Nearshore IT Outsourcing Can Solve Colorado’s Demand For Computer and Information Systems Managers

Published: April 19, 2023
SuperStaff Colombian call center agents, the backbone of nearshore IT outsourcing in the country, attend to different clients worldwide.

There are many jobs but not enough workers in Colorado. While many Coloradans have gone back to work post-pandemic, there are still only 55 available workers for every 100 jobs, which means the state’s workforce is no longer enough to fill the gap. 

IT is one sector that experienced the brunt of Colorado’s labor shortage, with computer and information systems managers among the most in-demand professions in the state. 

To meet consumer demand and facilitate their company’s digital acceleration, many Colorado businesses have begun seeing nearshore IT outsourcing as a viable strategy.

The Colorado Labor Market Banner

Why Colorado Businesses Should Consider Working With Nearshore IT Outsourcing Companies

Work with global talents with highly niche and specialized skills.

The future of business lies in tech. 

In today’s increasingly digital world, businesses are expected to integrate technology into all aspects of their operations to boost productivity and fundamentally change how they deliver high quality service to consumers. 

However, as the skills gap continues to impact the tech industry, companies would need more help advancing their business processes‘ digitization. 

Most IT executives and hiring managers (64%) have reported the worker shortage as the biggest barrier to adopting cutting-edge technologies, a steep jump from only 4% in 2020.

How can businesses keep up with the rising demand for highly niche and specialized tech skills amid the labor gap?

Quotation in picture

While businesses in states like Colorado need help filling tech positions due to a dearth of local talent, nearshoring markets in Latin America, such as Colombia, are teeming with tech workers who can help fill the gap. 

Nicknamed the Gateway to South America, the country is considered one of the most ideal tech outsourcing destinations due to its strategic location in the continent and the recent boom in its tech start-up ecosystem. 

Communicate with your IT providers in real-time.

While most tech-related tasks happen in the digital sphere, cooperation is just as crucial in IT as in any profession. 

Teamwork and close collaboration are still significant factors that drive field success. No matter how skilled or experienced a developer or engineer is, they are only of value to your business if they work in a team.

However, with more employees, especially IT professionals, preferring remote work, businesses must accommodate their needs while maintaining peak productivity and efficiency.

Your staff may be working in the comforts of their home, but as their leaders, you still need to stay on top of their progress. 

Picture with quoation

Unlike offshore outsourcing, wherein outsourcing companies are based in distant countries, nearshoring refers to working with a neighboring country (ex: US nearshoring to Colombia). This partnership enables businesses to collaborate more seamlessly because of parallel time zones.

Employers can easily hop on a Zoom call to stay connected with their outsourcing team, or if necessary. They can even take a quick and painless flight to their nearshoring site without spending too much on the ticket. 

While onshore outsourcing or contracting tasks to a BPO within the country is another alternative that US businesses can explore, the national labor shortage affects all local industries and outsourcing is no exception. So ultimately, nearshoring is the best option for businesses looking to outsource their IT and maintain seamless collaboration within teams.

Foster innovation and digital transformation.

Studies show that diversity and inclusivity drive innovation. 

Deloitte pointed out that businesses with inclusive cultures are up to six times more agile and innovative, eight times more likely to succeed, and twice as likely to hit financial growth targets than less diverse businesses. 

Why? Because diversity drives business leaders to be better. For instance, working with differently-abled people helps businesses understand consumers from the same demographic.

As they address the workplace needs of differently-abled people, they catch a glimpse of this niche demographic and what it takes to tap into that specific market. 

Deloitte explains that the wealth of information that comes from a diverse workforce creates a “positive tension,” which, in turn, sparks creativity for businesses.

By working with people from all walks of life in other parts of the globe, they are compelled to question certain beliefs and assumptions that may not be true for everyone. 

This exchange in a marketplace of ideas paves the way for ground-breaking concepts that drive success in a progressive industry such as tech. Now, how does outsourcing come into play in all of this?

