LATAM: The new nearshore staffing center.
Although the pandemic caused by COVID 19 is still alive, for us, in our day to day life, it seems to be behind us. And what is left now are the new ways of relating.
The impact that the pandemic has had on the software outsourcing sector is impressive.
Although many considered that the language barrier and the apparent distance of NorthAmerica vs. SouthAmerica work models would represent a major problem for professional and remote work, our recent reality showed us how software development outsourcing can be used effectively to respond to sudden business shocks and to then adapt for resiliency and strategic long-term value.
This new reality has left us with new statistics.
According to the Accelerance report: “Global Trends and Rate guides” for 2022, a growing majority of companies (60%, compared to 56% the year before) currently outsource at least part of their application development.
There are 5 vital elements that make the option of nearshore IT staffing drive Latin American talent to the world.
Cost
In comparison, the salary gap between the U.S. vs. any Latin American country is still big. With the national economy at a sensitive time, U.S. companies are looking to gradually reduce costs, and Latin American IT talent is proving to be an efficient and remote solution to many of their current problems.
Demand
It is no secret that the demand for IT talent is growing exponentially and there seems to be no end in sight. Finding versatility in the different IT profiles needed is not easy and even less so when the search is limited to one country when you have a whole continent at your disposal. Searching for profiles in different countries allows you to find an invaluable technical richness.
Skills Gaps
To keep pace with digital transformation, companies are bolstering in-house resources with skilled outsourced developers. They’re able to bring in much-needed specialized expertise at a lower cost than what’s available on the domestic market.
Mid-Market
For many small and mid-sized companies, costs are always a sensitive issue, especially in a national economic crisis. These companies especially look for senior IT Latin American profiles that allow autonomy and therefore confidence in the tasks, as well as a significant price reduction, especially when compared to local market prices.
Time Zone Benefits
Latin American talent has a great advantage over the rest of the world concerning time zone, it is truly nearshore. In countries like Colombia and Ecuador, the time zone is the same as Central Standard Time in the United States, and countries further south like Argentina, Brazil and Uruguay are only 2 hours ahead. Companies will be able to work with remote teams but practically in the same time zone.
What used to be a myth, is now a latent reality.
With so many people forced to work exclusively remotely, corporate from the US has become far more willing to embrace off-site resourcing and increasingly comfortable managing dispersed teams.
Companies are also listening to their employees and seeking to provide the most flexible working conditions possible, leaving employees free to choose between 100% remote, 100% on-site, or a hybrid model. However, most employees, understanding the benefits of working from home, prefer to work remotely, generating digital dynamics that allow people from anywhere in the world to perform their tasks professionally and accordingly.
Although most of the freelancers/contractors in the technology sector are usually from India and Asia, the percentage growth of contracts is concentrated in Latin America. Countries such as Uruguay, Argentina, Colombia, Brazil, and Costa Rica are seeing more and more of their local talent choosing to work for U.S. companies, earn their salaries in dollars, and live in their home countries.
The growth in demand for programming languages globally, and the emergence of digital education schools in Latin America, will continue to reinforce the process of digitization and globalization of our talent.
#LookSouth, we have a lot to offer.