Take on the IT talent gap

This is the Most Effective Way to Deal with IT Talent Shortage

By: TEAM International |December 28, 2022 | 14 min

The fundamental consumers shift in expectations and our insurtech insights gained from working with industry leaders only prove the increasing urgency for incumbent companies to remodel and improve customer engagement the sooner, the better.

nearshore Colombia is a mature trend that allows many organizations to obtain necessary skills and ease the IT talent gap. Accessing global talent pools is the most effective approach to balance workforce scarcity during difficult times. Meanwhile, when choosing Software outsourcing

and offshore locations, you should consider your requirements and expectations, like frequent meetings with a remote team, necessary time zone overlap, and more. But first let’s take a look at the state of the global tech labor market today and see if outsourcing is really a feasible talent management solution.

Take on the IT talent gap

No matter what industry your business operates in, we’re sure that you’re facing more issues than ever in finding and hiring people with the necessary skills and expertise. You’re not alone, as around 70 percent of digital leaders report that a tech talent shortage prevents them from keeping up with the pace of change. Moreover, the USA may lose nearly $162 billion in revenue annually due to the skills deficit and IT talent shortage. The figures are alarming considering the tremendous lack of candidates that American companies have been experiencing since 2019 when 1 million IT jobs remained unfilled.

top 4 reasons for IT skills gap & global tech talent shortage

We must admit that the IT talent shortage will only grow worse with time. The tech-related vacancies will increase by almost 25 percent by 2031, faster than any other occupation. This reality is the main barrier to achieving business goals and objectives by stunting digital transformation and the adoption of emerging technologies.

The impact of the tech professionals crunch on businesses

Nowadays, technology is at the heart of nearly every organizational unit. So, the IT talent shortage can strongly affect your bottom line and the ability to serve clients.

  • Inflated cost of labor. The high demand for candidates with good skills and experience drives compensation expectations to greater heights when there is the IT talent gap. Over $100,000 a year is the median wage expected by a tech specialist.
  • Project duration. Companies are missing out on projects due to a lack of skilled software developers.
  • Cost production. As financial expectations of a workforce grow, you have to deal with raised production costs, resulting in a larger bill for your clients.
  • Cybersecurity exposures. Security leaders also struggle with growing needs and work scope management. Monitoring security vulnerabilities, responding to incidents, and maintaining high-security standards are nearly impossible without qualified cybersecurity staff.
key digital transformation statistics for 2020
  • Service quality. Quality may fall because organizations don’t have enough people to handle various aspects of business operations. The ability to meet client needs directly influences the financial state of an enterprise.
  • Roadblocks to technology implementation. he IT talent gap is the main hurdle to integrating 64 percent of innovative technologies in contrast to only 4 percent in 2020. For instance, data analytics professionals are one of the hard-to-fill roles nowadays. Almost 64 percent of executives say they prioritize big data and analytics as the leading technologies to drive efficiency and obtain a competitive edge. Yet, 43 percent admit that a tech talent shortage is a stumbling block to implementing these digital-driven solutions
the state of talent shortage in cybersecurity

Issues employers encounter recruiting tech workers

To begin with, an enterprise IT talent shortage has operational consequences that will influence your recruiting budgets and deadlines. The average time to fill an in-demand tech position is 61 days compared to the 42 days for non-tech roles. Beyond that, the IT talent shortage brought diverse issues to recruitment:

  • Lack of experience. You cannot expect stellar results from fresh graduates or junior staff. In addition, filling mission-critical positions with people who have no relevant experience is risky.
  • Lack of skills. Not every software candidate has experience with specific technologies like the latest trends or simply the technology you’re using. Number of years in the industry isn’t an indicator here.
  • High salary expectations. IT professionals are aware of the tech talent shortage and may negotiate a higher salary. Paying over-market salaries is not feasible or effective for any business in the long run.
the average software engineer salary in USA

So, now it’s time to develop new strategies and more agile approaches to reduce the pressure caused by the IT talent shortage.

IT outsourcing as a proven way to beat the colossal tech skills shortage

Nearshore IT outsourcing and staffing is gaining momentum and getting to the top of business agendas more often. C-level executives call it an effective solution to the urgent tech worker shortage to easily handle the increased workload. Consequently, companies that choose nearshore countries as an extension of their current recruiting capabilities get the best results in addressing the IT talent shortage.

Advantages of the outsourcing model over a standard approach to recruitment

1. Cost-effectiveness

Nearshoring allows you to lower operating costs such as recruitment process expenses, workspace renting, or employee benefit packages. You pay for the service without worrying about all the related hassles.

2. Flexibility in meeting short- and long-term business demands

You can catch up with new trends, distribute IT tasks, and deal with workload peaks quickly and efficiently by adjusting human resources at every development stage according to your needs.

3. High-skilled workforce

Nearshore companies have exceptional skills for various projects and can effectively close the IT talent gap to meet your technical specifications. They also follow market innovations and have experience solving non-standard problems.

4. Shared risks

Instead of addressing the unforeseen risks of hiring new employees, you can cooperate with an outsourcing company that offers advice and workable strategies. Moreover, service providers will take responsibility for the potential risks and help you solve any problem or even provide training programs for your staff.

Facilitate staffing and boost operational efficiency

There are many reasons to work with a nearshore IT company. But most importantly, nearshoring enables organizations to entrust project management, talent acquisition, and employee retention to a reliable partner. By letting a service provider in Silicon Valley Colombia or other location assist you with hard-to-fill roles, you will see increased flexibility within your in-house team.

  • Devise a plan and implementation strategy. This step is crucial to ensuring a successful partnership if you decide to use outsourcing as your strategic talent management.
  • Identify the skills you need. Compare the in-house talent pool with what skills your company needs to meet its goals. It will give you a comprehensive view of the number and capabilities of existing staff and help you determine which competencies you are lacking.
  • Formulate your expectations of the external team. Both sides should clearly understand the collaboration format and scope of work. Communicate the goals you want to achieve and what kind of cooperation you expect. Provide your outsourcing partner with detailed project information so they can estimate the scope and resources needed to complete it.
  • Choose the right partner. Select and create a list of potential providers who have a proven track record and understand your industry. Ask about their areas of expertise and working culture to understand how they will align with yours. Find out the technologies they use and review the projects they have delivered to define which providers have the talents you’re looking for.

Final thoughts

The gap between job openings and the IT talent shortage is widening with the high-speed velocity in the software engineering world. With stiff competition and an increasing demand for resilience, finding top-notch engineers is the need of the hour.

As getting over the tech talent shortage becomes backbreaking, more business leaders are looking to tackle this issue with nearshore development centers. Software development outsourcing allows your business to respond more neatly to variable market dynamics. With TEAM International Colombia, you’re just a click away from addressing the IT talent gap and hiring the right specialists.

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