Inside the current software developer shortage with statistics

As the world of technology continues to innovate and evolve, companies are struggling to find the necessary software talent who have the technical skills and knowledge needed to facilitate these advancements in the field.

Now that more companies are diving into blockchain, AI, web development, app development and more, software developers have become one of the most in-demand professions in the US and elsewhere. This increase in demand could mean a promising and more innovative future, but there is a big problem: we are currently facing a serious shortage of qualified promoters.

Summary of key statistics

After the Great Layoff, the software industry still faces a talent shortage. More and more companies need to strengthen their development teams. This isn't just limited to software companies. Today, the developer shortage extends to organizations of all types and sizes because virtually every company needs technical talent to some extent.

To get a better idea of ​​the high demand and low supply of software engineers, just take a look at the numbers and data:

• The worldwide shortage of full-time software developers is expected to increase from 1.4 million in 2021 to 4.0 million in 2025. ( CDI )
• Between 2021 and 2031, the projection is that the field will grow 25%, much faster than average. ( Secretary of Labor Statistics )
• In November 2021, 73% of digital workers said they expected to change roles in the next two to three years. ( Boston Consulting Group )
• Sixty-one percent of HR professionals struggle to recruit qualified development talent. ( CodinGame )

If these statistics seem alarming, you're not alone — this data shows that the software talent shortage is a very real and growing problem.

Factors Affecting Software Developer Shortage

Recruiters and hiring managers need highly skilled software developers. This is because, as we innovate and produce at rapid speed, we need professionals with the qualifications, knowledge and skills to facilitate these efforts – and these qualities are not easy to obtain.

Since 2019 – in fact, much earlier – organizations have been looking for developers with experience in specialized and relevant areas, particularly artificial intelligence (AI) and machine learning (ML), a subset of AI. While developers already utilize AI fundamentals for a variety of purposes, a Gartner report predicts that AI-based businesses will be worth $3.9 trillion by 2022 .

This means that the industry will continue to become more complex – but it is clear that this development cannot be done without highly qualified professionals.

Lastly, cybersecurity experts are in high demand, especially now that the pandemic has caused individuals and organizations to rely on digital services more than ever. Companies are looking for the best cybersecurity experts due to the growing shortage of professionals and the growing number of cybercrimes that are wreaking havoc on our businesses.

These are not the only specialties that are highly sought after in the world of software development. Niches within the field are growing in number and popularity, as even companies that were once considered “low-tech” are getting into the software development game. Now, companies in virtually every field need technology experts in different areas and sectors. This is also contributing to a global shortage of software development talent.

How the developer shortage affects companies

Dealing with AI, blockchain technology, cybersecurity and other niches is no walk in the park, so you will need a range of advanced skills to get the job done.

According to the Association for Computing Machinery, these hard-to-fill software developer positions require more qualifications and experience from applicants and applicants. Developers need to pursue higher education and accumulate at least two years of experience to solidify these important skills, which is why these types of roles are 40% harder to fill compared to entry-level positions.

The struggle is real for organizations that are trying to find the balance between looking for experts in the field and making room for more entry-level professionals.

If these organizations are unable to find professionals with the necessary skills, the shortage could impact their product innovation and business performance. The Association for Computing Machinery article also points out that these unfilled vacancies could reduce a company's productivity levels by up to 65%! This number can increase even further if a company has workers with skills gaps.

Without experts with the right knowledge and qualifications on their teams, companies have no choice but to suspend their innovation projects and be content with what they have. This, of course, is the worst-case scenario, which any organization wants and needs to avoid at all costs. Consequently, there is a great need for the best software development talent to ensure companies can complete projects and achieve their goals.

Potential solutions to the software developer talent shortage

It takes two to tango, so both professionals and companies must work hand in hand to fill the software developer gap.

To solve the software development talent shortage, here are some of the best potential solutions:

• Invest in training software engineers and talent
• Improve strategies to attract talent

While these are not the only ways to address the tech talent shortage, they represent larger categories that will be critical in hiring developers with top technical skills to help you grow and achieve success.

