Why Tech Startups Have Difficulties Recruiting Great Developers (and What They Can Do About It)

Nov 25, 2014

For tech startups, it’s the developers that make or break it. When your business is only entering the market, you need a strong technical team to have your back. Moreover, you need people who are experienced enough to find solutions independently, but risky enough to put up with the atmosphere of uncertainty that is characteristic of tech startups.

Most startup owners have discovered at some point that finding these people is not that easy. In the competitive IT labor market, where top developers are literally stalked by recruiters, even an established business may have difficulties hiring, to say nothing about a newly born IT company.

So why is IT recruitment so difficult for tech startups and what is the way out for them? The reasons why your startup still hasn’t hired the programmers it needs can be one — or all — of the following.

Inability to Compete with Big Corporations

You understand that companies like Twitter or Google offer their candidates salaries and benefits packages your startup budget is not able to match. Add the stability and confidence working for a big company means, the prestige of a well-known brand, and it’s easy to understand why most good coders choose to work for IT giants rather than a no-name business.

Shortage of Talent

Not all tech startups are located in Silicon Valley. If you are starting an IT business in an area away from technical and educational centers, you will not have a lot of candidates to choose from. This is especially true for European countries, like the Netherlands or Norway, where even businesses with bigger budgets and a reputation in the labor market make an effort to find a good developer. For a startup in such areas, the shortage of talent becomes a real problem.

No Recruitment Expertise

Tech startups rarely have a well established HR and recruiting system. Very often it’s the business owner who finds and interviews the candidates, or an in-house recruiter, who is a beginner in the field (since experienced IT recruiters often cost more than startups can afford). Consequently, the hiring process falls flat or takes much more time than has been planned.

So What is the Way Out for Tech Startups?

In the last decade, offshore development has become the solution to all IT recruitment problems tech startups have. A number of countries in Eastern Europe and Asia have seen an outsourcing boom, and now offer a bigger supply of IT professionals than smaller states in the West. Combined with lower salaries, which means even a startup with its limited budget can afford top-notch programmers, offshore development has become a blessing.

Although most business owners think of outsourcing as finding a development contractor company somewhere East, there is another model, much more suitable for startups. When you start building a product, you want to create it with people you trust and to have full control over the process, which means you need your own IT software development team. The offshore staffing model allows you to hire offshore developers, who will be working remotely as a part of your company and will be fully dedicated to your project. It’s now easy to find a local staffing contractor, who will not only do the recruitment for you, but also help with the distributed team setup and take care of the practical side.

For tech startups, IT recruitment is one of the most important stages that defines the future success of the product. If you need to have great developers on board, but don’t have the means to hire them locally, an offshore IT software development team is a smart choice.

Are you looking to hire developers? Set up your own remote software development team with Daxx.

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