Software Development Outsourcing Hub

How to Hire Developers in a High-Demand Era

January 19, 2024

Hiring developers in today’s market can feel like an impossible feat. With a global shortage of developers, the competition for tech talent is cut-throat. About 90% of leaders said IT recruitment/retainment was a “moderate or major” challenge.

Luckily, knowing how to hire developers can help your business capture tech workers. Today we’ll go over expert tips for boosting your IT hiring processes and outcomes. In this way, you can quickly get your business-critical product off the ground.

Understanding the Developer Landscape

As the expression goes, all companies today are tech companies. Customers have an increasingly high demand for digital products. This means that businesses everywhere are struggling to complete vital IT projects. 

At the same time, there’s a global shortage of developers – and it’s only getting worse. By 2030, experts predict that there will be a 85 million deficit in IT professionals. Organizations are already feeling the gap, with 54% of businesses reporting shortages. 

This landscape makes it challenging for companies to know how to hire developers. Ultimately, businesses are leaning on remote developers to fill their long-term needs. Choosing IT outsourcing also opens doors to reduced budgets, quicker timelines and more.

Challenges of Hiring Developers Today

(Source: Statista)

It’s no secret that the tech industry is fiercely competitive. Companies are constantly battling to attract and keep the best developers. This is especially the case in the U.S. where local talent is limited. Studies estimate that the lack of tech workers could lead to $162 billion worth of lost revenue in the U.S. alone. 

So, what’s stopping tech companies in the U.S. and beyond from overcoming this shortage? Here are some of the most prevalent challenges regarding how to hire developers.

Finding Potential Talent

At 56%, the greatest obstacle is finding qualified candidates to fill open roles. Companies are looking to IT professionals and agencies worldwide to meet their needs. Yet, it’s tough to discover partners if you don't know local tech companies, universities, etc.

Attracting the Best Talent

27% of companies report talent attraction as a major hurdle. Developers have so many choices for employment today that it’s tricky to stand out. Businesses are working hard to boost their value proposition for developers. Doing so can help capture top talent without breaking the bank. Usually this doesn’t just involve a higher salary, but also enriching benefits. 

Screening Tech Candidates 

29% cite identifying potential in candidates as another sticking point. These days, it’s unfeasible to hire a developer that checks all your boxes. Often it’s about discovering profiles that you’re willing to upskill or train over time. In particular, you must properly screen high-potential candidates who may have non-traditional backgrounds. 

Trimming Long Hiring Process 

Tech roles that stay open for a long time are bad for business. Not only does your IT team suffer from gaps, but your product is typically delayed. That’s why 15% of companies are keen to cut recruitment cycles and fill shortages as quickly as possible.

Ensuring Cultural Fit 

When outsourcing to new regions, businesses may have to carefully consider cultural fit. It’s necessary to align workplace expectations and cultural backgrounds. 12% of businesses cite balancing cultural fit as a dilemma. 

Reducing Sky-High Turnover

Finally, your company may do everything right and still lose developers. Reducing turnover is essential for businesses to avoid the high turnover costs. Estimates suggest replacement can run up to $30,000 per role

The Remote Advantage of Hiring Developers

Fortunately, companies have a great alternative at their disposal: hiring remote developers. This enables you to leverage skills from IT professionals anywhere in the world. Without geographical constraints, businesses have numerous options on how to hire developers. Some advantages of opting for remote developers include:

•    Tapping into Expertise. The #1 reason behind remote hiring is access to world-class talent. Global talent pools cast a wider net so you can find the specialists you need.

•    Optimized Budget. Global talent also tends to come with a lower outsourcing price tag. While this depends on the region and expertise, rates are usually much lower.  

•    Faster Recruitment. Many tech agencies streamline the hiring process so you can fill roles within days or weeks. This lets you get to full team capacity ASAP. 

•    Flexibility to Scale Up/Down. The commitment for remote developers may also be more flexible. If you work through a partner, you’ll typically have the choice to scale the project up or down over time.

•    Well-Versed in Next-Gen Technologies. Remote developers gravitate towards new technologies and innovative solutions. They adapt well to new trends and are eager to offer next-gen products. 

How to Hire Developers and Build Your Dream Team

Of course, you’ll have to thoughtfully construct your remote IT team to align it with your needs. Let’s go through some strategies on how to hire developers and build your dream developer team. 

