1.
IT Job Market:
How To Deal With The Shortage
Of Software Developers
Prepared by Eugene Bryukhov
12/08/2022

2.
EUGENE BRYUKHOV
SVP for Service and Delivery, Velvetech, LLC
• 20+ years of experience in IT delivery
• In-depth expertise in full SDLC for all core business
functions
• Focuses on tech consulting and talent management
About the Speaker

3.
Post-Pandemic
Challenges in IT

4.
Post-Pandemic Challenges in IT
• 44% of respondents say their organizations will face skill gaps within the five years
following the pandemic outbreak and another 43% report existing skill gaps
2020: COVID-19
Source: McKinsey & Company

5.
Post-Pandemic Challenges in IT
2020
• In November 2021, the level of quits reached a new peak of 4.5 million
Americans.
• 4.6 million more job openings than unemployed workers in December of 2021
2021: POST-PANDEMIC REALITY
Source: TechTarget, CNBC

6.
Post-Pandemic Challenges in IT
2020
• Probability of the US economy heading into recession is at 63%
• Forrester predicts the global tech market's 6% growth in 2022-23
• 23% increase in onshore development rates
• In comparison to onshore, the hike in offshore rates is much lower
2022: FEAR OF RECESSION VS. TALENT SHORTAGES
Source: The WSJ, ACCELERANCE. Forrester
2021

7.
Post-Pandemic Challenges in IT
2020
• High developer demand is expected to stay
• Rising cost of living and global inflation will continue to
boost prices
• Senior-level talent in IT will continually ask for top rates
2023: RISING COSTS VS. INDUSTRY EXPECTATIONS
2021 2022

8.
IT Job Market Today

9.
+15% OVERALL EMPLOYMENT IN IT 400,000+ OPENINGS A YEAR
The U.S. computer and Information
Technology occupations to grow
15% from 2021 to 2031
About 418,500 openings each year,
on average, are projected to come
from growth and replacement
needs
IT Job Market Today
+25% IT JOB OPENINGS ABOUT 163,000 IT JOB OPENINGS A YEAR
Job openings for software
developers, quality assurance
analysts, and testers are projected
to grow 25% from 2021 to 2031
About 162,900 openings for
software developers, quality
assurance analysts, and testers are
projected each year, on average,
over the decade

10.
• Burnout and resentment among current
professionals
• Increased turnover
• Deficit of skilled IT professionals
• Poor staff retention
• Starting salaries continue trending upward
IT Job Market Today
THE DOWNSIDE OF THE HIGH DEMAND FOR
IT PROFESSIONALS

11.
OUTSOURCING GAINING TRACTION
89% of companies intend to maintain
and strengthen existing relationships
with IT service providers.
IT Job Market Today
Source: BCG

12.
The Developer You
Are Looking For

13.
Key Indicators of a Solid Developer
• SECURITY AWARENESS
• WILLINGNESS TO COLLABORATE
• THIRST FOR CONSTANT LEARNING
• NATURAL CURIOSITY

14.
Decide What Kind Of Developer You Need
THE DEVELOPER YOU NEED
FRONTEND DEVELOPER
FULL-STACK DEVELOPER
BACKEND DEVELOPER

15.
• Essential technical skills
• Nice-to-have skills
• Team environment
• Soft skills
Looking for the Developer You Need
CRAFT A WINNING JOB DESCRIPTION

16.
• HR screening
• Test task
• Technical interview
• Final interview
• Job offer
Looking for the Developer You Need
MAKE THE MOST OF THE INTERVIEW PROCESS

17.
The Job
Developers Want

18.
The Job Developers Want
INFLATION
RISING COST OF LIVING
SHORTAGE OF SKILLED DEVELOPERS
+
+
=
DEMAND FOR
HIGHER PAY

19.
FLEXIBLE WORK
▪ People are reluctant to return to pre-pandemic
work arrangements
▪ 54% of those looking for a job are open to a fully
remote position
▪ Offering flexibility results in increased retention,
better staff morale, and larger candidate pools
The Job Developers Want

20.
▪ Professionals want more upskilling opportunities
▪ 59% of managers are focusing more on staff’s career goals and
professional growth
▪ Companies are encouraging more communication, team-building, and
casual chats
▪ 46% see a positive company culture as a top factor when considering a
job offer
The Job Developers Want
CAREER DEVELOPMENT

21.
BENEFITS
▪ Health insurance
▪ Paid time off
▪ Retirement savings plan
▪ Dental insurance
▪ Leave of absence
The Job Developers Want

22.
Finding the Talent

23.
You can download your free copy here
• 375 million workers globally might have to
change occupations this decade
• No-Code platforms are a solution
• Proper software + Willingness to invest in
staff = Growth of in-house specialists
Finding the Talent
RESKILL YOUR STAFF

24.
58% of organizations employ borderless technology talent. This
number has doubled in the past three years.
Finding the Talent
Source: Gartner
RECRUIT LOCALLY AND REMOTELY

25.
• Require technologies the company may not
have had prior experience with
• Are unwilling to expand existing teams for
temporary initiatives
• Seek hard-to-find specialists
Finding the Talent
OUTSOURCING HELPS WHEN YOU:

26.
• Changing a Software Development Vendor: Project Owner’s Guide
• 33 Questions to Challenge Mobile Developers and Get a Killer App
• How to Explain Your Business Idea to the Development Team
• Practical Tips to Get a Realistic Software Development Project Estimation
• Best Practices of Outsourcing Software Development
• Dedicated Development Team: How to Hire an Experienced Partner
Finding the Talent: Best Practices
TOP TIPS FROM OUR BLOG

27.
Engaging the Talent

28.
Engaging the Talent
A set of online documents where
notes can be made by team
members to ease collaboration
A fully-fledged software
development process framework
for thorough monitoring
HAVE A WELL-STRUCTURED PROCESS
OR

29.
Utilize cloud-based tools to access and
collaborate regardless of:
• Time zone
• Location
• Device
Engaging the Talent
SUPPORT HYBRID TEAMS

30.
When you need to ramp up a
team of the right size and
keep full control on your side
When you want to delegate an
entire project development to
a chosen outsourcing partner
When you need to extend
your in-house team or lack
some certain expertise
DEDICATED TEAM PROJECT TEAM STAFF AUGMENTATION
Utilize The Most Convenient Outsourcing Model

31.
Managing Talent

32.
• 51% of hiring managers in the U.S. said
quits at their company have increased
• 78% are concerned even more that
employees will leave
Retention Is More Important Than Ever

33.
SUPPORT VARYING VIEWS TRY TO EASE THE PRESSURE
Employee Retention Best Practices
ENSURE YOUR COMPANY
CULTURE IS INCLUSIVE
ENCOURAGE LEARNING

34.
Investing In Talent Development
• Career charts
• Skill matrices
• Review meetings with managers
• Regular 1-to-1 meetings
• Industry-recognized certifications
PERSONALIZED PROFESSIONAL
DEVELOPMENT PLAN

35.
Summary

36.
THE MARKET FOR SENIOR SPECIALISTS IS TIGHT
THANKS TO REMOTE WORK, COMPANIES CAN SEARCH
FOR IT TALENT WORLDWIDE
OUTSOURCING IS FURTHER GROWING IN POPULARITY
AS A WAY TO TACKLE TALENT SHORTAGE
Lessons Learned
1
2
3

37.
Thank You!
+1 (847) 559-0864
sales@velvetech.com
www.velvetech.com
601 Skokie Blvd.,
Suite105,
Northbrook, IL 60062