The Technology Skills Shortage: How to Beat the Talent War with Outsourcing

The technology skills shortage: How to beat the talent war with outsourcing

The global tech skills shortage crisis is no longer a looming threat — it’s already here, and it’s impacting industries worldwide. Tech companies across sectors like financial services, healthcare, banking, cybersecurity, and manufacturing are struggling to hire skilled professionals. 

A recent survey by ManpowerGroup showed that 78% of employers in IT report difficulties finding qualified candidates - marking the most severe talent shortage in nearly two decades¹. Whether it’s developers, system architects, or cloud specialists, the demand is outpacing supply. It’s even harder to find these skills locally, where talent pools are smaller and competition is tough. Many companies are struggling to fill key roles without paying top dollar or facing long delays.

Ignoring this issue comes with real risks. Delays in product launches, loss of competitive advantage, and increased cybersecurity vulnerabilities are just some of the consequences. As technology continues to evolve, the skills gap is only getting wider, and many local markets are struggling to keep up.

Challenges of local hiring in today’s tech skills shortage

Recruiting top-tier tech talent locally presents several obstacles:

1. Limited talent pools

Some specialised tech roles are hard to fill because there simply aren’t enough qualified professionals available locally. Elasticsearch and Clojure developers are in high demand but scarce, as these skills require deep expertise and are less common in the broader developer community. This shortage leads to longer hiring times and extended vacancies, which slow down critical projects and impact business growth.

2. Rising salary expectations

As demand for skilled tech professionals, especially for niche roles, continues to grow, candidates are leveraging their expertise to command higher salaries. In competitive markets, this drives up the cost of hiring and retaining top talent, putting pressure on company budgets. This means having to offer not only higher pay but also attractive benefits and flexible work arrangements to stand out - making recruitment more expensive and challenging.

3. High turnover rates 

The fast-paced, ever-evolving tech industry means professionals often move between jobs to seek better opportunities, skill growth, or improved work-life balance. This frequent movement can disrupt ongoing projects, lead to knowledge loss, and increase recruitment and training costs for companies. High turnover also puts pressure on teams to maintain productivity while constantly onboarding new talent.

4. Hard-to-find senior devs with leadership skills

Local hiring has become increasingly complex, especially for specialised roles that demand both deep technical expertise and leadership ability. Many companies are finding it difficult to fill senior positions with professionals who can comfortably wear both hats: hands-on coding and team management. 

Candidates with over 15 years of experience have transitioned into purely managerial roles, but some projects (especially internal builds or technically complex products) require someone who can lead a team and independently produce production-ready code. Finding that kind of hybrid expertise locally is rare, and the search often results in delays, compromises, or burnout on in-house teams.

5. Extended hiring timelines

Finding the right candidate for complex tech roles (especially those requiring a mix of advanced technical skills and managerial experience) often takes 30 days or more. This is due to a smaller talent pool for such specialised positions and the thorough hiring process involved, including multiple interview rounds, technical assessments, and client approvals. While this level of scrutiny is essential, extended hiring cycles can stall progress, inflate costs, and make it harder to stay competitive in fast-moving markets.

Outsourcing: The smart solution to tech skills shortages

Outsourcing might look like a quick fix when you’re short on talent or racing to meet a deadline. But if you do it right, it’s a smart, sustainable strategy for long-term growth. 

It frees up your in-house team to focus on the big picture - like shaping the product vision and planning the roadmap - while the outsourced team takes care of the coding, testing, and all the nitty-gritty stuff.

One of the biggest advantages is immediate access to expertise across a wide range of tech stacks - from front-end languages like JavaScript to back-end frameworks like Django. This is especially valuable when a project calls for diverse skills that your in-house team might not have on hand.

This way, your staff aren’t spread too thin trying to juggle everything. Instead, they get to work alongside a reliable outsourced team that can step in and scale up as needed, keeping projects on track.

Top outsourcing locations to find in-demand tech talent

When it comes to finding the right talent, some regions stand out. Outsourcing to regions with strong technical talent pools is becoming a strategic necessity. The global reach not only helps reduce overhead costs associated with recruitment and benefits but also speeds up hiring and enables faster project delivery. Tapping into talent-rich regions allows tech firms to grow smarter, faster, and more affordably.

India

India is one of the leading offshore destinations for software development, known for its cost-effectiveness and strong pool of technical talent. With over 1.5 million engineering graduates each year, many specialising in emerging technologies, it offers deep capabilities in backend and frontend development, cloud engineering, machine learning, blockchain, and AI². 

