Tech layoffs are not the end of the IT crunch

IT and Data are the most sought-after professions globally, while the most optimistic outlooks have also been reported by employers in IT and Communications, according to a ManPower Group survey.

Then how is it that nearshore software development outsourcing, an industry with some of the most in-demand jobs is also facing a global talent shortage? Three in four employers globally reported difficulty in finding the talent that they need in 2022, with global talent shortages reaching a 16-year high last year, the same survey states.

On top of unprecedented talent shortages in IT, there is another paradox taking place at the same time: massive layoffs in the tech sector.

But, how do these two go hand in hand?

As a result of this wave of layoffs, many tech and business leaders have said that the big hunt for IT professionals is coming to an end. However, the tech talent crunch is far from over. With the current demand for tech talent greatly outstripping supply, which Gartner expects will be the case until at least 2026, and, contrary to what we’re seeing in the headlines, many of the people impacted by layoffs are in business functions, rather than tech roles. Worldwide IT spending is expected to grow 2.4% in 2023, while, in 2022, 86% of CIOs reported facing more competition for qualified candidates and 73% were worried about IT talent attrition.

And, when everyone is competing for lower prices, smaller, cheaper, and more dynamic IT markets, like Romania, are benefiting from this crunch, developing nearshore custom software development services that can benefit entire IT-hungry regions with solutions.

However, because of the constant and big demand that the market has for people working in tech, there are some visible concerns as to their reliability.

“There are no longer that many available projects on the market. I notice the number of messages asking for freelance work that I receive every week now, as opposed to before, and I am seeing a shift in the way tech people working in IT are behaving in terms of the hiring process. They have become far less reliant, some even don’t show up to interviews or meetings that have been agreed upon, or they refuse job offers after they’ve accepted them. Certain behaviors are creeping up, which signal a lack of professionalism and seriousness on their part, because they have the assurance that they will find something no matter what because they are in demand,” says Andra State, Recruitment Lead at Odeen.

Looking at the market, the IT skills shortage is critical: CIOs are losing their talented employees faster than they can hire them, and in key function areas, like data science, software engineering, and cybersecurity, the talent supply remains as tight or tighter than before, a Gartner interview reports.

At Odeen, our main focus is our people, and we place great value and care on how we approach the hiring process, taking into consideration the needs and desires of our employees. From diverse, complex, and challenging projects stemming from a range of industries, we are ready to provide the best quality experience that IT professionals who decide to work with us, in the realm of nearshore custom software development and outsourcing.

Related News