Due to a Lack of Available Technical Talent, Many US Companies Will Be Outsourcing Remote Positions

In light of the current economic situation and the looming prospect of a recession, United States corporations are widening their search for remote employees to overseas markets in an attempt to find the skilled technical personnel they need. As the available talent pool shrinks, these companies are recognising the necessity of looking beyond their own borders to fill their staffing requirements.

Offshore prospects will increase in India, Pakistan, Brazil, and other LATAM nations.

It is anticipated that the remote offshore market is set to grow rapidly in several countries, including India, Pakistan, Brazil, and other Latin American nations. Industry research has forecasted that a total of $397.6 billion will be invested in IT outsourcing globally by 2025. This includes both big and small businesses in the United States who are increasingly turning to external providers for their technology related needs. Furthermore, it is believed that outsourcing may help in reducing inflation, which is a prominent issue in the US.

Let’s analyse the implications of this trend for businesses and their use of remote software developers.

Explain the causes of the United States’ tech skill gap.

Companies in the United States have long been accustomed to recruiting foreign-born computer experts. However, the current COVID-19 pandemic and government regulations have made it increasingly difficult for individuals to relocate to the United States. This has led to a critical shortage of qualified IT personnel and a corresponding rise in the difficulty of filling open IT roles across the country. Furthermore, these shortages have pushed local IT professionals to demand higher salaries, causing businesses to struggle to compete for the best talent.

What are the implications for businesses of outsourcing work to highly skilled workers in other countries?

It is not uncommon for businesses to outsource their technology-related employment needs to countries that boast a wealth of technical talent. However, the current global pandemic has caused an exponential growth in the number of companies that are now open to hiring and recruiting personnel from around the globe to meet their staffing requirements remotely.

To what end, therefore, do businesses benefit from actively seeking out talent abroad? Let’s check it out:

  • With the growth of outsourcing, businesses now have access to a far more expansive talent pool than ever before. This means that they can find the most suitable candidates for the job, regardless of where they are geographically located. This presents a unique opportunity to recruit highly skilled workers from all over the world, allowing businesses to benefit from the expertise of the world’s top professionals.
  • United States businesses have been experiencing difficulty recruiting and maintaining highly qualified personnel as a result of the current lack of availability. To compensate for this, companies have had to increase compensation and benefits packages in order to attract the best candidates. However, if organisations had the ability to recruit proficient programmers from a global pool of talent, these additional costs may be alleviated.
  • Due to the lack of necessity for a face-to-face interaction, businesses can capitalise on the financial benefits associated with outsourcing work to offshore IT professionals by reducing their expenditure on office infrastructure. This cost-saving measure can help organisations to maximise their profitability and maximise their return on investment.

If a corporation in the United States is presented with the option to recruit a software engineer domestically for $3,000,000 or to hire a tech talent with similar experience and skill set overseas for $1.5,000,000, it would make more financial sense to select the latter option. This decision could yield significant cost savings, while also providing access to a highly-skilled professional.

The United States has been making extensive investments in Latin American countries. The region of Latin America and the Caribbean (LATAM) offers numerous benefits for employers, such as the convenience of overlapping time zones, highly skilled technical personnel, and reduced personnel acquisition costs.

What are the implications for software engineers in India, Pakistan, Brazil, and the rest of LATAM when US corporations outsource their IT talent?

As technology companies increasingly outsource their operations to locations such as India, Pakistan, and Latin America, the potential for remote working opportunities in the tech industry is growing. Software engineers looking for employment in the United States may be able to take advantage of this trend and apply for more lucrative remote engineering jobs.

It is projected that by 2025, up to three million American jobs could be lost to other countries due to an increase in outsourcing opportunities. This could have a significant detrimental effect on the American labour market, as the number of available positions is set to rise significantly.


In order to address the shortage of qualified personnel in the United States, businesses may benefit from utilising an international outsourcing service. This method of recruitment has the potential to provide economic savings, as well as a larger selection of highly skilled individuals. By making the switch to remote work and outsourcing, businesses may gain a competitive edge in the long run.

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