How SMB in the US can deal with the problem of developers hiring

Have you ever faced the problem of developers hiring? If the answer is yes, we hasten to tell you that you are not alone in this. The situation in the IT market is pretty unstable. Year after year, the problem of talent shortage becomes more relevant. According to the latest iCIMS research, job openings are 79% higher than in January 2020. Hiring activity also increased by 69% from the past year, while job applications are only 5% higher.

Developers shortage

The advent of the Internet has led all the world to digital transformation. Companies from different fields faced the need to implement new business models. To continue their operations through the Internet, entrepreneurs had to apply new technologies.

Nowadays, it’s hard to imagine a company that doesn’t conduct business via the Internet. That’s why the IT industry is one of the most popular and important segments, not only for technical development but also for the economy.

With the lightning-speed development of this area, the need for professionals in the market has also significantly increased. According to the following report, more than 25 000 vacancies in the IT industry appeared only in August. And it looks like this avalanche of job openings cannot be stopped just like that.

As stated in the CompTIA study, the number of jobs in the US IT sector in August 2021 (4.79 million) exceeded its peak value in March 2020 (4.76 million).

Recently, startup executives have become increasingly concerned that a shortage of qualified developers will lead to problems with technology automation. The outbreak of the pandemic has forced many companies to change the way they worked before. During the lockdown, companies had to rebuild processes and create a separate IT infrastructure to support operational processes.

But in fact, the problem of talent shortage is negatively reflected in other IT branches, such as database support, security, computing infrastructure, and others.

Increasing of developers salaries

As more and more companies need to move with the times and pursue technologies, it becomes even harder to find a dedicated team of IT professionals. The speed of technology development far exceeds the time it takes for a graduate to become a real specialist.

A severe talent shortage is a reason for the rapid growth of developers’ salaries. Based on the following report, salaries in the IT section increased by 3.6% only for the 2020 year. And this indicator is constantly growing. It’s expected that by 2022 salaries will also increase by 3%. According to this, 41% of companies are going to extend their salary budget.

In such conditions, it’s even harder for startups to compete with big and world-famous companies. Frequently, small and medium-sized companies don’t operate on enormous budgets. That’s why it’s quite challenging for them to attract qualified employees. Just take a look at how different salaries are in companies with a worldwide reputation.

Competition with big companies

Nowadays, the majority of recruiters face the situation when a potential candidate accepts the offer of another company solely because there are more benefits. Considering how much the need for developers has grown, it’s not surprising that every company is trying to make working conditions more profitable.

Big companies frequently tend to provide incredible benefits. Although it’s not very easy to get into world-renowned companies, many developers are always ready to try their luck. But it’s already hard to surprise some developers with unlimited vacations, relocation assistance, paid parental leaves, tuition reimbursement, and other amazing bonuses. It’s even hard to imagine what sophisticated methods companies will be ready to use soon to get the needed talent.


At the time of such a great demand for developers, companies should think about their reputation and implement different hiring tactics. You can use freelance websites, outsource product development, adopt employee referral programs, increase your NPS score.

But the easiest solution — a collaboration with companies that specialized in staff augmentation. This is a great opportunity not only to create or complete a team with the needed professionals but also to delegate such resource-consuming processes as employee hiring.

Benefits of staff augmentation


Staff augmentation is much more profitable than hiring a developer for a long- term period in your country. For example, working with developers from Ukraine you get a quality product but without a huge expense. Ukrainian app developers receive from 12 to 37 dollars per hour, which is significantly less than developers from the US or other European countries. Moreover, with the staff augmentation model, you don’t spend extra money on things like health insurance or accounting processes.

Control over product development

By outsourcing product development or maintenance, you can control other useful business processes. You can take part at any stage of collaboration with the staff augmentation company, from interviewing potential employees for your project to communicating with lead developers. Also, you have no need to waste resources on such time-consuming things as legal aspects of staff hiring, providing employees with the needed equipment, thinking of corporate events, or even conflict resolution.

By collaborating with offshore developers, companies don’t need to participate in the race for developers. They can focus on their main goals by delegating engineering processes to talents from outsourcing companies. Economic advantages, combined with a high level of developers’ productivity, speak in favor of staff augmentation.


Using staff augmentation, you can manage your business processes in accordance with current resources and requirements. You can collaborate with the needed number of developers anytime, depending on whether you need to reduce, increase, or create a team.

Table of contents

Tell us about your project

Fill out our form below or send us an email

    Contact us now
    Alyona Zhernovnikova
    Business Development Manager

    This website stores cookie on your computer. They are used to improve your experience both on this website and through other media. Cookies Policy

    We won't track your information when you visit our site. But to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again.