As artificial intelligence transforms the technology landscape, companies worldwide are grappling with an unprecedented talent shortage that IDC estimates will cost organizations nearly $5.5 trillion globally by next year. Meanwhile, Deloitte projects the tech industry will need 7.1 million more skilled workers by 2034. In this VMblog interview, Nacho De Marco, Founder and CEO of BairesDev—a bootstrapped, billion-dollar nearshore software provider—shares insights on how AI is revolutionizing talent acquisition, creating new skill requirements, and reshaping the global development landscape.

From processing over 2 million candidate applications annually to maintaining a 96% client retention rate while serving industry giants like Adobe, eBay, and Pinterest, BairesDev has witnessed firsthand how AI is changing what companies look for in developers. De Marco discusses the emergence of essential new competencies like prompt engineering and data fluency, the 383% year-over-year increase in machine learning expertise requests, and why 63% of experienced engineers are still finding errors in AI-generated code. He also explores how different regions—from Latin America's rapid AI adoption to Eastern Europe's technical strengths—are adapting to these AI-driven changes, and what the distributed, AI-augmented future of work means for both companies and tech professionals.

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VMblog:  Thanks for sitting down with us today. To kick things off, please give our VMblog readers a quick overview of BairesDev, as well as your competitive landscape and things like TAM.

Nacho De Marco:  In 2009, I co-founded BairesDev with Paul Azorin, driven by a practical need for skilled software engineers. We've been fully bootstrapped from day one. Over the years, we have grown into one of the largest nearshore software providers to U.S. companies, now valued at over $1 billion.

We deliver senior-level tech talent to leading companies like Adobe, eBay, Pinterest, and J&J, serving clients across 100+ industries. Each year, we process over 2 million candidate applications. Our rigorous, data-driven recruitment process means we only hire the top 1% of candidates. This allows us to consistently deliver high-quality solutions while maintaining speed and flexibility. We are a fully remote company, which allows us to recruit the best talent globally, no matter where they are based. Many of our hires are based in LATAM, a region emerging as a major force in global tech. By 2023, Brazil alone had around 500,000 software developers, while Mexico added around 220,000.

VMblog:  What market needs or problems is BairesDev taking on as a company, and how are you solving them?

De Marco:  The biggest issue is access to qualified tech talent, especially mid to senior roles. Companies can't find the right talent fast enough to meet business demands, and recruitment is a long and costly process. A survey by IDC estimates that by next year, the IT skills shortage will cost organizations nearly $5.5 trillion globally. Meanwhile, Deloitte predicts the global tech industry will need 7.1 million more skilled workers by 2034.

We help solve this by tapping into highly skilled, time-zone-aligned talent from LATAM. Our proprietary AI tool allows us to build tailored high-performing teams in an average of two weeks. That kind of speed and precision is hard to get with traditional hiring models.

We focus on retention, so we don't just fill up seats - we build durable teams. That's how we maintain a 96% client retention rate, with average relationships lasting three years or longer.

VMblog:  From your vantage point, how is AI reshaping global talent acquisition, and what are the implications both short term and longer term?

De Marco:  AI is already transforming how companies hire. In the short term, AI is making hiring smarter and faster. At BairesDev, it helps us analyze candidate profiles and match people, experience, and skillsets to projects with greater precision.

In the long term, I believe AI will change what companies look for in candidates. Skills that machines don't possess, such as adaptability, creativity, and the ability to collaborate with AI systems, will become even more valuable. At the same time, companies will need to evolve hiring processes to focus on ensuring human and AI skill sets complement each other.

VMblog:  How is AI changing the skill sets that companies are looking for when hiring developers and IT professionals? What new competencies are becoming essential?

De Marco:  In today's workforce, developers are now expected to work with AI, not just around it. Skills like prompt engineering, data fluency, understanding ML models, and API integration are becoming core skills for developers.

But it's not just technical. Developers need to understand the problem they're solving and how AI can help. Problem-solving, adaptability, and cross-functional collaboration are now just as important as tech stack knowledge. The most in-demand developers today are the ones who can apply AI tools to solve real-world business problems, not just write lines of code. This is evident in the rise of the relevance of soft skills. While these "human" skills used to represent just 20% of the hiring decision, they now represent between 30% and 40% with continued growth on the horizon.

VMblog:  Are you seeing a "two-tier" job market emerging where AI-savvy developers command premium salaries while others face displacement? How should professionals adapt?

De Marco:  We're not looking at a strict divide but a strategic realignment of skills around emerging technologies. Developers and engineers who can work effectively with AI tools and integrate them into products and workflows are certainly in high demand and often command premium compensation.

AI is also creating new opportunities across the tech landscape. Every AI-driven solution still depends on a solid foundation of infrastructure, data architecture, cybersecurity, backend systems, and user experience design. These areas remain critical and are evolving alongside AI.  

The professionals who thrive are those who adapt by learning how AI can enhance their work and staying open to evolving tools and roles. Innovation isn't tied to a place anymore. It's tied to whoever gets upskilling right.

VMblog:  Are you seeing clients shift their hiring priorities toward AI specialists and data scientists? How is this impacting the demand for traditional software engineers?

De Marco:  There's an increasing demand for AI roles like data scientists and ML engineers, among others. We've seen an increase in client requests for machine learning expertise by 383% year-over-year.

That said, there's still a huge need for strong backend engineers, frontend developers, DevOps, and cloud specialists. Core tech skills like React, .NET, Python, Node, and Java continue to be indispensable to our clients. Engineers are blending traditional expertise with AI proficiency - and that's where the real opportunity lies.

