Arizona’s growing technology sector is outpacing the state’s ability to produce qualified employees. In this article, I will explain what actions some companies are taking to address this issue.
Arizona has developed into one of the most rapidly expanding technology centers in America. As a result of Intel, TSMC and many other startup businesses, there is now an overwhelming need for software engineers within Arizona than can be produced by the state’s educational institutions. Because the labor market is so competitive, some Arizona-based companies are beginning to hire latam developers to fill positions which would otherwise remain vacant for several months.
In 2024, the Arizona Commerce Authority reported that Arizona created over 11,000 technology-related positions in one year alone. The two largest universities in the State of Arizona (Arizona State University and the University of Arizona) produce approximately 3,500 computer science graduates each year. The mathematics do not work. There is a large disparity between the number of technology-related job openings in Arizona and the number of qualified individuals to fill those openings, regardless of whether or not we take into account out-of-state hiring or relocation of existing employees. This disparity is growing larger every day.
Arizona based organizations aren’t the only ones who can take advantage of Latin America when it comes to solving their engineering needs. Brazil, Argentina, Colombia, and Mexico each provide strong computer science education and an ever-increasing number of skilled engineers. In addition to providing highly educated engineers, these countries also offer a great deal of overlapping time zones with the United States. For example, a software engineer located in Medellin would be able to work during the same hours as a software engineer working from Phoenix. This eliminates the “overnight” handoff issues that often make it difficult for companies to collaborate with engineering teams located in India or Eastern Europe.
Salary is another thing. Glassdoor’s 2024 report states that a senior full-stack developer working in Colombia makes around $45,000 to $65,000 per year. In Phoenix, AZ, a full-stack developer with the same experience level makes from $130,000 to $160,000. There’s a big price gap, however, there doesn’t need to be a big difference in the quality of the work. Most LATAM engineers who have worked for US-based companies are accustomed to American engineering culture, agile software development practices, and the same tools that US engineers use.
The first challenge is that labor laws differ greatly across countries. When hiring a contractor directly in Brazil, the process will be quite different from when you do so in Mexico. To avoid dealing with the legal issues of each country’s labor laws, most companies that take this route hire a partner organization to manage the employment of their workers, handle tax compliance, and provide employee benefits. By doing so, the Arizona-based company can then spend its time focusing on engineering.
Arizona’s ability to attract technology companies is based on several factors, including its favorable climate, affordable cost-of-living, and supportive business climate. However, the state needs to solve the problem of finding enough qualified employees to meet the needs of these businesses. International hiring is one way to accomplish this goal. Access to international talent is essential if the state wants to compete with other major technology hubs such as Austin, Denver, and the Bay Area for investments by technology firms.
