A Comprehensive Study of LATAM’s Emerging Tech Hub

Download the report to learn about talent hotspots, talent cost, and supply in LATAM. Over the past ten years, Latin America (LATAM) has been a booming center for the information technology (IT) industry. Draup conducted a deep dive into emerging IT talent hubs in Latin America with a focus on Bogota, Colombia. It provides an overview of IT investments, operations, and the ecosystem in Latin America.

Read more at: https://draup.com/talent/whitepapers/a-comprehensive-study-of-latams-emerging-tech-hub/

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1. Copyright @2023 Draup. All rights reserved Emerging IT Talent hubs in LATAM: A Deep-dive of Bogota, Colombia Conceptualized and Developed: July – 2023 This document aims to provide an overview of rising IT investments and operations in LATAM and showcase key ecosystem insights such as leading Talent hotspots, Talent cost, Talent supply, etc. for an emerging location- Bogota, Colombia
2. 2 Executive Summary Cost Savings: 8X lower IT talent cost in Bogota with median pay of $16K vs $126K in USA University Ecosystem: 60+ institutions producing ~28,000 STEM graduates annually; of which ~40% are hired by global firms Startup Ecosystem : ~1,100+ startups with 7,500 Talent in Bogota ensure a supply of experienced IT talent Rising IT Investments: 80% increase in number of companies investing in the region in past 2 years Cost-effective operations: Global companies are saving up to $2 billion in IT talent cost and operations Scalability: Emerging MSAs like Bogota have a high concentration of IT talent with a growth rate of ~22% LATAM emerging as promising IT talent hub: Talent Intelligence of leading LATAM location: Bogota, D.C., Colombia
3. CONTENTS This section covers: • Rising IT investment in LATAM region and key contributing factors • Analysis of companies hiring IT talent from LATAM • Identifying IT talent hotspots for key IT job families in LATAM region • Growing IT investments and emerging IT Talent ecosystem in LATAM 4-6 Pages • Talent Intelligence for an emerging LATAM location - Bogota, D.C 8-11
4. 4 Source: Draup 4 LATAM – an emerging IT Talent Hub: Amidst the downturn, Global companies are scaling their IT operations in LATAM. Favorable policies and a budding IT Talent ecosystem are key drivers Key Reasons for increasing investments Time Zone Compatibility with North America Supportive Government Policies & Initiatives Rapid Digital Transformation Across Sectors Booming Startup & Tech Ecosystem Significant Investment in STEM Education High Level of Bilingual Professionals 5Million + STEM graduates in LATAM Region 6Million + installed IT talent in LATAM Region 70,000+ tech related startups in LATM 0.0K 0.5K 1.0K 1.5K 2.0K 2.5K 3.0K 4 6 8 10 12 14 16 18 20 22 24 2015 2016 2017 2018 2019 2020 2021 2022 Venture Capital Investment in IT-Related Services (Million) Number of Companies Hiring IT Talent (Thousands) Number of Venture Capital Deals Top Companies Hiring IT Talent from LATAM Draup analysed 2,000+ companies to understand the influx of capital & global companies into hiring IT talent from LATAM region Note: Draup analyses 2 Million+ industry report and tracks 500,000+ companies using its 75+ ML Models to gain insights on market movement. Similar analysis can be performed for any region or job family. Source: Draup platform’s ‘location intelligence’ module Growth in IT investment & talent hiring trends in LATAM region
5. 5 Source: Draup 5 Peer ecosystem: Leading companies are saving billions of dollars on costs by hiring IT workforce in LATAM. Ecosystem partnerships have also resulted in better ROI Note: Draup analyses 16 Million+ data points daily, 2 Million+ articles and industry reports and 1,000+ case studies to gain insight on companies hiring pattern. Similar analysis can be performed across any industry verticals. Source: Draup platform, Draup’s internal analysis, WEF & industry reports. Draup analysed 1,000+ case studies across 33 industries to identify success stories of global companies hiring IT talent from LATAM region Invest in data center to improve performance & reliability Cisco is operating in over 10 countries in LATAM region • Cybersecurity • Cloud Computing • Networking • Cybersecurity 2K+ $300 Mn+ saved in costs IT Talent Hired 5K+ $500 Mn+ saved in costs IT Talent Hired $140 Mn invested in developing