In an increasingly digital world, tech companies face an ongoing challenge: the need for specialized talent capable of navigating the complexities of advanced technologies like artificial intelligence (AI). As many businesses mandate a return to the office and seek to nurture in-person collaboration, an interesting paradox is emerging. Simultaneously, a significant number of U.S. companies are turning their attention southward to Latin America in search of skilled developers. This trend is largely prompted by the surge in demand for expertise related to post-training large language models (LLMs).
Firms like Revelo, a platform that connects vetted Latin American developers with U.S. enterprises, find themselves at the forefront of this talent race. Co-founder and CEO Lucas Mendes observed that the evolving phase of the AI revolution is anchoring this demand, signaling a critical shift in how tech companies will source their essential developer talent. Mendes articulates the burgeoning need: “There’s a race for data, and especially expert human data, that can help LLMs excel at specific high-value tasks.”
The Boom in LLM Training Needs
The dramatic rise in companies requiring support for LLM training has resulted in a striking statistic: these hires represent 22% of Revelo’s revenue for 2024. The search for coders proficient in various languages highlights an essential truth: developing robust AI systems isn’t just about the algorithms; it requires a substantial human element. With companies like Intuit and Dell seeking out these skilled professionals, the shift signals a new frontier for developer roles. Mendes highlights that organizations are increasingly looking to fill specific skill gaps, which makes hiring talented engineers more critical than ever.
This boom isn’t limited to Revelo. There’s a growing number of platforms, such as Terminal and Tecla, that mirror its model, capitalizing on the same trend. This competitive landscape underscores a shared understanding across the tech industry: the demand for skilled developers in Latin America is neither a fleeting fancy nor a temporary strategy.
A Shift Accelerated by Crisis
The COVID-19 pandemic has catalyzed many changes in workplace norms, but for Revelo, it was a pivotal launchpad. Mendes recounts how the disaster widened their potential reach significantly, allowing U.S. businesses to realize the benefits of distributed teams. Initially apprehensive about hiring outside the immediate geographic periphery, many companies began exploring the high-quality engineer pool in Latin America. The results were promising, illustrating that this talent not only met expectations but often exceeded them.
“Suddenly, companies realized that they could effectively integrate Latin American talent without compromising on quality,” Mendes remarked. What began as an experiment for many firms quickly blossomed into a lasting relationship, as satisfied companies returned to Revelo for additional hires, creating a ripple effect across the industry.
Nearshoring vs. Offshoring: The Allure of Latin American Talent
Despite the tech industry’s gradual shift toward in-person work, the appeal of Latin American developers has shown remarkable resilience. Mendes emphasizes that U.S. companies tend to view Latin American talent as “nearshoring” rather than traditional offshoring.
This perspective makes all the difference, as geographical proximity allows for real-time collaboration and minimizes the logistical hurdles associated with significant time zone differences. With Latin American developers operating within the same time zones as their U.S. clients, communication improves, projects progress more fluidly, and ambiguity surrounding deadlines diminishes. The shift to nearshoring is not just a trend; it’s becoming a strategic move that enhances productivity and fosters better project management.
Strategic Growth and Future Prospects
Mendes is unapologetic about Revelo’s expansion strategy, stating that they have acquired five competitors within 30 months, including the announcements in March for Alto and Paretisa. Each acquisition represents not just a tactical mission to bolster market share but an unwavering commitment to create a robust global talent pipeline tailored for the age of AI. The continuous acquisition of smaller tech firms is a clear signal of Revelo’s ambition to meet escalating market demand head-on.
This strategy not only solidifies Revelo’s position but also highlights the proactive nature of industry players who refuse to stand still in the face of evolving challenges. The entry of numerous companies into the recruitment space targeting Latin American developers underscores a collective acknowledgment that the race for AI expertise—and, by extension, for the future of technology—is more fierce and intricate than ever before.
In this dynamic milieu, Latin America stands to gain prominence as a key player in the global tech narrative. With a wealth of untapped talent and the potential for businesses to leverage high-quality engineers seamlessly, the future appears promising for both developers and enterprises seeking to shape the evolving landscape of artificial intelligence. As Revelo and similar companies capitalize on this cross-border collaboration, the possibilities seem ripe for exploration and innovation.