Tech Sector – Q1, 2023

Strong demand persists, while job seekers look for stability.

The pattern that started early 2023 with news of layoff by some of the Tech companies is still visible, with companies like Amazon, Meta and Accenture’s recent announcements to cut workforce, which is largely believed to be a result of aggressive hiring in the past 18 to 24months.

However, it is also important to keep in mind that the Tech industry is not limited to Tech companies. Technologists are needed across industries and the demand is ever growing.  This demand from the non-Tech companies continue to keep the Tech job market strong.

As per a recent study by Forbes, one emerging trend is that tech workers employed in tech companies are looking for jobs in industries other than tech for stability. This also provides an opportunity to non-tech companies of all sizes to be able to hire this highly skilled workforce.  We are witnessing this shift becoming increasingly common and believe this trend is here to stay, at least in medium term.

We are witnessing demand for technical skills across the spectrum of technology, but more specifically in software development, enhanced end user experience and systems engineering roles.

There is also an influx of opportunities for VP and Director levels, especially by small to mid-sized companies.

While there may be some concerns in the short term due to several news about job cuts, most workers are able to find new opportunities within three months.

A report from CompTIA’s State of the Tech Workforce predicts that tech industry will actually add jobs at 3 percentage or 272,000 jobs in 2023. This is almost as close to 2022 that saw an increase at 3.2 percentage or 286,400 jobs.

It highlights the areas that will see maximum growth:

•Data Scientists and Data Analysts – 5.5% growth

•Cybersecurity Analysts and Engineers – 5.2% growth

•Web Designers and UI/UX – 4.7% growth

•Software Developers and Engineers – 4.7% growth

•Software QA and Testers – 4.1% growth

•CIOs and IT Directors – 3.4% growth

•Systems Analysts and Engineers – 2.6% growth IT Support Specialists – 2.4% growth

Below are the tech job posting activity in March for the top 5 positions:

Job PostingsMarchvs. February
Software developers & Engineers87,643+20,172
IT Support Specialists30,840+6,893
Systems Engineer and Architects25,861+7,344
IT Project Managers21,041+5,623
Cybersecurity Analysts and Engineers15,572+4,948

CIOs are making sure that their organization continues to deliver on digital transformation and tech modernization. This in turn continues to push the demand for project managers, primarily for application development, followed by cloud and cyber security.

Another key observation is that software developers continue to be in short supply, making it a time-consuming experience for the hiring managers to fill these positions.

On one hand, the hiring managers tell us about the delays they experience in delivering projects and the required product uptime due to the shortage of qualified resources, developers share that they constantly have to spend extra hours at work due to excessive work load. An approach that we see being helpful in the current situation is to be open to adjacent skills and remote working to shorten the time to hire.

Additionally, tapping into only active candidates isn’t really an option in the current market. It is therefore necessary to expand the search and target passive talent.

A significant shift as compared to 2022 is in the mindset of job seekers. They are looking for stability and work culture over higher paycheck.

In many ways, this is a relief for the hiring managers who are usually at the edge when it comes to delivering against the roadmap.

Finally, another change that we expect in 2023 is an increase in contract staffing over full time staff.  The CIOs and hiring managers will find this easier to manage as it aligns well with the moving corporate dynamics.