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How to Deal with the Shortage of Software Developers - Velvetech

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How to Deal with the Shortage of Software Developers - Velvetech

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Businesses are continuously investing in digital transformation initiatives to capitalize on latest technology advances and stay ahead of the competition. However, with organizations across the world requiring skilled IT specialists at the same time, it’s easy to face a shortage of software development talent. Nonetheless, there is a way to deal with this problem.


By relying on our years of experience in delivering successful software projects and working with hundreds of developers, Velvetech’s team is happy to share its accumulated insights. Discover the current state of the IT job market, explore the optimal ways of addressing development resource challenges, and uncover how you can best approach outsourcing of your next software initiative.


All this and more is available in our on-demand webinar: https://www.velvetech.com/events/shortage-of-software-developers/

Businesses are continuously investing in digital transformation initiatives to capitalize on latest technology advances and stay ahead of the competition. However, with organizations across the world requiring skilled IT specialists at the same time, it’s easy to face a shortage of software development talent. Nonetheless, there is a way to deal with this problem.


By relying on our years of experience in delivering successful software projects and working with hundreds of developers, Velvetech’s team is happy to share its accumulated insights. Discover the current state of the IT job market, explore the optimal ways of addressing development resource challenges, and uncover how you can best approach outsourcing of your next software initiative.


All this and more is available in our on-demand webinar: https://www.velvetech.com/events/shortage-of-software-developers/

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How to Deal with the Shortage of Software Developers - Velvetech

  1. 1. IT Job Market: How To Deal With The Shortage Of Software Developers Prepared by Eugene Bryukhov 12/08/2022
  2. 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. 3. Post-Pandemic Challenges in IT
  4. 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. 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. 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. 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. 8. IT Job Market Today
  9. 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. 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. 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. 12. The Developer You Are Looking For
  13. 13. Key Indicators of a Solid Developer • SECURITY AWARENESS • WILLINGNESS TO COLLABORATE • THIRST FOR CONSTANT LEARNING • NATURAL CURIOSITY
  14. 14. Decide What Kind Of Developer You Need THE DEVELOPER YOU NEED FRONTEND DEVELOPER FULL-STACK DEVELOPER BACKEND DEVELOPER
  15. 15. • Essential technical skills • Nice-to-have skills • Team environment • Soft skills Looking for the Developer You Need CRAFT A WINNING JOB DESCRIPTION
  16. 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. 17. The Job Developers Want
  18. 18. The Job Developers Want INFLATION RISING COST OF LIVING SHORTAGE OF SKILLED DEVELOPERS + + = DEMAND FOR HIGHER PAY
  19. 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. 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. 21. BENEFITS ▪ Health insurance ▪ Paid time off ▪ Retirement savings plan ▪ Dental insurance ▪ Leave of absence The Job Developers Want
  22. 22. Finding the Talent
  23. 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. 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. 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. 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. 27. Engaging the Talent
  28. 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. 29. Utilize cloud-based tools to access and collaborate regardless of: • Time zone • Location • Device Engaging the Talent SUPPORT HYBRID TEAMS
  30. 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. 31. Managing Talent
  32. 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. 33. SUPPORT VARYING VIEWS TRY TO EASE THE PRESSURE Employee Retention Best Practices ENSURE YOUR COMPANY CULTURE IS INCLUSIVE ENCOURAGE LEARNING
  34. 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. 35. Summary
  36. 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. 37. Thank You! +1 (847) 559-0864 sales@velvetech.com www.velvetech.com 601 Skokie Blvd., Suite105, Northbrook, IL 60062

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