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In recent years, the tech ecosystem has experienced increased attention. The tech sector has significantly expanded, and profitability has increased. However, despite this tech boom, an underlying challenge has continually lurked within the sector: a massive tech talent shortage.
According to a survey by Gartner, over 64% of businesses strongly believe that the shortage of tech skills is a significant obstacle to their ability to scale new technologies. In a further survey by Indeed, about 83% of the hiring managers admitted that the tech talent shortage was detrimental to their business operations. In the same survey, about 86% of the managers admitted that hiring the best tech talent was challenging. The outbreak of the COVID-19 pandemic seemingly worsened the situation. According to BusinessWire, the pandemic further catalyzed the shortage of tech skills. Essentially, hiring and retaining the best tech talent has continually posed a challenge for many tech firms.
The reason for this disturbing shortage is still open to debate. According to some reports, the talent shortage can be attributed to poor workplace culture and a low probability of career progression within tech roles. Other reports mention that wages play a prominent role in the availability of tech talents. Nevertheless, to tackle this shortage, employers are faced with two primary options— to upskill their existing staff or outsource their operations. This article will explore both options.
Upskilling entails large-scale investment in your existing staff. This investment primarily aims to provide employees with training to acquire additional (or advanced skills). On the other hand, outsourcing would involve retaining your existing staff (at their current level of expertise) and delegating specific operations to providers. For example, a software house like YouDigital possesses a vast network of highly qualified software engineers to which you can easily assign your company’s software operations.
On the surface level, upskilling can be beneficial. It increases productivity within your company, given that your staff members are more qualified to undertake specialized tasks. It also boosts employee satisfaction and catalyzes a healthier work environment. Most importantly, upskilling would help to eliminate skill gaps within your workforce. However, upskilling does not guarantee employee retention. There is always that risk that employees could transition to other companies, and this would create further skill gaps within your in-house team.
Outsourcing, on the other hand, has numerous benefits. First, there are high chances that you would gain access to a global pool of tech talent. Given that software houses fully specialize in software development, they are more incentivized to hire the best engineers across the globe. For example, YouDigital operates a borderless hiring process which guarantees that only the best global talents are hired.
Similarly, outsourcing saves costs. This cost efficiency stems from the fact that a provider is only paid for a one-off project. Also, the tendency of employee turnover in upskilling means that there are risks of recurrent upskilling costs. Thus, in relation to upskilling, outsourcing is a cost effective option. Lastly, outsourcing guarantees efficiency. By delegating operations to highly-skilled providers, you are guaranteed that your project will be delivered at the agreed date.