Overcoming Developer Shortage in the US with Outsourced Talent
The U.S. is starting to experience a significant developer shortage in computer science labor fields, after years of the rapid growth of international juggernauts like Amazon, Google, Microsoft, and Apple. According to U.S. Labor Statistics, the global talent shortage was more than 40 million skilled workers in December of 2020. The U.S. side of that equation is at roughly 1.4 million computer science and IT-related jobs going unfulfilled.
The U.S. produces roughly 65,000 students with computer science degrees each year. That number goes way up when you consider all the free online resources. There are plenty of educational tools for software development, programming languages, and IT-related certifications. However, even all of that is not enough to close the gap of the need for new talent.
Without outsourced labor, the U.S. could face potential losses in the billions. This is because underutilized business development and digital transformation will slow down. U.S. companies need to look at Central Asia as an alternative to Eastern Europe for outsourcing. This will fill in the missing gaps of talent due to more jobs than current labor can support, but it will be at a fraction of the cost.
Is This Shortage Only in the US?
The global computer science and IT talent shortage will reach 85.2 million workers by 2030. That would result in companies worldwide losing upwards of $8.4 trillion USD in revenue due to a lack of qualified and experienced talent.
This is a critical issue as most companies rely on IT-related processes. To operate efficiently, companies need bespoke software development. The problem is that we are already seeing the main difference between successful and failing companies. The more companies have reliable IT-trained experts, the longer they will operate. The top-rated respondents in a recent McKinsey survey identified key organizational technological activities and capabilities. Those better equipped to handle the pandemic with digital transformation have succeeded.
The writing is on the wall. If you want to succeed in today’s marketplace, you need an agile company. You must be able to respond to the market quickly with automated and powerfully built digital tools. The only way to grow, develop, and secure those tools is through the competent skills of computer science talent. If the U.S. continues suffering an IT shortage in talent, then it only makes natural sense to seek hardworking and qualified workers. The best option for these workers is to outsource to Uzbekistan and other Central Asia locations.
What is being done to stop the flow?
Organizations are struggling to keep up with the demand for talent. Some have reached out to freelance developers to fill the gaps. While this can put a band-aid on the issue, it is not a reliable long-term solution. Freelancing talent tends to not have the reliability of an in-house team. It also only saves a company marginal operation expenses in the long run.
A far more optimal option would be to focus on Uzbekistan as an alternative to Eastern Europe for outsourcing from the U.S. This is a country that experienced a significant population boom. It actively invests in the IT sector as a foundational pillar of its future economy. There are already many foreign investors seeking expertise from Uzbekistan’s outsourced workers. Some are going as far as to develop IT training facilities for future growth needs and expectations.
Through 2020 and 2021, the U.S. experienced a phenomenon known as “The Great Resignation.” This was set off by the global pandemic. It has continued because workers feel under-appreciated by their employers. They quit their jobs to seek employment elsewhere. Workers felt low pay, a lack of opportunities for advancement, and a sense of disrespect led to the need to leave.
This change in the dynamic between worker and employer will take time to adjust. In the meantime, filling those hard-to-find IT staffing roles with qualified and experienced outsourcing to Central Asia makes complete sense. It allows U.S. companies the space and time to consider responding to employee needs. This way, a balance can be struck that will include outsourced specialists and in-house innovators. The goal will be to lower the challenge of a future shortage.
5 Reasons to address the shortage factors with talents from Uzbekistan
- Computer Science Education
- Barriers to Entry for Candidates
- Lack of Training Opportunities
- Using Only Money as an Incentive
- Hard to Find Talent
1. Computer Science Education
Without a solid foundation for IT and computer science workers in the U.S., the shortage will only continue into the future. It makes sense to change the educational goals where students are exposed to and allowed to develop IT skills. More than three-quarters of the future jobs in the next decade will need advanced tech skills. Only 13.2% of USA schools teach or offer advanced placement computer science classes. It is a real challenge to find mentorship and teachers in the U.S. for students wishing to learn more advanced IT skills.
This is a significant contrast to Uzbekistan. Government-backed initiatives help grow and develop younger students who wish to learn programming skills. This country knows the power of enhancing the working class. Workers are capable of meeting the demands of the U.S. and other countries. They provide software development, website creation, and other IT-related talents.
The recently built IT Park in Tashkent has already announced a program. This will reward 100 teachers who focus on computer science programs in their classrooms. The goal is to grow one million coders over the next years and offer up cash prizes to these teachers as incentives.
