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November 12, 2014

How the Evolving Tech Scene Will Impact Silicon Valley and Outsourcing

There 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.

Andy Hilliard

As CEO, Andy leads and advocates for the globalization and collaboration of great software teams with companies in search of talent, innovation and a globally-distributed extension of their engineering function and culture. Andy founded the ground-breaking nearshore software development services company, Isthmus Costa...

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