Global Software Developer Shortage

5 min read

There are nearly 500,000 software developer jobs available in the United States at the moment. Another half a million are expected to retire over the next few years. This means that the United States will face a shortage of one million software developers. By the end of 2021, it is estimated that there will be a shortage of 1.4 million software developers and only 400,000 graduates. Between 2018 and 2028, the employment of software developers is projected to grow at a rate of 21%, significantly faster than the average for all occupations.

With an average annual salary of $99,500, software development is a lucrative career path. Demand for software engineers is increasing, but there aren’t enough skilled engineers to meet that demand. Here comes the question: what are the current challenges blocking the gradual increase in the talent pool? And is there going to be a change anyway? Let’s look at this problem in more detail in our new article.

The current state of US tech talents

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Software Developer Shortage – Current Status

As the introduction goes, we already do know how serious and how bad the situation is. It is also well known for the employers who get to see the current state of hiring without looking at any statistics. However, let’s look at the data on some concrete and raw facts that will prove our theories.

  1. According to ManpowerGroup’s latest US software developers shortage statistics, 69% of US employers struggled to fill positions in 2020. Technical jobs are among the top ten most difficult to fill.
  2. The pandemic harmed the American technology market. It fuels the country’s digitization efforts, which exacerbates the software developer shortage. With the rapid advancement of machine learning technologies and the fact that 92% of organizations are increasing their cloud workloads, the IT software developer shortage continues to grow.
  3. Employers who cannot fill technical vacancies assign additional responsibilities to current employees, which results in burnout and harms local business development. Over 30% of respondents to Indeed’s survey admit that this issue contributes to increased staff turnover.
  4. You may believe it’s all about location, but it’s no secret that Silicon Valley is exploding with new job opportunities daily. However, this is simply not true: 4 out of 5 large technology companies in the United States are located outside Silicon Valley, confirming the country’s nationwide engineer shortage.

Thus, as you can see, the state of the IT talent pool is not as uplifting as we wish it to be. However, let’s not take all of our hopes away. Let’s look at this situation from the other side and understand where it comes from and how exactly one can solve it.

Top Challenges faced by Employers

A global software developer shortage of software engineers and developers makes hiring difficult for employers. But that is only a portion of the entire story. Employers tend to get caught up in the hassle of sifting through the labor pool for qualified individuals as the talent pool for reliable software developers shrinks. There are numerous reasons why software developers may lose an employer’s consideration for a project, but five stand out in particular:

  • Lack of Experience
  • Lack of Technical Skills
  • Lack of Soft Skills
  • Lack of Formal Education
  • High Salary Demands

The more frequently these issues arise, the more difficult it becomes for employers to find the appropriate software developer.

Absence of Soft Skills

Soft skills are the bread and butter of technical skills. You could find the ideal candidate with all the necessary technical skills and still be unsuccessful due to their lack of soft skills that make them a match in their workplace. You certainly need to assess how well they collaborate, communicate, work, and how adaptable they are.

The ability of a software developer to collaborate with coworkers and superiors is a strong indicator of their effectiveness in the workplace. And since humans are diverse, businesses frequently encounter software developers who lack the necessary soft skills to function effectively in their company environment.

Absence of Technical Skills

When hiring new software developers for your business, you will frequently discover that they lack the technical expertise required to complete the work. A software developer who is proficient in one area may be deficient in another. Depending on the nature of your project, he may perform admirably on their current assignment but will be unable to complete the following two. You’ll need to put these individuals through tests, have them speak with the human resources department, and generally spend a lot of time trying to find the right person who will match up with your project’s current requirements.

Absence of Required Education

Education is the primary factor that can assist in resolving the talent shortage problem. Simultaneously, education is the country’s immediate challenge – far too few school graduates are prepared to pursue tech careers, as only 13.2 percent of schools offer computer science courses. 77 percent of jobs in the next decade will require technological skills, and educators are already aware of this fact. 88 percent of teachers believe computer sciences are necessary for students’ future success. The primary reasons for any computer basics in primary schools are a lack of educational programs and insufficient funding.

Absence of Experience

Regrettably, the majority of current software developers are still relatively new to the market. We can all empathize with this statement, as most IT vendors have all been in it at some point in their lives. As rewarding as it may be to assist a new software developer, it is implausible to expect consistent and solid experience from someone who lacks a good portfolio. Without a reputation and portfolio to back up their abilities, software developers are frequently a gamble.

There are instances and circumstances in which inexperience serves as a springboard. In some cases hiring a software developer for a small project can be more affordable, or you can employ one that got recommended by a highly trusted contact. However, these are exceptional circumstances when considering the consistency of your company’s projects. There are numerous developers without the necessary experience, and it can be difficult to weed them out and find the right one.

High Salary Demand

Due to the talent shortage, the relationship between organizations and their software developers is inaccurately executed, as the practice shows. With less competition for their jobs, the current pool of software developers can ask for a premium salary for their services. While developers should be fairly compensated for their efforts, businesses should feel confident that their investments will pay off.

You do not want to pay a high price for an employee who wants a high pay but can’t back it up. With all of these points in mind, the tech talent shortage puts businesses at risk of hiring underwhelming developers at prices out of their budgetary lines.

How can an Outsourced team save you during this time?

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Why outsource team can help you?

To assist and somehow hide away the problem of local IT talent shortage, there are outsourcing companies. They are the ones who are primarily responsible for developing your digital product and getting it deployed live. There are lots of reasons for each entrepreneur to be going for an outsourced team. The most common and widespread reasons why so many startups and companies prefer to address their issues to the outsource are:

  1. The ballpark estimate is fair (compared to hiring local developers)
  2. The pool of talent is larger
  3. You can focus on other significant tasks.

Let’s look at each point a bit closer.


You can expect to pay lower rates if you outsource development rather than hiring locally. You won’t have to pay for equipment, maintenance, training, workspace, or employee benefits in addition to the hourly rate. In most cases, outsourcing entails only paying for what you require and nothing more.

Larger Talent Pool

The best talent isn’t always in your city or even your country. With the Outsource team, you’re gaining access to a larger pool of talent by going remote and opening those positions to developers outside of North America. Not to mention the significant financial benefit of hiring developers from Southeast Asia and Eastern Europe, where median salaries are lower. Because they earn more than the national average, software developers from those regions are typically highly motivated to work with North American clients.

Work Efficiency

You won’t waste time on training because you’ll be looking for someone who specializes in a specific area right away. Instead, the experts you hire will be able to get started on your project right away, speeding up the entire process.

In Conclusion

Not to be dramatic, but the United States has a severe software developer shortage on its hands. A four-year college diploma is no longer sufficient; applicants must possess a diverse set of skills and the ability to work as part of a team. Thus it is a serious matter that most f developers and startupers must look into. But what if they have tried so much that it feels already nauseous from browsing all digital agencies in your browser and feel distrust towards them? Then JetRuby might have something you’ve been looking for so long.

For the past 10+ years, we’ve been on the digital market, working alongside various digital startups and building over 100+ unique solutions for each of our partners. To do this, we have created a particular technological flow that starts with the Product Development Strategy Session. It is the very initial and fundamental step towards your project’s success. We will produce a general plan with the future product lifecycle during our free business consultation and create an action plan with high-level features for the first step. If you’re interested, leave your project description today, and we’ll get back to you within 24 hours.



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