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Would you want to spend 62 days trying to hire a software developer? That is how long it takes for companies to fill an engineering position. The solution? Staff augmentation. 

Staff augmentation is an outsourcing strategy used to scale teams with technical talent on a temporary or long-term basis. As a staffing model, it has been utilized by companies to secure high-class technical talents with expertise in emerging technologies. Realistically, spending 62 days or more to fill a talent role is time-consuming and unproductive. Forward-thinking companies recognize this and understand the need to be digitally ready, and therefore, they leverage the staff augmentation model to enhance their internal teams.

Staff augmentation is the process of outsourcing specific tasks or projects to external personnel for a certain period. Staff augmentation is the faster and more efficient way for companies to scale their tech teams with top tech talent without lengthy recruitment times. Many companies take advantage of staff augmentation when they need to address a skill gap, increase speed to market, meet project deadlines, or manage workload. This outsourcing model eliminates the need for the overhead cost involved in hiring full-time employees and gives companies the flexibility to scale up or down according to business demands. 

Let's take this example of staff augmentation: As a director or senior exec in your organization, you have an internal software development team. However, with the emergence of Generative AI, you need to expand your product to feature a Generative AI component to meet customer needs. In this case, instead of hiring a full-time AI specialist or developer, which can be time-consuming and expensive, you opt for staff augmentation by bringing in an AI expert and software developers on a temporary basis. These experts would work with your in-house team to develop and integrate the new generative AI features into your product. This approach allows you to quickly and efficiently expand your product's capabilities to include the AI functionalities, without the long-term commitment and costs associated with expanding your permanent workforce.

Companies that decide to use the staff augmentation model would need an outsourcing staff augmentation vendor that can help augment their team anytime. Instead of going through the recruitment process of searching, interviewing, and onboarding. These staff augmentation vendors would readily provide technical talent such as data scientists, software developers, QA engineers, and others at the company's request. 

However, if you decide to use staff augmentation it's important to understand the different types of staff augmentation.

Depending on the organizational needs, there are different types of staff augmentation.

The nearshore staff augmentation model is the process of hiring a development team from a neighboring country, typically within the same geographical location and time zone. The nearshore staff augmentation model is highly recommended for organizations because it allows the use of IT talent who are culturally aligned and are easy to supervise because of the proximity.

The offshore staff augmentation model is when companies hire technical talent from different countries to support their in-house staff. Usually, this can be countries that are not within the time zone of the company; therefore, they may need extra supervision while delivering the project outcomes.

The onshore staff augmentation model is the process of hiring technical IT talent in the same country to support their tech needs. This implies that engineers would have the same language and similar geographical locations to support the internal tech team.

Staff augmentation offers numerous benefits to businesses of all sizes, whether startups, mid-market companies, or enterprises. Specifically for businesses that are executing digital transformation projects, digital initiatives and are at the forefront of innovation. Using the staff augmentation model is advantageous to companies seeking to increase the speed of delivery and launch of high-quality products. Here are some of the benefits of staff augmentation:

Clearly, there has been a dire need to adapt business operations to the evolving needs of the market. In 2023, we witnessed the growth of artificial Intelligence, machine learning, and big data. In 2022, Web 3.0 technologies, including blockchain, were heavily invested in by leading companies; in 2021, remote work transformed the industry. 

Every year, there will be new emerging technologies and transformations, but what gives many organizations a competitive edge is the ability to adapt to these new technologies quickly. One of the ways to ensure smooth adaptation is by tapping into a global talent pool.

Staff augmentation allows you to augment your team with professionals who are experts in their field. These professionals are domain-focused and can yield great results that align with your business objectives within the stipulated time frame. There is an assurance that accompanies using a staff augmentation vendor who, at any time, can scale your team with the required skill set without restrictions.

Technology scalability is important for businesses that are looking to increase profitability and meet customer demands. Software scalability involves using modern technology, employing an efficient project management strategy, and, importantly, hiring the right people. 

Staff augmentation is the ideal solution for businesses that need to scale their products to accommodate more workload. It enables you to augment your team with software developers without investing in an entire permanent workforce to achieve your development goals. Also, you can decide to add more technical professionals to your software development team at various stages of the project.

High Quality without Compromising on Cost

According to the US Department of Labor, the cost of a bad hire can be up to 30% of the employee's initial annual earnings. The process of recruiting for technical roles can be costly and time-consuming. Staff augmentation streamlines these costs by reducing overhead expenses and provides the required expertise at a more affordable rate. 

With staff augmentation, companies can focus on their core business objectives while the staff augmentation vendor supplies the necessary technology tools, employee benefits, and software platforms.

Staff augmentation vendors such as Devsu take a further step to ensure that each talent is continuously upskilled making it cost-effective. Upskilling costs about $24,800 per person in the United States. Imagine the cost of continuously hiring a new permanent employee for your software development team, coupled with the cost of upskilling and reskilling. With staff augmentation, you gain access to the top 1% of talent who are not only highly skilled but also adaptable to the changing technological landscape. This ensures that your team remains at the forefront of innovation without the traditional costs and commitments associated with permanent hires. Consider this staffing model as the perfect solution for achieving short-term and long-term digital projects.

A key strategy to accelerate your time to market is to have the right project manager who can keep the entire team informed through effective communication, ensuring that everyone meets deadlines while staying within budget. Most importantly, possessing the right skill set that can swiftly bring the product to market and effectively address any roadblocks is crucial. 

