ToGrow is a US company with its engineering hub in Medellín, Colombia. We design and build custom software, web platforms and mobile apps for startups and growing companies. You work directly with the engineers who write your code, in your business hours, from the first call to ongoing support.
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A custom software development company that builds with you, not just for you
Choose a custom software development partner by checking seven things: portfolio, work culture, pricing model, communication, time zone, tech stack and scalability. For US startups, a nearshore team in Colombia shares business hours at a lower cost than local hiring. ToGrow projects typically take 3 to 12 months and cost about $5,000 to $50,000.
Key points
- The median pay for a US software developer was $134,040 in 2025, before benefits and recruiting (BLS).
- Nearshore software development keeps your team in your hours; offshore usually doesn’t.
- Ask for case studies with a named client, a defined scope and a real timeline.
- Talk to the engineers, not only to sales, before you sign.
- Colombia’s software and IT services exports passed US$2 billion for the first time in 2025 (Fedesoft).
Most US startups don’t fail at software because the idea was wrong. They stall because the product grows faster than the team building it. One freelancer becomes a bottleneck, a no-code tool hits its limit, or the only developer who knows the code leaves.
Hiring your way out is slow and expensive. The US Bureau of Labor Statistics put the 2025 median pay for software developers, QA analysts and testers at $134,040 a year. That covers one person, not the design, front-end, back-end and testing roles a real product needs.
That is why many founders turn to a custom software development company. A custom software development company is a firm that designs, builds and maintains software around one business’s processes, instead of selling the same product to every customer.
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Talk to our teamThe hard part is choosing well. Proposals look alike, every agency promises agile delivery, and the real differences only show up months into the build, when switching partners is costly.
This guide compares in-house, outsourced and nearshore models, lays out seven criteria to evaluate any development partner and lists the red flags that should end a sales conversation. It also explains why Colombia has become a serious option for US companies. It’s written by ToGrow, a US company that builds custom software and AI automation for clients in the United States and Latin America.

In-house vs. outsourcing vs. nearshore: which development model fits a US startup?
An in-house team gives full control but is the slowest and most expensive to build. Offshore outsourcing lowers hourly costs but adds time zone gaps and handoffs. Nearshore software development gives you a dedicated team in a close time zone that works your hours, usually at a lower cost than local hiring.
In-house makes sense once the product is proven and you need people who will own the code for years. Before that point, a full local team ties up runway in recruiting, salaries and benefits while the roadmap waits.
Offshore outsourcing works for well-defined tasks that don’t need daily conversation. For an early product, where priorities change weekly, a team that’s asleep during your workday turns every question into a 24-hour loop.
A nearshore dedicated development team sits between the two. You keep real-time calls, sprint reviews and fast decisions, and you can grow or shrink the team without a hiring cycle.
| Factor | In-house team | Offshore outsourcing | Nearshore team |
| Cost | Highest: salaries, benefits, recruiting | Lowest hourly rates | Lower than local hiring |
| Shared working hours | Full | Little or none | Full or near-full |
| Time to start | Months of hiring | Fast | Fast |
| Control over the build | Full | Limited, often through an account manager | High, with direct access to engineers |
| Communication | Same office | Async, with delays | Real-time calls |
| Best for | A proven product you’ll own long term | Well-defined, low-touch tasks | Startups building or scaling a product |
We recommend a nearshore team if you’re building or scaling your first product, because you need speed and control at the same time and can’t yet carry a full local payroll.
What are the 7 criteria for choosing a custom software development partner?
The seven criteria that matter most are portfolio, work culture, pricing model, communication, time zone, tech stack and scalability. Score every candidate on all seven before you compare prices, because a cheap partner that fails one of them usually ends up costing more.
1. Portfolio: can the partner prove similar work?
A strong portfolio shows named clients, the problem, what was built and how long it took. Screenshots prove design skills; documented projects prove delivery.
