LATAM Talent is on the Rise: 3 Factors Driving US Companies South

LATAM Talent on the Rise: 3 Factors Driving US Companies South
Michael Morris, CEO|Co-Founder, Torc
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The technology staffing industry is undergoing a significant shift that is bringing Latin American (LATAM) talent to the forefront. LATAM is poised to become the go-to destination for US companies looking to hire skilled technology professionals in the coming year. Three key factors are driving why this region is emerging as an ideal technology staffing solution.

‍Increased Demand for Nearshore Talent
The shift toward accessing Latin American technology talent is being driven by increasing demand from US companies. For many years, companies relied on two primary staffing models - outsourcing projects to offshore vendors or hiring talent within commuting distance of their offices.

However, priorities have changed. Location is no longer the dominant factor. Instead, companies are focused on finding talent with the right skills at a cost-efficient rate in similar time zones. This changing perspective has led US companies to actively look to nearshore locations in Latin America by tapping into the tech talent pools in these countries.

The demand is expected to continue rising rapidly in 2024 as more companies recognize they can access world-class tech talent without requiring engineers to be based in Silicon Valley or other domestic tech hubs. Skill sets and time zone alignment are now what matter most.

‍Technology Talent Supply & Talent Networks
The supply side of technology talent in LATAM is robust and rapidly expanding. There’s a deep pool of experienced software engineers, developers, and other tech professionals available for hire.

The emergence of talent networks is the gateway. Talent networks leverage intelligent, AI-infused platforms to efficiently connect companies with qualified technology professionals.

Unlike traditional staffing models that rely on manual screening and matching, talent networks use algorithms to quickly identify candidates with the right skills and experience. They build large communities of vetted talent that can be tapped on-demand.

AI-based matching enables precise screening based on skills, work history, coding languages, and other relevant criteria. This gives companies flexibility and scalability in sourcing a skilled workforce from Latin American countries.

‍Alignment Between CTOs and CHROs
Expanding staffing models to include talent from Latin America is also being fueled by an alignment between chief technology officers (CTOs) and chief human resource officers (CHROs). They’re collaborating to revamp traditional staffing models and implement new recruitment and retention strategies.

With remote work here to stay, companies realize there isn't really a talent shortage - but rather a need to change existing talent acquisition strategies. The focus is no longer about requiring that people are located within 60 minutes of the office or outsourced project. CTOs and CHROs are modernizing teams by prioritizing talent from the most seamless time zone that aligns collaboration, increases productivity, and improves culture.

Daily standups, ongoing Slack conversations, and an openness to remote work environments are elements making virtual teams a success. Companies are embracing how technology leadership and HR leadership need to jointly develop strategies to access skills and talent outside of traditional employment structures.

‍Exponential Growth Expected in 2024
2024 is predicted to be a year of massive growth in US companies leveraging developers from Latin America. At Torc, we have witnessed an 800% increase in our LATAM developer community, a reflection of the overall explosion of skilled tech talent available in the region.

Demand is rapidly increasing from US companies to tap into cost-efficient, high-quality developers in similar time zones. Supply is booming as Latin American universities produce more qualified graduates, and people invest more in their own skill and career development.

Remote work is now the norm and it’s fueling an evolution of innovative talent acquisition strategies.