By tapping into the global talent pool, you gain access to skilled professionals who can enhance your internal team's productivity and increase your speed to market. These professionals are experienced and capable of undertaking complex projects without the need for internal training. With their expertise, they can offer your internal employees fresh perspectives and creative ideas that can expedite your processes, facilitate product launches, and help your business keep pace with competitive demands.

Choosing the right staff augmentation company means you won't have to worry about cybersecurity threats or securing intellectual property rights. Outsourcing vendors with decades of experience, who have collaborated with established companies, recognize the critical importance of security. They have put in place the proper technologies to safeguard your data and digital assets against cyber threats. 

In addition, you maintain all rights to your development projects, and the augmented software team understands the significance of complying with your company's security policies. This is in stark contrast to a freelancer who might not demonstrate the same level of dedication to your organization's security protocols or possess the necessary resources to offer the same degree of protection, which could potentially put your projects at greater risk.

Staff augmentation is not devoid of challenges. Here are some of its challenges:

Staff augmentation entails outsourcing part of your tasks to a third-party vendor or personnel. This means, in most cases, the staff you hire will not work at your physical location. 

Therefore, it's important to create a system that can accommodate easy communication and efficient management. By using communication tools and channels, your augmented team can collaborate with your in-house team and complete the project within the set timeframe.

Previously, we highlighted the different models of staff augmentation — offshore staff augmentation creates communication barriers because there might be significant differences in language and culture. In essence, ensuring that your staff augmentation vendor ticks the boxes for an A+ English level, similar cultures, and time zones is vital.

Outsourcing to the right staff augmentation vendor eliminates the fear of privacy concerns. However, it poses a risk to organizations that may not have done their due diligence in assessing the company's internal security operations. It is advisable to conduct a security audit before agreeing to partner with any software vendor.

For many executives, the debate arises on when to scale up their software development team using staff augmentation. We have an answer:

Supplementing your software team with staff augmentation will enhance your projects. When you have an in-house team, you can expand it with experts who possess specific tech stacks such as Ruby on Rails, LAMP stack, MEAN stack, etc., or even with specialists in specific fields such as QA, full stack development, artificial intelligence, web development, mobile development, etc.

If your project requires skill sets such as those of data scientists or machine learning engineers, you might find yourself searching for an extended period. However, with staff augmentation, you can quickly acquire specialized professionals in 14 days or less.

If you're currently cutting down on project budgets and expenses but still need to expand your team quickly, staff augmentation can be a game-changer, as it provides the talent you need at a reduced cost compared to hiring a full-time employee.

Staff augmentation is ideal for short-term projects but can also be beneficial for long-term projects, especially when you have a strong relationship with your staff augmentation service provider. If your project is short-term and you need additional hands, then staff augmentation is suitable for you. However, for the sustainability and maintenance of your custom software application, you might also opt for long-term contracts with your provider.

What is the difference between staff augmentation and software outsourcing?

Many times, staff augmentation and software outsourcing are used interchangeably, but they mean different things. Staff augmentation involves supplementing your team with expert professionals, while software outsourcing involves entrusting your software project to an external vendor. Whereas staff augmentation allows the hired individual to integrate into your internal team, software outsourcing assigns a dedicated team to work on your project independently.

Why Choose Devsu As your staff augmentation provider?

Devsu is a staff augmentation company with over a decade of experience. With more than 200 top tech talents who understand the intricacies of the industry and over 500 projects completed, Devsu can scale your tech team in 14 days or less. We use the agile software development approach to meet project deadlines and increase your speed to market. Our rigorous onboarding process ensures that we hire only the best tech talent. Speak with our sales team to learn more.

What Is Staff Augmentation? Access Global Talent, Fast

In recent times, digital transformation has evolved beyond merely being a buzzword. The pandemic has significantly disrupted the economic landscape, prompting many companies to adopt digital initiatives. Approximately 97% of companies report that the Covid-19 pandemic has accelerated their digital transformation efforts. From increasing remote work to employing digital tools and automating processes, digital transformation has emerged as a priority for businesses seeking growth.

However, a crucial piece remains missing. Many companies struggle to understand the significance of digital transformation and to identify effective strategies for its implementation. Tech leaders frequently ponder questions such as: How can I get everyone on board with these new digital initiatives? How do I construct the right digital transformation roadmap? How do I secure stakeholder buy-in? Beyond understanding these critical questions, the reality is that a significant portion of digital transformation projects—70%, to be exact—fail.

What does this mean for you as a tech leader? By the end of this article, you will have gained insights into the reasons behind the failure of digital projects, equipping you with the knowledge to navigate these challenges more effectively.

Digital transformation is the strategic integration of technology across all business areas, including customer services, operations, processes, and systems. It involves redefining business operations to align with programs that foster success, updating outdated applications and leveraging cloud technology.

In simpler terms, digital transformation is about reinventing the business framework to enhance flexibility, growth, and technological advancement. According to Gartner, 91% of companies are engaging in digital initiatives, indicating a significant investment in digital transformation projects to drive success. A good example is the notable investments by leading tech companies: Google has invested $30.7 billion in artificial intelligence (AI), while Amazon and Microsoft have each invested $10 billion.

While digital transformation might seem straightforward, it can be challenging without the right strategies and a clear direction for digital initiatives. A crucial aspect is understanding its impact on customer engagement, organizational culture, business models, and change management. Adopting a direct approach with defined paths toward digital transformation will enable your organization to enhance efficiency, refine strategic planning, and effectively navigate the process of change management.

Digital transformation is an innovative process that takes a business into a new realm of operation. For instance, a company accustomed to traditional customer service or data storage methods may opt to enhance these processes through customer service, AI or cloud computing. Such transformative changes require well-defined planning, stakeholder buy-in, employee adoption, resources, technical know-how, and more. This complexity is what often makes digital transformation challenging..

