Since Covid shook the world of business and forced companies to adapt to survive, flexibility became of key importance to organizations and IT professionals both. Many companies had to rapidly respond to the pandemic by accelerating digital transformation and shifting their focus onto automation, cloud-based solutions and data analytics. To match their sudden need for more flexibility and scalability, businesses can rely on the team extension cooperation model with providers of IT talent and embrace the idea of a contingent workforce.
The growth of the contingent workforce and its impact on the software development industry
The contingent workforce is a rapidly growing segment of the labor force, and its impact is being felt across a wide range of industries. Nowhere is this more evident than in the software development industry, where the growth of the contingent workforce is essential for meeting the ever-changing needs of innovators and disruptors.
There is no doubt that the contingent workforce is playing an increasingly important role. A recent survey by Forrester Research found that 63% of software development companies now use independent contractors, up from 53% just two years ago.
The rapid growth of the contingent workforce is driven by a number of factors, including the increasing demand for specialized skills and the need for flexibility in response to changing market conditions. There is no question that this growing segment of the labor force is having a profound impact on the way software is developed and delivered to customers.
The benefits of working as a contingent worker in the software development industry
As the software development industry continues to grow, more and more companies are turning to contingent labor to fill their needs. While there are many benefits to this arrangement for businesses, it can also be advantageous for team members. Temporary workers often have more flexibility than traditional employees, which can be a major asset when it comes to managing work-life balance. In addition, contingent workers are typically able to choose which projects they work on, giving them a greater sense of control over their careers. For these reasons, working at a company that provides team extension in the software development industry can be a very rewarding experience.
The prevalence of gig economy
In recent years, there has been a growing trend towards the gig economy. This refers to the increasing number of people who are working as freelancers or on short-term contracts, rather than in traditional full-time jobs. Several factors have contributed to this trend, including:
- The increased use of technology, which has made it easier for employers to connect with experts from all over the world and hire them to do specific tasks or complete specific projects.
- Skills shortages in certain industries, which have made it difficult for companies to find the talent they need to fill their vacant positions as the generation of Boomers continues to retire.
- A need for flexibility, both on the part of employers and employees.
- A need to mitigate risk and lower employment costs.
The benefits of hiring contingent workers
The gig economy has a number of advantages. For workers, it offers greater flexibility and the ability to work from home. In fact, the majority of Millennials and Generation Z express a high interest in flexible contract work that leaves them space to pursue additional interests. The employee-employer relationship also shifts towards contractor-client, which changes the conversation between the parties, giving gig workers more autonomy.
For employers, gig economy can help to reduce recruitment costs and improve workflow efficiency. It is also a source of highly skilled experts that would have been unattainable otherwise. The added flexibility and team scalability gives companies the ability to adjust to dynamically changing market conditions, while access to an extensive talent pool from multiple countries means easier budgeting and faster launch for ambitious projects.
Contingent workforce management
While contingent workers can bring many benefits to a company, it is important to manage them effectively. Here are some tips for managing a contingent workforce.
Plan ahead: When you know you will need contingent workers, start planning early. This will give you time to find the right people and get the necessary approvals in place.
Be clear about expectations: When you do bring contingent workers on board, be clear about what you expect from them. This will help to ensure that everyone is on the same page and that the project runs smoothly. It will also enable you to benefit fully from new team members' expertise.
Communicate regularly: Once the project is underway, communicate regularly with the contingent workers. Just like with permanent employees, this will help to keep them updated on progress and ensure that they are meeting your expectations.
Monitor performance: As with any team, it is important to monitor the performance of contingent workers. This will help you to identify any issues early on and address them before they become a problem.
Use a vendor management system: contingent labor can be accessed through a vendor like DEVTALENTS, which further simplifies matters such as employee benefits, paid time off, health insurance, or labor laws. Taking advantage of good vendor management may be a way to simplify the entire administrative side of expanding your team.
The contingent workforce is playing an increasingly important role in the software development industry. By understanding the benefits and managing them effectively, companies can reap the rewards of this growing trend.
Predictions and trends - how gig economy shapes the future of the IT market
As the world becomes increasingly digital, the gig economy becomes a viable option for additional industries and is adopted by leading organizations. More and more businesses are finding that they can save money and increase efficiency by hiring contract workers for specific tasks, rather than full-time employees. This trend is especially prevalent in the IT sector, where companies are always in need of the latest skills and technologies. As a result, the IT team augmentation model is likely to see continued growth in adoption.
The growth of the contingent workforce and its impact on the software development industry is a sign that companies are looking for more efficient and cost-effective ways to get work done and ensure they remain competitive. A staffing agency or technological partner like DEVTALENTS could be just what your business needs to extend its workforce with non permanent team members, ensure cost savings, expand to new markets, and not worry about compliance issues.