Top challenge CTOs are facing as 2023 is nearing
The CTO’s role is changing dramatically. While many companies have always had their own take on this position, there’s been a shift lately, common for tech businesses and Fintech in particular.
The talent shortage is something that CTOs have on their agenda almost non-stop now, along with the evolving regulations and cybersecurity threats. Proving able to build a robust and flexible team to spur innovation in the fast-paced Fintech environment has come to matter more than technological expertise.
As the demand for dev talent and a lack of qualified specialists is increasing, the change is also evident in the ways companies develop teams and how team members collaborate.
To make the cut today, the best CTOs need to work on their skills, perfect the competence of others, and make remote teams deliver while maintaining communication and corporate culture on the top level.
This tectonic shift unleashed the full potential of outsourcing. Here’s what the research reveals.
Outsourcing is a booming trend
Commit USA took a deepdive into the hiring challenges CTOs face by surveying 200 senior leaders of U.S.-based startups. The key findings might seem unexpected.
- Dev team outsourcing will grow 70%before we step into 2023.
- In Fintech, the increase will double by next year.
- The numbers on Statista support the report: The cash flow outsourcing leads to global IT may reach $587.6 billion by 2027, adding 8.2% a year.
Hiring struggles have a say in the formation of this hike. While the number of new vacancies has jumped 81% during 2020–2021, the average applicant pool has dwindled by 39%.
Let’s see how outsourcing can fix the problem.
The benefits of outsourcing a tech team
Reduced time to hire
- For 68% of startups, recruiting a developer takes one month or more.
- About 20% of newcomers will require a replacement in time.
Finding a skilled developer in tight timelines now seems almost impossible, especially if you’re a startup against top enterprise employers. And when you’ve finally welcomed a specialist, it might be time to say goodbye to them in a month. Here we go again.
By outsourcing, you amplify your hiring pool, so you can find the right candidate faster, thus decreasing the risk of overspending.
Making the most of remote teams
- 99% of tech execs said remote work had demonstrated its advantages over in-person work.
- 75% of companies reported productivity growth once switching to remote teams.
Work from home has become the new normal. People increasingly get used to the flexibility and comfort of working from any place of the globe, so companies now put it on the list of employee benefits. In turn, talent-seeking organizations can attract the best specialists globally while enjoying improved business results.
Develop beyond conventional with a team of Fintech experts.
- Almost 50% of HR execs surveyed see cost cuts as the most significant benefit of outsourcing.
The percent of costs you can save by outsourcing a tech team varies. While a U.S. developer earns on average about $114,000 annually as of 2022, in Europe the sum is two or even four times less.
Quick team resizing
- 42% of surveyed CTOs indicated that the top benefit of outsourcing is an improved ability to scale teams and boost operations quickly.
Easy scaling was also reported as the biggest advantage by 38% of all the surveyed tech execs, while the second place went to cost savings (30% of the respondents).
Busting the concerns around outsourcing
The quality of the workforce
56% of the respondents said it was their biggest concern before they started outsourcing.
While no one is immune from hiring a specialist who performs worse than expected, the report has found no evidence that the chances of disappointing results are higher with outsourced employees.
On the contrary: 25% of companies surveyed reported that access to top performers is one of the best benefits of outsourcing.
Besides, the total global pool of software developers can hit past 28.7 million by 2024, and it’s improbable that only a fraction of these tech legions are high performers.
After the list of benefits above, this concern might seem illogical, but that only proves the usefulness of the report Commit USA. And it’s not the only one: Deloitte found that 70% of organizations cut costs by outsourcing talents.
In fact, you can easily understand why this concern exists if you’re based in the USA and outsource the team in the same country, but most likely, that won’t be the best option, judging from the average annual rate of $114,000.
Why outsource a few when you can get a complete solution development team?
→ Meet the team
Why hire a team, not a random group of devs
By reaching beyond familiar, you can scale your team with top talents at a reasonable cost. This way, you’ll be able to keep pace with the demanding and progressing industry.
Also, you can hire a team of bonded experts that have gained experience in Fintech together and adhere to the highest security standards. By doing so, on top of the key benefits of outsourcing, you’ll get a holistic external assessment of your product or service, which may help identify simpler ways to enhance your offering. Schedule a quick call to get to know our solution development team and how it can help you.