Many digital transformations fail due to the level of complexity involved in integrating new technology, especially if the organization lacks the required technical skillset. Currently, the industry is facing a shortage of tech talent, which slows down digital initiatives.

In addition, digital transformation often fails due to resistance from employees. Adjusting from a process that workers are familiar with can lead to pushback, affecting the digital transformation. Moreover, many organizations struggle with allocating resources to digital transformation projects, putting them behind the competition.

Considering all these factors, you need to understand the biggest barriers to digital transformation and leverage the right strategies to avoid these failures now and in the future.

11 Biggest Challenges of Digital Transformation

Here are the common challenges many CIOs and IT leaders face when implementing a digital transformation initiative. 

A common challenge some organizations encounter is a lack of direction and clarity in their vision. This often translates into unclear expectations and objectives, making it difficult for teams to align their efforts towards a cohesive digital transformation strategy. Without a clear vision, initiatives can become disjointed, leading to wasted resources and efforts.

Digital transformation entails the adoption of technological tools, and indeed, enterprise software applications can be complex. This complexity often presents a challenge to individuals within the organization, as integrating the software into the existing system can be time-consuming. From the perspectives of implementation, data integration, and both customer and user experience, if not well-planned, this can result in operational challenges and reduced productivity.

The change management approach is key to reducing friction and ensuring the seamless introduction of new technologies. Change management is the aspect of digital transformation focused on establishing an environment where employees within the organization adapt to changes and manage customer interaction with the organization during the digital transformation process.

Failure in digital transformation projects almost always comes down to a lack of preparation and strategy. To avoid this, companies should include the human element in the change management plan to ensure seamless transformation.

A robust change management plan will consider communication objectives, clear project reporting, budget allocation, and a thorough roadmap from start to finish. A lack of direction can impede progress and lead to failure.

P.S.: To help you develop an effective change management plan, join our upcoming webinar where Devsu experts will share actionable insights on digital transformation in 2024. Register here. 

Employee Resistance To Digital Transformation

As humans, we often become attached to traditional ways of doing things or to routines that provide comfort. Digital transformation, however, necessitates stepping out of our comfort zones, embracing change, and dealing with uncertainty. As a result, many employees may feel uncomfortable with these changes and might be reluctant to adopt new technologies, or they could even resist change, especially if the digital initiatives are not clearly communicated. It is best practice to initiate change at the C-suite level and then gradually extend it across the organization.

Also, creating an environment where employees have access to the right training materials and resources can help them adapt to new changes more easily. Resistance to change is a significant concern for many leaders, but with an effective digital transformation strategy, success is within reach.

Neglecting Customers in the Digital Transformation Process

One of the most significant barriers to digital transformation is leaving customers out of the process. As businesses engage in continuous innovation and evolution, addressing customer needs remains paramount. This requires involving customers throughout the transformation process through effective communication.

Digital transformation is a complex effort that can take months or even years. Therefore, while employees are being trained and upskilled, it's essential to have an agile plan that meets customer expectations amidst ongoing changes. For example, if a customer relationship management (CRM) company, focused on client interactions and sales tracking, has a workflow that hinders its clients from customizing their processes, they might find the CRM system challenging to integrate with their existing sales processes. In such a case, the initiative could be seen as a failure in digital transformation.

In digital transformation, tech talent and technology are intertwined. Achieving a successful digital transformation is unattainable without the right skill set. Many companies overlook the importance of defining the necessary tech experts for digital transformation projects, be they digital transformation consultants, software developers, cybersecurity analysts, or data analysts. The success of a digital transformation implementation heavily relies on the organizational workforce.

Businesses lacking the required technical expertise often turn to staff augmentation or software outsourcing models to accelerate their digital transformation. Additionally, companies consider training their workforce with new tools and technologies to enable them to take on new responsibilities and ensure a smooth transition.

Read more: 6 Top Benefits Of Staff Augmentation & The Future Of Staff Augmentation In 2024

A key factor for the seamless integration of digital technology is addressing privacy and security concerns. Cybersecurity budgets across companies have increased to between 6% and 10% in 2024. Many companies' digital transformation initiatives involve migrating company data to cloud computing technologies. However, this migration can sometimes lead to excessive downtimes, vulnerabilities, and exposure to unexpected users. Therefore, having a plan to mitigate these risks from the outset is essential for strengthening the digital transformation project.

Digital transformation requires significant resources — both financial and human. It can be costly and necessitates adequate budgeting for a project. Organizations that fail to plan adequately can be caught off-guard and may have to go over budget or halt the project midway if demands exceed the allocated funds. Budgeting should involve identifying long-term goals, digital transformation consultation, and IT issues. Outlining the ROI will help you gauge whether you're investing too much or spending too little. It will also assist you in aligning your resources with your overall goals.

Silos Among Organizational Departments and Teams

Companies with a siloed organizational structure often struggle with implementing digital transformation, leading to reduced productivity, ineffective communication, and collaboration. For digital transformation to be successful, the organizational structure must operate in a way that allows stakeholders to be in sync from the strategy stage to implementation. Operating in silos can detract from the overall business objectives and hinder innovation.

In digital transformation, one of the primary recipes for disaster is a lack of commitment from the leadership team. Leadership plays a crucial role in driving digital transformation. Insufficient support from the C-suite can significantly affect how employees embrace change. Without a strong commitment from the management team, there can be a lack of resources and a failure to prioritize digital initiatives, ultimately impacting transformation efforts negatively.

