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

Amidst the current economic climate and the possibility of an upcoming recession, American corporations are expanding their quest for remote staff to other countries, seeking out the skilled technical workforce they require. As the available talent pool narrows, these companies are becoming aware of the necessity to extend their horizons beyond national borders to fulfil their staffing needs.

India, Pakistan, Brazil, and other LATAM countries are set to see a surge in offshore opportunities.

The offshore remote market is projected to expand rapidly in countries such as India, Pakistan, Brazil, and other nations in Latin America. According to industry research, the IT outsourcing industry at a global level is expected to receive a total investment of $397.6 billion by 2025, including both large and small businesses operating in the United States, who are increasingly relying on external providers for their technology requirements. Additionally, outsourcing may assist in addressing inflation, a major concern in the US.

We shall examine the effects of this movement on companies and their utilisation of remote software developers.

Identify the reasons for the technology skills deficit in the United States.

For some time, American enterprises have been accustomed to hiring foreign-born tech professionals. However, due to the ongoing COVID-19 pandemic and government regulations, it has become progressively harder for individuals to relocate to the United States. This has resulted in a severe deficit of competent IT personnel, and a corresponding increase in the difficulty of filling empty IT posts throughout the country. Additionally, this shortage has created a situation where local IT experts are demanding higher salaries, making it difficult for companies to compete for the best talent.

What impact does outsourcing work to highly skilled practitioners in other countries have on businesses?

Hiring technical personnel from countries that possess a wealth of technological proficiency is a common practice among businesses. However, the ongoing pandemic has led to an exponential increase in the number of companies that are now seeking to hire and recruit staff from around the world remotely, to meet their staffing requirements.

What benefits do businesses reap from pursuing foreign talent? Let’s take a look:

  • Outsourcing has expanded businesses’ access to a considerably larger talent pool, granting them the ability to locate the most fitting candidates for any position, regardless of their geographic location. This presents a rare chance to recruit expert practitioners from all corners of the globe, enabling businesses to benefit from the expertise of the best professionals in the world.
  • As there is currently a shortage of highly skilled employees, US companies are encountering difficulties in recruiting and retaining qualified personnel. As a result, companies have had to augment compensation and benefit packages to attract the best candidates. However, if businesses could employ proficient programmers from a global talent pool, these additional expenses may be alleviated.
  • As face-to-face interaction is not required, businesses can benefit from outsourcing work to offshore IT experts by decreasing their expenditure on office infrastructure. This cost-saving approach can assist organizations in optimising their profits and return on investment.

If a United States corporation could select between hiring a domestic software engineer for $3,000,000 or hiring a technical expert with comparable experience and skill set overseas for $1.5,000,000, financially it would be wiser to choose the latter. This decision could generate sizeable cost cutting, while also providing access to an incredibly skilled professional.

The United States has been making significant investments in Latin American nations. The Latin American and Caribbean (LATAM) region presents many advantages for employers, including convenient overlapping time zones, highly skilled technical specialists, and reduced staff acquisition expenses.

What impact does outsourcing their IT talent have on software engineers in India, Pakistan, Brazil, and the rest of LATAM, when US businesses do so?

With technology companies increasingly outsourcing their operations to places such as India, Pakistan, and Latin America, the possibility of remote working opportunities in the tech industry is on the rise. Those seeking employment as software engineers in the United States may be able to leverage this trend and apply for more high-paying remote engineering jobs.

It is projected that by 2025, up to three million jobs in America could be lost to other countries, owing to an increase in outsourcing opportunities. This could have a seriously adverse effect on the American labour market, as the number of job openings is predicted to considerably increase.


To combat the shortage of qualified personnel in the United States, employers could benefit from using an international outsourcing service. This recruitment approach has the potential to yield financial savings, as well as a broader pool of highly skilled individuals. By transitioning to remote work and outsourcing, businesses may gain a competitive edge in the long term.

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