Connect33 Newsletter | September 2024
3-minute read
Hi readers, welcome to our latest edition covering Latin American technology trends, expansions, and M&A. During September, we observed the world’s second-most valuable company making multibillion-dollar investments in Cloud and AI infrastructure across the region, key software players engaged in M&A activity, and Atlántico released its 2024 LatAm Digital Transformation Report. ¡Vámonos!
Beyond Code Generation: More Efficient Software Development: The introduction of generative AI coding assistants has raised expectations of improving software development efficiency. In practice, engineering organizations using such tools are seeing efficiency improvements of about 10% to 15% on average (see Figure 1). In many cases, companies fail to monetize even these gains because they’re unable to reposition the saved time and resources for productive use. But more is possible. Organizations with a more comprehensive approach can see 30% or more efficiency gains. The extra gains result from going beyond generative AI code generation, using generative AI for other tasks, and taking a more comprehensive approach to improving efficiency, including determining the right baselines and metrics.
Our take: It’s encouraging to see Bain & Company begin reporting on AI advancements in software development. We’ve been reading much about this topic since last month’s newsletter, where we highlighted Github’s AI in Software Development survey.
In conversations with software leaders within our LatAm Partners network, our takeaway is that while benefits like code quality, code security, and testing exist it is still too early to begin to try to quantify the effects of generative AI within software development organizations. We are excited to see rapid advancements on this front in the coming years.
Many companies struggle to understand their baseline efficiency and measure the improvements they try to get from new initiatives like generative AI. About two-thirds of leaders surveyed aren’t satisfied with the insights they’re getting—or not getting. Many senior executives see software engineering as a black box: They don’t know where the money’s going.
Building an effective measurement system requires a bespoke approach and focused attention. To avoid overload, a good target is 3 to 5 KPIs for the senior executive level and up to 10 KPIs for engineering leadership.
Microsoft (NASDAQ: MSFT) announced $1.3 billion and $2.7 billion USD investments in Cloud and AI infrastructure supporting inclusive growth through technology and skilling programs in Mexico and Brazil. (Microsoft, Microsoft)
Globant (NYSE: GLOB) announced its acquisition of Blankfactor, a US-based IT services consulting firm specializing in payments, banking, and capital markets. (Globant)
EPAM Systems (NYSE: EPAM), a leading digital transformation and product engineering company, acquired Neoris, a technology consultancy with more than 4,700 professionals across talent hubs in LatAm, Spain, and the US. (EPAM)
Amagi, a global leader in cloud-based SaaS technology for broadcast and CTV announced its expansion into the Mexican market. (Amagi)
Rappi, Latin America's leading on-demand delivery service, acquired Fountain9, a pioneering company in India known for its innovative AI-driven supply chain solutions. (PRN)
MercadoLibre (NASDAQ: MELI) secured a $250 million financing from JPMorgan to expand its fintech arm in Mexico (Reuters)
VTEX (NYSE: VTEX), the commerce platform trusted by 2,600 global enterprises, acquired Brazilian customer service solutions company Weni. (VTEX)
Nasdaq (NASDAQ: NDAQ) expanded its presence in Latin America via its partnership with Nubank. (Yahoo Finance)
Seidor, a global technology consulting firm, acquired Argentis, a Puerto Rican ERP consulting company. (PRN)
TD Synnex (NYSE: Snx), a leading distributor and aggregator of solutions for the IT ecosystem, acquired IPsense Cloud Migration business, a leading cloud solutions provider in Brazil. (Yahoo Finance)
Unico, the Brazilian digital ID firm, acquired Oz Forensics and Trully.ai to bolster its position in the Latin America market. (Biometric Update)
Additional stories we’re following
Meet the Latin American e-commerce platform that’s outperforming Amazon (CNBC)
Thoma Bravo Hunting for Potential Latin America Software Deals (Yahoo Finance)
Tecnológico de Monterrey university pioneers ambitious AI-powered learning ecosystem (Microsoft)
Brazil’s Modern Logistics looks to US, Mexico, M&A for expansion (Reuters)
Brazil’s top court imposes new fine before allowing X to resume service (Reuters)
Job Board
LatAm-focused roles at top tech companies.
Carrot Fertility is hiring a Research Consultant
C3 AI is hiring a Sr. AI Solution Manager
Amazon is hiring Manager, Transfer Pricing
Meta is hiring a Marketing Insights Researcher
AWS is hiring a Controls Manager
Supercell is hiring a Marketing Manager
Rocket Software is hiring a Customer Success Manager
Thales is hiring an Account Manager
Genesys is hiring an Integrated Marketing Specialist
Thank you for reading.