There is an 80% increase in several companies investing in the LATAM region and the region is emerging as a promising IT talent hub.
Metropolitan areas like Bogota and Buenos Aires are scaling rapidly. It has a significant talent pool for in-demand IT functions with a growth rate of 22%.
Download the report to learn about talent hotspots, talent cost, and supply in LATAM.
Over the past ten years, Latin America (LATAM) has been a booming center for the information technology (IT) industry.
In addition to being well known for its abundant natural resources, various economies, and rich culture, the area is currently experiencing an increase in international IT investments.
There has been an 80% increase in IT investments in the region in the past two years.
Several factors contribute to this shift:
- The expansion of IT centers worldwide has been fueled by the rising global demand for IT services, digital transformation, and software development. With its proximity to Europe and North America, LATAM is a prime destination for these services.
- LATAM countries have improved their educational systems, particularly in STEM (Science, Technology, Engineering, and Mathematics) disciplines. As a result, the workforce is now more competitive and skilled.
- LATAM provides affordable solutions without sacrificing quality, in contrast to more established IT centers like Silicon Valley or Bangalore. For companies looking to optimize their operations, this cost-efficiency is an important consideration.
Global companies are saving up to USD 2 Bn in IT tech talent costs and operations.
Significance of LATAM IT Talent Hubs
The emergence of IT talent hubs in LATAM represents a fundamental change in the economic environment of the region:
- The economies of LATAM nations are increasingly moving away from resource-based economies and toward knowledge-based ones. In this diversification effort, the IT sector is crucial.
- The IT industry creates a lot of job prospects, especially for young professionals. This aids in addressing the region’s long-standing problems with underemployment and unemployment.
- LATAM nations can compete on a global scale by supporting IT talent hubs, luring foreign investments, and promoting innovation. With a growth rate of 22%, emerging metropolises like Bogota have a significant concentration of IT talent.
Case in point,
- Cisco is operating in over 10 LATAM countries with a focus on networking and cybersecurity. The company has hired over 5,000 skilled individuals saving over US$ 500 Mn+ in costs.
- Amazon has hired over 10,000 software and cloud computing talent in the region resulting in savings of over US$ 1 Bn+.
These two instances demonstrate how recruiting LATAM IT workers helps top companies cut costs by billions of dollars annually. Better RoI has also been achieved as a result of ecosystem relationships.
Bogota, Colombia: The Emerging IT Talent Hub
The Colombian city has changed dramatically in recent years, becoming a vibrant center for IT skills. Several elements influence:
- Bogota’s central South American location offers quick access to the North American and European markets. It acts as a link between these areas, making it a desirable option for IT businesses seeking to access international markets.
- The government of Colombia has actively encouraged the growth of the IT industry. Tax incentives, investment incentives, and simplified rules are just a few of the programs that have attracted IT companies to locate in Bogota.
- Bogota has a strong communications network that includes dependable data centers and high-speed internet connectivity. When it comes to creating a reliable digital ecosystem, this infrastructure is essential for IT organizations.
Government and business organizations have been investing in technology and education since the 1990s, which has led to Bogota’s growth as an IT center.
The city’s universities created specialized programs in computer science, engineering, and allied subjects in response to the changing IT landscape.
The development of regional startups and incubators was crucial to the development of Bogota’s IT ecosystem. These businesses, which were frequently started by young businesspeople, gave the industry more life.
In addition to the above:
- Bogota has an extensive network of high-speed internet and a strong communications infrastructure. It has enabled data-intensive jobs and remote work.
- The city hosts numerous internationally certified data centers that provide secure and scalable hosting solutions and IT services.
- Bogota’s digital infrastructure is supported by a well-developed fiber optic network, which supports local businesses and serves as a gateway for international data flow.
- Bogota additionally draws IT specialists from outside of LATAM. The diversity of the expatriate labor contributes to the city’s cultural diversity and talent pool.
Women in LATAM’s Tech Workforce
Companies in the LATAM region are making efforts to promote gender diversity in the IT industry. Women are being encouraged by organizations and programs to pursue professions in technology, resulting in a more diverse and inclusive workforce.
In contrast to the global average, the gender gap in R&D is less in LATAM. In 2018, there were 45.7% female researchers in LATAM, compared to 28.8% globally. Organizations still find it difficult to accept accountability for the part they play in inequality, though.
Although 61% of Colombian women are interested in ICT, women only hold 17% of ICT roles in the country. There are prospects for specialization in emerging technologies like artificial intelligence, blockchain, and cybersecurity.
Communities like Women in Tech work to promote gender balance in the tech industry and support women in STEM fields. Additionally, businesses are using talent intelligence systems to hire diverse candidates.
Draup conducted a deep dive into emerging IT talent hubs in Latin America with a focus on Bogota, Colombia. It provides an overview of IT investments, operations, and the ecosystem in Latin America.
Read the report for emerging locations, talent costs, talent supply, etc.
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