近岸软件开发趋势

Nearshore SoftwareDevelopment Trends Table of Contents Offshoring Industry Overview 1 Accelerating Trends Toward Nearshore 2 Transaction Detail 3 Cascadia Capital Overview 4 Offshoring IndustryOverview U.S. Developer Shortage Drives Growth in Other Regions Shortage of U.S. Engineers Continuing To Grow •An explosion in digital innovation amongst U.S. businesses over the pastdecade has driven demand for software engineering talent to all-time highs •Currently, demand for software engineers far outpaces supply. This gap isforecasted to increase over the next five years •Businesses in need of developers will be forced to offshore or nearshoretheir projects in order to meet demand oThis is expected to drive dramatic software development industrygrowth in these regions, most notably in Asia and LATAM 1.5M 900K 25% 11% Current unfilledsoftwaredevelopmentpositions Forecastedunfilled softwaredevelopmentpositions by 2027 Developer demandgrowth rate Developer talentgrowth rate Offshore Location Selection Criteria and Considerations Widely variable value proposition across keyoffshoring evaluation parameters -Talent Base -Labor Quality & Availability-Cost-Cultural Affinity -Ease of Doing Business-Language & English Fluency -Proximity & Time Zone Alignment-Legal maturity -Government Investment & Infrastructure-Offshore-Friendly Policy -Educational System-Transportation & Healthcare Access -Business Risk -Geopolitical Stability-Crime-Data & IP Security -M&A Appetite Rates by Location and Position Accelerating Trends TowardNearshore Factors Accelerating Nearshore Adoption Ukraine War & EuropeanEconomic Turmoil Reduced Viability ofDomestic Cost Arbitrage Software Development WillBe Recession Resistant Headwinds In Asia •While Asia pioneered theoutsourcing industry and isthe largest and most maturemarket, variability in qualityhas opened the door forfirms, and regions, thatbetter reflect thecontemporary trend towardspecialization and expertise•Reductions in globalizationand the reemergence of East/ West dichotomy haspositioned LATAMdevelopment to benefit •High levels of volatility inpublic and private marketshave provided a uniqueopportunity for LATAMdevelopment firms toexpand market share•As market conditionsdeteriorate, LATAMdevelopment itself as theideal venue for outsourcingdue to quality, proximity andcost •With rising cost of domesticdevelopment in Tier 1 cities,remote work has made iteasier for developers to workoutside of key hubs•As a result, domesticdeveloper salaries have beendriven up in non-traditionaltech cities•This has removed legacytrends of recognizing thebenefits of domestic costarbitrage •After the 08/09 crisisenterprises restructured themix of in-house vs.outsourced labor, with thepreference for maintainingtraditional, more easilycommoditized functionsinternally and turn topartners for expertise•The “War on Talent”,coupled with a general desireto reduce bloat and stay lean,will see more companiesturning to outsourcing •Ukraine war has displacedthousands of developers andhighlighted the need fordiverse delivery footprints•Falling economic confidenceand rising interest rates havemade Europe a far lessattractive place to outsourcedevelopment Opportunity Created By OneTime Industry Shakeups Prolonged Or Rampant Bull Markets Obscure Differentiation•Bull markets are defined by rampant client demand and talent as the primary bottleneck for growth. While there will be variable rates, firms will find growthrelatively easy to come by as overall market demand expands•Both optimized and lagging players will realize significant revenuegains Periods Of Volatility Create the Greatest Opportunity-COVID &Macroeconomic Uncertainty Opening The Door Further for LATAM•A significant, understated opportunity exists during a downturn •Companies make more dramatic gains or losses during downturns thanduring stable periods, with positioning pre-downturn being the greatestdeterminant of success•Optimized firms and regions will realize significant market share gains •COVID, Ukraine war and economic uncertainty create disruption-based opportunity •COVID permanently transformed the way we work, establishing a newoperating environment with an evolved definition for successful delivery andcapability sourcing•Engineering capabilities have been largely insulated to date from thedampening effects of macroeconomic slowing, but as cracks start to show,well positioned firms will stand to benefit•War in Ukraine creates a rift in the global development landscape •LATAM outsourcing readiness is at an all time high, and is primed to capture theopportunity created by these shakeups Remote Work Eroding Long-Term Viability Of DomesticCost Arbitrage •The rise of remote work and a continually tightening softwareengineering labor market have allowed engineers to relocate outside ofkey hubs while enjoying compensation that is aligning with tier 1 cities •Tier 2 cities have historically presente