In our era, all innovation is driven by technology. For IT companies, the engine powering their continuous growth is the software engineering team, but assembling it with the right pieces is one of the most difficult challenges. The shortage of qualified tech talent has created what many describe as an “obstacle course” for hiring managers and decision-makers.
In the first chapter of our ebook, The Path to LATAM’s Tech Talent: Nearshore Staff Augmentation in 2025, we explore the key challenges facing today’s tech industry and how to navigate them.
What is the skill gap in the tech industry?
The skill gap in the tech industry refers to the mismatch between the technical skills employers need and those available in the workforce. It stems from rapid technological advancements, a lack of specialized training, and evolving demands in areas like AI, cybersecurity, and software development. This gap intensifies the challenge of hiring qualified talent.
Why is there a tech talent shortage?
We can identify three main obstacles when it comes to hiring tech talent:
The Global Talent Shortage
According to the ISC2 Cybersecurity Workforce Study, there is a staggering shortfall of 3.9 million professionals globally in this field alone. This talent gap not only slows innovation but has cost the U.S. economy an estimated $162 billion in unrealized output. Adding to this issue is the projected 25% growth in demand for software developers between 2022 and 2032, making tech one of the fastest-growing job categories.
High Turnover Rates
Retaining tech talent has never been more challenging. Industry turnover rates average 13.2%, and replacing an employee can cost anywhere from 40% to 200% of their annual salary. Companies are still dealing with the lingering effects of The Great Resignation, The Great Layoff, and other trends shaping today’s workforce dynamics.
Rising Salaries
Inflation and fierce competition for talent have driven tech salaries to new heights, with increases averaging 5-7% annually in North America. These pressures make scaling teams locally an increasingly expensive endeavor.
LATAM: A Jumping-Off Point to Overcome These Obstacles
While these issues are significant, they also present an opportunity to rethink how and where we build engineering teams. Latin America has emerged as a vibrant talent hub, offering skilled software engineers who can work in real-time with North American teams at a fraction of the cost. With salaries up to 55% lower and a growing pool of talent, nearshore staff augmentation is proving to be a game-changer for companies seeking to overcome hiring roadblocks.
Explore More in Our Ebook
If you’re ready to take the first step toward overcoming these obstacles, our ebook offers actionable strategies and in-depth insights to help you build high-performance software teams in LATAM.
Download The Path to LATAM’s Tech Talent today and transform today’s hiring challenges into growth opportunities.