Transitioning from traditional operational practices to a more agile methodology poses significant challenges for businesses, even when the benefits are clear. This difficulty often stems from reliance on outdated infrastructure and technologies that businesses have historically depended on. Such legacy systems can be deeply integrated into the core processes of a company, making any shift towards new, more efficient systems a complex and risky task. For this reason, many companies would rather stick to what already works than seek more agile and robust systems, making it difficult to implement digital transformation initiatives.

In conclusion, it's important to remember that emerging technologies will always be shaping the economic landscape. It's up to you to find effective ways to prepare your company to adapt to these changes without compromising the quality of service or negatively affecting customer expectations. 

Digital transformation is a driving factor for innovation and growth. With the right knowledge in digital transformation strategy, implementation, and change management approach, your organization can stay ahead of the competition. To be prepared for whatever 2024 holds, join our upcoming webinar on navigating digital transformation and disruption. Click here for more details.

11 Biggest Digital Transformation Challenges of 2024

The pandemic accelerated the pace of digital transformation initiatives, compelling many companies to embrace digitalization to maintain the delivery of quality services. In the post-pandemic era, CIOs and IT executives continue to face high expectations to expedite digital transformation projects. A Gartner report reveals that approximately 59% of CEOs believe digital initiatives progress too slowly, and 52% assert that deriving value from them takes too long. With digital transformation at the forefront of the evolving economic landscape, companies that intend to remain competitive should have an effective transformation roadmap that aids business growth.

In this article, we'll identify the top digital transformation strategy that can speed up the implementation of digital initiatives.

How To Accelerate Your Digital Transformation

Here are seven digital transformation strategies that are reshaping industries and propelling companies towards success.

The first step is to identify a clear vision and develop a strategic roadmap. The vision should align with your digital transformation needs, focusing on the 'why,' 'how,' and 'what.' For the 'why,' highlight the primary reasons for this digital transformation, such as integrating artificial intelligence, cloud computing, and machine learning, to enhance customer experience. The 'why' should be in sync with your business goals. It should illustrate a clear pathway on how you intend to achieve a successful digital transformation by outlining the required steps, resources, and timelines.

For the 'how,' it's essential to detail the approach and methodologies your organization will employ to execute the digital transformation. It's about defining the operational changes, the technology stack upgrades, and the collaboration frameworks that will be put in place to improve this transformation.

Regarding the 'what,' this should specify the tangible outcomes and objectives you aim to achieve through digital transformation. This could involve launching new digital products or services, achieving higher operational efficiency, improving customer engagement through digital channels, or leveraging data analytics for better decision-making. The 'what' outlines the specific projects, technology implementations, and business model innovations that will be pursued to realize the vision laid out in your digital transformation strategy.

It's essential to let go of the legacy systems and mindset for a faster digital transformation speed. Do away with the old and welcome the new. Pause the use of outdated technologies and systems and adopt more robust technology. Start small by working on smaller areas that will yield quicker returns rather than spending excessive time seeking bigger wins. Eliminating the legacy systems entails finding the right technology that might be short-lived but will fulfill the immediate purpose and meet the demand. By accepting new technologies, and making smaller investments, your business will experience an accelerated digital transformation pace.

A vital component of digital transformation is finding the right software applications for a smoother transition. This involves going beyond your existing applications and considering your digital transformation objectives. Whether you're collaborating with IT vendors or exploring new technologies, the focus should be on solutions that align with your strategic goals. The leadership team should assess each technology's effectiveness and potential impact before implementation, to understand how it can be integrated and utilized across different teams.

Another strategy that can accelerate the speed of digital transformation is the method of work. The agile methodology has been proven to improve speed to market. About 71% of companies use Agile and have reported an average of 60% growth in revenue. Using the agile approach for business transformation enables speed by breaking down tasks into sprints and having iterations for each phase of the process. This iterative approach encourages open communication and feedback loops among stakeholders, enabling more responsive and adaptive strategies to emerge. By empowering teams to work in cross-functional units, the agile methodology promotes a holistic view of project goals, ensuring efforts are aligned with the overall objectives of the digital transformation initiative. 

The agile methodology's emphasis on customer-centric development ensures that the end-user's needs and experiences are at the core of the digital transformation process. By continuously integrating user feedback into the development cycle, organizations can ensure that their digital solutions are highly relevant and user-friendly.

Agile digital transformation is focused on prioritizing the necessary changes as opposed to following a rigid plan. The agile methodology ensures that mistakes are caught earlier on and can be corrected before they become unredeemable.

Read more about the agile methodology here.

Beyond integrating technology, digital transformation should focus on enhancing the customer experience. In the process of digital transformation, companies should consider how their customers can evolve with them. Regardless of the chosen technology, customer feedback and user experience are important for a successful digital transformation. 

There should be a process in place to regularly collect user feedback and use these insights to improve the digital transformation process. User feedback is at the heart of a customer-focused digital transformation strategy.

There will always be emerging technologies, from artificial intelligence to cloud computing, big data, and machine learning. However, one of the key questions for tech leaders remains: How do I prepare my employees for change? Implementing digital transformation will introduce changes that employees need to adapt to. 

Often, tech leaders struggle with creating an enabling environment for workers to embrace new cultures, technologies, and processes. To enhance digital agility, developing the right training materials and resources is important for employees to quickly adapt to the new normal. Here, the management team plays a pivotal role in effectively communicating the necessity of this transformation and its expected outcomes.

In some scenarios, an organization might lack the in-house expertise needed to expedite the digital transformation project. In such cases, they might consider software outsourcing or adopting a staff augmentation model. This involves either delegating the digital transformation project to an external software company or expanding the internal team with individuals who possess the required skill sets. Adopting these strategies can significantly enhance the pace of digital transformation. 

