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The Role Talent in Latin America Plays in U.S. SaaS Companies’ Growth & Success
A guide for SaaS Founders and Executives to grow their teams, save money, and lead their companies to success.
In the ever-evolving landscape of global tech, Latin America has emerged as a powerhouse, notably with countries like Brazil and Colombia becoming key players in U.S. product development. The surge in U.S. companies hiring in the region increased by a remarkable 50% in 2023, underscoring Latin America's growing significance.
Tech Innovation in Latin America: A Paradigm Shift
Latin America, often underestimated for its innovation potential, has witnessed a 161% year-over-year increase in tech recruitment in 2022. The pressing question now is how this tech-forward region can transform into a central hub for U.S.-focused product development.
Beyond Borders: The Latin American Advantage for U.S. Companies
Countries such as Colombia, Peru, Argentina, and Brazil have captured the attention of U.S. tech companies seeking accelerated growth. This interest aligns with the remote work explosion post-2020, where 89% of contracts from January to December 2022 were for remote workers.
Seamless Collaboration Across Time Zones
One practical advantage of hiring Latin American talent is the alignment of time zones with U.S. companies. This geographical proximity facilitates real-time collaboration, a critical factor in agile and fast-paced tech environments, leading to more efficient workflows and quicker decision-making processes.
Addressing the Talent Gap
As the U.S. faces a shortage of software developers and IT professionals. By 2030, the number of software job vacancies will rise by almost 22% and the average growth rate of software developers in the USA is only 8%.
According to the Bureau of Labor Statistics, the deficit of software engineers in the USA is anticipated to reach nearly 1.2 million by 2026, leading to a surge in the salaries of software developers in the country. - Making the US Tech-talent Market more expensive.
Latin America's highly educated workforce is positioned to bridge this gap, offering a cost-effective business strategy and reducing reliance on Asia.
The Rising Trend of Nearshoring
Tecla reports that 80% of U.S. companies consider nearshoring a critical business strategy. Over the past three years, large employers in North America expanded their remote workforce from South America by 70%. This trend continued in 2022, positioning LATAM as the hottest region to hire from.
Seizing the Opportunity
Latin America's connection with U.S. product development is transformative. As the region evolves into a tech-forward powerhouse, collaboration with the U.S. becomes pivotal for fostering innovation. The opportunity is ripe, and it's time to seize it.
You may find interesting: Top 10 Reasons Why SaaS and Hi-Tech Hire Talent With Us
Connect with Michael C. Bertoni on LinkedIn. If you would like to learn more about how SaaS Talent can help your SaaS or Hi-Tech business, set up a Free Strategy Session with us by clicking here, or set up a meeting using the calendar below.