The software development talent shortage—How businesses found a solution

A looming crisis awaits businesses that do not take swift action: a shortage of software developers is expected to reach 4 million by 2025, the demand for them far exceeding the supply. Companies that find a competitive edge in this situation stand to reap the rewards, and many have already done so.

Tech hiring from Latin America skyrocketed 286% in 2021, more than anywhere else. Companies that don’t look to Latin America to meet their talent supply needs risk losing out on a key source of innovation. Three reasons explain why businesses choose LatAm as their talent solution—and you’re about to find out.

Embracing the future of work: the power of remote teams.

With nearly 70% of full-time U.S. workers having worked remotely during the pandemic and many still doing so, many businesses are adjusting their workplaces to fit a new hybrid model that fits both in-person and remote employees, especially software developers, as these are the ones leading the trend of only accepting remote offers.

Because of this, most work interactions and processes are now made on the internet, and the software development market has become 100% digital and, thus, global. The internet knows no frontiers, and business owners now understand that they will waste their time and resources if they don’t make their recruitment digital and global as well.

Not only has the rise of remote work given businesses increased flexibility in terms of where they can hire developers, but many have chosen Latin America because it also gives them the flexibility of remote workers being available during the same business hours regardless of the  country. 

Latin America’s time zone overlaps with the U.S. and even many locations of the world. This means that Latin American developers are available during business hours just like local team members, making it easier for companies to collaborate and communicate with them.

With the increasing use of remote workers, businesses that don’t consider Latin American software developers are also at risk of missing out on a pool of talented professionals that can bring a unique and diverse perspective to their teams. Let’s see why.

The untapped talent pool of extraordinary developers

From Buenos Aires to Mexico City, Latin America is a hotbed of tech talent, with a vast pool of skilled software developers who are changing the game.

Right now, Colombia is producing around 13,000 IT and engineering-educated individuals per year.

Argentina has a skilled talent pool of 115,000+ programmers and is ranked #1 for English skills in LATAM,  also boasting more than 20,000 STEM graduates annually.

There are 500,000 software developers in Brazil and growing, and most of them can also boast high English proficiency.

With its talent pool of over 700,000 developers, Mexico has become a hub of software engineering talent within Latin America. Mexican STEM and ICT graduates have increased an average of 7% annually since 2014, with more than 320,000 fresh graduates every year.

These are only a few of the many countries in Latin America producing thousands and thousands of professional software developers each year, as we personally have experience with elite developers from Honduras, Puerto Rico, Dominican Republic, and more. This is currently powering the vast yearly revenue of software development in LatAm.

There are a number of reasons why Latin America has a growing talent pool of software developers. One of the main reasons is the strong tradition of technical education in many Latin American countries. Many schools in the region offer programs in computer science and related fields, producing a large number of young minds going to college to become skilled developers.

But not only are there many developers in Latin America, but these professionals stand out from the rest for many reasons that captivate U.S. business owners.

One of the standout characteristics of Latin American developers is their strong problem-solving skills. Many developers in the region have learned to be resourceful and creative in finding solutions to technical challenges, this may be due in part to the fierce competition the tech companies leading them have faced to become recognized on the global market.

Latin American developers also tend to be highly collaborative and team-oriented. In many parts of the region, there is a strong culture of working together and supporting each other, which has translated into a strong focus on teamwork in the tech industry. This can be a valuable asset in a field where effective collaboration is critical to success.

The proven connection between ethnic inclusivity and profitability.

Ethnic diversity in the workplace brings a range of benefits and is an important factor in the success and competitiveness of a company. 

Having a diverse workforce that is representative of the communities in which a company operates can help to build trust and foster a sense of belonging among employees and customers.

Also, a diverse team may be better able to communicate and collaborate with a diverse group of clients and partners, leading to stronger relationships and more successful business outcomes. Moreover, a diverse workforce can also create a more positive and inclusive company culture, which can lead to increased employee retention and satisfaction. This can ultimately result in improved productivity and overall performance.

Because of this and many more reasons, an analysis made in 2019 shows that companies with higher diversity in ethnicity outperformed less diverse teams by 36% in profitability. 

As a result, many businesses have welcomed the rich and culturally diverse developers from Latin America. Companies with diverse teams have a competitive advantage in today’s global marketplace, as they are better able to understand and serve the needs of a diverse customer base.

More and more CEOs, CTOs, and VPOs are hiring professionals from LatAm and  seeing the ROIs right away, and there is no sign that this trend will stop. With a shortage of technical experts worldwide, especially in the US, Latin America is in a good position to collaborate with firms.

Key takeaways

• During the second half of 2021 alone, tech hiring from Latin America increased by 286% – more than any other region worldwide.
• Remote work allows companies to be more flexible and scalable in their hiring and staffing needs. This can be especially useful for companies that experience fluctuating workloads or need to scale up or down quickly.
• By hiring remotely, companies can tap into a wider pool of developers and have access to a larger pool of skilled professionals to choose from. This can be especially beneficial for companies that may have difficulty finding the right talent locally.
• Hiring remote Latin American developers can also bring a diverse range of cultural perspectives and experiences to the company. This can be beneficial for companies looking to tap into new markets or expand their global reach.

Damian Wasserman

Damian is a passionate Computer Science Major who has worked on the development of state-of-the-art technology throughout his whole life. In 2018, Damian founded BEON.tech in partnership with Michel Cohen to provide elite Latin American talent to US businesses exclusively.