The country’s well-established tech industry (spanning sectors like healthcare and finance) means many professionals are already well-versed in globally in-demand tech stacks such as Java, .NET, Python, Node.js, React, Angular, AWS, Azure, and Google Cloud.

Philippines 

The Philippines is a well-established outsourcing hub, especially for customer support engineering, back-office tech roles, and software development. It is also gaining global recognition for its graphic designers, who blend creativity with technical skills across industries like marketing, gaming, and e-commerce³. 

The country’s strong English proficiency - ranked #22 globally and #2 in Asia out of 23 countries - combined with its cultural alignment with international markets, makes collaboration smoother and more effective⁴. With a large, young workforce and growing investment in tech education, the Philippines remains a top choice for businesses seeking skilled, communicative, and reliable tech professionals.

Sri Lanka 

Sri Lanka is becoming a standout destination for offshore tech talent, offering a deep and growing pool of skilled professionals across software engineering, QA testing, data analytics, and IT support. The country’s education system produces a steady flow of STEM graduates, many of whom are trained in modern programming languages, cloud platforms, and enterprise tools. With a 92% literacy rate, and a strong focus on English proficiency, Sri Lankan tech professionals are well-prepared to work in global teams and contribute to complex, international projects⁵.

In addition to its technical strengths, Sri Lanka offers notable advantages in cost and infrastructure. Competitive salary expectations, supported by favourable exchange rates, make it a smart choice for outsourcing tech talent. Government support has also played a key role in building a robust tech ecosystem through tax incentives, improved internet infrastructure, and the development of ICT (Information and Communication Technology) parks. Combined with strong work ethics, cultural compatibility, and a convenient time zone, Sri Lanka is an increasingly strategic location for businesses seeking reliable and scalable offshore tech talent.

What to consider before outsourcing talent amid the tech skills shortage

Before outsourcing specialised technical roles, it’s important to ensure the talent matches your specific needs. Have they worked in your industry? Are they proficient with the tools you use, such as GitHub, Jira, Figma, AWS, Docker, or Notion? Can they onboard quickly and collaborate smoothly as part of your internal team? Experience with agile development is a must.

Finding the right talent is important, but so is choosing the right outsourcing partner. Look for one that offers clear pricing, efficient onboarding, and open, reliable communication. When your tech product handles sensitive information - whether it’s healthcare data, financial transactions, or AI systems - security and quality must be built in from day one. Make sure your partner follows best practices to protect your data and intellectual property. 

Most importantly, pick a partner who communicates clearly, understands your goals, and proactively addresses challenges before they arise.

Teamified: Specialists in sourcing technical talent

The global shortage of tech skills continues to challenge businesses, but outsourcing to regions like India, the Philippines, and Sri Lanka offers a strategic solution. At Teamified, we specialise in tapping into these talent-rich pools, sourcing hard-to-find experts - whether web developers, mobile app developers, cloud architects, or cybersecurity engineers - quickly and effectively.

Through the help of AI-enhanced recruitment tools and deep market knowledge, our talent team accelerates candidate sourcing and technical screening, significantly shortening hiring timelines by up to 15 days. This reduces the usual waiting time involved in finding the right fit, without the common delays of lengthy interview rounds or sorting through unsuitable resumes.

With a clear grasp of regional strengths and hiring dynamics, outsourcing becomes a powerful way for companies to stay competitive and innovative. To make hiring even easier, we provide a straightforward, step-by-step guide designed to help you kickstart your recruitment process with Teamified quickly and confidently.

Check out our simple guide to get started today.

References:

[1] 2025 Global Talent Shortage (go.manpowergroup.com)

[2] 10 Best Countries to Outsource Software Development in 2025 (sphinxjsc.com) 

[3] The Top 5 Countries for Outsourcing Tech Jobs in 2025 (techgyd.com)

[4] The world’s largest ranking of countries and regions by English skills (ef.com)
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[5] How Remote Work in Tech Companies Transformed Sri Lanka into an IT Solutions Landscape (swiveltech.io) 

[6] Why Outsourcing Is the Secret Weapon for Tech Companies Battling Developer Shortages (superstaff.com)
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[7] The 'war for talent': the skills of tomorrow (microsourcing.com)
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[8] How Companies Can Address The Tech Talent Shortage In 2023 With IT Outsourcing (kms-solutions.asia)

[9] Overcoming Talent Shortage Through Outsourcing (optibpo.com)

[10] How to Solve the Tech Talent Gap With IT Outsourcing (deazy.com)   
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Learn how to save up to 70% by outsourcing versus local hiring costs – plus, get a free expert assessment to maximise your strategy!