In the past decade, there has been a shortage of professionals in almost every industry. But the software industry is arguably one of the most affected industries by far. This is primarily due to the constant rise in new tech. This leaves a lot of vacancies unoccupied. Constant technology advancement means that more professionals are needed to produce and overlook any new products.
Another reason is the ever-growing software industry. More companies and industries are turning to digitalization to make tasks easier and more efficient. Every aspect of software from DevOps to big science, is facing shortages in professionals, especially in software engineer shortage. Sometimes the available IT specialists do not possess the required skill sets. This also leaves software companies in an uncomfortable position. So why is there this shortage and what is the best way to tackle it? Let’s continue reading to find out.
Reasons for a shortage in software experts
A lack of sufficient developers has a lot of negative effects on a company. Having fewer developers will reduce the time when new software and updates are released. It also puts more pressure on the professionals on a team. Burnout leads to poor quality work that could influence the business and projects. All these factors will eventually lead to reduced revenue and poor customer satisfaction. Here are some of the main reasons why there is a shortage in the software industry.
1. Increased number of experts resigning
Because of the stiff competition, workers are willing to quit their jobs. If the working conditions are not suitable, experts are willing to resign for a more favorable working environment.
Burnout, strict working culture, and lack of flexibility when it comes to working hours also contributes. Some companies may offer higher payments which makes it harder to retain professionals. Certainly, shortage of software engineers and pushing up salaries, with a number of companies opening offices in Western Europe to retain talent influences the market.
However, according to the reports, the number of software developers is expected to increase to around 29 million people by 2024. If we speak about the nearest future, there would be no shortage of experts in this field.
2. Increased remote job opportunities
Nowadays, borders do not significantly affect employment, more so in the software industry. Companies have realized that they can hire IT specialists who do not have to be physically present to offer their expertise and skills. While this has created more flexibility for software engineers, it has also contributed to the shortage of workers.
With the rise of tech trends, limitations and challenges associated with pandemic and different conflicts, it has also triggered the decrease of work opportunities. Additionally, the next wave of covid may hit the industry before the scheduled time. The number of covid infections can suddenly increase, so the experts have warned about the possible influence on the jobs market. Yes, there is still a shortage of good IT talent, however, there has been a slight uptick in jobs opening. It’s also a great time to explore new opportunities.
3. Highly competitive market
The increased demand for digitalization in almost every aspect of daily life is putting immense pressure on the software market. The global software business reached USD 429.59 in 2021. This will almost double in the next five years. So there is a lot of demand for developers to work for different companies.
Larger companies like Newxel can maneuver this problem to some extent. However, the ones struggling are mostly middle-sized and smaller software companies. They are unable to offer higher payments to developers and so end up losing out on talent.
4. Inadequate application systems
Most of the applications are outdated and unsuitable for software companies. The old style of resumes leaves out a lot of vital information that employers need when recruiting. Companies should look beyond the resume when assessing candidates as some who are self-taught or possess hands-on experience may be left out.
What is the solution?
So what is the way forward especially if you are starting? The best solution is to hire offshore. You can opt for outsourcing and hire professionals who can provide quality work remotely. The offshore talent pool is full of experts willing to work with foreign companies. This allows you to continue working on current and new projects. You may continue hiring while working with offshore developers.
Outsourcing talent has so many advantages. First of all, you fill any deficiencies. Then you may end up paying less for the same talent. Another advantage is the relationship that you will develop with outsourcing companies. This long-term relationship means you can access new developers according to your needs.
With modern communication, it is feasible to have a team in another country that can cooperate with your in-house team and work on your projects. The results are just as effective. Many companies are hiring offshore developers as compared to ten years ago.
Other ways to tackle this shortage in developers include:
- Working on a retention strategy for top developers
- Offer competitive salaries to software engineers
- Provide flexible work hours
- Make the workplace comfortable and favorable
- Embrace a healthy workplace culture
- Hire based on skills without focusing solely on formal education
The competition for talented developers is at an all-time high. With more companies popping up now and then, there is a growing need for talent. With this shortage, it is the small companies that suffer the most. Luckily there are possible solutions. Hiring offshore is your best bet if you want to meet up with the needs of a growing software company. The various outsourcing software companies in Europe like Newxel provide a lot of the experts. These experts are skilled and dedicated.
An additional advantage is the lower costs that come with outsourcing talent elsewhere. Avoid any delays on projects and burnout from an insufficient number of developers in your company. Save on expenses, release projects on time and increase revenue.