Welcome to South American Globalization

For some time now, and thanks to globalization, the USA and Europe have started to hire talent from South America, especially in the IT and Computer Science industry. This has a significant effect on those industries over LA and the people that work there. Of course, as always, these effects are sound and some other bad.

One of these globalization effects is that South American IT and Computer Science industry is experiencing a new era of development, where some a lot of talented people are relucting to work in the South of the American continent, because of the prestige and because of the payment. On the other hand, many agencies have been born in the last ten years that only export their work to the USA and European companies because of the prestige and the hourly rates they can get. Hence they become competitive in the market much faster.

How it happened

Social unrest

First, let’s talk about how this phenomenon happened. South American countries have suffered severe social unrest in the last decade, reaching the point of generalized vandalization and uprising, like in Ecuador, Chile, and Bolivia, due to decades of mismanagement, poor social conditions, and rancid wealth distribution. By itself, that would have been bad, but added to the COVID pandemic, the economies of South-American countries received a heavy blow.


COVID 19 generated a jump forward on time for the SaaS development worldwide and in South America. The lack of computer sciences and information technologies infrastructure is a problem throughout LA. However, the SaaS automatically solves that problem for any company or professional due to globalization. With the explosion of SaaS, LA achieves actual development in their IT-related industries and professionals, being impossible to do before.

LA suffered greatly, considering the below and many other issues, and many people and businesses started looking for opportunities abroad. Also, companies in the USA and Europe suffered the blows of the economic crisis, and COVID 19 commenced its rebuilding process by looking for talent in places like India and South America due to its more competitive hiring prices and the presence of incredible talent. 

A second wave of the phenomenon manifested itself in many new businesses created in LA in the computer science and IT sectors, and Scalater is an example. Almost all of us have worked in the US or European company before returning and working in LA again. We used to think that we’d never work in LA again due to its clear disadvantages. However, “this new breed of businesses, where Scalater is just one, convinced us (Scalater employees) that our beliefs were misplaced and founded on our personal experience, which is not always the best way to make decisions and make conclusions.” Jairo Niño, Full Stack at Scalater.

A third wave is B2B development between companies in the US, Europe, and South America. They are not always looking for talent or freelancers but business opportunities with small and nuclear companies specializing in key industry sectors. The phenomenon is not unilateral anymore, and now LA IT companies and professionals are actively looking to do business with companies worldwide, especially in Europe and the US.


Talent globalization and leakage.

LA businesses are having difficulties finding top talent in the information technologies and computer science industry due to the globalization and leakage of professionals we’re experiencing. And it’s only natural if people are having a hard time finding a job, and a company offers you better conditions and pay, you wouldn’t think about it either. I know I wouldn’t. Like my colleagues on Scalater, I worked in a European-based company, particularly in Germany.

But this is not only happening with the professionals in the area and with the TOP companies looking to export their work outside LA due to its more competitive budgets and more “noticeable” or “prestigious” projects. We’re not out of this practice on Scalater. This is because of us. There are many other companies in LA, it is nearly impossible for us to work with the budgets we’ve seen in LA, and we tried a lot to work here.

“Dollarization” of the income

The dollar is the world’s most important currency, and we all know that. But for these “new” companies and professionals, the dollar is more important than ever because they’re getting paid with dollars now, which just a few professionals and companies have experienced before in LA. Only top managers and the most prominent companies of each LA country used to deal with dollars in their business before, and their employees are still being paid in their countries’ currency. That is changing now, giving us a more international or holistic understanding of the economy, and the money, making us interested in things we never expected before.

Technical increase of the jobs

People’s perception of the consequences of this new phenomenon is excellent and “splendorous.” Because of that, many people and businesses have shifted to be a part of the IT and computer science industry. I’m not only talking about companies like marketing or web development agencies, but I also mean traditional universities, governments, and many more. This is slowly generating an increase in the average requirements companies are demanding from their employees and products, consequentially inducing a general growth in the quality of the companies, professionals, and products/services.

“There is an abundance of good professionals in the IT industry in South America, and the USA and European companies have realized this.”

– Guillermo Figueroa.

English speaking people have increased.

A natural and obvious consequence is that English is becoming more and more critical by the day, and many more people than, let’s say, ten years ago can understand, write and speak basic English. Eventually, this will generate a more cosmopolitan professional and business community and a better international understanding of business and other cultures.


With time, LA businesses and professionals will reach world-renown quality. We’ll experience the fourth wave of this globalization phenomenon when that happens. Full-scale talent, business, and ideas export from LA to the world, generating new developments, ideas, and technologies. That will be a great day because the brains we have in the IT and computer science industry, the faster and the better we’ll further the human efforts for evolution and a green future.

Check this article about the environmental sustainability of the Saas Industry called: Is Software as a Service (SaaS9 A sustainable Option.

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