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How to Overcome the Challenge of the US Tech Talent Shortage in 2021?

According to the latest labor statistics of America, the talent shortage is a major concern. There were 1.4M unfilled positions in 2020 while the number of candidates graduating was only 400K. In 2021, the worldwide tech talent shortage is expected to be 85.3M. Companies, globally, are at the risk of losing $8.4T revenue due to the lack of experts. (https://www.daxx.com/blog/development-trends/software-developer-shortage-us)

While business process automation cuts jobs in America, innovation triggered a talent shortage. Businesses needing highly technical talent were the most impacted as a result of a shortage of skilled developers.

Do you know that merely 29% of IT companies have the optimum IT resources? Did you also know 69% of all technical leaders consider that the talent pool is lacking?

With the Covid-19 pandemic, there has been a substantial shift in business operations, and IT companies faced tremendous difficulties in hiring expert tech talent as a result of a lack of skills.

CompTIA 2021 Workforce and Learning Trends reported that 40% of the companies had hired tech professionals during the ongoing pandemic, while 66% were planning to add more members to their team in 2021. The changes that this pandemic brought into the world are not fading away very soon with the reduced rate of infections.

As a result, companies must continue to invest in both tech as well as the modernized method of surviving in this professional field. Companies all over the world are trying to figure out new ways to brand hybrid work as permanent. Adopting digital channels like grocery pickup (curbside) and telehealth are more preferred by conscious customers that several firms are actually putting up permanent solutions.

Employer Issues

Bridging the gap between employer demands and talent shortage, IT staffing agencies in Los Angeles are playing a pivotal role. Owing to their experience and expertise in hiring professionals, they firmly believe that employers are facing several issues when it concerns tech talent recruitment. Some of the issues are noted below:

  • Lacking Experience: Today, we understand that tech talent is lacking. However, still, the top challenge that IT staffing agencies in Los Angeles are facing during recruitment of tech talent or selecting other programming and software development jobs is the lack of expert and skilled talent. Recruiting inexperienced graduates cannot give high-quality results. Lack of experience and shortage of talented coders, software engineers, developers, and other tech talents, compelled organizations to search beyond their boundaries and address the rising demand, typically while recruiting specialized professionals.
  • Lacking Technical Skills: Inexperience combined with a lack of professional skill-sets is a part of the recruitment process. In spite of the rising number of tech graduates, hiring managers still find it tough to hire the right candidate. Software graduates are lacking relevant experience. Even if they are experienced, they may not possess the right skills. Assigning tech tests and conducting few rounds of interviews does not guarantee the best profile.
  • Lacking Formal Education: Recruiters are concerned about the only fact that in America only 5% of all high schools are actually certified to deliver AP computer science courses. One in every eight high schools has AP computer sciences. 58% of all STEM (Science, Technology, Engineering, and Mathematics) jobs are related to computing while 8% of STEM graduates become data scientists. America has several self-taught developers without formal education and a rising number of graduates from bootcamps.
  • High Salary Expectations: Due to increased demand, software developers and tech talents are expecting very high salaries. As a result, small businesses and startups are facing issues.

Solutions

There are multiple options – outsourcing, hiring in-house software developers, etc. However, hiring in-house software developers can be expensive. Outsourcing seems to be the only way of getting the top talent to your team. It is not only cost-effective but also ensures quality work and timely delivery with fewer risks and no added costs.

Outsourcing Benefits

Outsourcing software developers and tech talent are one of the best ways to overcome any challenge that the US is facing due to the tech talent shortage. Here’s how:

  • Cost-efficient: From countries like Mexico, Brazil, Ukraine, and Poland, you can choose talented developers to deliver quality work for long-term as well as short-term projects. The average national salary of software developers is much below America’s average annual pay. As a result, you can recruit quality offshore teams at a much lower rate within the budget.
  • The Convenience of Time: From any of these countries, you are free to choose a suitable destination with minimum or no difference of time, to make it easier to collaborate as well as cooperate with software developers. Troubleshooting and knowledge transfer become easier.
  • Reduced Risks: There is always a risk of software developers moving from a job to another. With outsourcing, this risk is reduced significantly as developers from different countries have a higher rate of retention. Project-related confidential information does not have to be distributed amongst multiple developers over and over again when you have a set of skilled developers.

Final Thoughts

IT staffing agencies in Los Angeles can help with outsourcing. It is the best way to meet the current shortage of tech talent, which also has plenty of other benefits for American companies. Outsourcing translates to skilled developer recruitment that eliminates other risks and reduces costs.

Read Our Other Recent Posts

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  • Make Your Hiring Strategy Futureproof with On-Demand Staffing Solutions
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  • Why Is It So Hard to Find the Perfect IT Candidate?

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