Is Outsourcing to Denver Software Development Firms Changing the Game for CIO’s & IT Recruitment Strategies; Cost, Talent and Scalability Are Liking Factors

In recent years, Denver has been one of the hottest job markets for technology nationwide.

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However, recent studies suggest the hiring craze may be dwindling. According to an article from the Denver Post, which cites a study conducted by Robert Half Technology, landing a job in technology could become more challenging.

An explanation for the hiring decline could be the latest trend of outsourcing specific projects to consultants who are specialized in a particular sector. According to The Smart Cube, IT companies are predicted to “increasingly focus on centralizing their IT delivery systems to reduce costs, increase productivity and improve the quality of service offered.” Instead of hiring the staff required to complete a certain project, it has proven to be more efficient to outsource the task to another company, and at the same time streamline processes.

Robert Half’s “IT Hiring Forecast” surveyed more than 100 Denver-area chief information officers of IT operations. The results of the survey concluded that when compared to last year, tech companies in Denver plan to hire less IT staff. Although the change is slight, 65 percent of companies plan to hire for open IT positions; this has lowered from 70 percent in 2015. In addition, the study noted 2 percent of companies will reduce their tech workers, compared to none in 2015. Although the survey did not ask why companies are scaling back on hiring IT workers, there are several possibilities that could account for this trend.

While IT used to be one of the best job markets for recent college graduates, this is not the case anymore. In Q4 of 2015, according to CIO, there was an average of 41 applicants for every open IT position – nearly double compared to any other job market (21). Another issue facing the IT job market is the demand for highly skilled workers, and educational systems aren’t able to keep up with the pace at which technology is evolving. Recent grads are not always equipped with the skills that are required to succeed in the IT workforce.

In addition, every business sees variations in workloads throughout the year. It is possible that the Denver market is expecting a slower pace of work for the next six months, and it could likely bounce back in another 6-12 months.

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