The Rising Cost of Software Engineers in the US

The quality talent market

Software engineers can essentially write their own ticket when it comes to the American job market. High demand, higher salaries and a multitude of opportunities have made software engineers the stars of the job market. As such, it has become increasingly difficult for small businesses to hire quality talent .

Why are software engineers so valuable in today's market? What has changed over the years to give them this advantage? How can companies continue to hire quality talent while keeping their payroll at a manageable pace?

A shift in software demand

As times change, so does the job market. In the 90s, during the famous “Dot Com Boom”, quality website designers were sought after by all companies. Today, as technology becomes more advanced and essential to our way of life, it is software engineers that the world turns to to keep us efficiently connected.

The fact is that the software we use for everything from banking to entertainment takes a lot more time and expertise to create than the software of years past. Hill reports that an average app for an Apple device takes between 70 and 140 hours of programming work to create. Android apps take even longer, requiring 90 to 170 hours. And that's just for non-gaming apps. As soon as we start talking about games, the numbers jump to 420 hours for Apple and 550 for Android.

The technological world continues to advance at a rapid pace with Internet of Things Technology and artificial intelligence set to change the way we work and live. With the general public increasingly engaged in advanced smart technology, the software that creates the user experience needs to improve to remain relevant and competitive. That means more time, more qualified programmers, and more money.

How much do software engineers pay?

Why is it so difficult for small businesses and startups to recruit software engineering talent? They simply can't afford them. According to SmartAsset, the average salary for a software engineer is $92,660 , while new programmers with no experience start at $54,900. Even these younger workers come with expected salary growth of 60% throughout their career, according to a report published by Forbes. When you consider that the average salary in the US is just over $46,000, this is a surprisingly high salary rate.

Various paths to a career

The number of undergraduate courses in computer science shows that the explosive career of a software engineer has not gone unnoticed. Enrollment in college computer science programs has seen a 24% jump over a 10-year period . This reflects the general increase in opportunities that graduates will have.

The industry saw a 50% jump in job placements between 2003 and 2013, making it one of the fastest growing employers in the country. As such, alternative paths have emerged for those looking to become software engineers. Coding boot camps have popped up across the country. These are typically 12-week programs that teach you all the skills you need to get a high-paying job in the software industry.

How can smaller companies pay software engineers?

If competition for quality software people is so intense, how can a smaller company or startup acquire the talent it needs and retain it? Many are looking outside of traditional hiring practices and outsourcing their software needs to technology companies . This has created an opportunity for entire teams of skilled individuals to solve complicated software problems at a manageable cost.

Due to these rising costs, many companies have begun to outsource Latin American talent as a cost-effective option. Talented software developers can approach your company's problems with the same level of skill and knowledge as private US developers, but at a fraction of the price. And it appears that if engineering salaries continue to rise at the same rate in the US, more companies will turn to outsourcing to stay competitive.