Select the Right Digital Transformation Partner

Choosing the right digital transformation partner can significantly boost your business growth. Digital transformation is a challenging journey that many organizations fail to navigate successfully. McKinsey reports that about 70% of digital initiatives fail, indicating that companies often struggle to succeed in their digital transformation efforts. The path to digital transformation requires technical expertise, support, a clear direction, and the right technologies. A trusted partner can help align your vision with the practical realities of digital transformation, enabling a more strategic approach to innovation.

Devsu, Your Digital Transformation Partner

For over a decade, we have mastered the art of helping companies scale their tech teams, improve software delivery, and transform their businesses through effective digital transformation. In our e-book, "The Tech Leader Survival Guide: Navigating Disruption & Mastering Digital Transformation in 2024" we provide valuable insights on how tech leaders can navigate the technology landscape. Download it for free today.

7 Strategies To Accelerate Your Digital Transformation

Employee retention is crucial for increasing the speed of product delivery and business growth. Many companies employ various strategies to improve the retention rate of their tech talent. The consequences of employee turnover are never favorable for organizations, as they can negatively impact the business, increase operational costs and revenue loss, reduce productivity, and affect customer satisfaction.

During the Great Resignation, there was a high rate of employee turnover among software companies, especially among engineers, leading to a competitive labor market and increased costs in software development.

According to research from LinkedIn, the industries with the highest employee turnover rates are tech, retail, and media, with 13.2%, 13%, and 11.4%, respectively. Businesses that are not deliberate about adopting the right retention strategies are more likely to end up with dissatisfied and disgruntled employees. Hence, it’s vital to understand the benefits of retaining your top tech talent to improve efficiency and positive work culture. 

In this article, we will explore the definition of employee retention and how it can benefit your organization.

Employee retention refers to the methods and strategies that companies adopt to ensure their employees remain with the organization. It involves the process of retaining top talent and reducing turnover risks to maintain a healthy work environment.

In the context of software companies, this concept is often termed developer retention. It involves having an organizational system in place that prevents high turnover of software developers, ensuring the seamless continuation of projects.

Employee turnover and retention are among the major workforce challenges industry leaders face. Gartner reports that 91% of HR leaders are concerned about employee turnover in the future and are thus seeking the right employee retention strategies to improve the longevity of their workforce.

A high employee retention rate indicates that employees are productive, and satisfied with the work culture. However, this is not the case for many businesses, specifically those struggling to retain their software developers or technical talent.

Benefits of Employee Retention for Companies

Employees may leave organizations for various reasons, such as poor management, inadequate leadership, an unhealthy work environment, and excessive workload, among others. Nonetheless, the objective of every company is to maintain a great workplace and encourage employees to stay for extended periods. Here are some additional benefits of employee retention:

Gallup reports that U.S. businesses lose a trillion dollars every year due to voluntary employee turnover. Similarly, research by SHRM shows that the cost to replace an employee can be as high as 50%-60% of the employee's annual salary, with the overall range spanning from 90%-200%. This means that if an employee earns an annual salary of, say, $50,000, the cost of replacing them could range from $45,000 to $100,000, factoring in various expenses related to hiring, training, onboarding, and loss of productivity. 

Maintaining a high employee retention rate can significantly save costs for companies and enable them to stay focused on their core business objectives.

Employees who have worked with an organization for an extended period tend to be more engaged and loyal. This loyalty is often the result of the support and rewards they have received from their employer over the years. Investing in your employees can foster loyalty, as they feel valued for their years of work and effort. This approach can also enhance the work environment for new employees, leading to supportive colleagues and greater dedication to the company's overall goal.

A significant benefit of employee retention is the presence of highly skilled workers and talent. The longer an employee works with a company, the more experienced they become. They tend to understand the industry, the customers, the product, and even how to manage challenging situations within the company. Constantly losing your top talent can adversely affect the company's growth. For example, an employee who has worked with your company for a long period can be promoted to a high-level position to manage greater responsibilities. This prevents the process of starting with a new employee who might take time to catch up. 

Building an organization where employees stay with the company and continuously develop relevant skills, will help optimize business revenue.

An environment characterized by a high turnover rate can significantly impact the speed of projects and overall productivity. When an employee resigns, it takes the hiring manager a considerable amount of time to fill the vacant position and train the new employee on the relevant tools and technology. This often leads to employment gaps, with other employees having to take on additional duties to cover the vacant position until a replacement is hired. During this period, existing employees may experience burnout and work overload due to the increased responsibilities. 

However, the situation is different when there is continuity with the same employees who understand the nuances of the work. For instance, if it's a developer, they already understand the codebase, the project history, and the specific challenges that have been encountered. This deep familiarity improves development speed, reduces the time needed for onboarding and training, and maintains a steady workflow. Also, projects progress smoothly without the delays often associated with high turnover rates.

The higher the employee retention rate is, the better the employee morale. HR managers often introduce bonding time and activities to boost employee productivity, as well as to foster bonds and connections across departments and functions.

The departure of employees from teams can create a sour feeling among remaining team members and across other departments, adversely affecting overall morale and collaboration. In addition, employees may experience a sense of instability and uncertainty within the organization. By maintaining a high retention rate, companies can benefit from stronger connections among employees, enhanced synergy, and a positive workplace culture.

