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July 1, 2022

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April 10, 2026

Valentina Ibinete, Marketing Lead at Kaizen Softworks

Valentina Ibinete

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Marketing Lead

Business

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How did Uruguay Convert into an IT Hub?

Published on

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April 10, 2026

Last updated on

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April 10, 2026

Time to read

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12

Valentina Ibinete, Marketing Lead at Kaizen Softworks

Valentina Ibinete

Marketing Lead

When people talk about the software and IT industry in Uruguay, the country is well known as the “Silicon Valley of South America”. Its fast-paced innovation environment and skilled workforce makes Uruguay a high-quality technology exporter and one of the most prominent technology markets in Latin America.

Because of the rapid growth of the software industry in the country, major U.S. software and IT firms have been established over the past decade. Companies like IBM, Microsoft, Oracle, Netflix, Cognizant, NetSuite, and VeriFone, among others, have set foot in Uruguay and hire Uruguayan talents.

According to experts of the Uruguayan Chamber of Technology (CUTI), this number will continue to increase over the next 5 years. So, you might be wondering how can such a small country of only 3 million people could achieve such a feat?

Below , we will tell you 5 reasons Uruguay has converted into an IT Hub in Latin America.

Connectivity and networks

Uruguay is the second digitally-ready country in Latin America after Chile, according to the Cisco Global Digital Readiness Index. The report aims to measure the level of digitization that is needed to achieve competitive advantage and boost economic growth.

Uruguay has a robust Internet penetration rate of 83.4%, and one of the fastest download speeds in Latin America, ranging from 30 to 120 Mbps. 1 Almost all homes and businesses have access to high-speed Internet connections, of which 75% have fiber optic access. The state-owned telecommunications company, Antel, plans to provide full coverage of the country's fiber optic network by the end of 2022. 2 Isn’t it great for companies and even families at home, to know that they have one of the fastest speeds in the continent?

Also, Uruguay is the leading country in the region in terms of 4G-LTE mobile communications, with a 63.3% penetration rate, and one of the first countries to launch a 5G commercial mobile network (#1 in LATAM and #3 in the world).3

In addition, it is the number one country to adopt the IPv6 protocol in Latin America and #8 in the world, according to the Google IPv6 country ranking. Moreover, it has one of the best Data Centers in Latin America with several underwater connection systems to numerous countries such as the U.S, Brazil and Argentina.

In 2021, Google announced the construction of a Data Center near Montevideo (the capital city of Uruguay), its second in Latin America. Google stated that the investment:

“(...) reinforces Google's commitment to Uruguay and Latin America and to the development of the local technological ecosystem”. 4

Uruguay is a member of Digital Nations, a collaborative forum of the world’s most advanced digital governments that aim to use technology to improve citizens services. Currently, the forum has 10 members, such as Canada, Israel, Denmark and New Zealand, who promote digital inclusion and accessibility, open government, digital citizenship, among others.

Uruguay ranks #1 country in terms of e-governance in Latin America, according to the United Nations.

The various characteristics of Uruguay's business climate and technological advancements make it an ideal location for global service providers.

High quality tech talent

In order to drive sustainable technological growth, Uruguay’s main investment was, and still is, its people. The country is committed to ensuring that everyone has access to high-quality education and promoting digital inclusion.

The public education system in Uruguay is recognized as one of the best in Latin America, with the highest population literacy rate of 99%. 5

Uruguay was also the first country in the world to provide a laptop computer to every public primary and secondary school student and teacher.

The One Laptop Per Child government program (nationally known as ‘Plan Ceibal’), which was launched in 2007, has promoted the country’s digital literacy rate bridging the gap between the poorest and richest households.

High school students can also take advantage of several tech public programs that are available through the University of Work (UTU), such as Networks and Softwares, Telecommunications or Networks and Optical Communications. This way, students are then familiarized with IT jobs and educational opportunities they can choose to pursue when they finish high school.

