US-based Companies Coming to Latin America for Technical Positions
The global demand for tech talent is continuing to increase beyond the sector’s ability to fill all available roles. This is especially true in the United States, with some studies claiming that tech and science jobs outnumber qualified workers by around 3 million.
The scarce supply means the competition for talent is fierce, with start-ups and smaller businesses often struggling to attract the best local talent. The competition means salary demands are going up, meaning the larger and more established companies are the main contenders for homegrown tech talent.
But this doesn’t mean smaller companies and start-ups must miss out.
Latin American Tech Talent
According to the US Bureau of Labor Statistics and other research, 17,600 new positions at tech companies became available in the United States, just during December 2022 alone. But while there is a discrepancy in tech talent numbers in the United States, there is an abundance of such talent in Latin America. In fact, more and more US-based companies are seeking out the talent they need from Latin American countries.
Costa Rica, for example, has experienced a tech boom in recent years. There has been a lot of investment in the technology sector, and it is helping local businesses thrive as well as US-based companies who outsource technology-driven projects.
Outsourcing has been around for a long time now and has been known as ‘offshoring’ when US companies hire teams from Asia. The alternative ‘nearshoring’ is now growing in popularity thanks to the rise of the tech sector in Latin American countries. There is an abundance of tech talent that is easier to communicate and collaborate with thanks to shared time zones and cultural similarities.
In fact, the ease and familiarity that North American businesses enjoy while working with Latin American tech talent has led to some Latin American start-ups struggling to fill roles with local talent because so many are working with larger US-based companies instead.
Why US-Based Companies Are Coming to Latin America
The time zones and cultural similarities mentioned above are two of the most important drivers behind US-based companies seeking out tech talent in Latin America. Having overlapping time zones makes real-time communication possible, with the offshore alternative usually requiring long waits between exchanges due to the working days in America and Asia not matching up.
The cultural similarity between the working environments in the United States and Latin American countries is also vital. It is a great benefit to communication and collaboration, ensuring there are no misunderstandings or miscommunications. The straight-talking culture of countries like Costa Rica ensure that any issues with a project are identified and addressed immediately, instead of ignored and allowed to snowball.
Outsourcing to a Latin American tech company is also more cost effective and flexible than recruiting permanent hires. Nearshoring provides US-based companies with all the tech talent and skills they need for the exact amount of time that they need them. Firms can scale-up and scale-down as and when it is required, making nearshoring to Latin American countries one of the best options for US-based companies to grow and expand their reach.
If you are interested in finding out more about how our technical experts can help your business, please contact our team at +1 800 974 7219 ext. 202.
Alternatively, complete our short online form here and a member of the team will be in contact with you.