Talent shortage can leave your company behind your competitors and potential. Globally, the number of employees with the skills needed is not growing at the same pace as demand, and companies are finding it harder to access a better workforce. However, you can strengthen your team by outsourcing to overcome the talent shortage in your company.
Outsource software development is more common in software, although it appears in different areas. According to the latest statistics from Statista, IT/software workers make up 60% of the global outsourcing market.
Why is there a talent shortage?
It is not feasible to dig the reason for the lack of talent in one place. In order to eliminate the shortage, it is necessary to take the subject from a broad framework and to understand the reasons well.
Increasing competitive environment
As of 2020, the U.S. Bureau of Labor Statistics has predicted more than 1 million job openings in STEM-related fields alone. While the demand in STEM fields is constantly increasing, the number of competent people in these fields is still not enough.
With the rising demand, companies are competing with each other to hire good software developers. One of the most important reasons for the talent shortage is the difficulty in hiring or retaining software developers whose expectations from employers increase in the competitive environment.
Transformation in the working models
The decline in the number of full-time workers with COVID-19 is another reason. People want to work without endangering their health. The opportunities offered for this keep them away from the idea of working from the office.
Many people who have experienced working from home no longer want to return to their offices. Employees, who can be involved in projects in different countries with the remote working model, experience more professional and financial satisfaction. Therefore, remote work and outsource software development are becoming popular.
The new generation has a very different work and lifestyle compared to previous generations. It is not easy to convince young software developers to stay in an office 8 hours a day and perform certain tasks.
The younger generation wants to work in projects where they can contribute more with their creative ideas and in flexible conditions. That’s why you need to find ways to engage them in your project.
How to address the talent shortage
Employers need to offer high salaries and flexible working options to avoid talent shortages. However, this is not a financially sustainable solution for all companies.
For this reason, outsourcing is one of the most preferred methods to prevent talent shortages. Outsource developers can work as a team when necessary and perform all the steps required by the projects.
Why should you outsource your tech jobs?
According to International Data Corporation (IDC), information technology (IT) was one of the largest industries with a market capitalization of $5 trillion in 2020. On the other hand, technology is one of the areas that lack talent and also uses outsourcing the most.
The process of hiring a new employee in the technology field means high costs and slowing the workflow. Clutch’s research shows that 24% of small businesses outsourcing aim to increase productivity with it. Here is why: investing in hard-to-retain employees puts your long- and short-term goals at risk.
According to Deloitte’s report, most outsourcing companies choose this route because it reduces costs. Thus, your chances of recruiting competent people in their fields to your team at a much more affordable cost, regardless of which country they are in, increase. These people, whom you charge on an hourly or project basis, only get paid for the service you receive.
Consider outsourcing as a viable option for your company’s talent needs
Offshore software development means cooperating with business partners that will truly transform yourr business. Raise your goals with outsource developers who transform the way you do business, add value and enable you to benefit from the latest technology. By creating teams focused on different talents for different projects, you can realize your projects much faster and more successfully.
Build a sourcing plan
After you decide to use tech outsourcing to strengthen your business processes, it is useful to plan your steps to choose your business partner to work with.
Identify the talents you need.
First of all, take the time to identify your team’s weaknesses. What talents exactly do you need?
You may need
- outsource developers to support you in certain languages,
- software development consultancy to keep you up to date on the technologies you use,
- a team to manage and complete the process from start to finish.
Especially internet and mobile applications, big data solutions, business intelligence, GDPR, e-commerce solutions, cloud-enabled solutions can be completed with outsourcing support.
Set your expectations.
Determine exactly what you expect from the third parties that will support your team from outside. Explain your goals and way of working thoroughly at the interview.
Give the job description, give detailed information about the project they will be involved in. If you have a set workflow and deadlines, talk about them. Get their ideas. Ask them to evaluate whether they can complete all of these tasks.
Review the candidates.
Along with the increasing demand, incompetent people and teams in the field emerge. Start by asking the right questions to make sure the outsourcer you can deliver your software project to is truly the talent you’re looking for. Ask about their areas of expertise, the technologies they use, and the projects they have completed so far.
Your outsource developer needs to take precautions regarding data privacy and security. Find out how they handle it. Especially for providers who live in a different country, determine how you will pay and their working hours before you start working together.
With digital transformation becoming inevitable for companies, the demand for outsource software development is increasing. Outsourcing developers is the most practical, reliable, and cost-effective solution for new entrepreneurs. You can contact us for more information about outsourcing.