How to tackle an upcoming shortage of cost-effective developers

The demand to hire affordable top talented developers has increased significantly in recent years, and this trend is set to continue in the near future. However, with the onset of a recession, companies may struggle to find cost-effective developers to meet their needs. This is where the advantages of outsourcing software development become more relevant, and nearshoring comes in as a viable solution to find top talent while keeping costs under control.

An overview of the present & close future

Despite the industry having a vast pool of developers with diverse backgrounds and skill sets —ranging from newcomers to seasoned professionals with experience in other industries, and those who have been recently affected by the wave of layoffs— finding reliable and qualified tech talent and English proficiency without breaking the bank can be challenging.

This is because such developers have numerous opportunities awaiting them, and are in high demand, making outsourcing software development a difficult and costly task for both startups and established companies.

Although this might seem like a book for job-seekers, the options for businesses start narrowing down in proportion to their specific requirements.

There is a strong incompatibility between the fast-paced nature of the industry -in which companies still need to keep producing and stay competitive- and the limited budgets they have available to compete for top talent, especially keeping in mind the above-standard expectations qualified workers have nowadays. 

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According to a report by the Manpower group, more than 65% of companies find it challenging to hire candidates for a job.

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This situation forces companies to become creative and explore other options to keep up with the ever-increasing demand for accessible high-end developers. 

In order to successfully navigate this dynamic market, keep their projects moving forward, and stay ahead of the competition, businesses must be strategic in how they manage their resources and find the balance between augmenting their teams with external talent and investing in their existing workforce.

Finding Top talented developers is a competitive advantage

During a recession, many companies are forced to cut back on their spending, which can lead to layoffs, hiring freezes, and reduced salaries. 

While it may be tempting to turn away from technical team augmentation strategies and rely solely on the in-house team until the numbers indicate the levels of profitability are back to normal, this can result in overloading current employees and negatively impacting their stress levels. Which, in turn, can lead to high turnover rates and be detrimental to a company’s success.

Outsourcing software development for startups, or more established companies, is no piece of cake, but those that are able to attract and retain this top talent during difficult times will have a competitive advantage when the economy improves.

By investing in their employees, providing competitive compensation and benefits, and offering opportunities for growth and development, these companies will be better positioned to navigate the challenges of a rapidly evolving industry. They will have a skilled workforce that is prepared to take on new challenges and drive innovation, giving them an edge over their competitors. 

All of the above factors can be a game-changer for businesses looking to stay ahead of the curve and maintain growth in a recession.

Additionally, retaining top talent can help to create a strong company culture and foster a sense of loyalty and commitment among employees, leading to increased productivity and employee satisfaction, all of which will serve them well into the future, as the recovery period begins.

Finding top developers on your own vs. outsourcing senior talent from LATAM: a cost approach

Companies can choose to find top developers on their own, but this can be a time-consuming and costly process. Not to mention the complex administrative burden of managing payroll for remote employees, and ensuring that the operations are being performed following local tax laws and labor regulations, for example. 

Keeping the above mentioned inconveniences in mind, it becomes clear that partnering with an experienced staff augmentation company can be an ideal solution for finding highly sought-after talent while keeping costs in check.  By doing so, companies can ensure a seamless transition and ongoing support for their outsourcing operations

The next question is where to find the right employees, and fortunately, Latin America has emerged as a leading source of talent, for good reason. Its highly-educated workforce often possesses technical skills that are on par with those found in more traditional outsourcing destinations, but with the added benefit of cultural alignment and proximity to the United States.

The difference with top-tier U.S. talent does not lay in quality, but in costs. The region has a diverse pool of skilled developers who are often more affordable than their counterparts in North America or Europe. By leveraging the talent pool in Latin America, companies can keep their projects on track while staying within budget. 

Cost comparison between Latin America, Europe, and the U.S.

While U.S. developers can charge anywhere from $42 to $75 dollars hourly -in New York, for instance- This amount varies depending on location, skills and experience, but the rule is that these numbers drop dramatically when talking about Latin America.

A junior software engineer from Brazil charges $5-8 per hour, hourly rate for a middle software engineer is around $9-$25, and seniors can charge up to $26-$48. These figures go from $8 to $50 hourly when talking about Argentinian developers. 

Average hourly rate for software developers around the world.
Country	Junior	Middle	Senior
North America	$60-65	$70-75	$80-90
Eastern Europe	$8-10	$28-30	$40-50
Western Europe	$21-30	$30-40	$40-50
Latin America	$20-25	$35-40	$50-60

Furthermore, outsourcing to Latin America can also provide benefits beyond cost savings, such as cultural similarities, timezone overlaps, developers with an advanced level of English, and more.  Latin America’s proximity to the United States and shared cultural values can help ensure a smooth and fluent communication between outsourced teams and in-house teams. This can help increase collaboration, and improve overall productivity.

As a result, outsourcing software development to Latin America has become a popular choice for businesses looking to access top talent without breaking the bank.

How to find valuable talent quickly and cost effectively

Finding cost-effective developers during a recession can be a daunting task, but it is not impossible. By outsourcing senior talent from LATAM and partnering with an experienced company specialized in talent acquisition, businesses can successfully outsource software development, and find valuable talent quickly and cost-effectively, giving them a competitive advantage during challenging times.

Perks of coming together with an experienced hiring partner

• Help identifying and onboarding the best talent

Especially in such a fast-paced field as technology, ensuring the candidate doesn’t only meet the requirements but has proven technical skills is critical for the hiring process. 

At BEON.tech we have a vetted pool of professionals who have passed a series of technical assessments, and will undergo several instances to guarantee they are a fit for the company and its culture. 

• Capacity to maintain productivity levels and meet their goals without the burden of hiring and training additional in-house staff.

Outsourcing partners tend to be well-equipped to onboard new hires effectively, thanks to their extensive expertise and resources.

BEON.tech achieves this by providing new hires with clear expectations, comprehensive orientation, mentorship, training, necessary tools and regular communication. This professional and caring approach helps developers quickly acclimate to the workplace and start contributing to the company’s goals right away. 

• Support motivating employees to reduce turnover rates and minimize costs. 

It is more expensive to hire a new candidate than to retain one, that’s nothing new. That is why we have developed the Talent Experience Management Program (TEM™) in place, to provide a world-class experience and keep developers’ engagement levels and productivity through the roof.

By paying special attention to motivation, we ensure the attrition levels are minimal, and that developers can unleash their full potential as part of your team.

• International logistics, simplified. 

By relying on a specialized organization  to take care of contracts, payroll, vacations, replacements, and retention, you will have less worries and more time to ramp up your company’s productivity.

In conclusion, partnering with a renowned technical team augmentation provider in Latin America can provide companies with a competitive advantage by accessing affordable talent, maintaining productivity, and achieving their goals.

Key takeaways: 

• Amid an economic downturn, the ability to retain top talent gives companies a significant competitive advantage.
• Utilizing the skilled workforce available in Latin America enables organizations to maintain their project progress while operating within their financial limitations.
• Companies that invest in their employees, providing competitive compensation and benefits, and growth opportunities, are better equipped to navigate the challenges of a fast-changing industry. 
• A hiring partner offers time-saving recruitment solutions, expert knowledge, and quality hires.
• A recognized IT staffing partner brings market insights and access to a wider talent pool, attracting top candidates and aligning hiring goals with industry needs.