Uruguay’s state University, University of the Republic (UdelaR), is known for its high quality education. It has been consistently ranked among the best universities in Latin America, ranking #1 in the country and #21 in the region, according to a survey conducted by the U.S. World News & Report. 6

New building of the Faculty of Engineering (UdelaR) in Montevideo, Uruguay
New building of the Faculty of Engineering (UdelaR)

For those who are interested in computing, the University offers a variety of programs, including a three-year degree in Computing or a four-year bachelor’s degree in computing engineering. UdelaR also offers masters in: Software Engineering, Computing Engineering, Electric Engineering, and Computing.

In addition, private universities are also shining in the software and IT field. They are hiring more experts and providing internships to some of the most prominent tech companies. This is the case of ORT University, which offers a wide range of degrees in technology such as video games design, animation and art.

The wide range of courses Uruguay has to offer, makes following an IT career more tempting and easy to achieve.

Larger software exporter in Latin America

Uruguay is a strong software export country. It is the largest software exporter in Latin America and the third largest in the world.

According to the Financial Times:

“More than 1,000 software development companies now operate in the nation of 3.4m people, generating almost $1bn in exports — mostly to the U.S. That makes it one of the world’s leading software exporters in per capita terms”. 7

The U.S. is Uruguay's largest export market, accounting for 65% of the country's tech revenue. Uruguay is getting the recognition of the “Silicon Valley of South America”, thanks to the investments made to develop its tech industry and the country's relationship-building efforts with the U.S, through its investment promotion agency, Uruguay XXI.

Uruguay XXI, has been strongly marketing the country's tech companies in the U.S. It has also been able to establish a variety of platforms for its companies, such as the country's own country pavilion at the annual tech conference in Silicon Valley, known as TechCrunch Disrupt.

For the second year in a row, in 2021, the Bank of the Oriental Republic of Uruguay (BROU) has recognized our company, Kaizen Softworks, as the country's Largest Exporter of Information and Communications Technology (ICT) services.

Entrepreneurial environment

Uruguay is an innovation and entrepreneurial hub. Especially the capital, Montevideo, where the startup scene is promising due to its technological achievements. From the first pacemaker to the development of a mammography exam, the country has been able to create some truly remarkable innovations.

U.S. venture capital firms have also been instrumental in helping build the local tech market in Uruguay. Companies like IBM, Microsoft, Oracle, Netflix and Cognizant, have established operations in Uruguay, hiring local talents.

In June 2017, 500 Startups, a leading startup accelerator, announced that it would be launching its operations in the country. Through the Montevideo Accelerator Program, the goal was to help early-stage companies grow and attract the necessary resources to succeed.

Also, in 2017, the country's telecommunications company, Antel, partnered with Google to build a fiber optic cable that will link the U.S and Uruguay. This will also help greatly with communications in the long run.

Evan Henshaw-Plath, the co-founder of the company that later became Twitter, moved from the U.S. to Uruguay to found his own company in Montevideo. He explains the growing interest in Uruguay from the American tech industry as such:

“Uruguay is a remarkably open place when it comes to attracting talent”.9

Co-working spaces

Frederick Terman, a Stanford University professor and one of the core founders of Silicon Valley, introduced the co-working spaces before the term was even coined, by allowing students to use university facilities to start their own businesses.

Co-working facilities are the incubator places for Uruguayan startups. These are dedicated facilities that provide a space for freelancers and entrepreneurs to lower their initial startup costs and address the isolation that many people experience when they work from home. Sinergia Cowork, Del Plata Office and Smart Office are some of the biggest groups of co-working spaces in Montevideo.

Sinergia co-working spaces in Montevideo
Sinergia co-working spaces in Montevideo

One of the advantages of working with Uruguayan companies is that it's only an hour ahead of the U.S. Eastern Time Zone (EST +1). This greatly impacts on the workflow and the success of any project. By sharing every office hour, Uruguayan companies and developers can work as if they were side by side with their U.S. partners, improving collaboration.

