According to Evans Data Corporation, software developers have increased from 23 million in 2018 to 26.4 million in 2019. This number is expected to reach a number of 27.7 million by 2023.
Still, hiring software developers for startups and the large organization has never been more challenging than it is today
Bureau of Labor Statistics depicts that by 2026, the complete IT workforce requirement will exceed 1.2 million. Well, the 545k software engineers will leave the industry at that time.
Innovation and transformation are impossible without new talent. This is further intensifying the gap between tech talent supply and demand.
This shortage of talent has far more serious economic consequences. The need for software developers is growing and the technical specialists in general. Plus, there is more competition to retain top talent.
The Tech Ecosystem is Hungry for Developers
- 1 The Tech Ecosystem is Hungry for Developers
- 1.1 The Basics
- 1.2 The Development Trends
- 1.3 Dependent Industries Trends
- 1.4 Why Shortage of Tech Talent?
- 1.5 The Shortlisted Candidates do not have relevant experience
- 1.6 No Technical Skills Required for the Position
- 1.7 Inadequate Soft Skills
- 1.8 Lack of Formal Education
- 1.9 Salary Demands are Outrageous
- 1.10 Outsourcing is the Best Remedy
- 1.11 What Leads to Bridging the Gap with Outsourcing?
- 1.11.1 a) Access to experienced and well-trained global professionals
- 1.11.2 b) Helps to cut back and control expenses
- 1.11.3 c) Effective use of in-house team
- 1.11.4 d) Focus on core business
- 1.11.5 e) Streamline business operations for efficiency
- 1.11.6 f) Business ready to adapt to volatility
- 1.11.7 g) Quality maintenance
- 1.11.8 h) From A to Z
- 1.11.9 i) Process Continuity
- 1.12 Putting it Together
Do you know almost every change, expansion and smallest modification of the business involves an element of information and technology?
The world of business moves ahead at a very fast pace nowadays especially when it comes to taking advantage of the latest trends.
This is one of the reasons why having a skilled and highly responsive IT team is important. Without a reliable agile development team, the project may be doomed to failure even before getting off the ground.
Recent research by firm Gfk and businesses within London’s Shoreditch Tech Cluster reveals that 77% feel there is a lack of skilled employees and this is a critical factor.
An overwhelming majority of 94% reveal that they were forced to hire temporary developers so that their requirement is fulfilled.
This is a revolving door in the technology market where many employees in the IT leave their jobs after a maximum of 10 years tenure.
Therefore many projects are severely affected while new members join in and try to understand the insights.
To hire the most proficient developers, you as the business owner should understand the basics of the technology stack.
This helps you stay updated irrespective of the trends and needs of the hour. Sound knowledge is the utmost requirement of the tech industry; from creating the smallest application to implementing the biggest security systems.
Digital technologies may keep evolving, tools may sometimes become important or obsolete but having the right team of developers will help you adapt to everything making the evolution simpler.
The Development Trends
Development and innovation in the IT sector are random, anything releases anytime. And when other industries are also taken into consideration, the scope becomes tremendous.
So, it is important for software developers to understand the market thoroughly and consumer demands.
Dependent Industries Trends
IT industry is one of those industries that are supporting many industries, directly or indirectly.
And the canopy of the umbrella is spreading as it is constantly connecting more industries.
In-depth research on these industries helps in determining the paths that the IT sector makes.
Why Shortage of Tech Talent?
Even when companies find reliable developers, they face the following challenges:
- The developer doesn’t have relevant experience.
- They don’t have the technical skills required.
- Shortage of soft skills (Fluent English, problem-solving skills, analytical, logical reasoning, teamwork, work ethic, flexibility, coordination, etc.)
- The salary demands are outrageous
The Shortlisted Candidates do not have relevant experience
Many graduates have recently entered the IT industry and have no idea regarding the latest trends. Well, you need a good amount of reputation to keep the reputation of your company and set high standards.
You simply can’t hire random developers only because they are cheap. This will hamper the work quality.
These people are not problem-solvers and you have to waste a lot of time to train and make them understand the complete project. Eventually, it will not result in a cost-effective solution.
No Technical Skills Required for the Position
When you are looking for new developers for the new project, it is a possibility that they don’t have the required technical skills as per the latest trend.
A software developer skilled in one particular field may be lacking in another. He may be able to accomplish one task but won’t know how to perform the second one.
The best way is to hire a team of developers who are proficient in their particular fields. This way, you don’t have to hire individual developers for different positions and offer salary packages to them separately.
Inadequate Soft Skills
Soft skills are equally important as technical skills. One complements the other. Maybe you find a developer who has exceptional skills but is an introvert.
He doesn’t share his thoughts with the team members or explains the direction in which the process is heading.
