Global chip shortage

What is the Global Chip Shortage?

The supply chain bottlenecks we’re experiencing worldwide start with chips, specifically, chip shortages. Only a few previous unbalanced markets can compare to the current global chip shortage. However, it is exceptional in the breadth of product groups experiencing a supply and demand mismatch. And there are no signs of the phenomena slowing down any time soon.

Chip vendors have raised prices by 5% to 15% across the board in response to supply restrictions and rising raw material shortages and expenses. Price increases for older analog and diode technologies have reached 20% to 25%. According to Jabil, these rises, like the shortages, are likely to persist beyond 2023.

Certainly, it isn’t the first time this has happened; severe chip shortages have occurred before, including in 1988 owing to excessive demand and in 2000 due to a scarcity of many Intel products. Then there was the 2011 earthquake in Japan, which produced a significant shortage of NAND memory and screens. Today, the global chip shortage is due to an increasing lack of skilled personnel, particularly highly qualified engineers needed to develop new chips and handle production challenges for ever more complicated ones. 

Many sources quoted by the WSJ said that the supply-demand disparity is widening because of the talent shortage:

“The world’s leading chipmakers are competing for personnel to staff the billion-dollar-plus facilities they are constructing worldwide to address a semiconductor shortage. […] New chip-making facilities, known as fabrication factories, need the employment of thousands of college-educated engineers. Technicians supervise and manage the production process, while researchers contribute to developing new types of chips and manufacturing methods.”

Furthermore, according to a research by Eightfold.ai, about 70,000 to 90,000 people or more would need to be hired in the United States alone by 2025 from 2020 levels to cover the most important manpower demands for predicted fab development. So, how can companies cope with this talent shortage they are facing?

One solution is nearshoring. Nearshoring is a tried-and-true method of staying competitive by recruiting talented individuals in the same time zone but living in lower-cost-of-living locales. 

Here is everything you need to know about the tech talent shortage and what you can do about it: Are you struggling to find software engineers?

ITJ supports fast-growing and high-value market areas by assembling talented teams, saving organizations valuable time and resources in recruitment, and establishing big, low-cost, high-performance software engineering centers. Get in touch with us, and we can help you solve your talent shortage obstacles.

About ITJ

ITJ is a trusted partner in building the finest software engineering teams in the Americas. For more information, visit www.itj.com.

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Are you struggling to find software engineers?

The struggle to find well-trained software engineers has become an issue for enterprises globally, but is now more concentrated in the US. When firms hold open software engineering roles for months, the problem might appear obvious: There just aren’t enough developers. According to ManpowerGroup’s US skills shortage statistics, 69% of US companies would struggle to fill positions in 2020. Tech jobs are among the top ten most difficult to fill. According to the Bureau of Labor Statistics, the scarcity of engineers in the United States will reach 1.2 million by 2026, while 545K software developers will have left the market by then.

The majority of businesses are already attempting to solve the skills shortage. In the last five years, hiring developers as contractors and freelancers has been the most common method to address skills shortages. The truth is that no one solution fits all, but we present one here:

Nearshore and create technology centers of excellence in Mexico. The worldwide Covid-19 epidemic showed us that most businesses can successfully run a remote workforce, implying that the geographic and educational constraints that most companies previously faced are now essentially non-existent. It’s time to investigate fresh possibilities and think outside the box. Take a nearshoring solution, for instance, where working with a partner can bring you benefits such as: A contract, having a single cost, and does not need the adaption of additional offices, new equipment, or extensive training. Nearshore software professionals don’t need to learn new technologies and already have a lot of expertise and outcomes in their portfolios to help the new customer right away.

Mexico is a strategic location that allows firms to operate inside the thriving border economy while also improving relationships between Mexican and American industries. Mexico offers excellent quality for moving global and binational corporate investments, thanks to its unique cross-border integration and IT/Software development and its transnational culture and high-end binational talent pool.

About ITJ

ITJ serves fast-growing and high-value market sectors. With a unique BOT (build, operate, and transfer) model that sources only the best digital talent available, ITJ enables companies in the US to create technology centers of excellence in Mexico. We create long-term relationships with partners and build highly-trained and reliable teams. For more information, visit www.itj.com.

Remote working, more cooperation, digital transformation, and other factors put new and rising strains on the workforce. Most organizations will need to adapt their staff to fulfill these needs to stay competitive. To nearshore is an achievable goal a company can set to find trained and qualified software engineers.

The future of Software Engineering by ITJ

The future of software engineering

According to the US Bureau of Labor Statistics, job possibilities in software development will expand by 22% from 2020 to 2030, well above the national average growth rate of 8% for all professions. These figures indicate that software engineering has a promising future, especially as new software development trends drive the field forward.

But what does the future hold for the key industries regarding software engineering?

For Health Tech, software engineering revolutionizes the collecting and processing of health data, opening up previously unimagined diagnostic and preventive disease possibilities. This increased interest in telemedicine and telehealth and the development of the IoT have led to the emergence of a new industry: the Internet of Medical Things (IoMT). It combines the usage of numerous wearables, such as ECG and EKG monitors, to cover some of the most frequent medical data, including skin temperature, glucose level, and blood pressure readings.

To know more about IoMT, you can visit IoMT and Medical Device Cybersecurity

For FinTech, the advent of online and mobile payments, as well as alternative financing, has increased the demand for financial management software 66.7% of bank executives said they already interact with FinTech and major tech businesses to develop new services for their clients. In addition, the financial sector is highly software-intensive, so an excellent specialization in studies could turn attractive to many undergraduates in IT. 

For eLearning, purchasing educational resources through the internet has become the new normal. According to this study, the eLearning industry will grow to more than 370 billion dollars by 2025, up from 101 billion dollars in 2019. 

For eCommerce with online shopping forecast to quadruple in size by 2023, reaching 6.3 trillion dollars, eCommerce software development is the trendiest field for software developers to work in. As systems progress, autonomous systems will come to play a critical role in delivering, integrating, and interoperating to meet supply chain needs. The expansion of commercial systems in the fourth industrial revolution necessitates connectivity, information transparency, technical aiding systems, and decentralized decision-making for electronic commerce systems to be sustainable. As a result, imagining commercially creative ideas needs smooth and interoperable solutions widely acknowledged across the business ecosystem. It necessitates fast network connectivity, scalable communication across systems and devices in storage and architecture, and transaction decentralization.

For R&D, corporations and governments rely greatly on innovative tech solutions to pursue innovative solutions and discoveries. This trend will continue to gain traction, as software programming research and development will increasingly rely on Artificial Intelligence and Machine Learning solutions soon. As a result, companies are investing more in R&D than they have in the past. In a recent poll of prominent European companies, 52% said their organizations would increase R&D budgets in the next year or two, and 67% said they aim to do so in the long run. The reason is simple, companies who invest in software R&D will gain a competitive advantage. Those that do not will lose clients and be relegated to a second-tier position in their industry.

Programming will pervade practically all business domains and our daily lives in the future of software engineering. The imperative need for skilled software engineers will mold new hiring processes in any business worldwide, and the lack of talent for some countries could harm their speed in operations. Luckily the best solution for this kind of scenario is called Nearshoring. If you want to know more about acquiring the best talent for your company, you can visit How to Choose Your Nearshore Software Provider?.

About ITJ

ITJ is devoted to serving fast-growing and high-value market sectors, particularly the Internet of Medical Things (IoMT), working with innovative medical device companies looking to improve people’s lives. With a unique BOT (build, operate, and transfer) model that sources only the best digital talent available, ITJ enables companies in the US to create technology centers of excellence in Mexico. For more information, visit www.itj.com.