Cloud Computing and Computer Software Development are together worth around USD 1.25 trillion and forecast to grow to USD 2.5 trillion by 2030, which is only five years away, according to recent industry reports from Gartner and Statista.
Those same sources say that as much as 70% of the development work in these industries is outsourced.
Two questions jump to mind:
- First, why is such a high percentage of computer software development work outsourced?
- Secondly, if it is difficult to find software development staff now, how much tougher will it be in five years when the industry doubles?
So, why outsource? There are five commonly accepted drivers for outsourcing computer software developers.
- Cost Efficiency: Outsourcing delivers cost efficiency by accessing countries with lower labour costs, such as the Philippines or Vietnam. It is not just the cost of the developers but the total cost of building and running a team. For example, recruiting high-value talent like developers requires a great deal of effort by senior and experienced recruiters.
- Access to Specialised Talent: It’s all about simple access to staff with the required skills. Software development requires a broad array of expertise at different times in the development cycle. In many countries, highly specialized talent can be in such short supply that it becomes unobtainable at either a reasonable cost or on a reasonable timeline.
- Faster Time-to-Market: You can move faster on two fronts. First, talent can be easier to find. Secondly, you can build a bigger team.
- Focus on Core Competencies: Often, firms don’t have the in-house expertise to properly manage computer software development resources. You can miss critical steps in process control and not be able to fully align performance with industry best practices. Outsourcing to a firm that has these disciplines already in place can save money, time, and heartache.
- Scalability: Outsourcing provides flexibility for companies to scale their teams up or down based on project needs without long-term commitments.
Putting aside the drivers of outsourcing, there is a second question about the growth of the software development and cloud computing industries. This is the volume of staff required to deliver on the demand such growth is creating.
IDC has published a report stating that the world will be short by more than 4 million developers by 2025—a date only two months away. This is before the industry doubles in size. The U.S. Bureau of Labor Statistics is expecting a 25% growth in demand for these skills by 2031, and Gartner reports that 64% of cybersecurity managers are short-staffed and can’t find talent.
Many of the locations where an abundance of affordable high-value talent resides are outside the normal operations locations of the businesses that need access to that talent. For example, the Philippines and Vietnam. Vietnam has seen a national project unfold over many years focused on skilling up its young people in technology.
Vietnam’s National Digital Transformation Program aims to boost digital skills by 2025, with further development into 2030. This program seeks to create a skilled workforce that can drive the digital economy and includes a focus on youth, who represent nearly 25% of the population.
“Investing in soft skills and vocational skills is now a top priority for many tech companies in fields such as automation, artificial intelligence, web development, and data analytics—areas currently in high demand for manpower amidst the global economy’s digital transformation” (USAID).
Clearly, a race for talent is underway. Companies that want to participate in the software development and cloud computing bonanza need to reach for talent wherever they can find it.
The imperative here lies in the $2.5 trillion question: why is the industry booming to such an extent?
Clearly, the cost of missing out is seen by almost every business as more expensive than the cost of participation. Simply put, if you want to stay a competitive business into the future, then you need to incorporate software and cloud computing systems into your DNA.
“Bottom line is that business has no choice,” says Chris Moriarty, Flat Planet Founder and CEO. “All of us in business must invest in technology so as to remain in the game.”
“Businesses of the future, across all industry sectors, are going to be defined by the extent to which they integrate software development and cloud computing into their business models.”
About Flat Planet:
Established in 2010, Flat Planet® is a family-owned, Australian-operated leading provider of high-value outsourced staffing solutions. Connecting businesses worldwide with skilled talent in Southeast Asia, offering a competitive edge through cost-effective, high-quality staffing solutions. With offices in the Philippines, Vietnam, and Malaysia, we employ over 400 staff serving global clients. Our state-of-the-art infrastructure and blend of local and Australian management practices ensure excellence in service delivery. At Flat Planet, we’re committed to creating pathways to a brighter future – not only by providing businesses access to a globally competitive workforce but also by supporting initiatives like our Gift of Life project, which funds critical heart surgeries for children in need.
For more information on how Flat Planet can empower your business while making a positive impact, visit flatplanet.com.au or email us on info@flatplanet.com.
