The Talented Developer Shortage Is a Lie | DistantJob - Remote Recruitment Agency
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The Talented Developer Shortage Is a Lie

Ihor Shcherbinin
VP of Recruiting at DistantJob - - - 3 min. to read

Working in tech companies, you probably heard your boss complaining about new IT hires. Now, you might be in the same position thinking “If you want something done right, do it yourself.” However, for IT positions, it isn’t always possible to do the job by yourself, and you need to find good help to develop your project. But why is it so hard to find good developers around?

Simply because the IT industry is changing every day. The world is evolving around technology, releasing new software and tools. New technologies demand new skills, leading to a shortage of software engineers and developers. 

Before the pandemic, in November 2019, CNBC News counted 920,000 unfilled IT positions. In the same vein, Gartner’s report listed developer shortage as a top emerging risk for IT companies. Indeed, 63% of senior executives admitted their concerns on the topic for the upcoming years. 

According to the recruitment company Micheal Page, software developers are the most in-demand position across 24 countries, and experts expect a shortage of 1.4 million software developers and only 400,000 software developer graduates in 2021. 

To sum up the numbers, with over 920,000 unfilled positions for software engineers in the U.S. alone, there are only 165,000 potential applicants. 

So how can companies compete for the cream of the crop when it seems like most are scraping at the bottom of the barrel? According to Madhavanur, companies just need to compete better to get their fair share. But DistantJob has another solution. Hiring a remote software team has been the best answer to many companies seeking help in the developer drought. 

What Is The Impact Of Developer Shortage For Businesses?

For a company, developer shortage means losses in productivity and performance. According to the iCIMS report, there is an average of 43 applicants for tech positions for every hire and 21 applicants for any other position. The developer shortage doesn’t mean a lack of applicants, but a lack of expertise and skilled candidates. As we just said, new technologies call for talented professionals able to integrate their backgrounds with the ever-changing necessities of the market. 

According to Bennett and McGuinness, hard-to-fill and unfilled vacancies depend on a lack of skilled candidates, reducing electronic and mechanical engineering and IT firms’ performance. For example, IT positions requiring at least two years of experience are 40% more difficult to fill than entry-level roles. Therefore, hard-to-fill vacancies reduce productivity by 65%, while unfilled vacancies by 75%. 

The talent gap of specialized software developers also affects businesses’ hiring budgets and timelines. It takes 50% longer to hire IT talent than other positions – an average of 66 days to file a tech role with the right candidate. Finally, 60% of CIOs reported that lack of expertise makes it harder for their companies to keep up with their competitors. 

Is Developer Shortage a Lie?

According to the numbers we just mentioned, developer shortage isn’t a lie. But it isn’t a limit either. Certainly, it’s true that tech trends require skilled developers. But it’s also true that we live in the era of remote work and distributed teams. If you look further than your geographical borders, you will find more candidates than you could expect! 

Talented Developers Outside the U.S.

Before the age of technology, talented individuals were virtually unreachable to anyone outside of their local radius, much less their continent. Those days are long past; now companies have unprecedented access to global talent. Once known as the ‘Breadbasket’ of Europe, Ukraine claims bragging rights with 80% of their population having higher education in the technological field. And while you may think communication may be a barrier, think again.

Most Europeans in business-related professions (including engineering)  speak at least two languages, including English. Software for remote communication has also risen to new heights.

Ukraine isn’t the only country churning out talent in the Eastern Europe tech ecosystem. For example, there are 6 software developers for every 1.000 inhabitants in Romania, namely a total of approximately 116.100 developers. Likewise, Poland counted 279.800 developers in 2018, becoming one of the most innovative countries in the area. In addition, For example, Poland ranks #11 on the English Proficiency Index. Further, Ukraine and Russia have a literacy rate of 99.4%, and most graduates speak more than one foreign language. 

Eastern European countries not only promote IT education, but also English proficiency. Besides scholar education, Eastern European companies provide their employees with English classes with native speakers to avoid linguistic misunderstandings. 

In 2016, Central European Processing Representative Andrada Fiscutean wrote:

“The length of experience of staff in Eastern Europe and the quality of their work is also central to the region’s important because companies who outsource software development are focused not just on paying less but are understandably keen on how well the work is executed.”

These European countries not only provide developers with the experience companies are looking for but also focus on quality. Today, you can see the results of these policies screening their candidates. 

Hire Closer To The U.S.

Of all the things South America is known for – Machu Picchu and carne asada– professional developers aren’t usually at the top of the list. However, following the growing trend of U.S. companies seeking developer talent elsewhere, South America has proved itself a valuable asset.

Not only does the proximity to the U.S. make for convenient time zones, but the similarity in cultural influences and language make it an enticing choice.

The University of São Paulo was just ranked as the best in South America in the World University Ranking for 2019. It’s also home to Pontifical Javeriana University, and the University of Desarrollo, all of which are home to top engineering programs

Argentina saw the birth of a nonprofit programming development program ComIT. Started by a local computer science graduate, Pablo Listingart, his goal was to help local students find success in programming. Now ComIT helps programmers land worldwide positions. “It feels really, really good [to see people succeed],” Listgart said. In addition, Mexico and Colombia have the most skilled developers when it comes to security or Ruby programming language

Counteracting The Developer Shortage By Hiring Remotely 

When people put the phrases “Java” and “Python” together in a sentence, you might think they are referring to the type of coffee they were drinking while playing with their pet snake. However, in this day and age, Java and Python have a distinct honor – according to LinkedIn – of being some of the most in-demand language skills for developers. With businesses growing ever more digital, the talent in the U.S. alone can’t keep up.

By hiring remotely, you can balance out the high demands for those skills outside the US. 

In fact, LinkedIn shares a gloomier prospect:

“U.S. will be hit the hardest by the talent shortage, losing $435.69 billion in unrealized economic output—or 1.5% of the whole U.S. economy.”

The economy isn’t the only one suffering. Over a thousand HR managers and recruiters answered a survey about hiring programmers and 86% noted it was very difficult.

CodersLink points out:

“It will not only become more complex to find the right developer but will also cost more in dollars and time to attract talent. This can have a direct impact on our ability as an economic power to continue innovating.”

Toggl recently referred to the potential of untapped international talent as “the beauty of remote work.”

Give Us A Try: Hire The Most Talented Global Developers With DistantJob!

Don’t make geographical boundaries an obstacle for your company. Instead, consider hiring remotely. 

There are many shortages in this day and age. There’s a shortage of toilet paper (remember during the first lockdown?) that is both economical yet luxurious. There’s a shortage of seats on a crowded city bus. And there’s a shortage of people who actually want to find fruitcake on their porch each Christmas. But with the global talent available, you can rest assured there is not a shortage of developer talent. And we can help you during the whole hiring process to hire the best candidate worldwide!

Ihor Shcherbinin

Ihor, is the VP of Recruiting at DistantJob. He specializes in sourcing and placing top remote developers for North American companies. His expertise covers the entire recruiting cycle, from pinpointing job needs to finalizing hires. Known for his skill in remote staffing solutions and offshore team integration, Ihor excels in matching the best tech talents with U.S. organizations. His approach to virtual developer hiring is marked by insightful candidate selection and strategic offer negotiation, ensuring the right fit for every role.

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