The IT industry is facing a global shortage of developer talent. As Entrepreneur Magazine explains, with an estimated shortage of 4 million developers in 2025, “the global talent shortage could result in approximately $8.5 trillion in unrealized annual revenues by 2030.”

Outsourcing global developer talent addresses the talent shortage by providing companies with contract-based access to skilled professionals who aren’t available in local markets. Outsourcing also solves other problems that arise with a sole reliance on in-house IT talent — such as high salary costs and employee turnover. 

In this article, Dev.Pro explores the many benefits of outsourcing IT teams to solve talent shortages. 

The Global IT Job Market  

The global IT labor market faces a significant talent shortage, with a 5.1% unemployment rate and 60.8% labor participation. These figures highlight the gap between available IT talent and industry demand in several key ways:

  • Low Unemployment, Yet Persistent Talent Shortages: A 5.1% unemployment rate in IT suggests that most professionals are already employed, leaving few qualified candidates available. 
  • Moderate Labor Participation: With a labor participation rate of 60.8%, a significant portion of the workforce is not actively seeking jobs. This limits the available talent pool.
  • Skill Mismatch Despite Layoffs: Although over 262,000 tech employees were laid off in 2023, many may not have the specialized skills needed in high demand fields. 
  • Regional Disparities: Some markets are oversaturated with demand but lack available skilled workers, while other global regions have qualified professionals but fewer job opportunities.

These factors illustrate how the IT industry labor shortage not only makes it tough to hire, but also find the right talent in the right locations. 

Talent Issues with an Over-Reliance on Full-Time Employees  

While the global IT talent shortage is one thing, companies must also consider additional problems that arise with a sole reliance on in-house IT talent. Using only full-time staff for DevOps can impact your labor force in several key ways: 

  • Limited Access to Specialized Skills: In-house talent may lack expertise in emerging technologies like AI, blockchain, and cloud computing. 
  • High Salary Costs: Competitive salaries in high-cost regions like New York make talent acquisition expensive. Hiring locally requires additional costs, such as benefits and office space. 
  • Long Hiring Timelines: Long hiring cycles and recruitment fees increase costs before work even starts. Finding, vetting, and onboarding skilled professionals for full-time hires often takes months.
  • Geographic Constraints: High-cost regions like Silicon Valley and London face high demand but limited affordable talent, while other global markets have skilled professionals with fewer full-time job opportunities. 
  • Employee Turnover: High demand for IT professionals leads to frequent turnover, disrupting projects and increasing rehiring costs.

How Outsourcing Solves Talent Issues   

Outsourcing DevOps not only addresses the global IT talent shortage, but also solves issues that arise with a sole reliance on in-house IT talent. 

Access to Specialized Expertise     

Problems Solved: Limited Access to Specialized Skills  

Partnering with an outsourcing provider gives you access to specialized expertise needed for digital transformation initiatives. As Gartner explains, “Despite talent challenges, infrastructure and operations (I&O) and other IT leaders have increased the adoption of emerging technologies to drive innovation.” To illustrate: 

  • With the pandemic and the rise of remote work, businesses have accelerated their cloud migration efforts. 
  • Blockchain technology has become increasingly important across industries like identity security and fintech.
  • AI has rapidly reshaped the global tech landscape, driving innovation across nearly every sector. 

If hiring a cloud computing, blockchain, or AI specialist at an affordable rate is challenging in your region, a global outsourcing firm can provide the talent needed to support your digital transformation initiatives.

Save on Labor Expenses   

Problems Solved: High Salary Costs, Long Hiring Timelines, Employee Turnover   

Outsourcing eliminates lengthy hiring cycles with immediate access to pre-vetted IT talent. Since, the SHRM website explains, “the total cost to hire a new employee can be three to four times the position’s salary” the financial savings with hiring can be significant.

The savings don’t end with hiring and training. The salary of an outsourced developer from Ukraine costs just 25% of a developer from London. Outsourcing also minimizes costly disruptions caused by the turnover of full-time employees. 

Tap Into an Unlimited Talent Pool  

Problems Solved: Geographic constraints 

The tech industry has long recruited from a finite, homogenous workforce. With 62% of tech workers being white and 75% male, businesses miss out on highly skilled professionals from underrepresented groups, international markets, and alternative career paths.

Outsourcing expands access to a broader, more inclusive workforce of global workers. By removing location-based hiring barriers, outsourcing bridges skill gaps, drives innovation, and strengthens workforce diversity.

Conclusion 

As Deloitte explains, “In the next decade, it’s estimated that the US tech workforce will grow at twice the rate of the overall US workforce.” Beyond just the US, outsourcing is a strategic solution to the ongoing global talent shortage, offering businesses access to specialized expertise, cost savings, and a diverse talent pool. As demand for IT professionals continues to outpace supply, outsourcing ensures companies can stay competitive in a rapidly evolving digital landscape.

Ready to bridge the talent gap and scale your team? Contact us to get started!