That mistake can result in poor performance and turnover, which is counterproductive to your goal. This isn’t to say you should underpay or overwork your employees. And as I mentioned before, productivity improves profitability. Workplace culture might be hard to define or quantify, but plenty of studies show that close-knit teams and inclusive office environments are associated with higher levels of employee engagement and productivity. Invest in your current employees to keep them around And AI is not a set of niche technologies - it is most effectively deployed horizontally across an organization.Īccording to Boston Consulting Group, digital laggards tend to view AI as a standalone solution, which limits its effectiveness in their organizations. What looks like magic to your competitors in five years is actually the result of today’s good planning. Increasing investment in and commitment to AI is now a necessity. 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. These technologies can make existing processes more efficient, but they can also act as a draw for talent. And if your workers are more productive, you’ll see increased profits, according to Gallup.īut how do you attract high performers? By focusing on emerging technologies. Top talent can be 400% more productive, according to a study in Personnel Psychology. Embrace new tech that will attract top talent ![]() No one wants that.Īssuming this pricing spike is inevitable, how should you decrease how much you charge for professional services moving forward? Here are my three tips: 1. If you’re producing something that’s ineffective, you’ll see fewer repeat customers and likely experience a decrease in revenue. While shrinkflation might work in business-to-consumer industries like food and beverage, it’s not a tactic you should use to combat inflation.Ĭlients need software products that thoroughly address their pain points and improve existing workflows. In the US, professional services experienced an average annual inflation rate of 4.86% between 19.Ĭonsidering other professional services are experiencing increased demand - CNBC reports that home renovations will cost more and take longer - it’s safe to assume the inflation rate will rise in the software development space as more businesses invest in digital innovation. Researcher Aaron O’Neill estimates 2021’s global inflation rate to be 3.5%, which is significantly higher than 2016’s 2.7%. My advice? Make sure you can compete in the modern market. I’ve been in software development for 15 years. However, something about this shift feels different. ![]() Your best-in-class digital services are the key to meeting executives’ digital innovation goals.Ĭost, which has historically been the main factor impacting business decisions regarding technology investments, should theoretically become a smaller barrier. Organizations still have plenty of work to do, which bodes well for your business despite software industry competition. It makes a lot more sense to view it as an ongoing process. ![]() Business owners will never wake up and discover that - poof! - their companies are transformed. Sidebar: The ridiculous thing about digital transformation hasn’t changed. Maybe this will make some of the laggards get off the proverbial pot. According to Twilio, 79% of companies claim that COVID-19 increased their budget for the effort. The amount of money being poured into digital transformation could balloon to more than $2 trillion by 2022. Additionally, the Worldwide Developer Population and Demographic Report indicates that the number of developers increased by 2.5% in 2020 (albeit slightly less than the projected growth of 4%). ![]() The surge in remote work made software vital to businesses’ survival.Īccording to an IBM survey, the pandemic accelerated digital transformation at 59% of organizations. Thankfully for those of us in the software development space, there were fewer obstacles during the pandemic due to the demand for digital innovation. Some of these pressures have been mounting for years, while others directly result from the recent economic downturn. Firms are grappling with pressure to decrease professional services costs, increased competition and commoditization, and the rising cost of talent. The state of professional servicesįor some C-suite decision-makers, there are few options but to increase the charge for professional services. That’s not the right way to deal with inflation in the software development industry. If you think “shrinking” the amount of effort you put into projects is the best way to keep prices low, you’ll end up harming your company’s integrity and failing to meet client expectations.
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