in Colombia for case studies and client reviews on platforms like Clutch, G2, or Trustpilot to confirm reliability, responsiveness, and expertise in ability to handle real-world challenges and deliver measurable results for IT businesses expanding to Colombia.
Who are the best Employer of Record (EOR) service providers in Colombia?
Here’s a short list of the best Employer of Record providers in Colombia:
1. Alcor – founded in 2017, this software R&D center accelerator provides tech-focused EOR services in Colombia, ensuring full compliance with local labor and tax regulations for engineering teams, and preparing NDAs and IP rights agreements to protect source code, proprietary technologies, and product deliverables. The company also supports recruitment, payroll, and back-office operations for Western tech product companies. In addition, Alcor offers an automated platform, AlcorOS, which combines workflow automation with human-led support. Alcor helps you hire the right people and onboard them in days. Nearly 85% of your cost goes directly to your engineers, boosting motivation and retention. Your fee decreases as your team grows. And if one day you decide to insource the team, you can do so with zero exit fee.
2. Remote – a remote-first EOR platform that handles employment, payroll, benefits, and compliance in 90+ countries without requiring you to set up local entities.
3. Deel – founded in San Francisco (2019), Deel offers EOR, global payroll, contractor, tax, and compliance services in 100+ countries. Known for integrations with platforms like Workday, HiBob, BambooHR, SuccessFactors, finance stacks.
4. Rippling – combines EOR services with its HR/IT platform; suitable for tech firms that seek HR, devices, and payroll in one stack.
5. Pebl (formerly Velocity Global) – US-based EOR vendor offering global payroll, and workforce compliance in over 185 countries. In September 2025, Velocity Global rebranded to Pebl and launched an AI-first hiring/pay platform.
6. Papaya Global – a fintech-SaaS company offering payroll, workforce management, benefits, and EOR in 160+ countries.
7. Globalization Partners – a global EOR vendor, that operates in 180+ countries and combines EOR and contractor workflows with Gia, its AI help layer for compliance and HR questions.
8. RemoFirst – EOR platform that manages payroll, taxes, compliance, and benefits for both full-time employees and contractors across 185+ countries.
9. Oyster HR – EOR vendor, offering its services in 185+ countries. Supports hiring, onboarding, benefits, and localized compliance.
10. Multiplier – established in 2020, this EOR vendor covers 150+ countries and offers support in EOR, PEO, and HR consulting for startups and scale-ups.
But note: some companies don’t focus on the tech industry, which means they overlook important aspects like IP rights protection contracts, NDAs, and stock options as a benefit. They also offer a limited range of EOR solutions that exclude full-cycle recruitment, hardware procurement, office leasing, employer branding, and other operational support. In case they are vital for your business, you’d have to either provide them on your own or hire additional vendors. As a result, this additional workload might lead to more spending, coordination struggles, and deadline postponing.
So, are you looking for a better EOR alternative in Colombia – but with real human cooperation and a true tech focus?
Alcor is not just a platform for managing HR & payments. We have become an all-in-one long-term partner for tech product companies, such as People.ai, BigCommerce, Grammarly, Sift, Ledger, Pindrop, Chartbeat, BIScience, ChargeAfter, Tubular Labs, and Teladoc; from domains like AI/ML, ecommerce, cybersecurity/fraud prevention, crypto/fintech, media & marketing analytics, and digital health.
Our solution is designed only for the tech industry:
- hiring in top tech talent markets,
- benefiting from tax incentives for tech, and
- managing all the necessary contracts for tech (NDAs, IP rights protection agreements, etc.).
Alcor lets clients easily track and manage payroll, benefits, and more via its cloud platform, AlcorOS.
However, unlike other global payment platforms, our clients don’t just get robotic support; they work with a dedicated human Customer Operations manager.
Our solution is 50% more affordable than hiring in the US or tech outsourcing, and we offer custom pricing and volume discounts for even greater savings – no setup or hidden fees.
What does Alcor’s software R&D solution in Colombia include?
Our all-in-one solution is a software R&D center that combines:
- Silicon Valley-grade recruitment of 10 to 100 developers per year with our in-house tech recruitment team of 40;
- Comprehensive EOR services for tech companies that cover tech contracts – from IP rights protection to NDAs, as well as other legal support, payroll, and benefits administration;
- Operation services – hardware procurement, office leasing, HR, and IT support.
