The Growing Role Of Latin America In The Technology Industry - Forbes

I’ve spent my life traveling in and out of my native Argentina. I have worked in Silicon Valley, in Australia and across major cities in Latin America. Throughout these years, I’ve managed multiple diverse teams from all these nationalities, providing software development for leading companies such as Google, HP, Netgear, Viacom, IBM and more, and it’s been fascinating to watch the drastic technology boom in Latam. Part of it is due to the vast economic growth in the early 2010s, led by Brazil, Chile and Argentina, and part of it is a mystery.

Fifteen years ago, "Latin America" and "technology" were not often used in the same sentence. Everyone had eyes on Silicon Valley, watching tech talent flock to San Francisco. I was no exception, as I moved there roughly 10 years ago, taking a break for a few years to work in Brisbane. I went where (I believed) the talent was. Soon after that, however, my view on the nature of talent changed, as did what I thought were the necessary conditions for its growth.

Many countries -- including Colombia, Argentina and Mexico -- were once synonymous with danger and inadequate infrastructure. Through government initiatives, private investments and the drive of local citizens, these countries got involved in the technology race and now produce IT talent that matches the level of those in first-world countries. 

Talent is everywhere, and it arises when the necessary conditions meet people with drive and ambition. I once mentored a young developer from Colombia who arrived at one of our internships through a government program. He came from a (very) rough neighborhood, the likes of which can’t be found in the U.S. or even most other countries in Latin America. He had taught himself how to program with free online classes and tutorial videos and, without formal higher education, had become a reliable developer with an incredible will and discipline. Although his internship at BairesDev was short, we stayed in touch, and last I knew, he was working for a top IT company and traveling all around the world.

The moral of the story for me is that the IT industry has thrived in Latam because it doesn’t require the things we lack -- advanced machinery, “brick infrastructure” or any of the elements that traditional industries need. The IT industry only asks for an internet connection, a computer, hard work and talent. We have plenty of the latter, and Argentina is the eighth-largest exporter of computer services in the world, according to a report from the World Trade Organization.

Latam Outsourcing On The Rise

There are even more statistics to back up my personal experience and hopeful wishes. Deloitte found that Latin American countries are becoming technological hubs of innovation and production at an increasing rate. I’ve noticed a significant shift to Latin American outsourcing in the last decade, beginning with the most apparent reason for outsourcing: Companies want to save money. Accelerance published the 2018 Guide to Global Software Outsourcing Rates, which listed the costs of various technical positions across the globe. Compared to North America, the prices in Latin America are significantly lower. 

Let’s not forget about the language barrier: English is unofficially the official language of the world, but not everyone is fluent in it. Latin Americans often learn English, and now Peru, Chile, Ecuador, Mexico and Brazil have all surpassed China in English proficiency. I was excited to see that my native Argentina was home to the most proficient English speakers in Latin America.

The education systems have improved dramatically over the last decade as well. The hubs in Latin America -- including Santiago, Mexico City, Buenos Aires and Bogota -- produce highly educated, technologically savvy individuals. Their governments have recognized the excellent cost-benefit investment that tech training represents and how it can bypass the many infrastructure shortcomings they have as third-world countries, and they are pushing hard to create as many qualified students as fast as possible. Furthermore, companies in the United States often want an outsourcing team that can work with them in real time, which is extremely difficult when working with Indian or Chinese organizations.

Latin American Governments Pushing To Become An IT Outsourcing Hub

Based on a report from Frost & Sullivan (via Data Economy), Latin America’s IT industry revenues were expected grow 20.3%  from 2016 to 2017, partly thanks to a variety of initiatives brought forth by governments. Many of my colleagues enjoy Argentina’s free higher education for all adults. Plus, Argentina introduced Program.AR, which is a government investment to help teachers around the country integrate programming into public school curriculums. 

Moving north, each time I visit Mexico or Colombia, I learn about a new initiative. Mexico had over 113,000 engineer graduates in 2015, which was the eighth-highest in the world. In Colombia, the Ministry of Technology (MINTIC) launched a program called Plan Vive Digital that has trained over 6,000 students, and the country is covering up to 80% of the training costs for individuals who want to study information technology. Now, developer salaries in the country have jumped 20-30% this year alone, and 95% of developers in the country are already employed

The Future Of Latin America And Tech

Governments across Latin America realize that the investment in IT initiatives helps their countries grow exponentially, improving the lives and futures of their people. I am proud of this growth and honored to be a part of it. I can already see the results in these few years: The United States and Europe are recognizing the talent of the software engineers in Latin America and acknowledging them as peers. I’ve already seen the start of a technological revolution across Buenos Aires, Santiago and Mexico City, and I have faith this will not only revitalize our industries and set a higher bar for our new generations, but also show the world what Latin America can do and what talent and hard work can achieve.

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