Change is inevitable in all industries, but it is especially evident in the technology sector. Here, the effects are often clear earlier than in other industries.
Due to the rapid pace of change in technology, there is debate about how technology companies large and small should think when dealing with their most valuable resource: their people.
Right now, you're seeing a lot of large-scale software and technology companies, particularly product companies, laying off people left and right. Most admit they overhired and overextended themselves during the pandemic.
Software outsourcing is necessary in good times and bad. When the economy was booming the last few years, hiring was incredibly difficult for everyone in technology. At one point I read that there were about 5.3 software development jobs for every available software engineer in the world.
On the other side of the coin is the current climate, where there is a series of economic uncertainties. When you work with a contingent software development outsourcer like us, both parties mutually agree on the parameters of the partnership that make sense. So everyone is happy. If we agree that only 6, 12 or 18 months of support are needed, customers can stop working with us at a later date. In the meantime, they can continue with their software development roadmap without hiring full-time in-house employees. When the work is done, if the macroeconomic climate does not improve, then it will be done. They have used up the budget dedicated to this initiative and can now focus on other priorities without worrying that they will no longer have work for full-time employees.
How do companies determine where to invest their software money?
The types of projects outsourced by large and small organizations reflect the market. Whatever is trending at that moment is what they demand companies like us produce for them. One example is artificial intelligence (AI), which is a hot topic right now.
However, organizations have to be evaluated when there is so much fluidity with any technology, especially with cutting-edge and emerging technologies. Some companies make these cutting-edge technologies an essential part of their strategy, but for most, they are mainly pet projects or something complementary to their core business.
Many organizations can claim that they make the best software, have the best offerings, have access to the most phenomenal talent, and so on. But this is a matter of personal opinion. One thing that is not up for debate is how we got here and how we did it.
We read stories about the positive impact that companies can have on all aspects of their talents' lives, including the personal side. How can organizations do this?
A good analogy for this is the restaurant business. They have one product and it is food. Good restaurants guarantee that the ingredients are perfect and the products are fresh and well cared for. They have to do this continuously.
An organization like ours has no products on the shelf. What we have is our people, our teammates and our talent.
We recognize that our talent has families and roots. We don’t often get into situations where we say, “Hey, Mr./Ms. Software engineer or project manager, we need you to move from Brazil to North Carolina for the next six months and leave your family.” That's not how we do it, and the world is finally starting to understand how to treat people in this regard.
Can you talk more about the culture that companies, especially those in the technology sector, should create?
One thing that can be challenging for many organizations is the remote aspect. Working with a team spread across states, countries, regions and time zones is different from everyone showing up to the same office every day.
We have been a remote organization since the beginning. So we have a lot more experience in fostering camaraderie, relationships, and efficiency remotely. We have to feed both the business and human aspects. These things can be difficult. Many large companies didn't think this could happen until three or four years ago.
We would talk to a surprising number of companies pre-Covid who would say, “Wait, are you working 100% remotely? Are you not in an office? Don't you have a center of excellence where 400 engineers work shoulder to shoulder? You can’t develop software that way!”
Now, more and more, the questions people ask are: “Do you have good teams?”, “Do you have good talent?” and “Do you have a strong track record?” The change didn't happen overnight, but it seemed quick in the grand scheme of things.
We have helped some relatively large organizations develop their culture and add the human touch. It is not an absolutely perfect philosophy, but the search for excellence moves us. Of course we need to emphasize that we need human interaction. That's why I make every effort to always have my camera on during meetings so my team can see me. There's a lot we can tell from facial reactions alone. Now there is no physical water fountain at the end of the hall where people would gather to talk like there used to be, but we can still interact.
Something I learned from some people on my team a while ago is open office hours a few times a week. We simply host an open Zoom call, where anyone who wants to join can dive into something work-related or just chat about how things are going at home. Having a simple conversation and taking care of this human aspect is very important.
A recent article on CNBC mentions that despite the massive layoffs we've seen recently in the tech sector, tech companies are still struggling to find the right talent. So what do tech companies need to remember when looking for the right talent?
There is still incredibly high demand for talent. But instead of being more isolated at the top of the pyramid, where large-scale companies are, demand drops to the middle, with smaller companies.
Because of this, talent has become aware of the many options that exist. In some cases, larger organizations that historically may have had people tripping over themselves to go work there, now have talented individuals thinking, “Wait a minute, I just saw a cumulative 50, 500, 5,000 people laid off from some of these big companies. . companies, and they can pay very well, but maybe I would consider some of these other smaller companies.”
With that in mind, we can't be overly arrogant about how good we are and what we've done in the past, thinking that talent wants to jump out at us. We must do our part in fostering an attractive culture that talent wants to engage with.
