Software developers are increasingly challenging to find. Businesses had thought the post-pandemic growth would last until 2023, but that's not the case anymore. Price rises, massive job losses, and an "Exodus" have caused severe disruption.
It is essential to understand the situation of US software developers right now. While tech companies have laid off many software developers, finding quality and cost-effective personnel is still challenging due to the labor force's limited availability.
Contrary to what many may think, the tech talent pool has not grown tremendously due to the numerous layoffs that have occurred (and are still occurring).
Is there a shortage of software engineers?
Yes, you guessed correctly! In 2023, the software engineering industry faces a record-breaking shortage of professionals. This skills crisis has resulted in an astonishing 1 million tech job vacancies that still need to be fulfilled.
Reports suggest that the number of US job vacancies, due to a lack of talent, will reach 85.2 million by 2030. Furthermore, this could result in businesses losing nearly $8.4 trillion in income during this period. Organizations in the US have been trying various strategies to combat this imminent talent shortage problem.
The current landscape of the Developer Shortage in 2023
• According to the US Labor Department, the number of software engineers, quality assurance analysts, and testers living in the US is much less than the current need.
• According to 64% of IT executives, finding qualified IT people is a significant barrier to implementing new technology. Network security, the digital workplace, IT automation, platform, computer infrastructure services, and storage and database systems are the most impacted areas.
• Due to a lack of qualified candidates, there were around 1 million IT job openings in the U.S. in 2019, despite a 34% increase in job posts during the year's first half. The tendency has worsened through 2023 and is predicted to increase by several times that much over the next ten years.
• By 2025, according to a market research company IDC, there will be a 4 million developer shortage.
• According to the US Bureau of Labor Statistics, there will be a need to fill about 200,000 developer jobs yearly in the next ten years.
• There may be 1.2 million open engineering positions by 2026.
What can companies do about the developer shortage?
In these unstable times, companies urgently need experienced software developers to ensure the safety of their customers, staff, and investors. Secure access to these professionals is necessary for them to stay afloat.
IT directors are pushing their companies to be prepared for future events. This includes making remote work a priority, getting the right tech talent onboard, and using AI and analytics to maximize supply chain efficiency. This can help put companies in a better position moving forward.
In light of our current landscape, nearshore options are considered, as many businesses have only recently started to grasp their full potential.
Nearshoring strategies are gaining traction as businesses realize they can stay competitive by hiring great talent from cheaper geographic locations in the same time zone. One of the significant advantages is access to a large and varied pool of talent.
As a result, you have the unprecedented opportunity to leverage the power of a truly international network of professionals. In short, businesses are concerned about the lack of software developers. To stay ahead of the competition, you must start looking for new and innovative solutions.
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