data center • Software Development • Cloud Computing 2K+ $500 Mn+ saved in costs IT Talent Hired Launched cloud computing diploma with local university • Solutions Architecture • Software Development 10K+ $1 Bn+ saved in costs IT Talent Hired Partnered with Argentina gov. to boost talent in IT sector • IT Infrastructure • Cybersecurity 20K+ $2 Bn+ saved in costs IT Talent Hired 72.6 71.7 70.1 59 58.8 40 60 80 Chile Mexico Colombia Argentina Brazil 27% 30% 31% 25% 34% 15% 25% 35% Chile Mexico Colombia Argentina Brazil Ease of Doing Business Corporate Tax Rate 12% 8% 10% 6% 7% 5% 10% 15% Chile Mexico Colombia Argentina Brazil IT Talent Growth Rates Additional parameters to consider while considering LATAM region for hiring talent Mn = Million, K = Thousand Most Hired Roles
6. 6 Source: Draup 6 LATAM – Key Talent hotspots: MSAs such as Bogota and Buenos Aires are scaling rapidly; Significant talent pool is available for in-demand IT functions (further analyzed in detail) Note: Talent Availability has been calculated across three IT job families Cybersecurity, Cloud Engineering & Application Architect. Draup tracks 750Mn+ professional profiles for 4,500+ job roles in 2,500+ locations. Source: Draup platform’s ‘talent intelligence’ module. ~ Similar Time Zone EST +2:00 Hrs ~ Similar Time Zone EST +2:00 Hrs EST +2:00 Hrs Mexico Colombia Chile Argentina Brazil 2K 5K 2K 4K 500 4K 300 2K 9K 21K 8K 18K 1K 18K 2K 8K 2K 7K 2K 6K 1K 5K 1K 2K 0% 5% 10% 15% 20% 25% 30% K 5K 10K 15K 20K Rio de Janeiro Mexico City Guadalajara Buenos Aires Cordoba Bogota Medellin Santiago Talent Size (Thousand) Talent Growth Rate (%) Application Architect Cloud Engineering Cybersecurity Talent Size Growth Rate H M L Talent Size Draup analysed 60 Million+ professional profiles across 200+ LATAM locations to identify IT talent hotspots LATAM Talent Hotspot & Time zones Talent size and growth rate of IT job families in LATAM Time zone relative to US Mexico City Bogota Buenous Aires
7. CONTENTS This section covers: • Identifying IT talent hotspots in Colombia • Understanding the diversity of workforce for IT job families in Bogota • Median base pay comparison of IT job families in Bogota vs USA • IT talent hiring trend from university ecosystem of Bogota • IT talent pipeline from startup ecosystems in Bogota • Growing IT investments and emerging IT Talent ecosystem in LATAM 4-6 Pages • Talent Intelligence for an emerging LATAM location - Bogota, D.C 8-11
8. 8 Source: Draup 8 IT Talent Hotspots – Colombia: Bogota has the highest concentration of relevant talent across all three job families (with >50% of talent having 10+ years of experience) Tier - I Locations Overview Draup utilizes 75+ ML Models to track the insights of leading & emerging IT talent hotspot Note: Metropolitan Statistical Area has been considered for analysis; MSA names have been shortened for clarity and replaced with the name of largest city in that MSA. Talent Availability has been calculated across all the three job families – Cybersecurity, Cloud Engineering and Application Architect. Source: Draup platforms ‘location intelligence’ module utilizing a database of 750 Million+ professional profiles across 2,500+ locations. Location considered for deep dive analysis Experience 0 - 5 >10+ 6 – 10 3.5K 5.4K 17.9K Bogota 0.2K 0.3K 1.1K Santiago 0.3K 0.7K 1.7K Medellin 0.1K 0.2K 0.5K Barranquilla Cyber Security Cloud Engineer Application Architect 22% 23% 55% Cyber Security 5.4K 24% 29% 47% Cloud Engineering 17.9K 12% 23% 65% Application Architect 3.5K Key Insights from IT Talent in Bogota, D.C. Ease of Doing Business: 67 Unemployment Rate: 10.7% Female work- force: 50.95% Safety Index: 49.22 Key Attributes Job Function Talent Size Experience Split Female Ratio K = Thousand Better than California, USA At par with USA participation 5th Highest in LATAM At par with USA average index
