The more Trump tweets, the more momentum he creates.
Every time he opens his mouth to discuss global trade, decision-makers across the enterprise IT universe see new reasons to diversify, create contingencies, and, more than anything, intensify their reliance on offshore/nearshore IT labor.
The new reality of President Donald Trump and his “America First” policy
Instead of doubling-down on technology jobs in the United States, many medium to large enterprises are doubling up on investing in new IT centers across the globe in order to meet ‘here and now’ demands, such as building and deploying next-generation digital solutions, maintaining legacy systems, and accelerating pursuit of new, innovative platforms that demand highly skilled professionals.
In other words, Trump’s demand and command strategies are backfiring in a big way, and it is the Nearshore market that appears to be one of the biggest beneficiaries in this new political environment.
“Virtually all of our clients in Silicon Valley are fed up with trying to jump through the hoops put in place by Trump,” said a Silicon Valley attorney who will be present at the Nexus 2017 event next week in Mountain View, Calif. “They are deciding it is far easier just to hire and place resources offshore.”
The hoops of course have taken on many forms: First a travel ban that created all kinds of complications for the deeply multi-ethnic IT community in Silicon Valley. This was followed by a new H1B policy that appeared to be an effort to clarify the rules of importing IT talent, but for many firms it only created more confusion.
The harsh tone around non-native residents in the USA also has had a far-reaching, chilling effect, causing many bright professionals from overseas markets to think twice about trying to venture into the USA.
Startups especially are leading the rush to examine offshore and nearshore options. The financial impacts of importing IT professionals is one key hurdle, but even more troubling is the lack of confidence in keeping someone safely, and legally, inside the United States given the volatility of the current administration.
An Opportunity Waiting to Happen
As hiring managers, entrepreneurs, and sourcing leaders begin to do their due diligence on new territories to cultivate talent, Nearshore is suddenly being ‘rediscovered’ as a perfect solution for a highly fluid labor environment.
Need resources who we can talk with on a daily basis? Check.
Seeking a diverse set of professionals with specialized skills, like cyber-security and compliance? Check.
Need to be able to adapt quickly to fast-changing regulatory climates? Check.
Want to visit next week, and get there the same day? Check.
From the Caribbean to Mexico, and Canada to Central America, the wave of interest in Nearshore is reaching a new plateau. The other deceptive part of this momentum is the fact that a lot of the outsourcing analyst community is fixated on A.I. and automation, solutions that clearly have merit but do not solve problems existing right here, right now for many enterprises.
Manpower is required to interpret how technologies can be deployed inside the enterprise; IT people still need to partner with business to resolve classic ‘line of business’ problems; and, more fundamentally, C-suite executives want their digital migration efforts to accelerate, regardless of how much automation is required to get the job done.
The Nearshore obviously is not only a collection of well-positioned outsourcing destinations; it is the maturity of IT ecosystems, and the savvy nature of service providers that is sustaining the growing wave of interest. Clearly, it is the tech centers like Guadalajara, Vancouver, and, to a lesser extent, Bogota and Buenos Aires that are all seeing more investor interest.
As many pundits have pointed out, the maelstrom surrounding Donald Trump will likely never cease, and as long as there is chaos, sound minded professionals will seek refuge on solid ground.