The global tech sector is in crisis mode.
We're talking a staggering 85.2 million IT worker deficit projected by 2030.
Yes, the hunt for skilled developers has become more challenging than ever.
As businesses scramble to keep pace with the growing demand for digital solutions, AI, machine learning, and more, hiring managers are facing an unprecedented developer shortage crisis.
But fear not, we believe there's a solution on the horizon.
In this article, we will explore the current state of developer shortage, the causes of stagnation and how no-code development platforms like LoftOS can speed up digital transformation.
How Bad Is The Global Shortage of Software Developers?
The global tech industry is grappling with an unprecedented shortage of developers.
As businesses increasingly rely on digital solutions, the demand for skilled IT professionals has skyrocketed.
However, the supply of talent hasn't kept pace, leaving companies facing a talent shortage that threatens their growth and innovation.
Let's dive into the statistics that reveal the severity of this gap in the tech industry.
Overview of the Top Tech Talent Shortage Statistics
Across the globe, countries are feeling the impact of the IT skills shortage.
In Sweden, experts anticipate a shortfall of 18,000 professionals annually between 2024-2028, primarily in the tech sector.
Meanwhile, Germany lacks 149,000 IT specialists, according to a 2023 report by Bitkom.
Australia is also struggling, needing over 150,000 new developers by 2025 to keep up the pace with the rapid transformation of businesses and economic growth.
Developer Shortage Remains the Top Challenge for the Past 3 Years in a Row
The IT skills shortage has been a persistent challenge for the past three years.
A recent Gartner survey found that only 29% of IT workers have high intent to stay with their current employer. This high attrition rate, combined with fierce competition for qualified candidates, has left companies scrambling to fill critical tech jobs.
As the gap in the tech industry widens, businesses are realizing that traditional hiring strategies won't suffice.
What Are the Reasons Why IT Skills Shortage Continues in the Tech Industry?
The tech industry is facing a technical talent shortage that shows no signs of slowing down.
While retention issues like burnout and salaries play a role, there are three main reasons why the shortage of qualified software developers persists.
1. Rapid Tech Evolution
The rapid pace of technological advancement is a major contributor to the shortage of software developers.
As new technologies like artificial intelligence, machine learning, and blockchain emerge, the demand for professionals with these tech skills skyrockets.
However, the number of jobs requiring expertise in these areas grows faster than the supply of skilled talent.
Tech companies report a staggering 65% skills gap, compared to just 28% in non-tech industries. On top of that, 59% of hiring managers anticipate that AI and automation will significantly shift the skills they need in their employees.
2. Educational Gaps
Despite the growing demand for software development skills, there is a lack of tech education and accreditation programs to train the next generation of developers.
For example, In Germany, an average of 33,932 IT job openings requiring a university degree went unfilled last year, a 76.6% increase from the previous year reports a study by Kompetenzzentrum Fachkräftesicherung (KOFA).
For skilled IT workers with vocational degrees, open positions jumped 77.3% to 2,213.
There are still too few young people and, above all, too few women, studying computer science. And the drop-out rate is consistently over 50 percent, which is far too high.
3. High Demand
The digital transformation of both tech giants and companies across all sectors has intensified the competition for highly skilled software developers.
As more businesses adopt digital solutions, the need to hire developers with diverse tech skills has become paramount.
On top of that, the shift to remote work has widened the talent pool but also increased competition among tech companies vying for the same limited pool of qualified software developers.
How Does the Developer Shortage Affects Businesses?
The specialized talent gap of software developers affects businesses in various ways.
The shortage of skilled tech employees is not only halting innovation but also hindering the growth of companies in the software industry.
As businesses struggle to attract talent, they face numerous challenges that can have far-reaching consequences.
Labor Shortages Costs Companies a Lot of Money - €73,000 to be Exact
Yes, you heard it right.
According to a 2022 'cost of vacancy' analysis by StepStone group, an unfilled job role can set your company back by a whopping €29,000 euros on average.
