You might not have noticed, but the products youre buying at the grocery store are getting smaller.
Thats right: Theyre shrinking.
However, prices arent staying the same.
In May 2021,global food priceswere the highest theyve been since 2011.
40% off TNW Conference!
Thats not the right way to deal with inflation in the software development industry.
Some of these pressures have been mounting for years, while others directly result from the recent economic downturn.
The surge in remote work made software vital to businesses survival.
According to an IBM survey, the pandemic accelerated digital transformation at59%of organizations.
The amount of money being poured into digital transformation could balloon to more than$2 trillionby 2022.
According to Twilio,79% of companiesclaim that COVID-19 increased their budget for the effort.
Maybe this will make some of the laggards get off the proverbial pot.
Sidebar: The ridiculous thing about digital transformation hasnt changed.
Its not a process with a defined end.
Business owners will never wake up and discover that poof!
their companies are transformed.
It makes a lot more sense to view it as an ongoing process.
(Ill step down from my soapbox now.)
Organizations still have plenty of work to do, which bodes well for your business despite software industry competition.
Your best-in-class digital services are the key to meeting executives digital innovation goals.
However, something about this shift feels different.
Ive been in software development for 15 years.
verify you might compete in the modern market.
In the US, professional services experienced an average annual inflation rate of4.86%between 1961 and 2021.
Clients need software products that thoroughly address their pain points and improve existing workflows.
If youre producing something thats ineffective, youll see fewer repeat customers and likely experience a decrease in revenue.
No one wants that.
Here are my three tips:
1.
And if your workers are more productive, youll seeincreased profits, according to Gallup.
But how do you attract high performers?
By focusing onemerging technologies.
These technologies can make existing processes more efficient, but they can also act as a draw for talent.
Software developers are looking for companies that are the next big thing.
Artificial intelligence, blockchain, and more will inevitably shape the world in countless ways.
Top talent wants to drive that change.
Increasing investment in and commitment to AI is now a necessity.
What looks like magic to your competitors in five years is actually the result of todays good planning.
And AI is not a set of niche technologies it is most effectively deployed horizontally across an organization.
And as I mentioned before, productivity improves profitability.
This isnt to say you should underpay or overwork your employees.
That mistake can result in poor performance and turnover, which is counterproductive to your goal.
Nothing beats working for a company that genuinely supports its employees.
It requires skill in tailoring a solution to precisely meet a customers needs, and communicating that effectively.
The corresponding savings in software development costs can mitigate the impact of the current inflationary trend.
Even though it seems counterproductive, software development consulting rates can keep the overall cost of the project down.
To be frank, software development isexpensive.
It was expensive two years ago, and it will be expensive two years from now.
Resisting the urge to raise your prices will help you stand out among your competitors.
