Connect with us

Hi, what are you looking for?

Online Business Success

Considerations For Companies Looking For Software Talent Abroad


Solomon Amar, CEO AllSTARSIT, your trusted Offshore Development Partner

The world is, arguably, in the midst of a Fourth Industrial Revolution. Robotics, artificial intelligence solutions and the Internet of Things have been rising to prominence over the past five years.

From my perspective, the Third Revolution, also known as Digital Revolution, and Fourth Revolution cross over each other. The Digital Revolution is defined by a shift from mechanical and analog to fully digital electronic technology. The Fourth Revolution is marked by the exploration of physical, digital and biological technologies to form an all-connected world.

This technological evolution presents an ever-greater need for software engineers and IT staff to develop and support the necessary infrastructure. Filling this need, however, poses a challenge to many companies. In January, employers posted about 340,000 unfilled IT roles, according to the Wall Street Journal.

Causes Behind The Shortage Of Software Engineers

Advertisement. Scroll to continue reading.

I believe there isn’t a single point of failure that can be pinpointed as the root cause for the shortage of specialized IT talent. Some say educational institutions have struggled to keep up with the pace of technological developments. This means those who do complete the courses might not be familiar with the latest trends. Bootcamps and other similar initiatives palliate this issue somewhat, but there’s still some way to go.

This educational gap can have a knock-on effect, as existing companies might have a hard time finding candidates with the right skills in the right technologies, including cutting-edge solutions such as blockchain, AI and cybersecurity. The lack of adequate formation and the difficulty hiring the right talents becomes a closed loop that is hard to break away from.

Consequences Of The Shortage

This acute shortage can cause significant issues. It could delay innovation, for example, because a lack of software engineering skills can prevent businesses from keeping abreast of the latest technologies. Furthermore, the shortage of specialized software staff impacts budgets and hiring timelines. The shortage of IT specialists worldwide remains a problem that does need to be addressed, as IT infrastructure and development is a key sector.

Due to the shortage, I believe there’s also an imbalance between big industry players and smaller companies when it comes to attracting top talent. The big players arguably have an advantage. Larger corporations have far bigger financial resources than smaller, local companies. This can draw resources away from rural and remote areas and bring them into cities, for example, where salaries offered by big names become the deciding factor. And it’s not only the remuneration that counts; brand prestige can also have a great bearing on a candidate.

Skilled software developers and other IT specialists can be hard to come by locally. That’s why some U.S. companies might be looking for talents abroad. Possible solutions include relocating talents, opening offshore development centers or launching overseas offices. All of these options have their upsides and downsides to consider, however.

1. Relocating talent: I found talent relocation was a common practice until the pandemic hit. A lot of companies started considering remote work as the new paradigm, which changed the idea that you need to relocate the person in order to integrate them into the existing onsite team. That said, if relocating potential hires is the route you take, keep in mind that the first couple of months are crucial for understanding if the person fits the team and the responsibilities they are given. When relocating a person, you have to be certain they are worth the investment you put in them even before they start working.

2. Offshore development: Offshore development is the practice of partnering with a third-party company to create software development teams on your behalf. (Full disclosure: My company provides these services, as do others.) This development can range from small applications to creating entire software frameworks for specialized clients. That said, there are some drawbacks, too. Keep in mind that the No. 1 thing that defines the project’s success is your choice of offshoring partner. The other important thing you have to understand is who you need to hire for your business goals. You must also keep an open dialog with the recruitment team.

3. Overseas offices: Some companies prefer to open an entity overseas, rather than relying on a partner. Of course, this option is usually available only for bigger companies, as it requires more investment. Opening a firm abroad yields clear advantages. Prestige is an immediate benefit, as the company becomes a multinational. Presence overseas also enables better communication with the business community at the destination, as well as fosters the creation of further branches elsewhere. There may also be certain barriers, however. Cultural or linguistic issues might arise, as can tax liabilities.

Advertisement. Scroll to continue reading.

There is no “one-size-fits-all” solution to the software talent shortage. Companies should base their decision to look for talent abroad on their short-term and long-term business goals. Ask yourself: How was your recruiting cycle a year ago? What is the benefit of recruiting in your local market vs. opening yourself to other markets? If your answer to the second question is because it’s more “comfortable,” remember that two years ago, many companies considered it impossible to operate remotely. The pandemic quickly proved them wrong.

Moreover, remember that to compete for software engineers, you also have to invest in your employer brand, clearly communicate your values and establish learning and development programs inside your company.


Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?


.



Source link

Click to comment

Leave a Reply

Latest

Top Stories

Three years after being ousted as CEO of WeWork, Adam Neumann has jumped on the crypto bandwagon, raising $70 million in the first major...

Top Stories

Bitcoin (BTC) could be in for a return to levels not seen since before its 2020 bull market if history repeats itself. That was...

Top Stories

The need for a clear, balanced concept of the issue was a constant theme at the panel discussion of crypto’s carbon footprint at the...

Social Media

The success of TikTok largely comes down to participatory trends, and the capacity for anyone to not only consume clips in the app, but...

Top Stories

Brazilian exchange Mercado Bitcoin announced its partnership with the Stellar Development Foundation (SDF) on Tuesday. The company said it intends to develop one of...

Social Media

With economic activity gradually ramping up as we move through the pandemic, that’ll also spark a new push for increased recruitment activity, in order...

Advertisement

You May Also Like

Uncategorized

Introductions get a lot of attention. I’ve explored the topic of how to write them even though as a reader, I always skip them....

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

Online Business Success

The internet is now our nervous system. We are constantly streaming and buying and watching and liking, our brains locked into the global information...

Online Business Success

You can think of link building in many ways. I like to call it tedious, painful, and a test of patience. It’s also necessary...

Advertisement