2. Barriers to Entry for Candidates
Another reason there is such an IT shortage in the U.S. is that the requirements for candidates to fill out applications are often high. The qualifications required for entry-level positions need years of experience more aligned with advanced coders or IT managers.
It makes sense that companies would want to hire more employees with the skills already in hand. This is so they do not have to invest in employee education or development. The problem is that the entire industry is doing the same thing. This creates a massive barrier to entry for those who actually have the skills and education. They are not allowed to grow their experience.
Working with a professional organization like TechCells is an excellent workaround to this problem. It prevents going through expensive hiring practices that often overlook solid IT and computer science talent. TechCells relies on a pool of highly skilled, trained, experienced, and qualified candidates that can do everything. This includes integrating into a startup project to augmenting a U.S. based IT team.
3. Lack of Training Opportunities
The reality is that U.S. companies are not spending the time and money to develop internal talent. It takes 5 to 10 years of solid experience for a software developer to grow into a senior-level position. Businesses should be helping recent graduates hone their skills and become integral members of the team. They should not be forcing people to develop their skills without mentorship.
One of the leading factors of The Great Resignation has been a lack of development resources in the workplace. In other words, workers are fighting back. They do not want to work without development skills. They will seek out companies willing to invest in their educational skills.
Again, here is an area where the U.S. could learn a lot from Uzbekistan. The culture is focused on receiving value from the quality of their work. This is rewarded by companies and leads to higher retention rates because the appreciation for STEM fields is so strong. Uzbeks are hardworking by nature and like to be challenged to do better. They want the security and comfort of being part of something bigger. Companies that foster this culture enjoy exceptionally skilled workers.
4. Using Only Money as an Incentive
U.S. culture seeks money as a status symbol. The more you earn, the greater your power, authority, and potential happiness. That is why it may seem logical for companies to offer higher salaries to IT and computer science workers to keep them on staff and fill in hiring gaps. The problem is that the typical U.S. worker is seeking more than a higher paycheck.
The culture has shifted where employees seek lifestyle changes as much, if not more, than higher salaries. Ever since the pandemic, top tech talent has sought out employers that offer benefits like:
- Remote/Hybrid work
- Healthcare coverage
- Paid Time Off
- Flexible work hours
- Paid family leave
- Free perks like food, travel, snacks
- Student loan help
These are all factors of a larger issue surrounding the U.S. economy. Outsourcing work to Central Asia as an alternative to Eastern Europe makes sense. Few, if any, of the same problems are present.
Uzbekistan workers may value some of these added benefits, but the primary driving factor behind their loyalty is salary. The average median salary of an IT manager is $6,798 USD in a country where the cost of living total with rent is $529. That means workers experience a significant increase in lifestyle. One IT job will place extreme value on doing a good job whenever possible to maintain those outsourced positions.
5. Hard to Find Talent
The final issue contributing to the growing shortage in U.S. tech talent is the accessibility of finding skilled workers. While the talent pool has appeared to grow, getting access to those capable of handling a company’s tasks, projects, and needs is a real challenge. Even if an employer is willing to expand the number of benefits or money offered for a position, they do not have access to the technology or networks of a resourcing agency.
The best solution right now is to take advantage of experts like TechCells. Our team has spent years developing a talent pool in leading areas of the world where people want to work. Outsourcing to Central Asia and Uzbekistan makes more sense than spending countless money and time tracking down capable workers. Companies like TechCells have already built up the availability of this talent.
The Future of The Tech Shortage
We are likely to continue seeing a shortage of qualified tech workers. The only way to succeed in today’s digital marketplace is advanced technology. This industry’s need and demand for skilled workers are only likely to grow.
While there are some stopgaps countries like the U.S. can do in the short term, the only way to meet this growing demand is through systematic change. Unfortunately, the U.S. is well known for taking its time with significant change. It is not likely to accommodate the educational, lifestyle, and foundational demands of local talent.
More and more organizations will continue to turn to countries like Uzbekistan. There, technology skills are integrated into the culture. Outsourcing to Central Asia will become commonplace. It saves the necessary operating costs. It also allows businesses to reorganize their in-house teams for a more efficient outcome.
Get Started with TechCells
If you are interested in learning more about how TechCells can help your U.S. company, reach out to us today. We have the team to overcome the current IT and computer science skill shortage. We have years of experience working with qualified, experienced, and motivated workers from Uzbekistan. These workers will fill in the missing gaps in your infrastructure. That way, you can continue to meet company goals and KPIs.
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