Is skill shortage in IT sector for real? Are there a lot of jobs but no candidate to fill these vacant positions? Are companies facing the challenge of recruiting the skilled software engineers with experience in emerging technologies?
Facts on Digital Skills Gap in Emerging Technologies
- A press release by CareerBuilder from 2017 claims that nearly 60% of US employers found their job openings vacant for 12 weeks or longer
- Finetech & Banking, - Finance, - Insurance, - & Security (BFIS) will be missing 10.7 million tech workers by 2030 incurring a loss of 1.3 trillion $ for US alone
Pic 1.: Rising skill demand in IT departments (Source: 8allocate)
Why IT Companies should take Skill Shortage seriously?
- Rise of Emerging Technologies – Emerging technologies call for new IT investments by companies. Rise in emerging technologies demands new skills which can either be achieved by training - which is time consuming - or through outsourcing to offshore/nearshore locations having the needed capabilities
- Costs – Prolonged vacant positions in companies can slow down the revenues and profits
- Productivity – Vacant positions have a direct effect on productivity and can be bad for business
The Fourth Industrial Revolution has witnessed rise of new technologies which is the cause for disruptions in business operations all over the globe. With majorities becoming mobile first, the power of digital business models is getting stronger and wider with each passing day.
Effect of Emerging Technologies on Software Development Outsourcing in 2020
Whenever the IT sector is hit by new technologies its effect covers many business operating globally. Some effects can be as follows:
- Old Software and application will need to undergo re-engineering to accomodate latest technological aspects
- Demand for high skilled software developers and service providers who can deliver innovative tech services/applications rises
- Companies will evaluate and plan software development outsourcing to offshore/nearshore locations
- SW service providers working on old tech will face trouble and competition with service providers of new tech
Finding a fitting IT resource is already difficult, sometimes impossible for some companies due to high competition. On top, many outsourcing ventures do face or may face uncomfortable situations when their project managers or key IT staff shift their job for better opportunities in other companies.
One Solution to Widening Digital Skill Gaps in IT
The skill shortage problem can be even worse in the SME sector. Training and reskilling requires investment and time which challenges the overall budget and time for a software project.
There needs to be a fair advantage to companies of all size for having an access to global tech talent. One probable solution is finding a fitting SW service provider at an offshore location. B2B Marketplace can be of great help to find a fitting SW service provide in given budget and a short period of time.
Pic 2.: Solutions by pliXos B2B Marketplace for global digital skills gap (Source: Slideshare)
This provider identification is often done using an IT Consultant. But again, what if the guarantee that your consultant is giving you the right advise fails? What if you fall in the trap of an incapable software service provider? Sounds dangerous right?
Why to choose B2B Marketplace for SW Outsourcing in 2020?
pliXos B2B Marketplace offers free access to verified and qualified SW service providers globally. Customers can benefit from our vast industry experience and SaaS tools to automate plenty of process in a sourcing life cycle from planning to execution. The marketplace allows free access to both SW service providers and the customers.
Both the parties remain on the same page for a better engagement on outsourced project with tools for full governance of the project. If wanted, pliXos also acts as a full contractor of the entire software development project and takes full responsibility to make it a success.
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