With Alcor, you get the best of both worlds: the speed of automation and the care of real human collaboration.
What do you get with our tech-focused EOR service?
First of all, you don’t have to spend 3.5+ months setting up your own legal entity and other infrastructure, such as a bank account and a local team, in a new tech market. We’ll hire talent on your behalf right away.
Secondly, our EOR service covers everything: payroll, compliance, benefits, onboarding, offboarding, and other services. We commit to onboarding talent in 10 business days and provide free offboarding.
Last but not least, you’ll hire top tech talent in top tech markets across Latin America and Eastern Europe – with 3.5+ million IT specialists and fast-growing tech industries.
But our solution is not just another HR payments platform – with us, you get EOR and tech recruitment from scratch, with full operational coverage in one place.
Do you use FTE or B2B models of employment when recruiting for tech roles in Colombia?
We hire tech talent in Colombia both on a B2B and FTE basis. Which one should you choose as a tech executive?
B2B contracts are the simplest way to hire remote developers, as you don’t need a legal entity to recruit IT talent in Colombia. You can pay higher net salaries while avoiding costly social security contributions, payroll tax, and personal income tax – your tech workers handle their tax obligations. Alcor can also handle this function, so your developers can have peace of mind. Plus, our lawyers can advise you on contract provisions, ensuring you hire tech talent from Colombia on the best terms for both parties.
Want to hire a software development team in Colombia on an FTE basis? Alcor’s Employer of Record service has you covered. We already have legal entities overseas, so you bypass business incorporation hurdles. Our lawyers will draft tech-focused employment contracts, with local labor law specifics included, and mitigate any risks related to worker misclassification, social security, and tax obligations. Meanwhile, Alcor’s payroll specialists will take care of taxes, social contributions, and accurate salary payouts so you can focus on your product development instead.
Contact us to get more details on this topic!
How do you handle compliance, risk, and data protection?
Alcor acts as a legal shield, ensuring 100% compliance with labor laws in the countries of our operations and IP protection. We protect clients from risks related to worker misclassification, social security, and tax obligations while providing GDPR and CCPA solutions. We also provide the background check service for our clients upon request. What is more, Alcor has a mature policy set consisting of publicly available Privacy Policy, Cookie Policy, Terms of Use, Security Policy, and Code of Ethics.
Is Alcor’s pricing transparent?
We don’t have setup fees, tricky rate cards, or expensive pricing wrappers. Also, our model doesn’t presuppose regular cost increases with no visible returns. Instead, we have custom pricing for each client, set and revise individual compensations, and give contractual volume discounts.
Does Alcor provide a full-cycle tech recruitment service?
Yes. With the help of our 40 in-house tech recruiters and researchers, we hire Silicon Valley-caliber talent from scratch. You can get 5 developers in the first month, 30 in 3 months, and 100 in a year. You get the first CVs of pre-vetted candidates in 5 business days, while one vacancy is typically closed in 2-6 weeks. These are your people from day one who become part of your in-house team and culture, with no buyout process and fees if you later insource.
Which geographies and seniorities can you cover?
We hire top-10% engineers across Mexico, Colombia, Argentina, Chile, Poland, Romania, Ukraine, and Bulgaria – with a focus on senior, lead, and C-level talent. To ensure you get the best talent on the market, we prepare a location strategy and consultation from the start.
What is the quality of your candidates?
To present you with the best candidates, we use an internal database of 253k software engineers and external resources. 80% of the CVs we send to clients are approved; 8 CVs are needed to secure an accepted offer; and 15% of vacancies are closed with the first CV. If a client wants to further improve the quality of the candidate pipeline, we offer an Engineering Manager screening service. As a result, 98.6% of the developers that we hire for clients successfully pass probation.
How fast can Alcor build a development team in Colombia?
We pride ourselves on expeditious tech recruitment – stellar quality within tight timeframes. Alcor’s average time to close a vacancy when hiring a developer is 2-6 weeks. In just 1 day of our cooperation, you’ll get blind CVS. In the next 5 days, we’ll start sending you CVs of pre-vetted candidates whom you’d want to invite for an interview right away.
How long do software developers that Alcor hires stay with clients?
90% of the talent we hire for clients stays with them long-term, while the average tenure of developers is 2.5 years. In case you’re unsatisfied with our hire or vice versa, we offer a 3-month free replacement warranty. What’s more, you can increase the retention rate among your R&D team with the talent retention strategy developed for you by our HR professionals.