1. Define Your Business Needs and Budget 

To get started, it’s crucial to set parameters for your hiring search. Get the complete picture of your product vision first. Clarify your project requirements, conduct market research and calculate your budget. In turn, this will help you define exactly what type of technical and soft skills you require in a developer. 

2. Choose Your Ideal Engagement Model 

You’ll also need to consider the right outsourcing strategy for your business. Fortunately, IT outsourcing can be shaped to your business objectives. First, ask whether you’re interested in keeping control of the project in-house or not. 

If you want to manage the outsourcing project internally, try to “lease” remote developers to supplement your team. Otherwise, hire an outsourcing partner to fully handle your project or services. Sometimes a hybrid model is best. For example, hire developers for an app, but keep an internal maintenance team.

3. Understand Your Tech Stack 

Settling on a tech stack may require specialist advice from your developer team. However, you should get a solid understanding of your options with market research. Knowing your options can help you narrow down what type of tech expertise you need. It will also condition what type of experiences to look for in potential candidates. 

4. Select Key Countries for Your Talent Pool 

Remote developers are available everywhere worldwide. Yet, it’s important to choose your developers’ locations wisely. The region will determine hourly rates and logistics such as time zones, culture and so on. Technical specializations also vary, with some countries offering greater expertise in certain technologies. 

If you’re hiring a dedicated team, you’ll want a location with a high “ease of business” rating and IP protections. For an in-depth analysis of the best countries for IT, head to our recommendations here

5. Leverage Diverse Developer Sourcing 

Discovering first-rate developers can be a major barrier for businesses. To capture “hidden” talent, try a variety of sources. For example, the internet is overflowing with potential leads. Check out tried-and-truer rating sites, such as Clutch, Crunchbase and LinkedIn. Other industry-specific platforms such as GitHub and Stack Overflow may also be useful. Even your favorite tech blog may be linked to an IT group or other experts! 

Don’t forget about face-to-face connections, too. Tech meet-ups such as conferences, networking or hackathons are great for finding talent. You might even contact a local university or code academy to set up events or get referrals. 

6. Do Your Due Diligence

Once you’ve connected with excellent candidates, it’s time to verify qualifications. Screening for tech skills is best done by your experts or a specialized agency. 

In addition, you’ll want to do a deep-dive into your candidates’ experiences. Look at past projects and employers. For non-traditional backgrounds, keep an eye out for courses, certifications or hackathons. Double-check the developer’s level of security and responsibility, too. Asking for testimonials or references that you can independently confirm.  

7. Conduct Effective Developer Interviews 

During the interview stage, you’ll want to get to know your candidates. Focus on hard-to-measure metrics such as soft skills and communication style. Ask behavioral questions that get to the heart of company fit. You’ll also want to check for values such as empathy, autonomy and long-term commitment. 

For the most effective interviews, you should also schedule meet-ups among developer teammates. This is a great way to see if there’s natural chemistry for ongoing collaboration. 

8. Align for Onboarding and Project Kick-Off

Once you’ve hired the best, don’t forget about onboarding new developers. You’ll achieve better results by aligning expectations and teams from day 1. Set up robust onboarding for your remote developers through online modules and meet-ups. Sometimes you may even want to set up a trial day or project to get a better sense of their working style. 

No matter the exact details, be sure that your new hire isn’t isolated from the rest of the team. Give them access to all your tools and channels – both formal and informal!

Hire Developers in Today’s Market With Netcorp

Learning how to hire developers in today’s market is key to building top products. To overcome the challenge of remote hiring, leverage our strategies. In this way, you can hire developers that are well-aligned with your business. 

As you search for the best-fit developers, count on a top IT partner like us. At Netcorp, we work closely to build your dream IT team. Our industry-best developers will meet your business vision, no matter how ambitious. We also ensure a seamless knowledge transfer to kick off your IT project with zero friction. Reach out to us to meet our elite professionals and build a top-tier team ASAP.

Paavo Pauklin
Executive Board Member

Paavo Pauklin is a renowned consultant and thought leader in software development outsourcing with a decade of experience. Authoring dozens of insightful blog posts and the guidebook "How to Succeed with Software Development Outsourcing," he is a frequent speaker at industry conferences. Paavo hosts two influential video podcasts: “Everybody needs developers” and “Tech explained to managers in 3 minutes.” Through his extensive training sessions with organizations such as the Finnish Association of Software Companies and Estonian IT Companies Association, he's helped numerous businesses strategize, train internal teams, and find dependable outsourcing partners. His expertise offers a reliable compass for anyone navigating the world of software outsourcing.

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