Conclusion

These are some of the reasons why Uruguay is associated with quality. Today, international companies choose Uruguay as a place to develop technological products and services and as a place to launch their operations to the rest of Latin America.

Without a doubt, the software and IT industry in Uruguay is constantly growing.

Its time zone similarity with the U.S., the high quality of tech talent, and its competitive cost-benefit rate of software development services makes the country an extremely attractive place for U.S. companies seeking this type of service.

U.S companies can lower their software development costs by working with companies from Uruguay, without compromising the quality of work. What’s best here is that although you pay a lower price for software development services from Uruguay, the high quality of work we provide is on a par with any company you could hire within the U.S. Thus, an excellent cost-benefit makes Uruguay a great choice to seek this service.

As an Uruguayan company, at Kaizen Softworks, we care about meeting the needs of our partners through constant improvement and innovation. We not only have high standards for software development talent and quality of work, but we also seek to provide a holistic approach to what it means to outsource software development services.

To achieve innovation and high levels of productivity, we provide support in project management and consulting services to improve our partners' internal processes, and in technology mentoring for team members of our clients, among other initiatives that make up the DNA of our people and company.

I invite you to learn more about who we are and our work. Thanks for reading!

References

  1. DATAREPORTAL. (2022, February 15). Digital 2022:Uruguay. https://datareportal.com/reports/digital-2022-uruguay?rq=uruguay 2022
  2. International Trade Administration. (2021, March 23). Uruguay Telecommunications. https://www.trade.gov/market-intelligence/uruguay-telecommunications
  3. CUTI. (2019, October 19). Uruguay is the first country in Latin America to develop a 5G internet network with commercial service. https://cuti.org.uy/en/noticias/de-interes/uruguay-es-el-primer-pais-de-america-latina-en-desarrollar-una-red-de-internet-5g-con-servicio-comercial/
  4. EFE. (2021, May 21). Google compra terreno en Uruguay para sus centros de datos en Latinoamérica.
  5. The World Bank. (2021, September). Literacy rate, adult total (% of people ages 15 and above) - Uruguay. https://data.worldbank.org/indicator/SE.ADT.LITR.ZS?locations=UY
  6. U.S. News & World Report. (2022). University of the Republic - Uruguay.
  7. Financial Times. (2021, April 29). Uruguay’s tech scene nears critical mass. https://www.ft.com/content/40dafb4e-51ed-499c-8613-004f698e1c14
  8. Orfila, María De Los Ángeles. El País Uruguay. (2019). Uruguay abre consulado en San Francisco para atender a emprendedores y estudiantes.
  9. Romero, Simon. The New York Times, sec. World. (2013). Pastoral Uruguay Yields a Crop of Digital Yetis and Adventures. https://www.nytimes.com/2013/02/22/world/americas/uruguays-video-game-start-ups-garner-attention.ht

When people talk about the software and IT industry in Uruguay, the country is well known as the “Silicon Valley of South America”. Its fast-paced innovation environment and skilled workforce makes Uruguay a high-quality technology exporter and one of the most prominent technology markets in Latin America.

Because of the rapid growth of the software industry in the country, major U.S. software and IT firms have been established over the past decade. Companies like IBM, Microsoft, Oracle, Netflix, Cognizant, NetSuite, and VeriFone, among others, have set foot in Uruguay and hire Uruguayan talents.

According to experts of the Uruguayan Chamber of Technology (CUTI), this number will continue to increase over the next 5 years. So, you might be wondering how can such a small country of only 3 million people could achieve such a feat?

Below , we will tell you 5 reasons Uruguay has converted into an IT Hub in Latin America.

Connectivity and networks

Uruguay is the second digitally-ready country in Latin America after Chile, according to the Cisco Global Digital Readiness Index. The report aims to measure the level of digitization that is needed to achieve competitive advantage and boost economic growth.

