Insights | How the Evolving Tech Scene Will Impact Silicon Valley and Outsourcing

How the Evolving Tech Scene Will Impact Silicon Valley and Outsourcing

By Andy Hilliard | November 12, 2014

How_the_Evolving_Tech_Scene_Will_Impact_Silicon_Valley_and_OutsourcingThere is a growing shortage of skilled and cost-effective developers, according to tech industry leaders across the United States.

This has led some to question the US’s global standing as the tech industry leader. Fortunately, there are solutions to this crisis.

This article will explore the growing shortage and how you can best handle this problem in your own company through software outsourcing.

The Ability to Find Quality, Skilled & Cost-Effective Developers

Software companies are increasingly competing for a limited pool of quality developers in North America, and especially in Silicon Valley. Companies are finding that even once they secure a programmer or developer, that employee can quickly vanish. As of now, Silicon Valley leaders are reporting that talent and skill shortages are a significant risk in the tech industry, with 72 percent indicating this was an issue for their own business.

One of the biggest problems has actually been software company employees leaving to start their own companies. At the same time, many competitors are constantly trying to poach employees with more pay or better benefits. This has created a market favorable for domestic programmers and developers to create bidding wars for their talent, and put employers at a disadvantage.

Threat of Emerging Global Talent Centers like Asia, Europe and South America

There is a fear that other locations around the world will begin to outcompete the US. Many of these locations have large pools of experienced programmers to draw from. Places like London, Amsterdam and Berlin are of special concern, and some of these areas have even been drawing talent from the United States to come work there.

Companies like Alibaba are also eroding confidence in the US tech sector dominance as well. The Asian company made a huge splash on US stock markets this year, with the company being valued at over $170 billion on its opening day. Many US tech companies like Amazon see Alibaba as a threat, but other Asian companies are expected to directly compete with US companies in the coming years.

This has only led US tech CEOs to feel the pressure. As a result, software companies are searching for ways to reduce this threat and ensure their future competitiveness in the face of a globalized software market.

How Outsourcing Can Eliminate the Risks and Threats

Software outsourcing is one of the best solutions to mitigate the risk to companies in the US. First, software companies can draw from a large pool of talented programmers and developers from around the world. This helps to significantly drive down costs. The trend of leaving companies to start a new one is less pronounced in other parts of the world as well, helping to reduce your chance of outsourced programmers jumping ship when you least expect it.

Essentially, it’s very difficult to not find the talent you need when you outsource, even if domestic programmers are in sparse supply. While other companies are desperate enough to pay a lot for domestic programmers and still not finding what they need, software outsourcing can help you control costs and make sure your business stays running.

Ultimately, picking an outsourcing consulting company like Accelerance is key to outsourcing success. Accelerance has the experience and a broad supply of certified software company partners to fill your technical skill gap for reasonable prices, helping your company stay on top of the competition.

More from Accelerance

September 18, 2020

Spotlight on Colombia: Thriving Software Development Outsourcing Industry

I’ve been to Colombia four times on business trips – twice as a client, working on projects with there; and most recently, after joining the company myself, introducing a new client to the...

July 29, 2020

Spotlight on Costa Rica: Central America's Calling Card

When it comes to work/life balance, Costa Rica gets it right. In this beautiful and peaceful country, a “work hard and play hard” approach to life is the perfect mix. If you’re heading over on a...

July 27, 2020

Spotlight on Uruguay: South America’s Best-Kept Secret

Uruguay may be the second-smallest country in South America, with a population of just 3.5 million, but it’s the leading software exporter per capita in the region. Lying between Argentina and...


August 15, 2020

2020 Guide to Software Outsourcing Rates

Gain insight into the latest rates for software development outsourcing resources with our proprietary benchmarking guide that offers:

July 27, 2020

2020 Guide to Software Outsourcing in Latin America

Qualified software engineering teams are not easily found. 

September 17, 2019

What CTOs Need to Tell CFOs About Software Development Outsourcing

Alignment between your company’s CFO and IT strategy is significant to outsourcing software development

Tech leaders and CFOs need to speak the same language when selecting a software outsourcing...

How can we help you succeed?

We make outsourcing successful with innovative partner selection services and tailor-made consulting solutions to ensure your desired outcomes.

Let’s Get Started