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Ever thought about how keeping your finger on the pulse of industry trends and stats can be the difference between success and falling behind in the fast-paced world of nearshore software development outsourcing, LATAM hiring, and custom development? Well, in the ever-evolving industry of tech and business, it's pretty vital. Things change so quickly in these areas. To stay competitive, you've got to stay informed. So, head from 2023 to 2024, this blog post is here to be your guide. We'll lay out 25 must-know software development statistics that'll give you insights into what's happening in these industries. We're talking about everything from how nearshore outsourcing is growing to the shifts in Latin American hiring trends and the ever-changing landscape of custom development. These numbers are your ticket to making informed decisions and shaping the future of your business endeavors.
25 Nearshore Software Development Statistics
In this section, we bring to you 25 vital outsourcing statistics, specifically targeted to bring much-needed information for companies opting for nearshore software development outsourcing.
By 2024, it's expected that there will be around 28.7 million software developers worldwide. This means that many people around the globe will be working on creating and improving computer programs and applications. These developers play a crucial role in shaping the technology we use every day, from mobile apps to computer software.
Latin America is now a cost-effective IT talent hub for US companies, offering skilled software developers for rates of $45-65 per hour.
Mexico's low unemployment rate, which stands at just 2.9%, plays a big role in luring companies to set up nearshoring operations there. This means that there are very few people in Mexico who don't have jobs, making it an attractive place for businesses. They like it because they can easily find people to work for them, and having enough workers is really important for nearshoring to work well.
By the end of 2023, the market for software outsourcing is expected to experience a significant increase, with a growth rate of 70%.
Nearly 57% of big international companies, the ones that have more than 2500 workers, choose to get help from nearby nearshoring services. This means they hire people or companies from nearby countries to help them with tasks and projects. It's like asking your neighbor for help when you need it!
In June 2023, the average salary in Mexico's formal job sector went up by 5.9% compared to the previous year. This increase in pay is important because it affects a trend called nearshoring, where companies think about moving their operations closer to where their main customers are. One of the main reasons for this is that companies want to save money on labor costs, and Mexico's salary growth is a factor they consider when making this decision.
When a business decides to opt for nearshoring, it means they are choosing to get some of their work done in a nearby country rather than in their own country. This decision often helps them spend less money. In fact, they can save a significant amount, usually between 30% to 50%, when compared to hiring companies in their own country. So, it's like they're getting the same work done but for much less money.
Approximately 26.9 million people work as software developers all over the world, and it's anticipated that this number will increase to 28.7 million by 2024.
The shortage of tech experts is a big problem that's happening now and will become even more serious because there just aren't sufficient people for the job. Every year, there are over 189,000 tech job openings, and we can't find enough local workers to fill all those positions. The numbers for software developer jobs are especially alarming, making outsourcing the only real solution to meet the increasing demand.
Increased Adoption: In countries like the United States and Canada, more and more businesses are deciding to work with companies in Latin American countries such as Mexico, Costa Rica, and Brazil. It's like they're making new friends in these countries to help them with their work. This is becoming a popular choice because they think it's a really good idea to work with these neighbors in Latin America.
As of 2023, there are approximately 27.7 million software developers worldwide. These individuals play a crucial role in developing the technology we use every day, from the apps on our smartphones to the software that powers our computers.
In the year 2024, the practice of creating computer programs and applications from companies located in other countries is ready to grow all around the world. It's expected that the money these services generate will reach very high levels, something which we haven't seen before.
Mexican developers are among the best in the world when it comes to their coding skills. They are ranked second globally as per statistics, showcasing their expertise in popular programming languages like Python and C/C++. This means that Mexican programmers will continue to show progress as nearshore developers in 2023 and beyond.
The market is expected to grow by approximately 3 to 5% each year from 2021 to 2024. As a result, the market is likely to get a little bit bigger every year during this time period.
In 2023, Argentina is placed 69th on the Global Innovation Index, and it excels in areas like software, biotechnology, and nanotechnology, among other fields.
The number of businesses seeking to hire specialists from Latin America has risen significantly, with a remarkable increase of 156%. This means that more and more companies are now considering the option of outsourcing skilled professionals from this region to meet their specific needs.
Approximately 80% of companies located in North America are seriously thinking about nearshoring.
The experts think that the global software outsourcing market will become $40.16 billion bigger by 2025. It means more and more companies will hire other companies from around the world to do work for them, making this kind of business even more popular in the coming years.
The Inter-American Development Bank believes that nearshore outsourcing has the potential to increase Latin America's annual exports by a significant $78 billion.
Argentina possesses the highest level of English proficiency in all of Latin America. This is due to the country's focused English education system, including mandatory English courses in schools, as well as a culture that fosters an appreciation for English-speaking countries. The widespread fluency in English, supported by a thriving expatriate community and a strong focus on British and American culture, solidifies Argentina's reputation as a leader in English language skills in the region.
Companies in North America are looking for workers in Central America who can help them with their tasks and projects. They want to find talented people close by, in countries like Mexico or Costa Rica, to work together effectively. This helps them save time and money, as they can collaborate more easily with these nearby teams.
Recent research suggests that the software industry in Latin America, known as LATAM, is on a promising path. In 2023, it's expected to grow by 9.1%. It's predicted to continue, with an annual expansion rate of 6-8% until 2030. So, over the next several years, we can expect the software industry in LATAM to keep growing, which should bring economic benefits and technological advancements to the region.
By the end of 2023, it's predicted that the Internet of Things (IoT) market in Latin America (LATAM) will be worth a whopping $44 billion, and more than 470 million people will be using IoT devices in the region.
In 2022, the Custom Software Development Market was valued at USD 28.2 billion. It is projected to exhibit a Compound Annual Growth Rate (CAGR) of over 21.5% from 2023 to 2032, indicating substantial growth in the industry.
The software development industry is predicted to grow to $1,039 million by 2027, thanks to a steady annual growth rate of 22.54% from 2020 to 2027.
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