Uruguay has a robust Internet penetration rate of 83.4%, and one of the fastest download speeds in Latin America, ranging from 30 to 120 Mbps. 1 Almost all homes and businesses have access to high-speed Internet connections, of which 75% have fiber optic access. The state-owned telecommunications company, Antel, plans to provide full coverage of the country's fiber optic network by the end of 2022. 2 Isn’t it great for companies and even families at home, to know that they have one of the fastest speeds in the continent?

Also, Uruguay is the leading country in the region in terms of 4G-LTE mobile communications, with a 63.3% penetration rate, and one of the first countries to launch a 5G commercial mobile network (#1 in LATAM and #3 in the world).3

In addition, it is the number one country to adopt the IPv6 protocol in Latin America and #8 in the world, according to the Google IPv6 country ranking. Moreover, it has one of the best Data Centers in Latin America with several underwater connection systems to numerous countries such as the U.S, Brazil and Argentina.

In 2021, Google announced the construction of a Data Center near Montevideo (the capital city of Uruguay), its second in Latin America. Google stated that the investment:

“(...) reinforces Google's commitment to Uruguay and Latin America and to the development of the local technological ecosystem”. 4

Uruguay is a member of Digital Nations, a collaborative forum of the world’s most advanced digital governments that aim to use technology to improve citizens services. Currently, the forum has 10 members, such as Canada, Israel, Denmark and New Zealand, who promote digital inclusion and accessibility, open government, digital citizenship, among others.

Uruguay ranks #1 country in terms of e-governance in Latin America, according to the United Nations.

The various characteristics of Uruguay's business climate and technological advancements make it an ideal location for global service providers.

High quality tech talent

In order to drive sustainable technological growth, Uruguay’s main investment was, and still is, its people. The country is committed to ensuring that everyone has access to high-quality education and promoting digital inclusion.

The public education system in Uruguay is recognized as one of the best in Latin America, with the highest population literacy rate of 99%. 5

Uruguay was also the first country in the world to provide a laptop computer to every public primary and secondary school student and teacher.

The One Laptop Per Child government program (nationally known as ‘Plan Ceibal’), which was launched in 2007, has promoted the country’s digital literacy rate bridging the gap between the poorest and richest households.

High school students can also take advantage of several tech public programs that are available through the University of Work (UTU), such as Networks and Softwares, Telecommunications or Networks and Optical Communications. This way, students are then familiarized with IT jobs and educational opportunities they can choose to pursue when they finish high school.

Uruguay’s state University, University of the Republic (UdelaR), is known for its high quality education. It has been consistently ranked among the best universities in Latin America, ranking #1 in the country and #21 in the region, according to a survey conducted by the U.S. World News & Report. 6

New building of the Faculty of Engineering (UdelaR) in Montevideo, Uruguay
New building of the Faculty of Engineering (UdelaR)

For those who are interested in computing, the University offers a variety of programs, including a three-year degree in Computing or a four-year bachelor’s degree in computing engineering. UdelaR also offers masters in: Software Engineering, Computing Engineering, Electric Engineering, and Computing.

In addition, private universities are also shining in the software and IT field. They are hiring more experts and providing internships to some of the most prominent tech companies. This is the case of ORT University, which offers a wide range of degrees in technology such as video games design, animation and art.

The wide range of courses Uruguay has to offer, makes following an IT career more tempting and easy to achieve.

Larger software exporter in Latin America

Uruguay is a strong software export country. It is the largest software exporter in Latin America and the third largest in the world.

According to the Financial Times:

“More than 1,000 software development companies now operate in the nation of 3.4m people, generating almost $1bn in exports — mostly to the U.S. That makes it one of the world’s leading software exporters in per capita terms”. 7

The U.S. is Uruguay's largest export market, accounting for 65% of the country's tech revenue. Uruguay is getting the recognition of the “Silicon Valley of South America”, thanks to the investments made to develop its tech industry and the country's relationship-building efforts with the U.S, through its investment promotion agency, Uruguay XXI.

