April 19th, 2019

Technical talent shortage in the USA & the need to outsource software development

Hiring programmers, software developers or in short IT professionals might have never been this tough before in the United States. This is an alarming situation though, as the technological talent pool seems to be going down rapidly.

Talent Pool Shortage

The United States is facing a major talent pool shortage, and there might be reasons for it as well. The Bureau of Labour Statistics predicted that by 2026, the need for the IT workforce will exceed 1.2 million, and the current situation is definitely telling the same story.

Here are a few explanations to why the United States is suffering from a talent pool shortage.

Increase in Tech Companies

Technology is pervasive. From grocery stores to schools, colleges, malls, etc everything has the technology. There are a lot of start-ups growing and every company now requires IT, professionals. The demand for IT professionals has increased, whereas, on the other hand, the tech talent pool has taken a hit.

Lack of Computer Education

There aren’t many students who are willing to choose a tech career. This might be because many of the schools do not have proper computer education available and the funding for computers and technology is also inadequate.


Employers are having a tough time trying to find the perfect employee for their company. This isn’t the case only with just one, or a few companies, unfortunately, this is the current condition of most of the companies in the United States.
The requirements that employers have are a lot, they expect to hire someone with experience, while they are not willing to train their employees and give them that experience. The requirements are usually overstated, and it is hard to find IT professionals that are highly qualified and have enough work experience.

Insufficient Training:

Companies don’t want to waste their time training their employees, which they don’t realize would be beneficial for them. They expect the employee to be fully trained when they hire them. Companies need to understand that change is inevitable, especially when it comes to technology. Training employees is as important as hiring the right employee.

There is always something new in the market, new platforms, new tools or new technology. The employees require to be trained according to the latest platforms and technology available. Employees want to be trained for their own growth, and when a company fails to provide them that training, is when the company starts losing its employees.

It might seem as if this shortage is only seen in Silicon Valley but unfortunately this isn’t the case. Companies overall in the United States have claimed of this shortage.

This talent pool scarcity has increased the demand for IT professionals and even their salaries. The major rise has not only been seen in the demand of IT professionals but also in outsourcing software development.


Outsourcing is basically involving a third-party contractor or vendor to get the job done that would otherwise require a proper in-house IT team to do. Outsourcing can be done within the country or outside the country. Companies in the United States mainly prefer outsourcing software development to foreign countries.

The need to outsource software development has amplified due to the decrease in the availability of the tech talent pool. Outsourcing is not a bad option, in fact, it is a really great opportunity for companies in the United States facing talent pool shortage, as there are many benefits that they avail through outsourcing software development.

Outsourcing Benefits

Here are a few benefits that every company gets through outsourcing software development.

Cost Reduction

The major benefit is the cost. When a software development project is outsourced to a foreign country, the cost automatically cuts down, as payments are done according to their local currency. The training cost and any extra resources’ cost no longer exists, as the outsourced team hired for the job does all the work.

Massive Talent Pool

Outsourcing is a solution to the alarming situation of the talent pool shortage in the United States. The talent pool increases from just one country to the entire world. This expands the options from which one can easily select whichever country and company they want to work with and get the best.

Focus on Business Development

This gives the company the time to actually focus on the core activities like business development, and not worry about the software development project. They can work on their business development strategies and improve business operations.

Saves Time

Outsourcing software development saves a lot of the time that the company would have utilized in training the team and working on the project. This way the employees wouldn’t have to work overtime, and there wouldn’t be any employee burnouts.
Due to outsourcing companies can easily get many projects done in lesser time. They don’t have to worry about projects not being completed or any issues related to the project. They can satisfy their customers by providing the product or service required within time.

No Training

There are many companies that specialize in several different platforms and technologies and have the best developers with proper qualifications and experience to work for the project. They are trained to use the latest tools and technology available, that meets international standards.
So, the company doesn’t require to train their in-house team members. If any employee in the company lacks any skill it wouldn’t matter as they wouldn’t be the ones doing the project. Companies can be involved in the project if they want to or they can focus on building their business, that is totally up to them.


Outsourcing is now a necessity in the United States for companies that are unable to find the right tech people. It helps companies save time, meet deadlines and is cost effective. So, even though the talent pool did shrink, companies can still keep working and get their projects done.