Those who have experience in the computer industry may have heard their employers express dissatisfaction about hiring new IT employees. Perhaps you find yourself in a similar situation, believing that doing it yourself is the only option for getting the job done right. However, in IT, one person cannot always achieve success on their own, and the collaboration with skilled colleagues is crucial for project completion. The challenge, however, is in finding capable programmers.
The continuously developing nature of the IT industry has led to a significant increase in demand for experts in fields such as software engineering and development. This rise is largely due to the constant implementation of novel technological applications and devices in the global market.
In November 2023, before the global pandemic, CNBC News reported that over 920,000 Information Technology (IT) job positions remained unfilled. Similarly, Gartner reported a severe shortage of software developers, which posed a significant threat to the IT industry. This concern was shared by the majority of Chief Executive Officers (63%) who expressed concerns about the future of the sector.
According to recruitment firm Michael Page, it is expected that by 2023, there will be a shortage of 1.4 million software engineers, while only 400,000 new graduates will enter the profession. Consequently, software engineering has become one of the most in-demand careers in 24 different countries worldwide.
Put simply, in the United States, there are roughly 920,000 job vacancies available for software engineers but only 165,000 qualified candidates to fill them.
Given the present market conditions, it is evident that businesses are facing intense competition in attracting top-notch talent. While Madhavanur has suggested that increased competition could tackle this issue, there is an alternative solution. Many businesses struggling to hire suitable developers have found that the most efficient way to overcome this challenge is by hiring a remote development team. This is a feasible solution to keep businesses competitive in the current scenario.
What is the Impact of Developer Shortage on Companies?
A shortage of software developers can negatively impact a company’s efficiency and productivity. According to the iCIMS study, for every technology-related role that was filled, there were only an average of 43 applicants, indicating the scarcity of qualified applicants with necessary experience. Therefore, it is crucial to have skilled professionals who can put their expertise and knowledge to use and keep up with the constantly evolving and demanding market requirements.
As per Bennett and McGuinness, the progress of IT, electrical and mechanical engineering industries is being hindered due to the difficulty in finding qualified candidates to fill open positions, as highlighted in this article. For instance, it is 40% more challenging to recruit for IT jobs that have a requirement of two or more years of experience than those that are entry-level. Further research has shown that unfilled vacancies can have a 75% negative impact, while roles that are difficult to fill can have a 65% negative impact on productivity.
Recruiting the right staff for software development positions poses a significant challenge for businesses, as per studies. It takes an average of 66 days to fill a technology-related job, which is 50% longer than the average recruitment duration for other professions. Additionally, 60% of Chief Information Officers (CIOs) have admitted that failure to match up to the competition is caused due to the difficulty in finding highly qualified and experienced candidates for the role.
Is the Developer Shortage Really a Crisis?
Undoubtedly, the number of available developers in the current market is limited. However, it’s vital to understand that this isn’t an absolute limit, and there are still potential employees who could be utilized. With the use of decentralized teams and telecommuting, businesses now have access to a worldwide talent pool. Hence, there is a possibility that there are more potential developers available than initially believed.
Creative Programmers Outside of the United States
In the past, it was nearly impossible to connect with highly skilled professionals from different continents or even local areas. However, those times are long gone, and now businesses have access to an outstanding pool of talent from around the world. Ukrainians boast a remarkable 80% population having a college degree or higher, with many working in the technology industry. Language barriers should not be considered a challenge either.
It is common for many Europeans working in business-related fields, like engineering, to be capable in two or more languages. Additionally, there has been significant growth and progress in remote communication software, enhancing communication channels.
When it comes to generating skilled workers, the Eastern European technology ecosystem is not limited to Ukraine alone. Romania has around 116,100 software developers, which is equivalent to six developers for every thousand people. Poland is also expected to be one of the most innovative countries in 2023, owing to its impressive workforce of 279,800 developers. Poland ranks 11th globally for proficiency in the English language. Furthermore, Ukraine and Russia have a literacy rate of 99.4%, and many university graduates from these countries are adept in communicating in multiple languages.
