The worldwide tech sector, and emerging technology in particular, is flourishing and expanding exponentially. In the United States specifically, the domestic tech sector has seen unprecedented growth in recent years, including pre-pandemic double-digit growth among four of its most productive firms. This reality equates to a great deal of positive momentum for economies throughout the world, and a market ripe with tech employment opportunities. While these positive aspects show no signs of waning, there is a downside. Throughout the world, companies in need of top talent in areas of software development, programming, tech engineering, and other specialties are coming up short. Why is this? It’s a simple case of supply and demand. While this reality has been in place for some time, it appears the pandemic has been somewhat of a driver for a portion of the tech sector’s explosive growth most recently. Specifically, this applies to tech services focused on extensive digital transformation among all industry sectors and Software-as-a-Service (SaaS). In short, our collective “new reality of work” has been a catalyst of sorts for innovation in all things pertaining to remote operations and communications. Irony at its best is in play when something as devastating as the global pandemic results in both economic devastation and stimulation across various sectors. There is no question that the appetite for well-trained tech talent in the U.S. is robust. The demand side of the equation is high and is skyrocketing. Some industry projections indicate potential demand for 500,000 new stateside tech sector jobs by 2029. Continued evolutions in how we do business both domestically and internationally likely means newly developed specializations yet unknown will become a reality, as well. In fact, according to Tech Republic and other industry sources, demand for tech talent outpaced supply by nearly 78 percent in the U.S. This statistic reflects a total of 65,000 new computer science graduates in 2019, compared to 307,000 new tech jobs opening the same year. Each year, The Computing Technology Industry Association (CompTIA) aggregates a wide breadth of U.S. tech industry-related data, compiling it in their annual Cyberstates™ report. Important highlights from the 2020 report (reflecting 2019 data and 2021 projections) include the following:
So, the clear challenge for companies is finding the best way to fill the tech employment gap. That’s where nearshore software development and tech outsourcing comes in. Latin American countries rise to the top as a prime option for finding a deeper pool of available software development and engineering talent. Yet, how do they compare to top developers in Silicon Valley? Latin American countries are an enormous source of new and established top tech talent. Mexico, for example, has a tech workforce prepared to fill the gaps in the United States’ extremely competitive tech market. According to Ivemsa.com, Mexico’s STEM (Science, Technology, Engineering, and Math) workforce is growing rapidly, with 20 percent of Mexican college graduates earning technology and/or engineering degrees (approximately 110,000 graduates yearly), surpassing the U.S. educational market. Couple this reality with lower education costs in Mexico, and you have a strong argument for nearshore software development and other Latin American tech outsourcing. Some have referred to the cities of Monterrey and Guadalajara as the “Silicon Valley of Latin America,” and while their tech sectors are also seeing tremendous growth, the pace falls short of Mexico’s talent production, leading to a surplus of highly trained and capable individuals in the tech sector. The cost of higher education in Mexico is far less than in the U.S., so we’re likely to see that talent surplus grow in the coming years. Because tech jobs are more scarce south of the border, the cost of tech talent in Mexico can be two to three times cheaper than in the U.S. Additionally, Mexico’s IT outsourcing industry has been growing at an annual rate of 10%-15% and is considered to be the third-largest exporter of IT services globally. In reflection of this shift, the cities of Monterrey in Nuevo Leon and Guadalajara in Jalisco have been coined, the “Silicon Valley of Latin America.” Columbia and Costa Rica follow close behind Mexico when it comes to available tech talent.
At number8, it is our mission to provide cost-effective, nearshore software development and tech engineering options to agile organizations. Working with a nearshore firm helps organizations avoid various communications, culture, and time-zone barriers associated with outsourcing to places like China or India. Ultimately, nearshore development offers you the perfect balance of top talent, daily collaboration, and cost-savings. When you’re ready to consider customized nearshore development and tech staff augmentation, number8’s full-stack team of tech consultants is prepared to and ready to listen to your needs! Pursuing nearsourcing support through number8 is clear:
When your organization needs a deeper bench in software development and programming, number8 is ready to listen and help place exceptional tech talent within your team. We specialize in finding the very best candidates for the job and handling all the details that go along with that on your behalf. No more interviews and onboarding delays with interns and temporary hires. Let us be the eighth person on your team – and we’ll get the job done right in no time.
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