Invest in training software engineers and talent

AI, blockchain, and cybersecurity are just some of the technological innovations developers will need to learn these skills and gain the credentials needed to bridge the gap. To meet the demand for these skills, professionals and even companies need to invest in developer qualifications.

Aspiring software developers can get started with online educational resources that cover computer science fundamentals such as data structures and computer architecture. There are many MOOCs and other services that offer courses and even certifications, often at a low price, to help improve the skills of existing and aspiring software professionals.

Then, after learning the fundamentals of the field, they can quench their thirst for knowledge while also helping to solve talent shortages by learning programming languages ​​needed for the latest innovations like Ruby, Python, and Java to cite just a few examples.

These resources and short courses rival even modern master's degrees in software development and related areas. These types of programs have courses in the creation, architecture and presentation of software and applications, among other niches.

This allows professionals to improve their programming skills and deepen their knowledge when it comes to complex databases and additional high-level technologies. It is a win-win situation for everyone because they can gain a good understanding of current and future technological advancements through these programs, while also qualifying to play their role in filling skills shortages.

These educational opportunities are essential to providing the necessary knowledge and skills that professionals desperately need to develop software programs. And there is no doubt that educational accessibility has an important role to play in addressing the shortage of software developers. Thanks to our highly digital world, there are more opportunities to access education than ever before.

Improve strategies for obtaining technological talent

Finding qualified workers is particularly difficult now, which is why companies need to intensify the renewal of their strategies for hiring and outsourcing talent in the technology sector. Raising salaries for these roles isn't enough these days – most companies offer generous salaries for software talent – ​​so companies also need to provide the professional benefits that software developers want.

CodinGame research reveals that these professionals only consider salary as the fourth most important factor when considering job offers. On the other hand, receiving interesting technical challenges at work, having flexible work hours, and achieving a strong work-life balance are at the top of the list.

Companies can also increase their productivity and pursue more innovative projects by outsourcing talent. Software outsourcing companies can give companies more access to experts who have a wide range of advanced and unique skills, such as UX design, artificial intelligence engineering, IoT development, and blockchain consulting, among many others. By outsourcing their projects to a team of experienced professionals, companies can be assured that they will always receive high-quality software customizations and develop lasting professional relationships that will serve them well.

Software engineer shortage and the future

So what can we expect in terms of the future of the software developer shortage and the broader field itself? As 2023 quickly approaches, we face a looming recession and the need to bring top talent into our fold to help us persist in the face of challenges will become even more critical. Every company that relies on software development talent — which is the vast majority of companies across all industries — must consider a range of strategies to attract and retain software engineers with the experience, knowledge, and skills to complete superior projects.

Outsourcing will also prove to be an important strategy to have on hand as you face new obstacles. Even when you face a resource shortage, you can extend your talent pipeline outside your organization, allowing you to fill gaps and persist during difficult economic times.

Of course, you should also invest time and effort into cultivating evergreen strategies to ensure you always have access to the best developers. A multifaceted approach to attracting and retaining top software talent will be critical to the health of your organization and your team, now and in the future.

Conclusion

The shortage of qualified software developers is a huge problem in the technology industry, but it can be solved. To alleviate this shortage, organizations need to invest in improving worker skills, while recruitment teams must improve their sourcing strategies to obtain the best possible results.

Software Engineer Shortage FAQ

Is there a developer shortage?

By most estimates, we are facing a major developer shortage. The need for professionals with the best software engineering skills is outpacing the size of the global workforce available to meet it. There are more roles and vacancies for technology workers in general than there are individuals who have the qualifications and/or want to fill them.

What will be the future demand for software developers?

The BLS projects that the field of software engineering will grow 25% between 2021 and 2025. Meanwhile, IDC said it expects the worldwide shortage of full-time software developers to increase from 1.4 million in 2021 to 4.0 million by 2025. There are many different estimates about the extent of the demand for software developers, but it is clear that the profession is growing rapidly and that we will increasingly rely on this technical talent in the future.