New Study Reveals Second Record Year of Global Software Development Rates Inflation amid Crisis-Level IT Skills Shortages

Accelerance releases the definitive 2023 Global Software Outsourcing Trends and Rates Guide with insights into the crisis in software development costs and talent supply based on proprietary research from its global certified developer network.

REDWOOD CITY, CA / ACCESSWIRE / September 22, 2022 / Cost inflation hit technology-driven companies hard in 2022, led by staggering 20%+ increases in software development rates in North America and Latin America, reveals a new study from Accelerance, a Silicon Valley-based global software outsourcing advisory firm.

Rate hikes were fueled by a record global software resourcing shortage including a deficit of nearly one million in the US alone, coupled with software development as one of the jobs in highest demand among companies worldwide, the study finds. The Ukraine war has only exacerbated those pressures, disrupting a significant source for the global IT talent market.

2022 marks the second year of rate increases above 20% in key software outsourcing destinations, according to the 2023 Global Software Outsourcing Trends and Rates Guide, Accelerance's proprietary market study from its global certified development network across 30+ countries.

Recruiting and retaining developers with the right skills are the top two business challenges cited by IT executives this year. At least one-half of CIOs report that the talent gap makes it difficult for their companies to grow and compete.

"The cost and supply of skilled software developers have reached crisis proportions," said Andy Hilliard, CEO of Accelerance. "Now even outsourcing, which has been an antidote to developer rate inflation, is feeling the pain. Tech-savvy businesses are monitoring pricing shifts in different global regions. Identifying cost-saving arbitrage opportunities with offshore partner firms is a future-forward strategy that's getting traction."

Software outsourcing still offers a solution to high developer rates for companies struggling in today's inflationary, slowing economy. But IT leaders need to stay on top of industry and region dynamics to capture any potential offshore cost savings, and Accelerance's guide provides perspective to help with smart sourcing strategies in tough times.

Despite high-profile tech industry layoffs and corporate budget tightening, software application sector investment is estimated to increase by 10% this year, outpacing pre-pandemic levels. Software application development remains the most outsourced IT function, with an estimated 60% of US businesses outsourcing at least part of their development in 2022.

Software development has been relatively insulated from business cutbacks to date for two reasons: Companies' heightened reliance on digital innovation that began during the pandemic and their need for enhanced automation to cut costs under shaky economic conditions. Skilled software development is critical to both those efforts.

Other key topics explored in this year's guide include:

• Six highest-impact trends, top 10 programming skills and nine hottest technologies
• Comparative rates analysis for 16 technical roles across six global regions - Latin America, Central and Eastern Europe, South Asia and Southeast Asia and North America
• The intensified impact on the global technology talent shortage by the war in Ukraine, a powerhouse destination of IT outsourcing talent

Accelerance's annual guide offers exclusive research, best practices and case studies for software development outsourcing as a solution to today's technology resourcing and cost challenges. See the 2023 Global Software Outsourcing Trends and Rates Guide here.

About Accelerance

Accelerance is the Global Software Outsourcing Authority® offering world class software development teams along with professional consulting services. Accelerance alone has personally vetted more than 8,000 firms to create the largest certified network of the top 1% of software development partners across 30+ countries. Our trusted advisors help clients obtain skilled technology resources at affordable costs to drive digital transformation and operational efficiency. We empower clients to develop and implement optimal software outsourcing solutions through better planning, better partner selection and better engagement management.

CONTACT:
Lisa Morrell, Chief Marketing Officer
Accelerance
E: lisa.morrell@accelerance.com
M: (773) 556-5700
www.accelerance.com