Agile Nearshoring Revolution in Latin America
Agile’s goal is to solve the challenges and limitations of traditional development. Latin America’s digital teams are becoming more skilled and familiar with highly collaborative software development methodologies such as Scrum and Agile.
In Latin America there are some startups that managed to become Unicorns. These companies emerged in the midst of the Digital Transformation era, which allows them to have agile and dynamic business models.
Gympass, a Brazilian Unicorn, bases their app building in Agile Methodologies. “Agile Methodology and Sprints made it possible to quickly offer new services and update them from client’s feedback”, says Juliano Ballarotti, Engagement VP at Gympass (Consumidor Moderno).
Furthermore, Latin American Unicorns are fully focused on the needs of users, who have also changed their consumption habits to digital solutions. That’s how companies in e-commerce, shared economy or software sector, among others, triumph as Unicorns.
Benefits of Agile and Squads
In Latin America, squads are growing in number to create products more efficiently, launch advertising campaigns or create operations in a new country.
To ensure a healthy and sustainable scalability of growth, the backend architecture has to be built prepared to scale. planning.
Read also: How to build Agile culture: an Uber case
Benefits of Nearshoring
Better Communication Leads to More Productive Teams. One of the key challenges that remote teamwork creates for managers and team members alike is that communication can become more difficult if there are team members in different countries.
Nearshoring to Latin America avoids this potential set back in that Latin American countries share similar time zones with North America. For example, Colombia is in the same time zone as New York.
Looking to Latin America for staff augmentation provides businesses with more options than if they had only searched for top IT talent in their home countries. Tapping into Latin America’s IT talent pool proves to be a critical key success factor for North American businesses to survive while weathering the COVID-19 storm.
Fintechs Linchpin for Digitalization of the Financial Sector
Fintechs are now a necessity. The traditional banking system is becoming obsolete. Traditional companies are moving to digital. With the introduction of fintechs, traditional banks are also adapting fintech features such as mobile payments, digital security, P2P lending and collective financing (Crunchbase).
Itaú, one of the largest Brazilian banks, is focused on accelerating its growth through expanding its customer base by incorporating a digital mindset.
“The main gaps between large/traditional banks and new/small players/fintechs are, in terms of agility and flexibility to develop new products and services, and in terms of customer experience, thus, the digital mindset present in new players is fundamental for this development. However, one notes that the implementation of this strategy should be a big challenge for Itaú, because to change the culture of a large bank such as Itaú is not an easy task”, comment the analysts Gustavo Schroden and José Cataldo” (MoneyTimes).
In Mexico, an interesting case study on the inclusion of digital payments revealed that 75% of companies surveyed at the end of 2020 indicated that their revenues increased after they started accepting digital payments. Among the companies that reported the highest revenues, the average monthly increase was about 22%, and 75% of respondents claimed to have accepted digital payments for the first time, according to data from Visa.
The pandemic has forced many Latin American digital businesses to improvise and adapt in order to stay in existence. Now more than ever, it is critical for new hires and outsourced talent and agile to be at the top of their game.
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