In the modern digital economy, nearshore outsourcing offers businesses in the US access to highly skilled IT workers at competitive prices by contracting agencies in Latin American countries. This market will continue to grow in 2023, boosted by infrastructure developments in the region and the increasing popularity to work from home. A recent article outlines ten trends tipped to define the market over the course of this year.
- “Nearshoring” Makes Headlines – As geopolitical events give countries in the Global North reasons to reconsider their dependence on Asia, the term ‘’nearshoring’’ has seen more media coverage, referring to manufacturing as well as IT services.
- Next-Gen Technology – Investment in new technologies remains a priority of CTOs, and nearshore developers are building teams of experts with desired skills in emerging tech, especially AI/machine learning.
- Flex Hiring – Low-code/no-code tools will make it possible for teams of generalists to handle the bulk of software development, with skilled specialists being brought on for flexible, highly specific work.
- Saturation Starts in Smaller Nearshore Hubs – Some mid-tier cities that were popular for offering nearshore resources are seeing wages (and living costs) rise. Remote workers just starting their careers may consider new locations to reside.
- ESG Compliance – Social responsibility is becoming more important for investors and clients, so expect environmental, social, and governance issues to be a bigger factor in partnerships.
- Gradual Digital Transformation – The drive to adopt new technologies may slow down somewhat given the economic downturn, but companies who push ahead will still gain valuable advantages.
- Worker Retention – Labor market conditions have made it harder to retain software workers. Higher wages, benefits, and incentives should be employed to keep top talent on board.
- Mexico’s New Government – Mexico’s national elections are due in 2023, and businesses interested in the region should watch the government’s potential successors for their effect on business.
- The “Pink Tide” – This refers to the new wave of left-leaning politicians that took Colombia, Brazil, and Chile. This year will prove whether these governments will establish a good relationship with foreign investors.
- Rise of the Caribbean – The Caribbean is developing as a region to the point where countries can offer not only call centers to North America, but also more sophisticated services.
It’s clear that nearshore IT services will continue to offer value to US businesses in 2023, with developments in Latin America staying the focus of the market.
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