Read more: Elevate Your Employee Experience With New Technologies: Creative Techniques To Boost Engagement & Talent Retention

As an organization, maintaining a strong brand reputation is crucial for ensuring customer satisfaction and a positive customer experience. Often, customers can sense when a company has a high turnover rate, which can reflect poorly on the work environment and influence their perception of the brand. This perception is shaped by how effectively their problems are solved and the quality of their interactions with the business. It is also influenced by the responsiveness and consistency of the service they receive.

Consistent positive experiences can increase a customer's brand loyalty, which in turn is linked to employee retention. A stable and experienced team is more likely to deliver such high-quality service, thereby reinforcing the brand's reputation and promoting long-term customer relationships.

Employees are often seen as brand advocates for their organizations. When employees are happy, they are more likely to speak positively about the company on social media channels like LinkedIn, which can impact the kind of talent the organization can attract. Good public relations should not be underestimated, as it can boost a company's reputation and thought leadership.

When employees stay for an extended period, the company benefits from reduced hiring costs, higher productivity, and enhanced customer experience. With a low rate of employee turnover, companies can invest their resources and time in employee training, reskilling, and upskilling to grow the business and ensure employees are up-to-date with industry trends and technologies.

The importance of employee retention cuts across all aspects of the organization from revenue optimization, brand reputation, experienced employees, and customer experience. Successful organizations understand the importance of effective retention strategies and are committed to improving a healthy work culture. 

Happy employees lead to increased productivity, efficiency, and growth. Whether the company operates a remote, hybrid, or onsite structure, employee retention is vital. As a leader and manager, especially if you have a team of developers, technical or non-technical employees, you need an effective retention strategy to reduce employee turnover in 2024. In our free e-book, you will find the key challenges, consequences, and strategies for retaining top tech talent. Set your team up for success by adopting these strategies. Click here to download a free copy of the e-book.

Strengthening Your Bottom Line: 8 Business Benefits of Employee Retention

Every year, countless job openings are posted for software developers. While many organizations manage to find candidates who perfectly match their job criteria, others often have to settle for what they can find. One of the primary reasons for this is the ongoing competition for top tech talent between large enterprises and mid-sized organizations. Finding the right tech talent is challenging, but retaining this talent has proven to be even more difficult.

According to a recent survey, 79% of developers are open to new opportunities. At the slightest chance, software developers are ready to switch jobs, roles, and organizations, even despite the significant layoffs that have shaken the technology industry.

A report from McKinsey shows that about 80% of CEOs are prioritizing innovation. This means that tech leaders are focused on adopting emerging technologies and need tech talents who possess the right skills to bring their vision to life.

However, the shortage of software engineers may be a hindrance to fast software delivery among Software as a Service (SaaS) companies and other businesses. In fact, the United States Bureau of Labor Statistics reports more than 153,900 job openings across different tech roles, such as quality assurance, software developers, and many others. The primary question is how tech leaders can retain their top tech talent and reduce developer turnover to ensure the smooth progress of software projects and increased speed to market.

By the end of this article, you will fully understand the reasons companies are constantly battling to keep their high-performing talents and software developers.

Is There Still a Developer Talent Shortage in 2024?

The simple answer is yes. Though there have been massive layoffs since 2023, with over 240,000 tech workers losing their jobs, there is still a talent shortage in the tech industry. As of the time of writing, the term "software developers" lists over 142,000 job openings in the United States, as shown on LinkedIn. This number does not include searches for specific terms such as artificial intelligence engineers, DevOps engineers, or even entry-level software developers.

Undeniably, companies still need tech talent to drive new initiatives, especially with high customer expectations and the growth of artificial intelligence. About 64% of IT executives believe that the tech talent shortage is a hindrance to the rapid adoption of emerging technologies. By 2030, if not addressed, there will be a global talent shortage of 85 million people, potentially leading to a loss of $8.5 trillion.

Beyond the lack of qualified talents, there is the issue of retention. Over 90% of employers highlighted retaining talent as a major challenge in a Deloitte survey. With retention in mind, tech industry leaders also grapple with finding people with the necessary technical skills to fit into their work culture. The implications of this include increased costs of software development, slower speed to market, project delays, and failures. In many cases, other staff members try to compensate for the talent shortage by taking on duties outside of their scope of work and requirements, leading to burnout, high turnover, and a negative impact on business growth.

Why Are Companies Struggling To Retain Tech Talent?

Businesses must prioritize retention to achieve improved software development speed, growth, and efficiency. Adopting a strategic approach to retain top tech talent is crucial for encouraging productivity and enabling software developers to perform at their best. However, the first step is to identify the primary causes and implement strategies to avoid losing the right tech talent. In this section, we explore the primary reasons why retention might be proving difficult.

As the technology industry continues to experience rapid growth, more companies will need developers with technical experiences that match the job requirements. With this, companies are competing for the few experienced professionals with these skills. This situation is favorable for tech experts looking to advance their careers, as it allows them to move from one role to another. However, this is disadvantageous to employers and leads to project delays and lengthy recruitment times. The talent pool is limited, and the competition makes it challenging for most companies to offer the most attractive packages and opportunities.

The environment and culture of a workplace play a crucial role in the retention of employees. Tech talents are increasingly demanding a better work-life balance. The Covid-19 pandemic and the subsequent Great Resignation shed more light on the needs of employees. Many sought better working conditions and higher pay. The pandemic-induced shift to remote work also led workers to value flexibility. Forbes reports that employees who worked remotely 100% of the time were 20% happier than those who didn't have that flexibility. Another report showed that people who worked from home experienced a 77% increase in their productivity. Companies whose work culture has not accommodated the needs of workers are likely to suffer from high employee turnover.

