The global tech sector is in constant flux, but developing software locally still offers businesses a host of advantages they can’t get anywhere else, writes Greg Vercellotti, executive director at Dariel Software.
A persistent shortage of ICT skills has long been a concern in South Africa, with some reports suggesting little to no improvement in the chronic shortage across almost all sectors, forcing organisations into the trap of continuously recycling ICT skills. This is exacerbated by the global demand for top talent, which often lures skilled professionals abroad, further depleting the local talent pool.
At the same time, the spectre of tech layoffs overseas has shaken the once-fail-safe perception of tech jobs. Recent statistics from the UK reveal a decrease in demand for intermediate-level software developers, with advertised salaries falling back to 2019 levels.
This trend is mirrored, albeit more acutely, in South Africa. Data from CareerJunction and OfferZen shows a 15% decline in hiring activity within the IT sector during early 2024 compared to the last quarter of 2023. Junior developers, in particular, are feeling the brunt of the downturn and face significant challenges in securing and passing interviews.
While outsourcing to international teams might seem like an attractive option, the region-specific skills and foresight of home-bred talent bring significant benefits and should give businesses pause in their approach to software development.
Local teams are often just more equipped to give real insights into the South African market, the current regulatory landscape, and various other nuances that can make all the difference to the overall success of a project.
Moreover, South African software engineers are known for their well-rounded expertise and bring a unique value proposition to the table. They don’t just follow the spec; they interpret it, work collaboratively with clients to solve real problems, and adapt to the project’s true needs.
This ability to go beyond the spec, combined with cultural, language and time zone alignment with key markets like Europe, gives South African developers an underappreciated edge over their international counterparts. Despite the competitive price points offered by regions like India, South Africa’s technical depth and collaborative approach still make for a compelling choice for businesses looking to build software that truly meets their needs.
Choosing a local software development team offers significant advantages as they can easily integrate with in-house staff, leading to improved communication, collaboration, and innovation. Although it may seem obvious, the ability to have face-to-face meetings and real-time discussions, even if they are infrequent, facilitates the exchange of ideas, resulting in more precise and effective software solutions.
This direct interaction not only speeds up problem-solving but also ensures that the development process is in line with the business’s strategic goals and operational realities.
Additionally, investing in local talent directly contributes to the growth and prosperity of the South African economy. By choosing local developers, businesses support community development and benefit from transparent pricing in local currency, avoiding the complexities of international transactions. This economic investment fosters a more robust and resilient local tech ecosystem, which in turn creates more opportunities for future generations of tech professionals.
Local teams also provide the assurance that sensitive data remains within national jurisdiction, ensuring compliance with local regulations. A solid familiarity with regional regulatory requirements helps businesses mitigate risks and maintain robust security standards.
This is particularly crucial in industries like finance and healthcare, where regulatory compliance and data security are non-negotiable. Working with local developers fosters cultural alignment and creates a cohesive, motivated team environment. These professionals share a deeper understanding of their client’s business ethos and values with better outcomes for long-term success.
Ultimately, the choice of a software development partner can significantly impact business outcomes. A deep-rooted understanding of the South African market offers businesses a strategic edge. By choosing local developers, companies not only gain access to superior technical expertise but also contribute to the broader economic and social fabric of the country.