Market Trends of IT Staffing Industry
The Software Developer Segment Expected to Generate Considerable Demand
- Software developers design computer applications or programs. In contrast to a software engineer, a developer is usually more creative-minded and focuses on the development aspect, using ready-made tools to build software and applications in the entire software development life cycle.
- While the COVID-19 pandemic severely impacted global economies of all scales, information technology (IT) companies worldwide managed to survive much of the economic downturn. This was primarily due to the adoption of distributed IT development, remote maintenance, and remote IT operations. Major IT companies such as Google, IBM, Accenture, Microsoft, DXC, SAP, TCS, Wipro, and Infosys asked their staff to work at home during the pandemic. Additionally, to meet the constraints of working from home, the demand for IT services and software developers increased across industries, including retail, entertainment, education, and healthcare.
- Companies can utilize AI in IT staffing development and management to assess the talent inventory and leverage the historical skill data of their existing employees to match individuals with appropriate open positions advertised by managers. AI may also help analyze skills adjacency, prior experiences, and intended career paths. Workers receive better visibility into a diverse pool of projects and experiences available within their company that would otherwise be inaccessible due to the value-add of personalized recommendations that serve appropriate opportunities. Saudi Arabia is expected to invest USD 20 billion in artificial intelligence by 2030. This may create opportunities for the market players to incorporate AI in workforce management solutions.
- Additionally, the IT industry is sound globally, and with the upcoming technical updates and development, the requirement for software developers is increasing alarmingly. Students pursuing IT or software engineering courses are expected to have a booming career trajectory by 2030. Moreover, according to the Tech World Times report, with a global community of more than 26.4 million software developers, software development has become a mainstream career option in developing nations like India.
- Moreover, the IT staffing industry is expected to observe a paradigm shift in demand and revenue for software developers, owing to increasing digital transformation across industries and the emergence of start-up culture. New product developments across various end-user industries are estimated to have the highest impact and demand because of constant innovations and the requirement of software development skillsets to develop applications.
- However, IT staffing for software developers faces a few challenges. For instance, according to a report shared by cloud infrastructure provider DigitalOcean, 42% of software developers who have not switched jobs during the pandemic are considering or may consider quitting this year. Furthermore, according to the report, these software developers were driven by two motivating factors to switch jobs, i.e., better compensation and fully remote or flexible work environments.
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Asia-Pacific Expected to be the Fastest Growing Market
- Asia-Pacific is the leading IT service market across the world. The companies in the region are continuing to invest in new resources that have the right skill sets. Over the past two decades, the IT industry in China has witnessed impressive growth and evolved as a key industry in the country's overall economy. In the current 5-year plan, the country has significantly focused on making IT one of the seven strategic industries that will help it move from a cheap-labor manufacturing hub to a world-class, innovation-driven IT industry. These initiatives are expected to drive the market.
- The Digital India initiative aims to provide government services to citizens electronically by improving the IT infrastructure and increasing internet connectivity. Moreover, the initiative aims to move legacy and on-premise systems to a cloud-based or integrated model. The cloud platform is expected to host the delivery of e-services to the citizens.
- For instance, a survey by Manage Engine, a division of Zoho Corporation, a technology firm, polled 3,300 IT and other business professionals worldwide. In India, 300 private-sector decision-makers were polled on IT and other essential business tasks. It classified them into two groups, i.e., IT decision makers (ITDMs) and business decision makers (BDMs). The survey stated that 91% of decision-makers in India agreed that collaboration between IT and business departments had strengthened in recent years. According to 53% of Indian ITDMs, their companies successfully dispersed their IT structure. This compares to the global average of 64%. Such a rise in the adoption of IT would increase the demand for IT staffing solutions, which may proportionately drive the need for IT staffing solutions across the region.
- NASSCOM stated that business process management (BPM) and IT services in India contribute to over 14% and 10% of the global demand, respectively. This is expected to continue with the consistent growth in the global cloud adoption rate. The government is supporting the growing demand for IT and infrastructure through various incentive programs. The growth of IT services in India is expected to positively drive the market's growth.
- The increased adoption of public cloud computing has led to more enterprises re-allocating their business systems to cloud platforms. Issues concerning data security, tenant isolation, access control, etc., have gradually become focal points of these enterprises, thereby driving staffing needs.
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