A territory of the US since 1898, the island is under the same federal protections and regulations as the mainland.

During the last 25 years, all types of companies have outsourced their Information Technology (IT) and Software Development equipment either on land, near the coast or on the high seas. There are advantages and disadvantages for all of them and it is important to understand the ramifications of each of them before deciding which is the most appropriate for your company. Let’s define the options first.

It refers to the outsourcing of a software development provider in your own country. For example, think that your company is in New York and you manage IT needs in Arizona. You are working in different states, but in the same country.

It refers to the needs of software development are handled in neighboring countries or that are within walking distance. For clients in the United States, this means countries such as Mexico, Canada and Puerto Rico.

It refers to the fact that software development needs are managed abroad and in different time zones. On a regular basis, US companies contract services in Asia or Eastern Europe.

Probably the most common outsourcing method in the US has been offshore, mainly to countries like India (who has not spoken with a John with an Indian accent?).

But when you are a company in the United States, this model can become a headache. In addition to the cultural barrier, the difference in schedules, intellectual property problems, political instability and physical distance can sometimes cause delays in projects. These delays eventually mean losing money.
This is when Puerto Rico comes in. A territory of the US since 1898, the island is under the same federal protections and regulations as the mainland. It also shares the same currency, banking system and financial regulations. The island offers countless benefits for companies seeking to outsource, such as:
The island is the home of the Mayagüez Campus of the University of Puerto Rico, one of the best engineering schools in the United States. In fact, Lockheed Marteen, Accenture, Boeing, GE and Procter & Gamble, among others, attend job fairs at the Mayagüez Campus and at the Polytechnic University of Puerto Rico to obtain resources. Puerto Rico has qualified engineers who can meet the needs of any client. The developers on the island follow the best practices of software engineering and US standards.
Puerto Rico has a lower cost of living than most technology centers. This means that the hourly wage is lower than in the US. The average salary of an engineer in the United States is around $ 100,000. While in Puerto Rico that salary can be between $ 35,000 to $ 75,000. Outsourcing also means cutting costs such as vacations, medical care and other expenses. This represents a saving of up to 30% to 50%.
The geographical location of Puerto Rico is perfect for “nearshoring”. The island is only 4 hours away from most US cities and reaching them costs less than $ 400. In addition, PR has strong links with Latin America and travel from these territories are also very economical. This makes business easier, without sacrificing quality and security.

Download the infographic and change the way you can get a successful result with less money in a US territory.

Before 1898, Puerto Rico, like most of Latin America, was a Spanish colony. This means that the locals have many in common with the countries of Latin America. However, in 1898 Puerto Rico became US territory and most citizens also speak English fluently and are very linked with American culture. This eliminates the cultural barrier that generally causes misunderstandings and delays when subcontracted.
The tax incentives that have the most impact for software development companies are Act 20 and Act 73. Both offer surprising tax benefits, exemptions, and tax rates that help us make development prices in Puerto Rico more competitive.
Forget about getting lost in the exchange of currency. Although many years ago the monetary system used in Puerto Rico was different from that of the United States, since 1899 it has the same currency and banking systems, with the American dollar being its official currency. This greatly facilitates any financial process.
As a territory of the US, the laws and federal protections cover everything that is produced on the island, so your IP is protected by copyright and federal patent laws. According to the UPS change of 2013 in the Supply Chain Survey, 55% of the high-tech companies mentioned “Improving control over quality and intellectual property” as their main driver to PR.
INVID has a Small Business Administration-SBA 8 (a) certification of the Federal Government and the National Minority Suppliers Development Council, among other technical certifications that come from the Federal Government. This only means more benefits for you and your company.


There’s still more! Download the free eBook and find out why Puerto Rico is the best place to outsource your software development projects.