9. 9 Source: Draup 9 K 20K 40K 60K 80K 100K 120K 140K 0 - 5 Years 6 - 10 Years 10+ Years Source: Draup’s Cost Simulation Module tracks median base pay of 4,500+ roles across 2,500+ locations. The analysed data points are harvested from global salary social media platforms, company job postings and official boards. The cost datasets are then normalized and mapped to specific job clusters and job roles. The reported values are then estimated using the ML model at the median and 95% level. Median Salary (USD) per annum Difference in median base pay Draup analysed median base pay of IT job function in Bogota vs USA $126,000 Median Base Pay in the US $16,700 9X 10.6K 15.3K 91K 7X 20.8K 146K 7X 111K Median Base Pay in Bogota Firms can save up to 8X in talent costs Cost Analysis: Companies hiring IT talent from Bogota save up to 8X talent cost compared to the US. Hiring and Reskilling in Bogota can meet the demand for specific skills 0 - 5 Years 6 - 10 Years 10+ Years 0 - 5 Years 6 - 10 Years 10+ Years Cloud Engineer Solutions Architect Security Engineer 145K 20.5K 16.4K 134K 123K 11.6K 11X 14K 18K 23K 8X 7X 114K 128K 144K 8X 7X 6X
10. 10 Source: Draup 10 Note: Draup analyses its database of 14,000+ universities and 175,000+ professor to curate insight on university ecosystem. Similar analysis can be performed for any university, location or roles. Source: Draup platform’s ‘university hiring’ module. Partnered with Google Cloud to launch Google Cloud Innovative Lab • Cybersecurity Analyst • Cybersecurity Engineer 60% 40% • Application Architect • Solution Architect • Enterprise Architect • Cloud DevOps Engineer ~4K IT Graduates ~3.5K IT Graduates 65% 35% 68% 32% ~5K IT Graduates ~2K IT Graduates ~2.5K IT Graduates ~1.5K IT Graduates • Security Analyst • Compliance Analyst 60% 40% • System Architect • Cloud Security Engineer 70% 30% • Cybersecurity Analyst • Network Administrator 58% 42% ~28K STEM & IT Related Graduates ~60 Total Colleges & Universities Insights ~184K Total University Graduates 16% 84% STEM Others Course Adoption Local & Global Hiring Split Local Global University Ecosystem : Companies are collaborating with 60+ universities in Bogota; leveraging the fresh STEM graduates. ~40% of STEM graduates are hired by global companies for IT roles Launched CDIO Program to foster talent in electrical & computer field Partnered with Amazon to launch AWS Academy for cloud talent Launched IBM Academy of DS to foster data science and analytics talents Launched Accenture Digital Academy to foster cloud computing & data skills Partnered with SAP & launched an Innovation Lab Draup analysed 14K+ universities to curate insight (Top roles hired, Gender split, Partnerships) into University Ecosystem in Bogota K = Thousand, Mn = Million
11. 11 Note: Draup’s ML model tracks 500,000+ companies across 33 verticals to curate insights on startup ecosystem. Similar analysis can be performed for any location or job roles. Source: Draup platform’s ‘startup ecosystem’ module. Key Insights <5 Total unicorns in Bogota $1.7 Billion raised during last decade in Bogota 1,100+ Start-ups in Bogota >45 IT Services startup in Bogota Start-up Ecosystem: ~1,100+ start-ups across verticals like IT services, FinTech, E-Commerce ensure a pipeline of ~7,500 experienced IT talent in Bogota DC Draup analysed 1,000+ startups across 33 verticals to curate insights into the startup ecosystem in Bogota 1.5K+ E-Commerce 3K+ IT Services 1K+ BFS 2K+ Fintech 1500 3000 • IT Support Engineer • DevOps Engineer • ML Engineer Talent Size 0 Top Roles Hired 55% 25% 20% 40% 30% 30% 50% 25% 25% 50% 25% 25% Experience Split • Security Engineer • IS Analyst • Cybersecurity Architect • Cloud Architect • Software Architect • Cybersecurity Architect • Cybersecurity Architect • Cloud Security Engineer • IR Engineer 45+ 100+ 60+ 35+ Startup Count Top Startups
12. 12 Source: Draup 12 About Draup
13. 13 Draup leverages Machine learning models to curate data provided in the report. Draup’s AI-driven Talent Intelligence Platform has dedicated modules for ‘Talent Acquisition’, ‘Workforce Planning’, and ‘Reskilling’ Digital Transformation University Relations Peer Intelligence Reskilling & Upskilling Talent Acquisition Strategic Workforce Planning Diversity & Inclusion Career Path Development Draup Capabilities & Data Assets EMPOWERS DECISION MAKING IN ROLES & SKILLS TAXONOMY DIGITAL IMPACT ON TRADITIONAL ROLES TALENT INTELLIGENCE PEER BENCHMARKING UNIVERSITY INTELLIGENCE Explore Diverse Job Roles, Locations and Ecosystem Insights DIVERSITY HIRING CAREER JOURNEY MAPPING LOCATION INTELLIGENCE COURSES/ CERTIFICATIONS and diverse other use cases…
14. 14 Draup for Talent: Draup analyses 16+ Million data attributes every day to help global HR leaders in Planning, Hiring & Reskilling their Future-Ready Workforce 750M 350M JOB DESCRIPTIONS 4M CAREER PATHS ANALYZED 75+ MACHINE LEARNING MODELS DEYELOPED 16Million+ DAILY DATA POINTS ANALYZED 100+ LABOR STATISTIC DATABASE 1,000+ CUSTOM TALENT REPORTS 30,000 SKILLS 47,000+ DIGITAL TOOLS & PLATFORMS 300,000+ COURSES 2,500+ LOCATIONS 14,000+ UNIVERSITIES JOB ROLES 4,500+ PEER GROUP COMPANIES 500,000+ INDUSTRIES 33 175,000+ UNIVERSITY PROFESSORS PROFESSIONALS
