Accelerance’s Global Software Development Study Offers Front-line Insights into Tech Rates Inflation and a Brutal Talent War
Accelerance launches the only global market research study with firsthand perspective direct from software development executives who supply engineering talent and set rates across the world
REDWOOD CITY, CA / ACCESSWIRE / December 15, 2022 / Record software developer rate hikes racked the global technology industry in 2022 driven by a perfect storm of inflation, pervasive talent shortages and high digital demand, according to an exclusive market research study of global software firm executives by Accelerance, a Silicon Valley-based software outsourcing advisory firm.
Engineering rate increases hit 78% of software development firms worldwide, with nearly one-third spiking in the double-digit range, says Accelerance’s new Insights from the Front Lines: 2022-2023 Global Software Development Resourcing and Rates Study. The majority of increases exceeded the US Labor Department’s reported 7.1% inflation rate for the 12 months ending November 2022.
No end appears in sight in 2023 for rising developer costs that impact companies’ digital innovation budgets. But software executives anticipate record increases to ease back toward the single digits, citing signs of lessening inflation and conservative corporate spending during economic uncertainty.
The new study is the only source for direct insights into global software resourcing and rates trends based on a survey of 200 development firms across 44 countries in Latin America, Eastern & Central Europe and South & Southeast Asia. It provides market drivers and pricing for nine key developer roles.
Highlights of the study include:
- The biggest rate increases by software development firms globally in the past six months fell in the 6% to 10% range with inflationary pressures, high demand for talent, a shortage of specialized tech skills and currency fluctuations cited as key drivers.
- European firms reported the largest price increases with 70% raising rates by 6% or more as war stunted Ukraine’s developer supply and drove up rates and demand in other European destinations as well as in Latin America.
- In 2023, 74% of firms expect to up their rates but the increases are estimated to be less extreme.
- Demand for software development will continue to run hot in 2023 with 76% of software firms anticipating increasing requests for their services.
- Software executives cited ongoing drivers for 2023 of economic uncertainty, global unrest, high talent demand and scarcity, digital innovation needs and IT budget constraints.
“No one knows what’s happening better than those in the thick of the battle for affordable technology resources,” says Andy Hilliard, CEO of Accelerance. “That’s why we’ve launched this unique annual survey to provide the most accurate picture of factors affecting software development and outsourcing. You’ll find detailed insights and direct quotes from the executives who are living the tech headlines - perspective that is not available anywhere else.”
Access the study’s full findings based on a global market research survey of 23 data points and written responses exploring software development resourcing and rates trends.
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 40+ 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.
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