hris-liverani-9cd8qOgeNIY-unsplash (1)

Don’t just survive, thrive

by BlogBusiness TrendsDesarrollo de softwareIT IndustryNearshore

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.

Employee Retention The Key To Business Success_pexels-fauxels-3184286

Employee retention: the key to business success

by Business TrendsIT Industry

Employee retention is not merely a metric that alerts the HR department to take action when indicators are bad. Rather, it can be a competitive advantage and key differentiator for companies who pay close attention to it.

The true costs of employee turnover

The cost of employee turnover is incredibly high. Large U.S. businesses lose at least $1 trillion each year due to voluntary employee turnover, much of which, according to exiting workers, their managers or organizations could have prevented.

Gallup’s research shows that the cost to replace an employee can range from one-half to two times the employee’s annual salary.

The reason is that every time you have to replace an employee, it has an impact on operational costs, revenue, productivity, company culture, and customer experience, all of which end up compromising the company’s growth and profit.

So, having understood the scope of the impact of employee retention on an organization. How much should be invested to improve employee turnover?

 

The business success path

This is where an organization has the option to take different paths; from creating & implementing a budget, especially for this strategy, to partnering with companies that have already implemented a talent retention strategy to hire new resources at no extra cost to you. 

Whatever strategy you prefer, it is crucial to understand the importance of taking action. 

While creating a successful employee retention strategy may take a fair amount of effort, organizations that put in place the strategies, tools, and processes necessary to retain their best talent know that it’s a worthwhile effort that pays off.

On the other hand, organizations that don’t focus on employee retention and reducing turnover can suffer significant consequences.

Not only in terms of the hard costs associated with finding, hiring, onboarding, and training replacements, but also in terms of lost productivity and knowledge, impact on customer and employee experiences and reputations, lower morale, and weaker corporate culture.

 

Nearshore Strategy based on Talent Retention

During the more than 9 years we have been providing Nearshore services, our main objective as a company is to separate ourselves from our competitors through our high talent retention rates.

Our holistic approach allows our employees to have good benefits and a work-life balance and has helped us achieve the goal. 

Find out more about how we can do the same for your company. Schedule a call with our experts.

The New IT Outsourcing Industry Scenario_pexels-fauxels-3182782

The new IT outsourcing industry scenario

by Business TrendsIT IndustryNearshore

The challenges of IT outsourcing in the face of the political conflict between Ukraine and Russia.

Disruptions caused by the conflict endanger organizations that outsource IT support to Ukraine. Unfortunately, there have been communication blackouts that threaten security and productivity. Additionally, reduced operational capacity can mean fewer bug fixes, less customer support, and fewer security patches. These will force organizations to go back to the blackboard, devise contingency plans and, if possible, find a way to continue with their Ukrainian service providers but at the same time protect against interruptions.

The reality is that it’s not just about quickly switching providers to fill the gap. Switching IT vendors takes months of planning and discussion, and usually can’t be done in the blink of an eye.

For that reason, in the short term, organizations have to act fast and take simple actions like monitoring the situation 24/7 to mitigate immediate risk, as well as more complex actions like preparing for the cyber risk presented by the conflict or reviewing the “force majeure” clause in all contracts to analyze the risks if the execution is hindered, delayed or prevented in the event of war.

In the longer term, business leaders should establish new relationships with different outsourcing providers. Some factors to consider before taking any decisions are the following:

  • Partner with IT service providers with a convenient geographic presence and solid business continuity or expansion plans, avoiding over-reliance on one country.

In this sense, Nearshore service providers with a presence in Latin America have a great advantage since they give you the possibility of having resources in North American countries with Mexico, Central America, and South America, thus allowing you to not be pigeonholed in a single region. Another benefit of having a team in Latin America is the possibility of working in the same or a similar time zone, which allows you to increase productivity and improve communication between teams.

  • Establish network, application, database, and platform security measures that include firewalls and intrusion detection/prevention systems that identify and block unauthorized activity with continuous monitoring for malicious activity and policy violations.

In the face of uncertainty, companies must remain flexible to change and generate strategies to stay afloat. However, today more than ever we must keep our values in mind and never ignore the human suffering that is taking place in Ukraine in the name of “The Business”.

If you’re in need of outsourcing support, temporary or long-term, we’re here to help with amazing Software Engineers in Latin America ready to join your team. Go to our Talent Portal to find out amazing candidates or get in touch with us to receive personal support.