What an increase in the Latin American tech workforce means for US-based IT companies

Opinions expressed by Contractor the contributors are theirs.

With the growing demand for niche software development skills and the number of small tech companies popping up, talented programmers and project managers can be in short supply. Latin American countries are seeing an increase in remote development opportunities for workers, with major employers being companies based in the United States and Canada.

Many experts believe that “upskilling,” or providing workers with more advanced skills through additional training and education, is the key to solving economic problems in many countries in Central and South America. South America. According to Hernán Zocco, director of communications for Junior Achievement Americas, 80% of young Latin American graduates have difficulty finding jobs, while 40% of companies complain of having difficulty finding qualified workers to do the work. . Demand is high, and as a result, many software and technology training companies are quickly filling the mentoring and training void.

Related: How Entrepreneurs Create Long-Term Value in Latin America

Educational programs and their effects

One education trying to meet this demand is Oracle Next Education (ONE). With an intensive 6-month training program, graduates of Oracle’s program will have the foundational skills needed to further develop in the niche technology areas of programming. A program similar to Oracle ONE is the IDB Boot Camp, run by the training arm of IDB.

These boot camp programs focus on real-world problems and teach students how to solve them. They also encourage innovation for creative problem solving, while allowing participants to learn valuable computer skills. The programs last between three and six months and the schools work with partner companies to stay up to date on the needs of the software industry as a whole. The program may therefore change as industry needs change.

The future of the Latin American IT industry

Like their counterparts in countries around the world, IT professionals in Latin America are primarily home-based professionals, although some may work in a hybrid office environment. For American companies looking for close-to-the-source partners, this workplace layout can be ideal.

Related: Why Entrepreneurs Look to Latin America for Proximity Opportunities

What does this mean for US-based IT companies?

Many small IT and software development companies have already realized the benefits of a hybrid workforce, combining in-house project management teams with nearshore specialists to complete certain project phases or provide support services. niche. The increase in the number of technology specialists in Latin American countries, who are in the same time zones as their American counterparts and have similar working habits and customs, means that small development companies have access to a larger pool of talent to draw from.

The biggest challenge for small, innovative IT companies is their ability to compete with larger companies that may have entire departments dedicated to specific tasks. Budget-wise, it often doesn’t make sense for small businesses to have the same staffing infrastructure. The increased availability of professionals close to the source reduces a company’s risk when outsourcing some of its work.

Related: Exploring the New Frontiers of OTT Media in Latin America