In Eastern European countries, there has been a significant focus on education in recent years, with a particular emphasis on Information Technology (IT) and English language education, as highlighted in this article. To avoid possible misunderstandings in the workplace, several organizations in the region provide their employees with the opportunity to learn English from native speakers. This skill sets provides excellent value and can be useful in personal and professional situations.
According to Andrada Fiscutean, who represented Central European Processing in 2023,
Companies that choose to outsource their software development requirements are primarily motivated by the significant cost savings they can achieve. However, they also recognize the importance of ensuring high-quality output. The extensive experience of Eastern European personnel, combined with their impeccable work, is a significant contributing factor to the region’s expanding significance in the outsourcing industry.
European nations not only provide businesses with the highly skilled developers they require, but they also prioritize quality. This is evident in the stringent screening processes these countries have in place for potential candidates, with the results available to view presently.
Boosting Local Recruitment Efforts
Although South America is predominantly known for its iconic landmarks such as Machu Picchu and its appetizing food like carne asada, it hasn’t been particularly recognized for its software development expertise. However, with the recent surge of US firms outsourcing software developers overseas, South America has emerged as a valuable resource.
In addition to its proximity to the United States, offering benefits like operating in the same time zone, the region is appealing for the close parallels between the two countries’ cultures and languages.
According to the 2023 edition of the Times Higher Education World University Rankings, the University of São Paulo is South America’s top-ranking institution. Additionally, the city of São Paulo hosts two highly respected universities renowned for providing exceptional engineering programmes – the Pontifical Javeriana University and the University of Desarrollo.
Pablo Listingart, a Computer Science graduate from Argentina, founded ComIT, a non-profit software development initiative. He recognized the necessity of guiding younger individuals in the area towards achieving success as computer programmers. Currently, ComIT is able to assist programmers in discovering job prospects across the globe. Mr Listingart expresses that witnessing individuals succeed brings him “a great deal of contentment.” Additionally, Mexico and Colombia are acknowledged for having the most highly skilled engineers in secure programming languages such as Ruby.
Preventing Developer Shortage Crisis by Leveraging Remote Workers
Mentioning “Java” and “Python” in the same breath may appear strange, leading one to conjecture about a coffee variety to be savored with a pet serpent. However, research conducted by LinkedIn has disclosed that the current most desirable programming languages for developers are Java and Python. The increase in companies adopting digital solutions combined with the skills shortage in the US not being extensive enough to fulfill the demand contributes to this trend.
To cater to the high demand for these skills in countries other than the US, businesses are embracing remote staffing.
The United States is particularly vulnerable to the negative effects of a skills gap, which could amount to an estimated $435.69 billion (equivalent to 1.5% of its Gross Domestic Product) of lost economic output.
A survey conducted among over one thousand Human Resources professionals and recruiters disclosed that the economic slump is creating a ripple effect in the hiring of skilled programmers, with 86% of participants stating their struggle in finding suitable candidates for vacant positions.
With the increasing need for competent programming experts, it is possible that we may encounter difficulties in finding individuals with the requisite skills. This may have significant consequences on our economy and capacity to innovate in the future, as the recruitment process could potentially require more time and resources.
Toggl has characterized this overlooked worldwide talent pool as “the delight of remote staffing.”
Give Us a Shot: Our Developers Across the Globe Are the Best, and They Will Deliver!
Don’t let the absence of local availability harm your business. Consider collaborating with remote candidates instead.
The shortages that exist worldwide today are undeniable. We all remember the impact of the previous lockdown, during which there was a noticeable scarcity of inexpensive, high-quality toilet tissue. Additionally, public buses are so overcrowded that passengers are compelled to stand, and Christmas fruitcake left on the doorstep is hardly a desirable treat for everyone. The good news, however, is that the extensive worldwide talent pool eliminates the need to be concerned about a lack of skilled developers. At our company, we provide guidance and support at each stage of the hiring process to those seeking the most qualified candidates from around the globe.