Why the Software Developer Shortage in 2023 is a Real Threat
The worldwide talent deficiency is an issue that affects many industries, but the lack of skilled software developers is especially problematic. Companies everywhere are desperately trying to locate competent software engineers to fulfill roles, and this situation has reached record heights.
In recent years, the demand for software engineers has been on the rise due to technological advancements. To meet this increased demand, software engineers must specialize in one or more programming languages, automation processes, and advanced technologies. Others include AI, machine learning, big data, augmented reality, DevOps, and IoT.
Companies now face the challenge of hiring for positions from a limited talent pool that may not possess all the required skills.
Why is the talent shortage happening?
The worldwide labor market is in serious trouble; lacking over 40 million skilled workers already. That number is projected to double by 2030, the situation is dire. The U.S. Bureau of Labor Statistics warns that companies will miss out on $8.4 trillion in revenue if they cannot recruit the right people for the job.
To successfully tackle the tech talent crisis, we must not simply bemoan it but also review our recruitment process for software engineering roles. The software developer shortage makes it hard to find qualified candidates from resumes alone. Traditional resumes often need to provide more information to understand an applicant's qualifications.
Automated applicant tracking systems (ATS) might be biased towards those with the right qualifications, but they may still need to be the ideal fit for your team. However, a Stack Overflow survey of over 100,000 software engineers found that 80% are self-taught.
Companies are broadening their view of candidates to include certifications, self-study, hands-on programming experience, and traditional degrees.
Other contributing factors to the plethora of available software development jobs and the software engineer talent shortage includes:
● Remote is Taking Off: With more employers allowing remote work, the geographical limitations for software development jobs have become a thing of the past. Remote work is becoming increasingly accepted as a viable way for professionals to contribute to their employer's success. 68% of developers changed jobs due to the growing demand for remote working opportunities, leading to a shortage of software engineering talent.
● A New Level of Competition: Competition in the job market is intensifying due to increased digital transformation spending, projected to reach over $2.92 trillion by 2026. This means more companies hire developers to meet their needs and stay ahead of the competition.
● The Great Resignation: With an increased number of people that quit their jobs, companies need to prioritize keeping hold of their development teams and making tech roles more attractive. Otherwise, the brain drain will continue and they will lose a competitive edge with other organizations offering higher salaries.
The software developer shortage is hindering digital transformation.
Companies searching for a "perfect" developer causes long-term detrimental effects. A lengthy hiring process affects schedules, software updates, and customer satisfaction. Seven out of ten companies need more legacy systems to meet their IT modernization objectives.
Inadequate internal expertise leads to dangers such as blown schedules and cost overruns, loss of credibility, and high employee turnover.
In addition, 83% of software developers are experiencing extreme job burnout due to their high workload. At the same time, big companies are poaching talent, hindering smaller companies' growth and reducing their revenue.
4 strategies implemented to address the shortage of software engineers.
If the above sounds all too familiar, we’ve got a solution: find a nearshore partner.
By using a nearshore software development partner you fill the talent gap while continuing to recruit, operate on an ad-hoc project basis, or create an ongoing relationship to outsource software development.
At the same time, companies need to deploy other strategies, including:
● Retaining your current staff: By employing a specific internal strategy for the retention of your top tech talent, you keep the shortage from becoming any worse. Often, companies continue to load up their best workers only to find they leave because of the workload and burnout.
● Salary increase reflecting the current market: Unfortunately, companies have to accept that in a shortage, wages will have to evolve to be competitive with the job market.
● Flexibility above in-house perks: Forget the ping-pong tables and coffee bars — developers today want flexible job hours, remote or hybrid work environments, a healthy work culture, and work-life balance.
● Skills over status, please: Companies need to be open-minded about finding people relevant to the job, whether these skills were learned during formal education or not.
How does nearshore help fill the talent gap and benefit your company?
Nearshoring is a great solution to address any talent shortage your business is facing. It provides access to professionals who may not be geographically close, but who have the same level of expertise as those from the USA, enabling you to leverage this additional resource.
Nearshore also helps reduce costs and time-to-market while providing quality services that meet your business needs. With nearshoring, you leverage the benefits of having a global workforce without worrying about sizable language barriers or cultural differences. This makes it an ideal solution for companies looking to expand their reach and gain a competitive advantage.
With nearshore tech talent, you get similar benefits that you would experience with offshore solutions:
● Specialists possessing the necessary expertise for your project are available.
● Decreasing the workload for internal staff helps improve efficiency and productivity.
● Enhancing team by adding skilled members' and closing any skill gaps are necessary for the success of your business.
However, working with a nearshore software developers’ company, you also get:
● U.S. Similar Time Zones
● Similar work ethic as U.S software developers
● Closer Proximity to Headquarters
● English Proficiency
● Similar Culture to the U.S
● Retains Cost-Effectiveness Comparable to Traditional Offshoring Centers
By widening the scope of your recruitment, you access a broader pool of talented individuals and avoid competing for limited local talent.
Developers.net excel in offering nearshore software developers' solutions and we are often more cost-effective than offshore or onshore solutions, as wages are typically lower, the same skills can be obtained, and language barriers are less of an issue than offshore.
Developers.net has extensive expertise in nearshore technology solutions, enabling your business to take a great leap forward while meeting all its software development requirements. We are proud to have formed highly talented nearshore teams over the years. Our CTOs have a rigorous selection process to ensure that only highly qualified recruits are added to our team. They also closely monitor their ability to work with a variety of different technologies.