Software Development Outsourcing Will Increase 70% by 2023, Commit Study Finds


NEW YORK–(BUSINESS WIRE)–The outsourcing of software development in start-ups is expected to increase by 70% between 2022 and 2023, according to new research from Commit, the leading global technology services company focused on custom software and IoT solutions. Additionally, 99% of technology and HR leaders now recognize the benefits of remote teams, with 3 in 4 (75%) seeing an increase in the productivity of their remote staff, a clear indication that worries about remote teams have all but disappeared.

“The growing gap between supply and demand for developing talent, along with emerging trends such as the growing gig economy, remote work and the great quit, create a need and opportunity for outsource skilled talent quickly,” said Max Nirenberg, chief revenue officer and general manager of Commit USA. “This is especially true for startups, which now face huge growth potential but struggle to scale quickly and efficiently.”

These are just some of the findings from Commit’s “2022 State of Tech Staffing” report, an in-depth research survey of 200 senior US tech start-up executives. The report addresses the many critical challenges and opportunities that tech start-ups face today when recruiting for success – from talent supply and demand issues to the benefits of remote working, talent sourcing and even more.

The true cost of staffing

According to the Commit study, the time it takes to recruit quality talent – ​​along with the seemingly inevitable turnover – leads to significant hidden costs that many organizations are unprepared for. Over 68% of companies spend a month or more recruiting a single developer. At a time, one in five new recruits (20%) needs to be replaced. To avoid these hidden costs, organizations need a better solution to onboard quality developers quickly.

“While finding the right skills is key, it’s also critical to consider the hidden costs of lengthy recruiting processes, as well as the inevitable challenges like rapid turnover or new hires that don’t work out,” said said Arik Faingold, Chairman and President of Commit. “To overcome these barriers, organizations need new outsourcing and technical team building strategies that enable rapid onboarding of quality talent with reduced risk and insurance if new hires are not the right fit. This applies not only to developers, but also to technical managers and project managers. »

Senior executives differ on the benefits of outsourcing

Outsourcing tech talent is becoming a critical ingredient for success, but the benefits are seen differently across roles and organizations. Commit found that while HR managers view the primary benefit of outsourcing as cost reduction (48%), CTOs view outsourcing as the key to scaling quickly (42%). However, regardless of the role, the biggest concern about outsourcing talent is the quality of work (56%).

Founded in Israel in 2005, Commit has solved work quality challenges when outsourcing. As a leading global R&D and software development company, Commit offers a full range of engineering capabilities and resources to design and deliver any project on time, within budget and with superior quality. The company supports its customers in a range of advanced technologies and applications for multiple industries, including Fintech, Medtech, Martech, IoT, consumer goods and more.

Relying on more than 600 multidisciplinary experts from around the world, Commit has successfully led software development projects for more than 1,000 organizations worldwide. Its clients range from early-stage startups to international brands such as IBM, Pentera, Maytronics, JFrog, Sapiens and Cisco.

The 2022 State of Tech Staffing survey questioned startups that had received a seed, round A, or round B investment round of $1 million or more in the past six months and included CTOs, CEOs, and leaders in HR, recruiting, or talent. , as well as vice presidents in R&D, engineering or technology.

To download the full research report, please visit:

About Commit USA

Commit is a global technology services company with offices in New York, Israel and Eastern Europe. The company was founded in 2005 and has more than 600 multidisciplinary innovation experts who serve a wide range of businesses, from small startups to large enterprises across multiple industries. Commit specializes in advanced technologies and applications with dedicated practices in Software, IoT, Big Data, Cloud, Cyber ​​and more.

Commit provides innovative end-to-end technology solutions by developing custom software and IoT platforms for customers looking to build their next-generation product. Commit’s comprehensive, comprehensive engineering resource center and proprietary flexible R&D methodology help transform its customers’ technology visions into high-quality products while reducing costs and improving time-to-market.


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