Picture with quoation

Different perspectives will help you see pain points you may have missed otherwise. They can also help your in-house team learn new skill sets.

For instance, as one of Latin America’s most prominent tech-based providers, Colombian businesses can help their employers develop specialized IT solutions in various verticals such as fintech, telecommunications, and big data.

Top 3 Tech Roles Colorado Companies Can Outsource to Nearshore Providers

Software Programming and Development

Whether designing an app to reach your target market or automating your internal processes to drive efficiency, developers play a huge role in the success of your business.

Unfortunately, amid the labor gap that plagues the US job market, studies show that recruiting experienced developers and programmers with the right technical expertise remains a top challenge for tech leaders.

One recent survey showed that over a third of tech professionals believe the shortage will persist in 2023. Data Analytics Developers, IT Security Engineers, and DevOps Engineers are the most complex jobs to fill in the sector. 

For states such as Colorado that are particularly affected by the tech drought, businesses can leverage program and development outsourcing as a cost-effective means to work with a powerhouse of front- and back-end developers who have advanced and specialized training in different programming languages such as C++, Java, Python, and HTML.  

Technical Support and Help Desk

Remote tech support already played a massive part in the success of businesses before the pandemic. Still, the position became critical when COVID-19 forced companies to close their physical stores in 2020. 

As companies across the globe struggled with the transition, remote tech support specialists helped people purchase the products and services they needed online while staying safe from the dreaded coronavirus.

In this sense, the pandemic served to accelerate the much-anticipated e-commerce revolution. But it comes with a huge caveat: More online transactions means more customer service and technical support touchpoints. 

This can be a problem amid tech labor shortages. Fortunately, Colorado businesses struggling to keep pace with demand can outsource customer service to optimize costs and increase productivity. BPO firms equip companies with the right tools, staff, and tech infrastructure to elevate their customer experience and meet evolving consumer expectations. 

IT Management

Even the most cutting-edge tech platform will only succeed with a human touch, or in this case, the guidance of an experienced IT manager. 

By monitoring and managing a business’ digital system, IT managers ensure the seamless flow of information across hardware, software, and networks. They are also responsible for optimizing systems so people can use them more conveniently and efficiently. 

As more businesses leverage technology and put technology at the heart of their operations, the demand for IT managers continues to soar.

Despite the tech skills gap in the US, Colorado businesses can do the same through outsourcing, which can help them access skilled IT professionals from across the globe.

Colombia: Home to World-Class IT Outsourcing Professionals

Latin America is an established frontier for tech outsourcing. 

Through nearshoring, the region has consistently delivered high-tech IT solutions to clients in the US and globally for roughly four decades. And one particular Latin American country that stands out for its booming tech infrastructure and services in Colombia.

The Colombian BPO market has grown tremendously since it was first established, now taking the top spot in the annual Offshore BPO Confidence Index with an impressive 90.9 score.

Read More: How Nearshoring in Colombia Helps Businesses Address IT and Software Development Shortages

Benefits of Outsourcing To Nearshore Software Development Companies in Colombia

Deep Pool of Skilled Workers

The country’s deep IT talent pool tops the list of Colombia’s nearshore outsourcing benefits.

With over 26 million people and a talent pipeline fueled by over 3.8 million college students, this nearshore outsourcing destination boasts one of the largest workforce populations in the region.

As one of the fastest-growing tech talent hubs in the region, Colombia also has over 100,000 skilled engineers and 10,800 IT professionals, but experts predict that at its current trajectory, this number will grow further in the years to come. 

Bilingual Talent Pool

Language barriers won’t be an issue in Colombian nearshoring.

Due to the education sector’s fierce campaign for global competitiveness, Colombian IT professionals have fluent bilingual (Spanish and English) skills enabling them to communicate seamlessly with their outsourcing partners in the U.S.