And brace yourself for this one - for companies with over 250 employees, this figure shoots up to more than €73,000 euros! Now, isn't that something to think about?
According to a Korn Ferry report, by 2030, more than 85 million jobs could go unfilled due to the lack of skilled professionals, resulting in an $8.5 trillion talent shortage.
Yet, there's more to the story. — The demand for IT talent is exploding even faster.
Countries like Germany are racing to digitize operations and business models, specially among SMEs with tech adoption and digitalization is projected for more growth, at CAGR of 4.12% between 2022 and 2027.
As a result, demand for developers, and other IT experts, is skyrocketing.
And companies simply doesn't have the talent pipeline to keep up.
Slower Project Development Times
The hiring process for top software developers has become increasingly lengthy and complex.
A study by iCIMS, a cloud-based human resources and recruiting software company, reveals that on average, it takes 66 days to find the right person to fill a tech role. This delay in hiring can significantly slow down software projects, causing missed deadlines and lost opportunities.
Increased Workloads
As companies struggle to fill open positions, existing tech employees often face increased workloads leading to developer burnout, decreased performanace at work and a vicious cycle of attrition, further exacerbating the talent shortage.
The Solution? Low-Code & No-Code Platforms to Tackle the Software Engineer Shortage
In the face of the global talent shortage and the ongoing struggle to find skilled workers, companies are turning to an innovative solution: no-code platforms.
As businesses grapple with the challenges of attracting and retaining developer talent, no-code platforms emerge as a promising alternative to bridge tech skills gap and accelerate digital transformation.
By empowering non-technical employees to create applications without writing code, no-code platforms offer a way to fill the talent gap.
A Brief History of No-Code
Believe it or not, no-code platforms have actually been around since the 1980s.
But early tools were limited to simple database builders and applications through simple interfaces vs traditional coding.
In recent years, different solutions, like LoftOS, have risen up to meet those needs by allowing teams to automate workflows, design full professional websites, and build more intricate functions without relying on developers.
Forward-thinking companies are realizing the vast potential of equipping their workforces with visual development platforms that abstract away the complexity of code.
Unlike the static site builders of the early 2000s, these new no-code solutions allow non-technical employees to build complex, data-driven web applications on the front and back end.
As a result, no-code and low-code are entering a hypergrowth phase, with projected market growth of over $52 billion by 2024!
The Role of No-Code in Bridging the IT Skills Gap
As the software developer shortage continues to impact businesses worldwide, no-code platforms offer a promising solution to bridge the IT skills gap.
By empowering non-technical employees to become citizen developers, companies can reduce their reliance on hard-to-find top talent and accelerate digital transformation.
Citizen Developers: The New IT Workforce
As the demand for software developers continues to outpace supply, citizen developers are emerging as a new type of IT workforce ready to turn the future of software upside down.
With no-code platforms like LoftOS, citizen developers can assemble workflows, bots, and create any type of web application they can think of 10x faster than traditional coding.
This not only helps companies keep pace with the growing demand for new software but also empowers existing tech workers to take on more strategic roles.
By leveraging the power of citizen developers, companies not only can reduce the software developer shortage but also create new opportunities for aspiring software developers to enter the field.
According to the US Bureau of Labor Statistics, software developer jobs are projected to grow 25% from 2021 to 2032, much faster than the average for all occupations.
No-code platforms can help bridge the tech skills gap by enabling more people to pursue careers in technology with a less steep learning curve.
Take the First Step with LoftOS's No-Code Platform
As the software engineer shortage continues to impact businesses worldwide, it's time to take action. With LoftOS's no-code platform, you can bridge the developer talent gap and accelerate your digital transformation journey today
We're proud to enable 5% of all German universities to build the applications they need without having to hire software developers.
Our customers have built everything from B2B networks and business matchmaking platforms to a wide range of other innovative solutions – all with the power of no-code.
So why wait?
Take the first step towards bridging the software engineer shortage and unlocking the full potential of your organization.
Try LoftOS for free and start building the applications you need to thrive in 2024 and beyond.