Ask for at least one project close to yours in scope. ToGrow’s Apple Travel case study documents a 20-week build for a Medellín travel agency with more than 20 years in business. The custom CRM brings leads, quotes, payment plans, itineraries and advisor performance into one system.
2. Work culture: will you work with the people who build it?
Work culture decides whether you talk to engineers or to a chain of account managers. The best partners give you direct access to the people writing your code.
Ask who will be on your project and whether they are employees or subcontractors. ToGrow doesn’t hand projects to subcontractors: clients work directly with the engineers who build and maintain their software.
3. Pricing model: is the cost tied to a defined scope?
A trustworthy pricing model ties every dollar to a defined scope and shows what each stage includes. Be wary of a single number quoted before anyone has mapped your process.
As a reference, ToGrow prices custom software development from around $5,000 for basic apps to $50,000 for enterprise systems. Every quote is built on what the project actually needs.
4. Communication: how will you see progress?
Good communication means one point of contact and working software at every stage, not just status reports. You should be able to test the product while it’s being built.
Agree on the rhythm before signing: how often you get a demo, who joins and where feedback goes. A partner that hides the product until a final reveal leaves you no room to correct course.
5. Time zone: how many working hours do you share?
Time zone overlap decides how fast blockers get solved. If your developers answer the next morning, a two-hour question becomes a two-day delay.
Colombia runs on UTC−5 all year and doesn’t change its clocks for daylight saving time. A Medellín team shares New York’s clock in winter, runs one hour behind it in summer, and works two to three hours ahead of the West Coast.
6. Tech stack: can you maintain what they build?
The right tech stack is one your future team can hire for and maintain. Mainstream, well-documented technologies keep you from being locked into one vendor.
ToGrow builds with React, Node.js, Go, Java, Python, Angular, Vue.js, Laravel, .NET, PostgreSQL and MongoDB, among others. The stack is chosen for the product, not for the agency’s convenience.
7. Scalability: can the team grow with your product?
Scalability means two things: software that handles more users and data, and a team that can add skills as the roadmap grows. Ask how the partner adds people and what happens after launch.
ToGrow structures each dedicated team around the skills a project needs and keeps the same engineers on it after launch. When a product later needs AI agents or automated workflows, the team adds them through ToGrow’s AI automation service, built on Smart Go Up, the platform ToGrow owns.

What red flags should you avoid when hiring a software agency?
The clearest red flags are a quote before discovery, a portfolio with no names or timelines, no access to the engineers and no plan for after launch. One red flag is a reason to slow down. Two or more are a reason to keep looking.
- A quote arrives before anyone asks how you work. Without discovery, the number is a guess, and change orders fill the gap later.
- The portfolio has no client names, scope or timelines. Design screenshots don’t show whether the team can ship.
- A salesperson answers every technical question. You may not meet the engineers until problems appear.
- There’s nothing to test until the end. A long build with no demos hides problems until they’re expensive.
- Code ownership isn’t in the contract. Confirm in writing that you own the code and the infrastructure accounts.
- A full platform is promised in a few weeks with no scope. Speed without scope usually means corners cut in testing.
A good partner also tells you what not to build. ToGrow’s scoping stage ends with a list of what’s worth building first and what’s better left alone, with the reasons for each.
Why is Colombia becoming a nearshore software development hub for US companies?
Colombia is becoming a nearshore hub for US companies because of shared business hours, a fast-growing software export industry and established tech centers like Medellín and Bogotá. For a US startup, a software agency in Colombia can work in real time at nearshore costs.
The export numbers back the trend. According to Fedesoft, Colombia’s software and IT services exports passed US$2 billion for the first time in 2025. The wider digital industry exported US$2.463 billion that year, up close to 10%.
ProColombia reports that the software and IT sector made up 3.0% of national GDP in 2023, with sales of US$2.17 billion. That made Colombia the third-largest software and IT market in Latin America, after Brazil and Mexico.
Banco de la República adds context: Colombia’s service exports grew nearly 9% in 2025. ICT services, which include computer and software services, made up 37% of the country’s modern service exports that year.