15. 15 Appendix
16. 16 JOB FUNCTION Cyber Security Cloud Engineering Application Architect Job Role Security Engineer Cloud Engineer Solutions Architect Core Skills • Network Security • Information Security • Penetration Testing • Vulnerability Testing • Cloud Applications • Test Automation • Cloud Computing • System Administration • Solution Architecture • Enterprise Architecture • Solutions Design • Cloud Computing Digital Tools, Platforms & Languages • Python, Java • Microsoft Azure • Amazon Web Services, VMware vSphere • Microsoft Azure • Amazon Web Services • Linux, PowerShell • Microsoft Azure • Amazon Web Services • Python, SQL Responsibilities • Design and implement security measures required to protect the organization’s data, systems and networks • Analyze security threats and incidents and provide timely solutions to the respective stakeholders • Perform risk-based analysis for multiple security processes related to product development and implementation • Define information and security requirements and guidelines to ensure repeatable processes across the organization • Develop and automate cloud environments using PowerShell scripts • Ensure the control, integrity, security and accessibility of the cloud environment across the organization • Lead and work with team members on cloud environments such as AWS, Azure and GCP • Identify opportunities to improve resiliency and reduce the occurrence of incidents on the client’s cloud infrastructure • Maintain and improve the documentation about the client’ cloud systems, infrastructure and policies • Design, build and implement cloud computing architectures • Participate and engage in discussions, team talks and project planning regarding architecture solutions for various clients • Lead and contribute to application and solution architecture solutions on software design and engineering • Develop and maintain technical requirement specifications and software architecture documentation of clients Behavioural Skills Quantitative and Analytical Skills, Influencing, Attention to detail, Communication, Documentation, Time Management, Innovative, Proactive, Team Management, Interpersonal skill Skill Cluster Analysis: Draup has analyzed Skill Clusters of 3 job roles - Security Engineer, Cloud Engineer and Solutions Architect for Cyber Security, Cloud Engineering and Application Architect job families respectively; Python being most prominently used programming languages while Amazon Web Services and Microsoft Azure are highly used digital tools by professionals Note: Draup tracks 750M+ professional profiles and 150M+ Job descriptions annually to gather a comprehensive skills database
17. 17 Job Roles across various job families Cyber Security Cloud Engineering Application Architect Cloud Security Architect Cloud Consultant Solutions Architect Security Architect Cloud Engineer Enterprise Architect Security Manager Cloud Security Engineer Technical Architect Cloud Security Engineer Cloud Support Engineer Machine Learning Architect Security Support Engineer Cloud Integration Engineer Network Architect Security Incident Response Engineer Cloud Migration Specialist Application Architect Security Engineer Cloud Operations Analyst Systems Architect Security Operations Engineer Product Security Engineer Security Systems Engineer Data Encryption Specialist Security Analyst Compliance Analyst Job Roles Taxonomy: Draup conducted a comprehensive analysis and classified the COE job roles into following job families after analyzing their skills and capabilities Comparative Role Seniority High Low Note: Roles listed are not exhaustive. The roles mentioned within job families are indicative of the most common roles at Deloitte and its peer companies Above taxonomy excludes seniority level prefixes (such as Senior, Lead, Principal, others) of the mentioned unique titles to showcase unique roles The represented data is derived from DRAUP’s Proprietary Talent Module.Draup has analyzed 750M+ talent profiles to derive the job roles pertaining to the provided job functions and skillsets
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