Who owns the team and assets, and can we insource later?
You own everything from day one – the team and all procured assets (hardware, software, office/coworking arrangements, and related records). You can insource the team at any time for free, with no buyout or lock-in.
Who manages the team day to day?
You do. We act as the official employer of record (EOR) for compliance and payroll, while decision-making, roadmap, and performance management remain on your side.
What documentation and visibility do we get?
You get full transparency – employment contracts, SLAs, and supporting documentation are shared with you from the start.
How is IP handled, and who can access our code?
IP remains 100% yours, protected by compliant IP rights agreements from day one. Alcor does not access your source code, product docs, or other sensitive materials.
Who bears compliance and other employment-related risks?
Alcor bears 100% of the employment and compliance risks in each country by serving as your legal shield for labor, tax, and regulatory matters.
Does Alcor have any industry awards, or is it featured in ratings?
Alcor has earned top rankings in the IT & business services, HR outsourcing, and legal outsourcing categories on Clutch, become the #1 HR Services Agency on SuperbCompanies, and won The Legal 500 EMEA Awards. We are also featured on Clutch, TrustPilot, G2, and GoodFirms.
What is the team behind Alcor?
We’re a 100+ in-house team with deep bench strength – 40 tech recruiters and 60 back-office specialists across 8 key locations, with 93% CSAT and a 93% Net Promoter Score. Leadership is hands-on and accessible: Founder & CEO – Dmytro Ovcharenko; COO – Viktoriia Keliar; Director of Technical Recruiting – Kassandra Ruiz; Head of Customer Operations – Oksana Petrus; Head of Legal – Oleh Danylchenko. Supporting leaders include Head of People & Culture – Hanna Koval; Senior Legal Adviser (LATAM) – Gilda Orozco; Country Manager, Mexico – Javier Preciado; plus regional recruiting leads in Poland, Romania, and LATAM for on-the-ground execution.
How do you make cross-region collaboration work – overlap windows, English proficiency, and executive availability?
We run teams across the USA, Latin America, and CEE – covering GMT-7, GMT-6, GMT-5, GMT-4, GMT, GMT+1, GMT+2, and more. That footprint lets us engineer reliable overlap windows: typically 5-8 hours within the Americas or Western Europe, and 2-5 hours between US time zones and CEE with modest schedule shifts. English proficiency runs from intermediate to native, with customer-facing roles staffed at advanced/native levels. For leadership accessibility, we align recurring exec-level touchpoints inside overlap windows and keep async updates flowing so decisions don’t wait on the clock.
Companies Scaling with Alcor
Alcor is a reliable partner that meets our hiring needs. We finally hired experienced software engineers in Eastern Europe with strong tech skills and business acumen. Account Managers are awesome!
With Alcor’s all-in-one solution, we got a software R&D office with 15 senior PHP devs and a compliant operational coverage. I really appreciated their transparent pricing structure and deep expertise.
We interviewed a lot of EoR platforms and companies, but Alcor was the only one that provides a combo package of EoR and Recruting offerings. Alcor helped us build a full stack team in 1.5 month.
We wanted to switch from our outsourcing provider, and Alcor has become really game-changing for us. Within a mere 6 months, we got a fully-fledged team of 30 engineers in our own R&D office.
Alcor’s R&D solution eclipses full-cycle recruitment, EOR service, and operational support for our offshore team. Their ‘all-in-one place’ approach is far more cost-effective than I could’ve imagined.
I value their commitment to going the extra mile. We evolved from an outstaff project into an independent company, and Alcor’s support was crucial. They hired and ondoarded 15+ professionals for us.
Expanding our engineering team outside the US with Alcor was a game-changer! They found 15 talented developers and provided seamless EOR & operational support. Great responsiveness to our needs!
Thanks to Alcor, we hired four engineers and a designer that strengthened our team. Beside stellar recruitment, Alcor flawlessly handled our payroll. Their approach was seamless and swift.
Alcor’s flexible model helped us scale from 0 to 30 devs in a year first, and then to 50! No buy-out fees, seamless hiring, and top-tier talent. A hassle-free way to grow without setting up a subsidiary!
Alcor helped us hire the top 5% of tech talent while building our employer brand. They were proactive, never compromised on quality, and delivered. Three years later, our hires are still thriving!
Thank you Alcor team for helping us to source these excellent candidates! We really appreciate all your efforts and timely response!