Medellín has built its tech industry on purpose. Ruta N, the city’s innovation hub, was created in 2009 by the mayor’s office and the utility company EPM to connect global companies with local talent, universities and researchers.
ToGrow chose Medellín as its engineering hub for that reason. You can meet the team behind ToGrow, a US company with more than a decade of experience building digital products for clients in the United States and Latin America.
How does ToGrow work? A 4-step process for custom software
ToGrow builds custom software in four steps: discovery, scope, build, and run and improve. You see working software throughout the project, and the same engineers who build it keep it running afterward. Typical projects take 3 to 12 months, depending on scope.
- Discovery: map how work moves. ToGrow maps every manual step and every system that doesn’t connect. You keep the written map whether you hire ToGrow or not.
- Scope: decide what’s worth building. You get a prioritized list with real cost and real savings. It also names what isn’t worth building, and why.
- Build: deliver in stages. You see working software at every stage and give feedback as it grows. There is no six-month build with no visibility.
- Run and improve: same engineers, ongoing. The team that built the system monitors, tunes and extends it. You keep one point of contact instead of a support queue.
The full process, with what you receive at each stage, is on ToGrow’s homepage.

Book a discovery call with ToGrow’s engineers
Tell us what your product needs and where your current setup falls short. In a 15-minute call, ToGrow’s team will tell you honestly what’s worth building custom, what can be automated and what isn’t worth touching. The consultation is free.
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Book a discovery callFrequently asked questions about choosing a custom software development company
What does a custom software development company do?
A custom software development company designs, builds and maintains software made for one business, such as CRMs, internal tools, web platforms and mobile apps. Unlike a SaaS vendor, it shapes the product around your processes. ToGrow also handles maintenance after launch, with the same engineers who built the system.
How much does it cost to hire a custom software development company?
The cost depends on scope and complexity. At ToGrow, projects range from around $5,000 for a basic app to $50,000 for an enterprise system. Each quote is built on a defined scope, so you know what’s included before development starts.
What is nearshore software development?
Nearshore software development means hiring a team in a nearby country with a similar time zone. For US companies, Latin America is the main nearshore region. You get real-time collaboration in your business hours, usually at a lower cost than hiring locally.
What is a dedicated development team?
A dedicated development team is a group of engineers assigned to your project and structured around the skills it needs. It works as an extension of your company: the team defines requirements with you, designs the UX/UI, builds the product and tests it before launch.
Why hire a software agency in Colombia?
A software agency in Colombia works in US business hours, because the country runs on UTC−5 all year. Colombia also has a growing software export industry, which passed US$2 billion in software and IT services exports in 2025, according to Fedesoft.
How long does it take to build custom software?
A custom software project usually takes 3 to 12 months, depending on scope. ToGrow delivers working software in stages, so you test the product as it grows. The Apple Travel CRM, which covers leads, bookings, payments and itineraries, took 20 weeks.
Sources
- US Bureau of Labor Statistics, Occupational Outlook Handbook: Software Developers, Quality Assurance Analysts, and Testers (2025): https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm
- Portafolio, interview with Fedesoft’s president on Colombia’s software exports (2026): https://www.portafolio.co/tecnologia/el-pais-necesita-una-politica-publica-moderna-para-la-economia-digital-ximena-duque-presidenta-de-fedesoft-494706
- ProColombia, Colombia: The New Tech Hub of Latin America (2025): https://www.fintechfutures.com/press-releases/colombia-the-new-tech-hub-of-latin-america-drives-economic-growth-through-software-and-it-sector-expansion-presented-by-procolombia
- Banco de la República, service exports report (2025 data): https://www.banrep.gov.co/en/print/pdf/node/66045
- Nearshore Americas, on Medellín’s Ruta N innovation hub: https://nearshoreamericas.com/medellin-still-performs-at-a-high-level-despite-new-pressures/
ToGrow Agencia · November 2026