Uruguay XXI, has been strongly marketing the country's tech companies in the U.S. It has also been able to establish a variety of platforms for its companies, such as the country's own country pavilion at the annual tech conference in Silicon Valley, known as TechCrunch Disrupt.

For the second year in a row, in 2021, the Bank of the Oriental Republic of Uruguay (BROU) has recognized our company, Kaizen Softworks, as the country's Largest Exporter of Information and Communications Technology (ICT) services.

Entrepreneurial environment

Uruguay is an innovation and entrepreneurial hub. Especially the capital, Montevideo, where the startup scene is promising due to its technological achievements. From the first pacemaker to the development of a mammography exam, the country has been able to create some truly remarkable innovations.

U.S. venture capital firms have also been instrumental in helping build the local tech market in Uruguay. Companies like IBM, Microsoft, Oracle, Netflix and Cognizant, have established operations in Uruguay, hiring local talents.

In June 2017, 500 Startups, a leading startup accelerator, announced that it would be launching its operations in the country. Through the Montevideo Accelerator Program, the goal was to help early-stage companies grow and attract the necessary resources to succeed.

Also, in 2017, the country's telecommunications company, Antel, partnered with Google to build a fiber optic cable that will link the U.S and Uruguay. This will also help greatly with communications in the long run.

Evan Henshaw-Plath, the co-founder of the company that later became Twitter, moved from the U.S. to Uruguay to found his own company in Montevideo. He explains the growing interest in Uruguay from the American tech industry as such:

“Uruguay is a remarkably open place when it comes to attracting talent”.9

Co-working spaces

Frederick Terman, a Stanford University professor and one of the core founders of Silicon Valley, introduced the co-working spaces before the term was even coined, by allowing students to use university facilities to start their own businesses.

Co-working facilities are the incubator places for Uruguayan startups. These are dedicated facilities that provide a space for freelancers and entrepreneurs to lower their initial startup costs and address the isolation that many people experience when they work from home. Sinergia Cowork, Del Plata Office and Smart Office are some of the biggest groups of co-working spaces in Montevideo.

Sinergia co-working spaces in Montevideo
Sinergia co-working spaces in Montevideo

One of the advantages of working with Uruguayan companies is that it's only an hour ahead of the U.S. Eastern Time Zone (EST +1). This greatly impacts on the workflow and the success of any project. By sharing every office hour, Uruguayan companies and developers can work as if they were side by side with their U.S. partners, improving collaboration.

Conclusion

These are some of the reasons why Uruguay is associated with quality. Today, international companies choose Uruguay as a place to develop technological products and services and as a place to launch their operations to the rest of Latin America.

Without a doubt, the software and IT industry in Uruguay is constantly growing.

Its time zone similarity with the U.S., the high quality of tech talent, and its competitive cost-benefit rate of software development services makes the country an extremely attractive place for U.S. companies seeking this type of service.

U.S companies can lower their software development costs by working with companies from Uruguay, without compromising the quality of work. What’s best here is that although you pay a lower price for software development services from Uruguay, the high quality of work we provide is on a par with any company you could hire within the U.S. Thus, an excellent cost-benefit makes Uruguay a great choice to seek this service.

As an Uruguayan company, at Kaizen Softworks, we care about meeting the needs of our partners through constant improvement and innovation. We not only have high standards for software development talent and quality of work, but we also seek to provide a holistic approach to what it means to outsource software development services.

To achieve innovation and high levels of productivity, we provide support in project management and consulting services to improve our partners' internal processes, and in technology mentoring for team members of our clients, among other initiatives that make up the DNA of our people and company.

I invite you to learn more about who we are and our work. Thanks for reading!