Emerging technologies such as artificial intelligence, machine learning, and cloud computing are revolutionizing the industry. Workers are drawn to companies that create new learning and growth opportunities. Is your company scaling up and fostering new growth opportunities for existing employees? These are some of the key areas that workers consider in terms of career advancement. When employees sense slow growth or feel stuck, it can negatively impact their motivation and satisfaction.

A company's management and leadership set the tone for how software projects are done and handled. Effective management communicates the vision, policy, and process to the entire team, ensuring that everyone understands how their role impacts the organization. The common phrase, 'People don’t quit companies, they quit bosses,' has proven to be true over the years. About 84% of U.S. workers say that bad managers are the major cause of stress and unnecessary work. Hence, managers and leadership play a crucial role in retaining top tech talent. Questions such as: 'What does success look like for this role?', 'What are the growth opportunities for this role?', 'Who does this role report to, and why?', and 'How does this role contribute to the business?' can help employees feel included and valued. However, oftentimes, management and leadership are so focused on other business objectives that they neglect the little details that add value to the tech talent, frequently leading to high employee turnover.

The tech industry is fiercely competitive, with various companies offering highly attractive packages that include benefits such as 401k plans, comprehensive insurance (including vision and dental), as well as hybrid and flexible work environments, advanced tech setups, and more. However, not all companies can match this level of competition and offer such substantial compensation packages. This disparity often leads to a scenario where employees, being aware of better benefits available elsewhere, are tempted to move to organizations that can provide these more lucrative offerings.

Many tech companies have expanded their benefits to include educational bonuses, wellness programs, and stock options to bolster the growth of software developers. Companies that fail to keep up with industry standards in terms of compensation and benefits risk falling behind in retaining tech talent.

Ineffective Communication and Feedback Mechanisms

In the tech industry, clear and consistent communication is key to keeping team members aligned and engaged. A lack of effective communication channels can lead to misunderstandings, decreased morale, and a feeling of disconnection from the company's goals and vision. Regular feedback sessions and peer-to-peer reviews are essential to assess each person's work and role. This is important not only for career growth but also for job satisfaction. Many companies shy away from feedback sessions, focusing more on switching between various projects to launch them to the market. However, the workers who dedicate their time to these projects would greatly appreciate hearing from both direct and indirect managers about their performance so far. This can make them feel valued and recognized in the organization.

Diversity and inclusion in the workplace are increasingly important to tech professionals. A lack of diversity in teams and leadership can lead to a narrow perspective on projects and decision-making, which is especially detrimental in a field that thrives on innovation and creativity. An inclusive culture that respects and values different backgrounds, experiences, and viewpoints is essential in attracting and retaining a diverse talent pool. Employees are more likely to stay with a company where they feel included, respected, and where there are equal opportunities for everyone, regardless of their background.

Tech industry leaders will need the right, effective strategies to help reduce tech talent turnover in their organizations. Realistically, developers are still hard to find, and the software developer shortage persists. From the data, it appears this shortage might not be going away anytime soon, particularly with the Great Resignation continuing to impact the industry. In light of this, companies will need to seek other alternatives and use tools and technology to their advantage. An ideal solution would be to hire third-party staff augmentation and software outsourcing vendors that can help improve the speed of projects and ensure continuous development without hitches. By considering outsourcing developer roles, you gain access to a global talent pool and have software developers available on demand, either for specific projects or on a full-time basis.

Read more: How To Hire The Right Software Developer: Essential Guide 

7 Reasons Why Companies Struggle To Retain Tech Talent

In our daily interactions with computer devices and wearable technology, and even in spaces like art museums that fuse digital art with augmented reality, physical computing plays a vital role. It transforms how we experience and connect with technology. As a growing area in computer science, it enables engineers to integrate hardware and software to interact with the physical world. 

Have you ever watched a Marvel movie? Think of Iron Man or the Avengers. If yes, you’ve probably seen Tony Stark and his incredible suit, and if you haven’t here is a bit of a breakdown. Tony Stark is a main character in Marvel movies and he is known for his “Iron Man Suit” which he uses to wrestle with the villains who affect the peaceful universe. The Iron Man suit in itself, is a blend of arts and technology that represents a human-computer interaction system. 

This article explores the meaning of physical computing, its impact on our digital world, and the differences between it and other computer science terminologies, through the lens of one of our experts, Luis Ángel Arízaga Díaz.

Physical computing is a discipline that combines hardware and software to create an interactive system. This interactive system involves the communication between the software and the physical world. It is the ability to build a tangible interactive system using hardware and software. 

Physical computing uses microcontrollers, actuators, sensors, and embedded systems engineering to develop interactive systems that enable human interaction. It uses an approach that allows humans to communicate with computers. For example, consider an arcade dancing game that allows humans to do exactly what they see on the computer screen. 

In simple terms, it is the process of combining input and output systems to work together in response to human interaction and communication. In building a physical computing system, engineers make use of microcontrollers or processing units like Raspberry Pi and Arduino.

A Raspberry Pi is a single-board computer, while an Arduino is an open-source platform that consists of a hardware circuit board (or microcontroller) and a software component. The general structure of a fully built system consists of a sensor that measures some natural phenomena such as temperature, acceleration, pressure, etc., a microcontroller or processing unit that has been programmed to utilize the data from the sensor to execute a specific action via an actuator. 

Imagine your interaction with your smartwatch during your gym session or workout period. The human interaction with the smart device is considered an element of physical computing. Physical computing penetrates various aspects of our lives, and here are some reasons why it is considered important:

As a discipline of computer science, physical computing boosts innovation. This is because it involves the combination of software and hardware. In the real sense, physical computing enhances products and services across various industries. In the entertainment industry, for instance, physical computing has contributed significantly to the development of immersive experiences. 

