The current demand for tech talent in the USA and Europe keeps experiencing robust growth, driven by several key factors. According to CompTIA’s “State of the Tech Workforce 2024” report, the tech workforce is expected to grow twice in US as fast as the overall US workforce over the next decade. This expansion is fueled by the increasing integration of technology across various sectors, with tech professionals in high demand not only within tech companies but also in organizations across every industry sector.
The demand for tech talent is also driven by advancements in AI and machine learning, increasing reliance on data-driven decision-making, and the ongoing digital transformation across industries. These trends demand skilled professionals that can develop, implement, and manage complex technology solutions, thereby supporting business growth and innovation. According to the National Center for Education Statistics (NCES), there are only 65,000 new computer science graduates in the US each year and over 260,000 new average job openings per year alone. The gap between supply and demand keeps becoming alarmingly wide.
The International Data Corporation predicts a global shortfall of several million developers by 2025, potentially resulting in $8.5 trillion in unrealized annual revenues by 2030. Furthermore, the US Bureau of Labor Statistics projects a 25% growth in jobs for software developers, QA analysts, and testers from 2022 to 2032.
Facing this significant gap, US and European companies are increasingly looking beyond their borders to find skilled engineers. One promising solution lies closer than expected: Latin America (LATAM).
Latin America (LATAM): A Major Hub of Tech Talent
LATAM offers a wealth of advantages, making it an attractive region for sourcing software developers. The remote work boom has created unprecedented opportunities for LATAM to become a leading exporter of tech talent. This shift not only drives economic growth in the region but also promotes knowledge exchange and cross-border collaboration. Talented individuals can now access better job opportunities without leaving their communities, a phenomenon known as “e-migration.”
Over the past three years, North American employers have expanded their remote workforce from South America by 70%. In 2021 for example, LATAM professionals were the most requested globally, with a 156% growth in demand. This trend continued in the following years, solidifying LATAM as the hottest region to hire from.
The Factors Driving the LATAM Boom
Several factors contribute to LATAM’s rise as a prime destination for tech talent. Investment in education has significantly increased in the region. Between 2000 and 2020, education expenditure rose on average from 3.9% to 4.5% of GDP and from 14.9% to 17% of public expenditure, aligning with the UN’s Sustainable Development Goals. Countries like Brazil, Argentina, Costa Rica, Mexico, and Colombia led the way in investing in education, fostering a robust STEM (science, technology, engineering, and mathematics) curriculum.
For instance, Chile’s National Plan for Digital Languages encourages students to pursue careers in computer science and engineering from an early age. Uruguay’s initiatives in infrastructure, connectivity, and digital teaching resources have further strengthened the region’s tech education.
International companies such as Google, Meta and Amazon are actively investing in LATAM’s technology education, bolstering the region’s tech ecosystem. While US universities produce fewer than 50,000 software engineers annually, Mexico and Brazil together graduate 168,000 software engineers each year, highlighting the emphasis on tech education in the region.
Why LATAM Developers Are a Perfect Fit for US and European Companies
Several reasons make LATAM developers an excellent fit:
- Time Zone and Cultural Alignment: LATAM shares significant time zone overlap with the US and Europe, facilitating real-time collaboration. Cultural similarities also ease communication and integration.
- Booming Tech Scene: despite economic and political challenges, LATAM’s tech market is thriving. In 2022 for example, Brazil’s IT market was valued at $45 billion, Mexico’s at $28 billion, and Peru’s at $6.5 billion.
- Language Proficiency: LATAM developers consistently rank intermediate to high on the English Proficiency Index, minimizing language barriers. European companies located in Spain or Portugal can easily find LATAM remote software developers that speak Spanish and Portuguese.
- Remote Work Explosion: with the shift towards remote work, around 90% of tech workers express a desire to work remotely at least part-time.
Success Stories and Future Potential
LATAM has produced more than 40 unicorns — companies valued at over $1 billion — with 6 reaching this status in 2023 alone. Major tech giants such as Amazon, Airbnb, Dell, GoDaddy, Google and Netflix have long-term operations in Brazil, further enhancing the region’s tech credentials.
LATAM tech talent offers a compelling solution to the US and European tech talent shortage. With the right education, seniority, and experience, they are proficient in English, Spanish and Portuguese and operate within the same time zones. The combination of high-quality talent, cost-effectiveness, cultural alignment, and favorable business conditions makes LATAM a strategic choice for companies. By tapping into this rich talent pool, US and European companies can drive innovation and growth, leveraging the immense potential LATAM has to offer.
Why beecrowd?
At beecrowd, we assist US and European companies in selecting and hiring top-tier LATAM tech talent. With over 1 million users, 70% of whom are based in LATAM, beecrowd is your gateway to the best talent in the region.
Our teams come from leading IT service providers like Accenture, Cognizant, and Capgemini, ensuring we understand your sense of urgency and needs. Our managers bring 25+ years of LATAM nearshoring experience.
Headquartered in LATAM, beecrowd enables you to hire directly from the source, avoiding the additional costs that US and European tech talent providers will charge you.
