The ongoing software developer shortage in the U.S. has brought into sharp focus the need for CIOs to look for better and more sustainable ways for staffing critical roles. The extended period of global instability and insecurity since the beginning of this decade has also seen a growing shortage of skilled software developers. A vital resource needed to keep pace with the rapid advances in technology and to enable digital transformation in traditional industries, the shortage of software developers is only expected to worsen.
IDC predicts a shortfall of four million developers by 2025, while the U.S. Bureau of Labor Statistics expects that almost 165,000 developer jobs will need to be filled each year through the end of the decade.
As a consequence, companies are struggling to fill critical roles. More than one-quarter of companies spend nine or more weeks filling in-demand software engineering, data analytics, data science, and UX design positions, according to a recent report by IT training company General Assembly. Due to difficulties sourcing talent, companies are spending an average of almost $30,000 to fill in-demand tech positions, the report said.
Not surprisingly, CIOs are seeking urgent solutions to this problem, and are turning to mobilizing existing employees – also known as “quiet hiring,” – re-thinking hiring and benefits strategies, and expanding outreach for talent. At the same time, the looming threat of recession is driving businesses to prioritize cost optimization, which in some cases, has led to mass layoffs.
Nearshoring: a strategic and sustainable solution
In this scenario, nearshoring is emerging as a strategic and sustainable long-term solution to bridge the talent gap without being affected by short-term economic trends. The advantages offered by Latin America’s geographic proximity – overlapping time zone, shorter travel duration from the U.S., no or low cultural and language barriers – are complemented by the high literacy rate, large talent pool, robust business infrastructure, and innovation ecosystem cultivated by top nearshore locations such as Costa Rica and Colombia.
Businesses are wising up to this: new delivery center openings by software service firms in Latin America remained strong in 2022.
However, selecting the right partner is critical for a successful nearshoring strategy. Below are a few essential criteria to consider when choosing a nearshoring partner, to ensure they can meet your organization’s current and future software development needs:
Experienced provider with mature practice: Do your due diligence when shortlisting potential nearshoring partners, find out how long they have been in the business and their experience in software development and sourcing talent for the practice.
Talent quality and scalability: While a low price point is attractive, it should not take precedence over whether your partner has the ability to provide quality talent and can scale team strength up or down as required. Also, examine that the provider is able to provide talent with the qualifications and certifications required for your project needs.
Location: Not all nearshoring destinations are created equal. While some, like Costa Rica, have an abundance of high-quality, English speaking software developers available throughout the state, in other states, qualified talent is concentrated around the major cities. Find out, and ideally visit, the locations from which your service provider operates, and learn more about the recruitment methodology and sourcing techniques they use to find the right talent.
Customized, flexible approach: A key consideration is whether a provider follows a cookie-cutter approach or is flexible enough to take into account each customer’s unique challenges and requirements. Boutique nearshoring firms like Auxis offer customized, white glove services in this space, always prioritizing quality talent and services over cost, irrespective of customer size.
The long-term benefits that can be gained by working with a trusted, experienced nearshore software development partner like Auxis far outweigh the short-term benefits of low price points offered by outsourcing to smaller, newer peers on the nearshore or further across the globe. Below are a few reasons which make Auxis’ software development practice one of the most attractive nearshoring propositions:
Learn more about Auxis’ nearshoring capabilities and our Costa Rica delivery center.