Game centers and parks can now create different attractions that allow visitors to react to technological outputs in real time. For example, the integration of virtual reality devices in the gaming industry. The use of VR goggles and joysticks that contain sensors and actuators has revolutionized the gaming industry. Every gesture the gamer makes is interpreted and processed in real-time. Such technology has provided both software and hardware engineers the foundation to build more engaging and personalized experiences for users.

In today's technologically driven world, physical computing plays a crucial role in problem-solving and developing solutions through computational thinking. Using algorithms and data structures, problems can be broken down into bits and components. Take, for example, a smart home thermostat system that uses sensors or circuits to monitor the temperature inside the home. By doing this, the user can interact with the thermostat, adjust the temperature, or program it to automatically adjust the temperature at a set time, maybe at night or when no one is at home, to conserve energy and be more efficient.

With physical computing, the future of technology can be advanced in various ways. Industries such as robotics, automation, and emerging applications like the Internet of Things (IoT) and wearable technologies use physical computing to enhance efficiency. In robotics, for example, physical computing enables the creation of machines and the ability to interact with these machines to perform specific tasks.

In addition, physical computing can improve the functionalities of technological devices. Smartwatches can now respond to human needs and activities. Their built-in sensors assist individuals in supporting a healthy lifestyle by monitoring their health.

Read more: 5 Key Digital Transformation Strategies For Software Companies

How Physical Computing Impacts The Digital World 

Physical computing influences different sectors of the economy, including healthcare, retail, hospitality, entertainment, and many more. It enhances customer experience in retail by identifying frequently bought products and also managing inventory stock through efficient means. By considering these factors, the shopping experience can be significantly improved. In hospitality, physical computing contributes to user experience through interactive customer service solutions, and in the gaming industry, it allows gamers to use motion sensors and VR technology to immerse themselves in a more realistic and engaging gaming environment.

A primary component of physical computing is embedded systems. An embedded system is a small computer that is part of a programming system. It is the combination of computer hardware and software to perform specific tasks. It enables the presence of physical computing in different areas. By expanding the potential of technological devices, physical computing is contributing to the rapid growth of technology across various sectors of the economy.

What is the difference between physical computing and robotics? 

Physical computing differs from robotics. Although physical computing involves human interaction or response to stimuli, it is not robotics. Robotics involves building machines that can perform tasks autonomously.

In robotics, there is no need for human interaction. Robots are built to operate on their own without the need for human intervention.

While robots are intended to perform tasks independently, physical computing requires human interaction to function effectively.

What is the difference between physical computing and computational physics?

Physical computing is often confused with computational physics; however, the two terms mean different things. Physical computing focuses on human interaction with technology through words, signals, movements, and actions. Computational physics involves the use of computer science and technology to solve complex problems in physics. It is the process of performing physics calculations using a computer.

Programming Languages Used In Physical Computing 

Microcontrollers play a key role in building physical computing systems. They are the brains of these systems. A microcontroller is a small computer with circuits that control physical inputs and outputs. Engineers program these microcontrollers to interact with sensors. 

In building a physical computing system, it is important to consider the skilled tech experts needed to fill these roles. In building a physical computing system, it is important to consider the skilled tech experts needed to fill these roles. Although physical computing consists of both software and hardware aspects, software engineers should understand the programming languages according to the device they'll use. Some of the programming languages used in these areas are C, C++, Python, Java, and others. At Devsu, there are experienced software engineers proficient in these programming languages.

In conclusion, physical computing is a modern aspect of computer science that is gradually making waves in the industry and improving the performance of technological devices. It adopts a hands-on approach to design solutions for complex problems, thereby bridging the gap between the physical world and digital computation. 

[St. Petersburg, FL 1/5/2024] — Devsu, a premier provider of software development and technical staff augmentation services, alongside Black Dog Venture Partners, a leading business accelerator, today announced a strategic partnership designed to empower technology companies to scale rapidly. This collaboration will provide startups with a seamless blend of technical expertise, capital resources, and growth services. Further cementing their commitment to fostering innovation, Devsu is proud to announce its sponsorship of Black Dog Venture Partners' upcoming VC Fast Pitch online event on January 11th, 2024, and the St. Petersburg VC Fast Pitch on February 8, 2024.

In this partnership, Devsu and Black Dog Venture Partners will synergistically combine their strengths to support the tech startup community. Devsu will bring its robust software development and consultative prowess to the table, while Black Dog Venture Partners will interlace this offering with its extensive investor network and business development acumen. Together, they aim to create a nurturing environment where technology companies can thrive.

VC Fast Pitch: Connecting Startups with Top Investors

The VC Fast Pitch event, hosted by Black Dog Venture Partners, is renowned for connecting startup companies with the nation's leading investors. As a sponsor of the upcoming events, Devsu is excited to support a platform where entrepreneurs can pitch their ideas, secure funding, and gain access to the essential technology resources needed to scale their operations. Learn more at VCFastPitch.com.

Startups looking to catapult their growth are encouraged to register for the VC Fast Pitch event. By using the link here, businesses can receive a 10% discount off the registration fee. Don't miss this opportunity to connect with top-tier investors and explore how the partnership between Devsu and Black Dog Venture Partners can serve your growth needs.

"This partnership with Black Dog Venture Partners marks a pivotal moment for us at Devsu. It's about weaving together our technical expertise with their vast investment network to create a robust support system for startups. We're not just aiming to build software; we're committed to building futures, catalyzing growth, and turning innovative ideas into technological realities that drive the market forward." - Matt Deaton, Chief Growth Officer of Devsu.

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