VMblog:  How should tech talent acquisition strategies evolve to compete with AI-augmented development capabilities?

De Marco:  Companies need to move toward skill-based hiring to stay competitive. What matters most is what a candidate can do - not where they went to school or which company they worked for before.

At BairesDev, we use practical assessments to evaluate our candidates. This approach helps us find diverse, high-performing talent - especially developers, including many who have mastered AI tools but may not fit into the traditional mold. By hiring for capabilities and outcomes, not pedigree, we're building future-proof teams for the AI era.

VMblog:  What advice would you give to software engineers and IT professionals who are concerned about AI displacing their roles?

De Marco:  Don't fear AI - embrace it. Start by incorporating it into your daily workflow to automate repetitive tasks. That gives you more time to focus on high-impact, creative work. The most valuable developers won't be the ones who compete with AI but those who collaborate with it.

VMblog:  How are different regions (NAM, LATAM, Eastern Europe, Asia) adapting to AI-driven changes in tech talent requirements?

De Marco:  AI is reshaping the global tech talent landscape, with regions adapting in ways that reflect their unique strengths, infrastructure, and market focus. Rather than creating a one-size-fits-all model, AI is driving a more regionally nuanced shift in tech talent needs.

In North America, especially the U.S. and Canada, AI is deeply integrated into hiring strategies. There's high demand for machine learning and generative AI skills, but roles in DevOps, cloud, and cybersecurity remain essential - especially when paired with AI fluency. Upskilling is happening quickly through bootcamps, certifications, and internal programs.

LATAM is emerging as a fast-moving and cost-effective region for AI adoption. While AI model development is still largely centered in the U.S. and China, the region is moving fast, training developers to work with AI platforms, integrate APIs, and automate workflows. We're seeing exceptional talent in Brazil, Mexico, and Colombia, in particular. There's a strong culture of continuous learning in LATAM, supported by education platforms and growing local tech communities. Additionally, time zone alignment with North America has allowed the real-time collaboration necessary for LATAM to become an ally for AI development.

Eastern Europe continues to be a hub for technically strong talent. Countries like Poland and Romania are seeing increased AI literacy, with professionals moving into AI-adjacent roles like data engineering and algorithm design. Romania's UiPath, known for its automation tools, is a clear example of how the region is contributing to the broader AI ecosystem.

Across Asia, adaptation is varied. India is becoming a major AI integration hub, driven by large-scale upskilling and enterprise investment. Southeast Asian countries like Vietnam and the Philippines are building expertise in AI-powered services. China remains a leader in AI R&D, particularly in robotics and computer vision, though much of this is domestically focused.

VMblog:  With AI democratizing certain aspects of software development, how is this affecting the traditional advantages of nearshoring and offshoring?

De Marco:  AI is definitely leveling some parts of the playing field, but nearshoring still holds key advantages. AI can speed up execution, but it doesn't replace the need for experienced developers who can make judgment calls, ensure quality, and align technical outputs with business goals.

In a recent internal survey, 63% of our engineers reported finding errors every time AI generated code. Developers with 8+ years of experience were significantly more likely to catch these issues, reinforcing the importance of seniority and technical experience.

Moreover, the increased speed of innovation has led to a decrease in the average life of skills and therefore, a skill gap. Nearshoring companies are the right partner to help fill those gaps with qualified candidates who hold the right set of skills fast.

VMblog:  Where do you see the biggest opportunities and threats from AI for BairesDev and similar companies over the next 3-5 years?

De Marco:  The biggest opportunity is scale. With AI, we can vet more candidates, onboard faster, and deliver more value to clients. We're already integrating AI into our operations - from talent matching to project forecasting.

The biggest threat is complacency. The companies that assume AI is a passing trend or that their old playbook still works will fall behind. That's why we're investing heavily in AI upskilling for our internal teams and exploring AI partnerships with clients.

VMblog:  Let's talk about the "future of work." Tell our readers about what it looks like from your vantage point and what are the implications?

De Marco:  The future of work is hybrid, distributed, and augmented. Remote work is no longer a perk - it's an expectation. Talent wants flexibility, purpose, and tools that help them do their best work. At the same time, AI will become an embedded assistant in every role, whether you're a developer, designer, or even manager.

Tech talent is not concentrated in just a few major hubs like Silicon Valley or New York. Global hiring used to follow capital. Now capital follows talent, and talent is everywhere Wi-Fi reaches. Companies that tap into distributed talent pools have a clear advantage.

The implication is that companies need to rethink not just how they hire people but how they enable them. Culture, communication, and upskilling will be key to staying competitive.

VMblog:  What are BairesDev's plans for the future as a company, and what does your innovation roadmap look like?

De Marco:  We aim to expand our reach across the U.S., Canada, and the UK. Our mindset of continuous improvement leads us to consistently invest in proprietary AI-driven solutions throughout our company. Tech is our ally to finding sustainable solutions and AI is no exception. Our innovation roadmap focuses on leveraging technology to help our clients build better, faster, and smarter. Additionally, we hope to continue building our talent pool in Latin America and become the region's most desirable employer for tech talent.

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Nacho De Marco is the Founder and CEO of BairesDev, the largest and fastest-growing fully bootstrapped software outsourcing company. In 2021, driven by his entrepreneurial spirit, Nacho launched BDev Ventures. This VC fund helps B2B companies accelerate their growth through a proprietary lead generation platform. He also invests in and serves on the boards of biotechnology and e-learning companies. Nacho authored "IT Outsourcing to Latin America," an Amazon-exclusive book analyzing the software development market in LATAM. In recognition of his career path, he won an EY Entrepreneur Of The Year® 2024 Bay Area Award.