References

  1. DATAREPORTAL. (2022, February 15). Digital 2022:Uruguay. https://datareportal.com/reports/digital-2022-uruguay?rq=uruguay 2022
  2. International Trade Administration. (2021, March 23). Uruguay Telecommunications. https://www.trade.gov/market-intelligence/uruguay-telecommunications
  3. CUTI. (2019, October 19). Uruguay is the first country in Latin America to develop a 5G internet network with commercial service. https://cuti.org.uy/en/noticias/de-interes/uruguay-es-el-primer-pais-de-america-latina-en-desarrollar-una-red-de-internet-5g-con-servicio-comercial/
  4. EFE. (2021, May 21). Google compra terreno en Uruguay para sus centros de datos en Latinoamérica.
  5. The World Bank. (2021, September). Literacy rate, adult total (% of people ages 15 and above) - Uruguay. https://data.worldbank.org/indicator/SE.ADT.LITR.ZS?locations=UY
  6. U.S. News & World Report. (2022). University of the Republic - Uruguay.
  7. Financial Times. (2021, April 29). Uruguay’s tech scene nears critical mass. https://www.ft.com/content/40dafb4e-51ed-499c-8613-004f698e1c14
  8. Orfila, María De Los Ángeles. El País Uruguay. (2019). Uruguay abre consulado en San Francisco para atender a emprendedores y estudiantes.
  9. Romero, Simon. The New York Times, sec. World. (2013). Pastoral Uruguay Yields a Crop of Digital Yetis and Adventures. https://www.nytimes.com/2013/02/22/world/americas/uruguays-video-game-start-ups-garner-attention.ht

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Aug 28, 2026

About Catalyst 26: Partnerships & Ecosystem Conference

Everything to know about Catalyst 26: dates, price, who attends, both keynote recaps, and when the next Catalyst event is.

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Catalyst 26 was Partnership Leaders' fifth annual conference for partnership, ecosystem, and go-to-market professionals. It took place August 25 and 26, 2026, at the Marriott Hotel at the Brooklyn Bridge in New York, with more than 1,000 attendees and 70-plus speakers from companies including Anthropic, OpenAI, Google, Microsoft, IBM, BCG, and Siemens.

Dates August 25–26, 2026
Location Marriott Hotel at the Brooklyn Bridge, Brooklyn, NY
Edition 5th annual
Attendees 1,000+ partnership, ecosystem, and GTM professionals
Speakers 70+, including people from Anthropic, OpenAI, Google, Microsoft, IBM, BCG, and Siemens.
Price $849 early bird, rising to $999, then $1,999

Who Catalyst events are for

Catalyst brought together people building and running partner programs across SaaS, AI, consulting, systems integration, agencies, and major cloud platforms.

Attendees included executives leading partnership organizations, and people working directly in alliances, partner sales, marketing, operations, strategy, and enablement.

What Catalyst 26 is like

You can look at the agenda before a conference and have a pretty good idea of what you'll find. Being there is different.

This year's theme was "Navigating Frontier Ecosystems". Anthropic's Head of Partnerships and one of OpenAI's partner program leads appeared on the same agenda as people from Oracle, Siemens, IBM, and BCG, companies that have run formal partner programs for two decades.

That mix was one of the most interesting parts of the conference. Newer AI companies were discussing partner tiers, co-selling, and joint delivery alongside companies where those models have been part of their business for years.

What Catalyst 26 covered

Catalyst 26 split its sessions into eight pillars:

  • Advancing Organizational Maturity: turning partnerships into something measured and repeatable instead of one founder doing favors for another.
  • Become a Strategic Partner: getting partnerships involved when product and business decisions are made, not told about them afterward.
  • Frontier Partner Experience: adapting partner programs as AI changes how companies build and integrate products.
  • Path to CPO: career sessions for people aiming to lead partnerships at the executive level.
  • Co-Build: two companies building something together.
  • Co-Market: two companies running a campaign together.
  • Co-Sell: two sales teams working the same deal.
  • Co-Serve: two companies delivering the same engagement to a client.

Catalyst 26 sessions

Day 1 Keynote

The Day 1 keynote brought together Partnership Leaders’ CEO Asher Mathew, Tribe AI’s Co-founder & CEO Jaclyn Rice Nelson, Anthropic’s Head of Partnerships Phil Samenuk, and Boomi’s Chairman & CEO Steve Lucas.