Proximity to the United States

Colombia’s strategically close location to its primary outsourcing market makes seamless communication and collaboration for any nearshore outsourcing company.

Strategic Location

Working with the “Gateway to South America” has many logistical perks.

For instance, your nearshoring partner can help you efficiently access critical transportation hubs and supply chains while staying connected to the US.

Conducive Environment for Foreign Investors

Thanks to the Colombian government’s efforts to ensure political and trade sustainability, foreign investors can thrive in a conducive business environment with a steady stream of skilled software developers, software engineers, and IT professionals.

Since the early 2000s, the country has been consistently introducing reforms aimed at helping foreign investors do business in the country.

Colombia is now among the top five countries in the world when it comes to foreign investor protection.

Open Economy

As one of the most open economies in the region, Colombia has completely opened all but one sector — TV broadcasting — to foreign capital participation.

Robust Free Trade Agreements  

Another reason to nearshore outsourcing services to Colombia is its abundance of free trade agreements (FTAs).

This is a considerable advantage, especially since free trade is a significant driver of economic activity in emerging markets.

With FTAs in 17 countries and global organizations, Colombia has preferential access to over 60 countries and 1.5 billion consumers worldwide. This, in turn, benefits investors by increasing the quantity and diversity of Colombia’s exports.

Additionally, it also helps foster an investor-friendly climate. For instance, the U.S.-Colombia Trade Promotion Agreement ensures foreign investors in the country are held to the same standards and offered the same protections as domestic investors.

Parallel Time Zones

Time zone differences can sometimes be a hindrance to effective collaboration. Thankfully, Colombia’s time zone is closely aligned to US Eastern Standard Time (EST), allowing for efficient communication between nearshore software outsourcing clients and their BPO partners. 

Impressive Track Record

Colombian nearshore software development outsourcing continues to attract foreign investors, with the tech sector now accounting for more than 10% of its economy. 

The country continues to make waves as an emerging Latin American tech market poised for tremendous growth, with three of its largest metropolitan cities (Bogota, Medellin, and Cali) serving as the country’s hubs. Microsoft, IBM, and Google join the ranks of tech behemoths headquarters in the country.

Cost Savings

Competitive labor costs and the lower cost of living in nearshore destinations can help US businesses save money and earn more profit.

Cultural Similarities

Due to their geographical proximity, and close diplomatic and bilateral economic relations, the US and Colombia have minimal cultural barriers, which makes working with your nearshore team hassle-free.

Compelling Incentives

Yet another benefit of outsourcing software development and IT to Colombia is the government’s incentives to spur long-term economic growth.

Here’s a rundown of a few legal and tax benefits for the country’s investors:

  • Progressive corporate income tax reduction
  • 50% Industry and Commerce tax (ICA) discount for foreign investors
  • Among other benefits, a 27% tax rate for investors that create 400+ direct jobs and invest a minimum of $ 280 million

The government hugely rewards investors who play a role in economic growth and creating jobs in the country.

There may be certain downsides to nearshoring, especially when a company chooses the wrong BPO partner. But when considering nearshore outsourcing advantages and disadvantages, the pros ultimately outweigh the cons. 

Nearshore IT Outsourcing to Colombia: The Algorithm for Your Business Success

With one of Latin America’s most cutting-edge tech infrastructure, Colombia is indeed a fierce contender in nearshoring.

SuperStaff leverages the many benefits of the Colombian tech sector to help businesses achieve financial success and maximum efficiency in their operations. 

Contact us today to discover how you can tap into the massive global talent pool with a reliable outsourcing partner.

Posted by
Arius Andro Lim
SENIOR BUSINESS DEVELOPMENT OFFICER
With his proven track record in business development, Arius brings a wealth of experience in driving business growth, expanding market reach, and capitalizing on new opportunities. He leverages his strong business acumen, exceptional customer service skills, and keen eye for identifying untapped potential to consistently deliver results-driven solutions for clients.

Share This Story!