With the tech industry grappling with a glaring talent deficit, businesses are in dire need of proficient specialists for their development teams. IT nearshoring emerges as a prime solution for both burgeoning startups and established tech behemoths vying for the best in the market.
At its core, nearshoring allows tech ventures to delegate software development projects to adept professionals in neighboring countries. This not only offers a cost-friendly approach but also provides access to specialized skills that might be scarce locally.
Recent estimates by Forbes (The State Of Tech Staffing: Success Tomorrow Relies On Smart Outsourcing Today (forbes.com)) indicate that software outsourcing is set to witness a whopping 70% growth between 2022 and 2023. Such figures underscore the growing significance of nearshoring in the tech arena. But how does this fit into your tech venture’s scaling plan? Below is a dive into 10 pivotal IT nearshoring stats shaping 2023’s tech landscape, shedding light on the potential of nearshoring to amplify your business operations.
Nearshoring: The U.S. Advantage Companies seeking to bridge technical gaps or acquire a rare tech skill often juggle between onshoring, offshoring, and nearshoring. While nearshoring zeros in on talents from neighboring countries, offshoring typically looks beyond, to distant countries.
Key Distinction between Nearshoring and Offshoring
Nearshoring empowers businesses with swift access to top-tier tech talent, and at competitive rates. The spotlight is currently on Latin America (LatAm) for tech outsourcing, given its geographical proximity to North America, burgeoning tech talent pool, cost-effective rates, and cultural synergies. If expansion is on your agenda, directing your nearshoring efforts towards LatAm could be the key.
IT Nearshoring by Numbers:
- Talent Crisis: By 2030, over 85 million jobs might remain unfilled due to talent shortages, translating to potential losses of nearly $8.5 trillion annually. The U.S., despite being a tech powerhouse, might forego $162 billion annually without the required tech manpower. LatAm, on the other hand, is investing heavily in talent cultivation and upskilling. [Kornferry] Link to: The $8.5 Trillion Talent Shortage (kornferry.com
- Cost Efficiency: Engaging nearshore talents from LatAm can save between 50%-70% of costs as opposed to hiring locally.
- CEO Priorities: A staggering 61% of CEOs earmark “Talent Acquisition” as their prime focus. [GLG Insights] Link to: GLG_CEOSurvey_Guide.pdf (glginsights.com)
- LatAm Leads: With a 161% growth rate, LatAm stands tall as the premier talent pool for global outsourcing. [Deel]
- Top Picks from LatAm: Argentina, Brazil, and Mexico emerge as favorites for remote tech hiring. [Forbes] Link to: How Latin America Is Quickly Becoming A Leading Supplier Of Technology Talent To North America (forbes.com)
- Market Dynamics: A projected 70% growth is anticipated for the software outsourcing market in 2023. [Forbes] Link to: The State Of Tech Staffing: Success Tomorrow Relies On Smart Outsourcing Today (forbes.com)
- English Proficiency: Countries in LatAm, notably Argentina, rank impressively on the English Proficiency Index, promoting smoother team collaborations. [Statista] Link to: Chart: English, The Global Language? | Statista
- Growth in English Mastery: LatAm showcases the swiftest progress rates globally in English proficiency, coupled with substantial investments in STEM education. [Education First] Link to: EF EPI 2022 – EF English Proficiency Index
- Shifting Trends: A considerable 80% of companies based in North America are actively contemplating nearshoring. [Bloomberg]
- Economic Boost: Post-2023, nearshore IT outsourcing could potentially contribute $78B to LatAm’s export sector. [IADB] Link to: Nearshoring can add annual $78 bln in exports from Latin America and Caribbean | IADB
Reimagining Hiring in Economic Slumps:
In uncertain economic terrains, diversifying your hiring approach becomes imperative. The numbers make a compelling case for LatAm as the preferred nearshore destination. A trusted partner can simplify this process.
At Tangonet Solutions, we’ve led the charge in nearshore outsourcing for years, forging strong ties with a myriad of SMEs and tech innovators in the U.S. Our curated team of English-fluent developers from Argentina is primed to propel your business forward. Partner with us for smooth collaborations as we meticulously manage every facet of your nearshore requirements.
Schedule your free consultation with us today!
