Two years ago, the world completely changed and companies in every industry had to adapt to a new economy. From Zoom meetings to outdoor dining tents, business leaders relied on their survival instincts to come up with crucial and creative solutions in order to keep their doors open and ride out the storm.
Today, we have a different mountain to climb. Regardless of your definition of a recession, it is clear that we are in one of the most challenging economies we have seen in decades. Survival instincts are once again rising to the surface among companies in every industry. While some solutions may be obvious, others might not be. Labor costs are obviously high, but offshoring that labor to Asia might not be as straightforward as it once was.
This is where nearshoring comes in. With the US inflation rate hovering around 9%, companies that can reduce costs without sacrificing quality will have a stark advantage over those that can’t (or won’t) reduce costs. In the software industry, the talent pool in Latin America is rich. Back in the early 2000s, Mexico began to improve their higher education system and within a few years, their universities were churning out well educated graduates in software engineering. Fast forward to 2022, these graduates now have several years of experience under their belt and even have some significant experience working for large American companies such as Venmo and Shopify. Mexico isn’t the only country that has used this strategy. Brazil, Chile, Argentina, and Colombia are all among the top 50 countries with the best software talent. This is no small feat.
Reducing costs while maintaining high quality standards with a team that shares your cultural values and works in a similar time zone? Sounds like a pretty obvious decision. In the words of the great Jack Sparrow, “The problem is not the problem. The problem is your attitude about the problem. Do you understand?” Once we understand how we can position ourselves to beat out the competition, we will not just survive in a tough economy, we will thrive!
For more information about nearshoring, check out https://bit.ly/3MoDJY4.