Talk of a recession is everywhere. Companies, investors, and spectators alike are rightly concerned, raising eyebrows at the prospects of the tech sector — and economy in general — in 2023. This is especially concerning considering some of the major moves that have dominated news cycles in the tech sector lately.
Meta is a prime example. That the company’s stock is down 75% this year is an indication of some of the major trends; combine that with its announcement it would lay off 11,000 workers, or 13% of its staff, and you have something that might make the tech world sweat. As industry leaders, big companies like Meta are often seen as leading indicators for the tech sector in general.
Layoffs are indeed big news when it comes to big companies, as they’re often a bellwether for economic activity in general. In addition to Meta’s layoffs, ride-share app Lyft announced it was cutting 13% of its workforce, or about 650 of 5,000 employees. Online payment processing company Stripe has cut 14% of its staff after news of lower-than-expected earnings, terminating some 1,100 employees. So has Microsoft, and, well…we could keep going, but you get the point. There are many such examples.
Of course, there’s the ongoing drama on Twitter that has made a splash at every level, and will likely continue to. It’s certainly popcorn-worthy, to say the least.
As a player in the tech scene, we intend to remain as neutral as possible while sympathizing with those who have been laid off. It’s not easy, for sure. We want to see a healthy, prospering tech sector with talented, well-paid, and secure workers shaping the future. Stumbles are unavoidable in any area of business, and we hope the industry can get over the current speed bump soon. We think it will, and solid companies will not just survive, but thrive.
Tech Workers are Still in High Demand
If you’re connected to the tech world, especially the big businesses in it, you’re probably aware of the layoff trend. LinkedIn feeds have been filled with tearful goodbyes, as have many other social media platforms. The degree to which personal stories are available now is greater than ever before, so we know a lot more about how companies work internally than previously.
The tearful goodbyes don’t have to be all bad news, though. For many companies, they’re excellent news — since talented tech workers are always in demand, and those who’ve been laid off from the industry’s leaders will be in high demand. Recruiters from every corner of the industry will be eager to snap up the top talent quickly. If you’re in the industry, now is an excellent time to be looking to capitalize on mass layoffs. Not only can companies get top-tier, previously-locked-down employees to expand their teams, but they can capitalize on the power vacuum left by retreating titans — and even increase growth targets.
There’s a catch, though. Despite recent high-profile layoffs and stock losses, tech employment growth is expected to continue at nearly double the standard growth in the US. Simultaneously, UK tech job opportunities are at a ten-year high. So, even if the economy in general is looking a bit down, things are still moving fast and forward in the tech world, and top recruits can find good work in a number of places. Many of them know that.
Managing Growth in a Tight Labor Market
So, while the economy world-wide is looking at a downturn and there have been high-profile layoffs in tech, tech employment is still a hyper-competitive industry. Any company that can successfully out-navigate their peers during a period of troubled economic waters will come out stronger on the other side. Staying afloat is a pretty good start. However, a company that manages to keep growing through troubled times has more than just demonstrated a proof of concept — they’ve demonstrated they’ve got what it takes to keep going in any environment.
Staying afloat or growing isn’t easy right now, but it’s doable — as long as you’ve got the right people on your team. Solving the problem of growth in a tight labor market has always been tricky. Hiring is a costly affair in both time and money, especially when there’s so much competition for talent. What’s more, not every company needs to hire tech workers full-time or permanently — but not a lot of great workers are happy to work in precarious employment conditions. It’s quite a conundrum.
The Outsourcing Lightbulb
This is the part where we come in, and when the outsourcing lightbulb goes off over hiring managers’ heads. What’s the best way to solve hiring issues in a constrained market? Simple: Find an already-established and talented team that can step into the shoes you need filled.
Yep, that’s us. As an expert player in the software outsourcing field, we can offer companies of any size competence with confidence and value without compromise. Or, to put it bluntly: We save companies the trouble of hiring their own tech talent so they can focus on other things.
If you find yourself struggling to find quality tech talent or unsure if you need to hire full-time, you may want to consider outsourcing. In fact, we’ll go so far as to say you should consider outsourcing.
Want to know more about how we work? Curious to see how outsourcing your software needs could work for you? Reach out to us for a free quote and we’ll be happy to help walk you through the process. Even if you’ve never outsourced a single task, no worries — we’re the experts at handling the transition.