Hiring Scene for Tech Latin America in 2023 (December 2022 Newsletter)

Prepare Your Company for Tech Hiring in 2023! 🌎

December 02, 2022

TECLA: connecting the best talent in Latin America with the best tech companies worldwide. We just placed 200+ IT professionals so far this year!

The LatAm Recruiter

- December 2022 Issue

In this issue: 2023 LATAM Tech hiring scene, How automated jobs are taking over the industry (research), Tech Layoffs 2023, Tools for your Remote Team, and a Spotlight on Peru as an elite talent pool.

 

2023 LATAM Tech Hiring Scene

Undoubtedly, it has been a hectic year for the industry. As 2022 draws to a close, it's important to understand Latin America's emerging tech hiring trends while you plan this year's upcoming talent acquisition strategies. Being aware of these trends will help your team attract better talent in the region, and help you retain developers in the long term.As the software developer shortage keeps rising in the U.S. and Canada, there is an increasing demand for LATAM talent. Certain factors contribute to this, including the rapid development of technology trends and increased demands on the diversity of technical skills candidates should possess.

Given this situation, more companies look for talent beyond their borders, and Latin America is the top choice worldwide - tech hiring from Latin America increased by 286% in the second half of 2021 alone. This tilt is because Latin America has a talent pool of one million software developers known for their top technical skills, English proficiency, and budget-friendly costs.

  • According to the Harvard Business Review, a whopping 80% of job candidates want work-from-home options, and remote hiring in LATAM has grown this last year exponentially. According to the Deel State Hiring Report 2022, Latin America had ten times greater growth in remote work than any other region and is the most sought-after remote tech workforce worldwide. In Latin America, the countries that most hired people from other countries were Mexico, Chile, and Uruguay. The countries with the highest number of workers employed by international companies were Argentina, Brazil, and Mexico.

  • With the LATAM software industry skyrocketing, achieving a $22.1 billion revenue in 2021, it's becoming a hot spot for talent recruiters. Nevertheless, it's understandable to be cautious about recruiting talent overseas. However, given all this growth, it's worth a try. That's why recruitment partners are becoming essential for connecting with tech talent in LATAM. With expert guidance from the local tech scene, it's easier to attract suitable candidates for your company's tech requirements. Given the global economic downturn, recruitment services can help a business by lowering its cost-per-hire and accessing talent much faster.

  • Latin America tops the list of regions for hiring contractual workers at an outstanding 161%. As businesses are looking to cut costs given the industry's recent unpredictability and economic crisis, contract workers can be an excellent choice to fill positions due to its flexible hiring model while accessing a worldwide talent pool.

Key Industry Insights

A study undertaken by McKinsey found that up to 30% of the hours worked globally could be automated by 2030. As artificial intelligence and robotics replace human employees, a study predicts that 5 million occupations will no longer exist in the upcoming years. However, this transformation will also have a positive impact because it will create more than 2 million jobs, and uniquely human skills will become more valuable. Ironically, genuinely human skills will be highly relevant, from leadership to creativity, to elevate that technology and not eliminate their people. Therefore, a report released by Accenture Strategy argues that employers should focus on upskilling their staff since training in soft skills will significantly reduce the number of jobs lost to automation.

Tech layoffs will continue in 2023. This year we had a LinkedIn filled with experienced tech talent looking for another job overnight when giants like Amazon, Meta, Twitter, Netflix, Stripe, and other smaller organizations laid off part of their employees. According to Andy Jassy, CEO of Amazon, the company will cut more jobs in early 2023. As other developed economies enter a recession, the layoff season will likely continue into the new year. On another note, industry experts have also stated that this impact will prevail until inflated salaries return to the pre-pandemic level.  

Spotlight

🇵🇪 Peru is becoming a stellar choice for companies choosing to nearshore their software development overseas. Not only does it have an on-growing tech scene, but also candidates in this region are ranked as some of the most skilled and educated in Latin America with world-class developers that can transform any team for the better.

 

Highly Educated Developer Pool

Peru has a vast talent pool that has reached a whopping 38,000+ developers, which led the country to have an innovative startup scene with more than US$160 million in recent deals. Its tech ecosystem is rapidly growing, thanks to government and private sector-led initiatives.

Innovative Startup Scene & Community

Followed by Chile, Peru has one of the highest entrepreneurship rates in Latin America, scoring a 22%, higher than the world median. This country is known for having a thriving startup culture, and studies predict that two companies are in the early stages of becoming LATAM’S 50th unicorn.

Skilled Tech Talent‍

Peruvian developers have one of the highest-ranking programming languages essential for building outsourcing partnerships and meeting companies’ diverse needs. Additionally, it has top-notch developer skills in various IT areas, including databases, cloud computing, mobile development, and data analysis.

Peruvian programmers rank highly in areas such as:‍

  • Databases (99%)

  • Data analysis (95%)

  • Operating systems (93%)

  • Statistical programming (92%)

  • Cloud computing (90%)

  • Mobile development (85%)

Peru is a first-class software outsourcing destination that can achieve top collaboration with overseas companies and one of the most innovative startup cultures in LATAM.

Future of Work Gems

Tools for your remote team, new trends on remote hiring, and curated insights.

Cool Tools

  • theGist: Focus on your work by summarizing Slack channels and threads using generative AI.

  •  Formester: Solve all your forms by creating surveys and quizzes within minutes.

  •  NotionStandup: Receive daily reports about your team's current and overdue tasks through email, Slack, Discord, Webhook, Zapier, and Telegram.

What we are loving

Technicality

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