Their discussion focused on how companies are relying on partners to build, sell, and deliver products across AI, cloud, and enterprise software. A few points stood out:

  • More companies have dedicated partner teams now, which means a generic, one-size-fits-all partner program doesn't cut it anymore. Partners show up when the program fits how they work.
  • New AI products and cloud services are shipping so fast that a partner program can't just get set once and left alone. Incentives, support, and how you work together need regular updates.
  • Partnerships also came up as a way to access data a company couldn’t reach on its own, whether that meant getting access to it, combining it, or putting it to use.
  • AI doesn't change the basics of a good partnership. Account planning, clear ownership, and relationships built over time still matter most.

Day 2 Keynote

The Day 2 keynote featured Ramp’s Lead Economist Ara Kharazian, Eliza’s Founder Brian Benedict, Siemens’ EVP Global Partner Ecosystem Dion Smith, and Oracle’s SVP, Partner Sales & Operations Strategy Leah Yomtovian.

A few points stood out:

  • The spending data told a slower story than expected: AI adoption is mostly going toward productivity gains and task automation, not some overnight shift.
  • Siemens is in the middle of folding more than 68,000 partners and roughly 200 separate programs into a single global one, mainly to make it easier to coordinate across IT and operational technology.
  • Oracle's approach is a running "listening tour": every partner gets the same baseline benefits, then incentives and credits get layered based on the type of partner and how they work with Oracle.
  • There was also talk of a newer kind of service team: bring in engineers, turn AI requirements into working products, and reuse delivery methods that already work instead of starting from scratch each time.

Next Catalyst events

The date and location of Catalyst 27 hasn’t been announced yet. In the meantime, you can check out the half-day Catalyst Summits in different cities:

  • October 20, 2026 - Seattle
  • October 27, 2026 - Chicago
  • October 2026 - Los Angeles
  • December 2026 - Singapore

Check Partnership Leaders’ events page for updates.

·

Aug 26, 2026

Why adding people doesn't always fix a struggling team

Learn when a software team should hire, wait, reorganize, or build skills internally, and how to tell which option will actually help.

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When a client asks to hire someone new, a common reaction is to open a search. There's more work, more pressure, and new features to build. It seems like the obvious thing to do.

But in our experience working with software development teams, the problem often isn't a lack of people. The problem is knowledge concentrated in too few people, unclear team roles, slow onboarding, or temporary demand.

The question worth asking isn't who can fill the position, but what would help the team work better. That points to one of three answers: hire, don't hire, or build the capability from within. Figuring out which one applies, and why, is the real work before opening a search.

What you should ask before assuming you need someone new

Hiring works when three conditions are met: the need will last, no one on the team has the capacity to take it on, and the team can onboard someone well. That last condition is easy to overlook. A team can have a real, lasting gap and still not be ready to bring someone in if no one has the time to guide them.

The risk comes from jumping straight from "there's more work" to "we need someone" without checking what's causing the pressure. It's easy to turn a request into a list of requirements (X years of experience, a specific technology, advanced English) and start the search. The real cause is often something else: a project that grew too fast, a tech lead with no time to onboard new hires, processes that stopped scaling, or a team that lost key people and needs to recover knowledge before adding headcount.

That's why, before thinking about who could fill the role, we ask these questions:

  • What outcome is the client trying to achieve?
  • What's happening on that team today?
  • What specific problem is this hire meant to solve?
  • Does adding a person solve that problem?
  • Is there someone on the team who could take this on?
  • Are there other, less obvious alternatives?

When the answers confirm the need will last, the current team can't cover it, and the team has the capacity to onboard someone, hiring is the right call: opening the search fills a gap the team can't close internally.

Does the problem need someone new to fix it?

