Economic Downturn and its effect on LatAm (August 2022 Newsletter)

How the Economic Downturn Affects Hiring in LatAm

August 04, 2022

TECLA: connecting the best talent in Latin America with the best tech companies in the world. We just hit 47,000 developers in our network!

The Global Recruiter

- August 2022 Issue

In this issue: The state of the Latin American Tech Market, Managing burnout in remote teams, the new role of HR, and a spotlight on Argentina as an elite talent acquisition pool.

What the U.S. Economic Downturn Means for U.S. Firms Hiring in LatAm

Things have really changed for all of us monitoring the LatAm talent market over the last two years. We all know the pandemic was the primary catalyst, forcing thousands of companies to go remote. But, besides Covid, the dramatic increase in salaries was spurred by a variety of causes that kept feeding the market’s competitiveness until just a few months ago. VC investment was frothy. Startups secured rounds of funds with large visions and lots to build. The economy was pumping. Stocks were keeping their upward momentum. An extremely tight talent market meant companies, filled with cash, were jumping over each other to offer senior tech talent in the U.S. and LatAm more and more money. Throughout the last twenty-four months, salaries for English-speaking tech talent in LatAm (especially for developers) have increased by 50% to 100%. Based on our research at TECLA, candidates are receiving anywhere from 10-15 offers from recruiters every month. We’re still in a tight market for developers and talent at large. But with so many global economic pressures, questions are starting to emerge. Read the full article I prepared for LatamList, here.

If you’re evaluating Latin America as a place to hire, reach out to us for the salary and compensation reports we’ve put together for each country.

Key Industry Insights

 After almost two years since the onset of the global pandemic, companies and their HR managers are faced with an even more critical issue — remote employees are overworked and experiencing major burnout. With the rapid transition from home office, then back to the office (in some cases) only to go back again to home office, plus spiraling inflation ahead due to geopolitical issues, stress continues to pile up. What can companies due to alleviate the stress? This article proposes great options.  HR departments are core to business operations, as teams add new positions, adopt new skills and use new technologies to meet the needs of a rapidly changing workforce. In today's world, HR needs to take a leadership approach rather than a support role in order to successfully guide their time to meet the expectations and avoid burnout. Read the full article here.

Spotlight

Argentina has a thriving tech scene with innovative start-ups, government tech initiatives, and steady growth in the software outsourcing industry. Overall, Argentina’s IT ecosystem makes for a reliable, robust foundation for tech-related collaboration. Here are a few of Argentina’s greatest strengths as a tech hub and software outsourcing destination:

  • Top Tech Infrastructure

  • Robust Developer Community

  • Strong U.S. Outsourcing Track Record

The Argentine Software Developer Profile

Argentina has a large, highly skilled tech talent pool with 115,000 professionals involved in offshore software development as of 2021.

Skilled Tech Talent

Their software developers have excellent tech skills compared to their peers worldwide.

Excellent English Proficiency‍

Argentina is well-suited to become a powerful software outsourcing destination. In addition to first-class talent, Argentina offers advantages for a great collaboration. Read our full country report for more valuable insights.

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What we are loving

Technicality

Surprise, surprise...Anakin did not include the salary.

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