2022 State of Tech Staffing Report: 70% Growth Forecast for Outsourcing Services

When the coronavirus response led to remote structures for industries across the globe, the technology services market was already headed in that direction. Digital adoption came easier for those businesses. That head start helped them accelerate remote implementation for less tech-oriented companies. Searching for guidance in an economy suddenly defined by digital accessibility, they contracted these remote vendors to get up to speed.

And following COVID-19, many other businesses have discovered the benefits of remote work and related services. Senior technology leaders who responded to the Commit 2022 State of Tech Staffing report offered the following as the top five perks of remote teams:

• Higher productivity (53%)
• Cost-saving (33%)
• Better cross-team collaboration (32%)
• Better employee health (29%)
• An expanded talent pool (27%)

The top four may not be much of a surprise to anyone familiar with work-from-home structures. But the fifth—an expanded talent pool—is more valuable than some might have guessed.

Right now, we’re looking at an expected people shortage (and the economic consequences of that) while the global population shrinks. On top of that, digital demand is high and still rising for more technical and software development roles. IT job openings have increased 55% YoY, and there are expected to be over 1 million unfilled roles by 2026.

So, what’s the solution to growing competition for qualified tech talent? Software outsourcing.

Why Is Software Outsourcing Seeing Long-Term Growth?

The numbers show that this “hidden” gem is gaining traction because of how effective it is at closing talent gaps and preventing stalled projects. 

In another survey, about 46% of companies said that outsourcing gives them access to skills they don’t have with in-house teams. The 2022 staffing report supported this trend with a projected 70% growth rate for outsourcing by 2023, which the market is on pace to reach. As just one example, 65% of CISOs outsourced up to 30% of their cybersecurity operations, according to a Deloitte report.

On the opposite side, technology executives using strictly in-house development reported the following challenges:

• Hard to keep up with competitors (60%)
• Longer to hire tech talent (60%)
• Hard to stay current with the latest tech (50%)

Finding the skills a project requires (and quickly) is the difference between launching software products on time or a competitor getting there first. The traditional staffing industry can take 36 days on average to hire a new candidate according to SHRM. Technical jobs like IT or engineering can take 44 to 49 days.

While hiring time can vary with outsourcing consultants and staffing firms, Devsu can fill a position in 14 days by comparison. Between shorter hire times, cost savings, and scalability, outsourcing checks off a lot of boxes for digital project management. This industry leadership earned a promising forecast from Commit about software development outsourcing growth expectations.

Read: The Future of Digital Transformation

Overcoming Challenges to Find an Outsourcing Partner

You already know the top five benefits of outsourcing software development. But what do you do when not everyone agrees on which one is most pressing?

Nearly half of HR leaders report that cost savings are the top priority. Meanwhile, the CTO is focused on scaling fast (42%), and the second priority is saving time while hiring the right people (39%). Balancing these priorities means finding a partner that aligns to your goals in the vast outsourcing market.

To help with that, use these top concerns as a checklist before entering a service agreement for your custom software development or other digital projects:

Quality standards: Considering most people can agree that their top priority is the quality of the work itself (56%), you should look at case studies and client testimonials for your potential outsourcing partner. This gives you a clear picture of their deliverable standards based on previous projects.

Business operations: Time zone differences (39%) and compliance risks (37%) take the lead for operational concerns about outsourcing software products. First, choose vendors from regions in your time zone (or only an hour or two apart). Second, search for compliance on the websites of possible partners. Results should include multiple services, since regulations vary. Enterprise data management has different risks than voice recognition, after all.

Project timelines: To reach a deadline, everyone knows you need solid communications (28%) and confidence in when you’ll have your deliverables (26%). Agile development methodologies are the best-in-class for making sure deadlines are met and your feedback is taken into account at regular intervals during the project.

Costs and cybersecurity: Tied for their priority, high costs and security risks (25%) are important to consider when you’re looking for an outsourcing company. Find highly-trained teams with affordable agreements by choosing nearshore development services that promote a culture of continuous learning. To ensure top-notch security, check that your partner uses DevSecOps practices.

Internal barriers: From the 2022 Commit report, one of the top obstacles for scalability was in-house team structure. Specifically, the two largest ones are how long it takes to hire quality talent (66%) and not having team leads (51%). The good news? You can overcome both with smart outsourcing and inter-department communication. Not only can your development team be outsourced, but your middle management staff can as well. Keep your company informed on project development with a pre-vetted team lead from your outsourcing vendor.

High-Quality Talent from a Proven Outsourcing Company

When you outsource software development, you want more than the promise of cost savings. Working with a Latin American outsourcing partner offers several benefits that combine the best of both onshore and offshore services.

Get qualified candidates with the right skills who are aligned to your time zone and fluent in English. Scale fast to adapt to project timelines with world-class technology professionals. Access to reliable internet and a rising number of STEM graduates makes this region a treasure trove of remote talent in software engineering, QA testing and thought leadership in the industry.

Get started with Devsu today for award-winning experts on your team. We’ve got you covered.