Not hiring is the right call when the problem behind the request is temporary, or when it will resolve before the new hire finishes onboarding. Recommending against a hire may sound unusual for a company that offers staff augmentation, but our job as a strategic partner is not to maximize every opportunity but to recommend the best decision for the client. Depending on what's actually going on, the fix can look like:

  • An internal rotation: moving someone with spare capacity into the gap.
  • Reorganizing responsibilities across the team instead of adding a seat.
  • Hiring a different profile than the one originally requested.
  • Combining two roles into one instead of opening two searches.
  • Waiting a few weeks, when the project context is about to change on its own.

Is a temporary increase in workload a good reason to hire?

This happened on a project with a long onboarding period. The initial request seemed clear: hire a mid-level developer. There was work and budget available. But when we spoke with the team, we found that the workload increased because one team member had been temporarily reassigned to another sub-team. Before moving forward, we considered what would happen when that person came back.

The client's system was complex: any new hire needed several months to understand the business, the architecture, and the platform before they could contribute independently.

The problem justifying the hire was going to disappear, but the new hire wouldn't. By the time that person had enough context, the need that started the search would no longer exist.

We recommended against moving forward, even though there was budget to add someone. The client avoided an unnecessary hire and months of onboarding for a problem that was already resolving itself. Sometimes the best answer is to wait a few weeks; other times, it's reorganizing the team or developing internal talent.

How can you build team capability without hiring?

Build capability internally when the team already has product context but lacks a specific skill. Developing that skill internally can be faster than waiting for someone new to reach the same level of context.

More people doesn't always mean more capacity. Onboarding a new hire takes time from the people already on the team: explaining the business and the architecture, reviewing their work, and building trust. That's why, during the first few weeks, a team can become less productive while it onboards someone new. Complex projects can include years of technical decisions and undocumented knowledge. New hires still need time to learn that context.

Should you hire a specialist or train someone on your team?

A client needed a senior SQL Server specialist. That niche skill set made the role difficult and expensive to fill. We started the search and interviewed candidates, but the deeper issue became clear quickly: the real challenge on the project wasn't SQL Server. It was understanding a product shaped by years of evolution, multiple applications, and complex business logic.

The right person to develop that expertise was already on the team. Instead of hiring someone with deep SQL Server expertise, the client supported that team member in building the SQL Server skills the project needed. That person had business knowledge, motivation, and a much shorter learning curve than an external hire would have had. An outside specialist provided targeted support when needed.

The team gained SQL Server expertise without losing months waiting for a new hire to learn the product first. The person who took on SQL Server gained a valuable new skill without stepping away from the other work they were doing on the project.

A team's capacity depends on how its people complement each other, what knowledge they share, and what autonomy they've developed, not just on headcount. A team of ten people who are aligned, with shared context and autonomy, can generate more value than a team of fifteen where much of the time goes into onboarding new hires.

Should you hire, wait, or develop the skill internally?

Scenario Signal What to do
Hire The need will last, no one on the team can cover it, and the team can onboard someone well Open the search for a clearly defined role
Don't hire The problem is temporary or resolves before onboarding finishes Wait, reorganize the team, or cover the gap another way
Build internal capability Missing specific expertise, not people; someone already has the business context Develop the skill internally, with targeted outside support if needed

What questions do we ask first?

  1. What specific problem are we trying to solve?
  2. Will the need still exist after the person has been hired and onboarded?
  3. Is there someone on the team who could cover it?
  4. Do we have the capacity to onboard someone well?
  5. Is the problem a lack of people, or is it caused by unclear roles, missing product knowledge, slow onboarding, or a temporary increase in workload?
  6. What impact will this hire have six months from now?
  7. If we couldn't hire today, what other option would we explore?
  8. What higher-priority work would someone on the team have to stop doing to cover this need?

Wait to open a search when the team can't define the problem, confirm the need will last, or support onboarding. Clarify those points first.

If you're weighing this decision with your own team, let's talk about whether to hire, reorganize, or develop someone already on the team.

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