New study finds second record year of inflation in global software development rates amid crisis-level IT skills shortages

Accelerance releases the definitive 2023 Global Software Outsourcing Trends and Rates Guide with insights into the crisis in software development costs and talent supply based on proprietary research from its global network of Certified Developers.

REDWOOD CITY, Calif. /ACCESSWIRE/September 22, 2022 / Cost inflation has hit technology-focused companies hard in 2022, driven by staggering increases of more than 20% in software development rates in North and Latin America, new research from Accelerance reveals , a Silicon Valley-based global software outsourcing consulting firm.

The rate hikes were fueled by a record global shortage of software resources, including a shortfall of nearly a million in the United States alone, coupled with software development as one of the most in-demand jobs among companies around the world, according to the study. The war in Ukraine has only exacerbated these pressures, disrupting an important source for the global IT talent market.

2022 marks the second year of rate increases above 20% in top software outsourcing destinations, according to Global Guide to Software Outsourcing Trends and Prices 2023Accelerance’s proprietary market research from its global certified development network in over 30 countries.

Recruiting and retaining developers with the right skills are the top two business challenges cited by IT leaders this year. At least half of CIOs say a lack of talent makes it difficult for their business to grow and compete.

“The cost and supply of skilled software developers has reached critical proportions,” said Andy Hilliard, CEO of Accelerance. “Now even outsourcing, which has been an antidote to development rate inflation, is feeling the pain. Tech-savvy companies are watching price changes in different parts of the world. Identifying economic arbitrage opportunities with offshore partner companies is a future strategy to gain traction.”

Software outsourcing still offers a solution to high development rates for companies struggling in today’s slow, inflationary economy. But IT leaders need to stay on top of industry and regional dynamics to capture any potential overseas cost savings, and Accelerance’s guide provides insight to help smart sourcing strategies in difficult moments.

Despite high-profile layoffs in the tech industry and tight corporate budgets, investment in the software application sector is expected to rise 10% this year, surpassing pre-pandemic levels. Software application development remains the most outsourced IT function, with around 60% of U.S. companies outsourcing at least some of their development in 2022.

Software development has been relatively immune to downsizing to date for two reasons: businesses’ increased reliance on digital innovation that began during the pandemic and their need for increased automation to reduce costs in precarious economic conditions. Skilled software development is essential to both of these efforts.

Other key topics explored in this year’s guide include:

  • Six High-Impact Trends, Top 10 Programming Skills, and Nine Hottest Technologies
  • Benchmarking rates for 16 technical roles across six global regions: Latin America, Central and Eastern Europe, South Asia and Southeast Asia, and North America
  • The intensified impact on the global tech talent shortage by the war in Ukraine, a hotspot destination for IT outsourcing talent

Accelerance’s annual guide offers exclusive research, best practices and case studies for software development outsourcing as a solution to today’s technology resource and cost challenges. To see the Global Guide to Software Outsourcing Trends and Prices 2023 here.

About Acceleration

Acceleration is the Global Software Outsourcing Authority® offering world-class software development teams and professional consulting services. Accelerance alone has personally reviewed over 8,000 companies to create the largest certified network of the top 1% of software development partners in over 30 countries. Our trusted advisors help clients obtain qualified technology resources at affordable costs to drive digital transformation and operational efficiency. We enable our customers to develop and implement optimal software outsourcing solutions through better planning, better partner selection and better engagement management.

CONTACT:
Lisa Morell, Director of Marketing
Acceleration
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www.accelerance.com

THE SOURCE: Acceleration

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