Startups Can’t Afford Local Software Developers

Last Updated on 2024-10-11

In the vibrant and ever-evolving world of technology startups, finding and affording the right talent is one of the most critical challenges.

As someone who has navigated the complexities of the tech industry for over 20 years, I’ve seen firsthand the difficulties startups face when hiring local software developers. The struggle is real, but it’s not insurmountable.

Let’s dive into why local talent seems out of reach and explore a game-changing solution: offshore development in the Philippines.

The Challenge of Finding and Affording Local Talent

Today, the demand for software developers far exceeds the supply, especially in tech hubs across the United States. In 2021, US employers listed over 3.5 million job postings for IT roles, yet 1.4 million unfilled computer science jobs in 2020 alone​​.

The scarcity of talent has created a competitive market where startups are often at a disadvantage.

Compounding the issue, the cost of hiring local developers can be prohibitively high for startups. Salaries for developers in the US have skyrocketed, with Amazon more than doubling its base salary cap to $350,000 to attract top talent​​.

These figures are far beyond what most startups can afford, especially considering the additional costs of benefits, office space, and equipment.

The Offshore Development Alternative

Facing these challenges, startups must think creatively and look beyond their local talent pools. Offshore development, particularly in the Philippines, offers a compelling solution.

Why the Philippines?

• Cost-Effective Talent: The stark difference in living costs between the US and the Philippines means that salaries are significantly lower. On average, a US developer earns a gross salary of $122,478, while a software developer in the Philippines makes an average of $17,579. This disparity allows startups to afford the talent they need without compromising quality.
  
• Access to Skilled Developers: The Philippines has a thriving IT sector, supported by a strong educational system that produces thousands of IT graduates each year. This ensures a steady supply of skilled developers eager to work on international projects.
  
• Cultural Compatibility and English Proficiency: Historically tied to the US, the Philippines has a culturally compatible workforce and highly proficient in English, making communication seamless.
  
• Operational Flexibility: With offshore teams, startups can operate around the clock, leveraging the time zone differences to ensure continuous development and support.

Full Scale’s Expertise

At Full Scale, we’ve harnessed the benefits of offshore development to provide startups with access to top-tier talent at an affordable cost.

Our experience has shown that when managed correctly, offshore teams can drive innovation, reduce time to market, and significantly lower operational costs.

We take care of the hiring process, vetting candidates to ensure they meet the high standards required by our clients, thus enabling startups to focus on their core business strategies.

Embracing Offshore Development

For startups grappling with the high costs and scarcity of local software developers, offshore development in the Philippines is not just an alternative; it’s a strategic advantage. By partnering with experienced providers like Full Scale, startups can access a world of talent, save on development costs, and accelerate their growth in ways they never thought possible.

Finding and affording local software developers are daunting, but they are not insurmountable barriers.

Offshore development offers a viable and effective solution that we at Full Scale have perfected to help startups thrive in today’s competitive landscape.

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