This leads to a lack of teamwork and communication. And your project may end up being a complete mess.
Collaborating with a software development company is not an easy task. Developers should have diverse knowledge and should coordinate with the rest of the team.
All this works efficiently if they have soft skills in the first place.
Lack of Formal Education
Do you know there are many developers who don’t have a formal education?
Yes. Although they might have skills to accomplish a project they don’t have formal education.
Hire programmers with formal education as they understand algorithms and data structure better. They have adequate experience with compilers and interpreters.
Plus, they are trained regarding the operating systems and understand the difference between architectures. Companies having firsthand experience of this difference should be preferred.
This is why formal education teaches you things that don’t have a real-world application. Others are either too lazy or not competent enough to understand those things completely.
Salary Demands are Outrageous
With the huge demand of the developers and so little to choose from, developers ask for high salaries for their services.
Everyone should be paid well for their respective work but every company can’t afford developers asking too high.
For example, when you are buying a product from a brick and mortar shop, quality is the priority. You never want to pay for something that is going to last for a few days or weeks.
The same applies to your developers. You are looking for quality developers, their salary should match their competency.
Don’t think that until the world starts producing more talent, you will end up partnering with sloping workers. You can also look beyond your country and find a developer in another geographical location.
Ever imagined, what is the solution to successfully bridging the gap between the talent shortage of the demand and supply scenario of software developers?
Well, you can get rid of the talent shortage of software developers by hiring a team of offshore developers.
Outsourcing is the Best Remedy
The shortage of local talent is the major reason why companies today are looking for outsourcing companies. Other major reasons include high salary expectations and work quality.
IT project outsourcing helps the organization in executing their projects and deliver impeccable results.
It also provides the benefits of cost management and risk mitigation so that companies can concentrate on their core operations.
Benefits to consider:
- Less or no training
- Rapid implementation of the best practices
- Easy scalability in order to ramp up or down as per needs.
- Reduces management overhead
- The project solution shares the risks and rewards.
- Overcome lack of internal skills and abilities.
- Shift fixed to variable cost to enhance operating leverage
What Leads to Bridging the Gap with Outsourcing?
The positive of collaborating with an offshore software development company is very clear:
a) Access to experienced and well-trained global professionals
During business outsourcing, you have access to an expert team of professionals from the best offshore destination.
They have a multitude of skills, striving hard to deliver quality services and guiding you in the right direction for growth and success.
You as a software development company are equipped with the right software and hardware at your fingertips.
Even the best offshore development firms have a team of dedicated professionals that have responsible project managers.
This clearly defines that they can pool their experience and knowledge to deliver the best output. The offshore developers work in an environment while coordinating with the in-house team.
b) Helps to cut back and control expenses
All the variable expenses that may pop up while your in-house developers are into the development process can be reduced or completed avoided.
This is possible when you take the help of outsourcing services from a reliable company.
c) Effective use of in-house team
Performing non-core tasks are likely to hold up your business resources and manpower as it is time-consuming.
However, strategic outsourcing frees up the resources that help in improving the productivity of the overall business.
d) Focus on core business
When IT companies outsource non-core functions, it inevitably ends up with more time. This can be used more efficiently in order to focus on the core competencies, further helping businesses to enhance their productivity.
e) Streamline business operations for efficiency
When you look for the best business outsourcing solutions, it becomes easy to process, organize and manage the laborious time-consuming operations. Therefore, it helps in improving business efficiency.
f) Business ready to adapt to volatility
The outsourcing process has access to new technologies catering to the ever-evolving market trends and regulatory standards.
This further makes you more business ready to deliver predictable and improved business decisions, in the face of volatility.
g) Quality maintenance
By outsourcing your project to an efficient information technology outsourcing company, it helps in ensuring accuracy and service quality.
This leaves the business with more time and improved efficiency in operations and helps maintain quality standards.
h) From A to Z
Working with the outsourcing team means all the applications are holistically planned. The user experience and user interaction are taken into careful consideration.
A dedicated offshore team also has the advantage of providing post-release analysis that is usually overlooked in the haste of hurriedly completing the project.
i) Process Continuity
Another benefit of having a large pool of outsourcing workforce is continuity. No need to worry about any hired developer quitting the job in the middle of the development process.
The offshore remote team guarantees the project’s success and ensures the availability of the resources.
Putting it Together
As technology turns to a more central fixture of the society, the demand for developers will keep increasing.
In order to make sure that your organization stays relevant within the industry, collaborate with the best outsourcing service provider.
Look for an outsourcing vendor that you can trust and the one that can understand your business and deliver optimal results.
When choosing a vendor, consider working with the one that provides staff augmentation and project outsourcing services.
This will help you to get the best of both worlds without the increased burden of managing multiple developers.