With the rise of the internet and mobile devices, software has become a critical component of many industries, from finance and healthcare to retail and entertainment. As a result of this growth, the software industry has become a significant driver of the global economy. Statista reports that the industry is projected to reach $338 billion by the end of this year and is expected to grow annually by 4.16%. This growth has led to the creation of many high-paying jobs and has fueled innovation and technological advancement across many sectors.
However, this rapid growth has also led to talent shortages and rising costs, affecting companies worldwide. To address these pain points, many companies have turned to outsourcing and offshoring as a solution. By outsourcing some element of responsibilities to companies like Double Yolk, businesses can reduce costs and focus on their core competencies.
The global tech talent shortage and its wide-reaching impacts
According to a report by management consulting firm Korn Ferry, the global tech industry is projected to face a shortage of over 85 million skilled workers by 2030, causing a potential loss of $8.5 trillion in annual revenue. One significant contributing factor is the industry’s rapid growth, coupled with a scarcity of graduates with computer science degrees. The impacts of talent shortages are wide-reaching, affecting companies’ ability to find and retain skilled professionals and leading to delayed product releases, higher costs, and lower profits.
As demand for skilled professionals continues to increase, so does the competition for talent, resulting in higher salaries and benefits packages, which smaller companies may struggle to match. The cost of hardware and software tools has also risen, making it challenging for businesses to maintain profitability, particularly when expenses increase faster than revenues. This can result in reduced investments in research and development, lower product quality, and decreased innovation. Rising costs can also lead to higher software product and service prices, impacting consumer purchasing decisions.
Double Yolk’s innovative engagement models
Double Yolk, a New Zealand and Australian-owned offshore software development company, offers a range of expertise across the software development lifecycle. Double Yolk has established itself as a trusted partner for over 100 businesses in New Zealand and Australia, with 65 development staff across India and the Philippines.
With a comprehensive understanding of the main problems in the software industry, Double Yolk has developed three distinct engagement models to help clients with their technical development needs.
1. Integrated Hires. This model is designed for clients struggling to hire locally, with several open roles in the team that they need to fill quickly. Integrated Hires allows clients to source and select suitable team members to become part of a hybrid cross-shore team. These team members work alongside the client’s internal team, providing additional expertise and resources.
2. Satellite Squads. This model is designed for clients with an important long-term project on their product roadmap but may lack internal bandwidth to scope and build it due to other priorities. Double Yolk assembles a cross-functional team to plan, design, develop, test, and release this work while regularly reporting to the client’s internal team in an agile format.
3. Pilot Projects. This model is designed for clients who wish to deliver a specific piece of work to test that offshore software development can work for them. The projects have a well-defined scope, such as integrating with a third-party payment gateway. A Project Pod can help clients estimate and deliver the work against a project timeline and requirement study.
Double Yolk’s engagement models offer clients flexibility regarding their technical development needs. The company offers different models to ensure clients find the engagement that best fits their needs and budget.
A demand that continues to grow
Looking to the future, the software industry is expected to continue to snowball, with new technologies and applications emerging every year. Companies will need to find innovative solutions to address talent shortages and rising costs to keep up with this growth. Double Yolk’s cost-effective and efficient workforce is well-positioned to help companies overcome these challenges and remain competitive. As the demand for software development continues to grow, outsourcing to offshore companies like Double Yolk may become an even more attractive option for companies looking to stay ahead of the curve.