Navigating the Talent Crunch: Effective Reskilling Strategies for Software Engineering Talent

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Building
effective Software Engineering
(Focus on the US) Copyright @2023 Draup. All rights reserved Conceptualised and Developed: May – 2023 This document aims to showcase the evolving complexity of software engineering and the growing demand for New age skills and further provides an overview of cost-effective reskilling strategies to navigate the hiring budget challenge
Reskilling:
Cost-
Talent

Growing Complexity of Software Engineering (SE) due to:

• Advancements in Generative AI and Automation

• Constant Upgradation of tech stacks

Executive Summary

Hiring challenges:

• Scarcity of Talent with emerging skills

• Inflated talent cost due to hiring competition

Cost-effective strategies to fill talent gap:

• Upskill Software Talent: Save 10%-50% on the cost

• Reskill Adjacent Tech/IT Roles: Boosts employee retention

• Recruit to Reskill: Save $40K - $70K/ FTE

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CONTENTS

4-6 Pages

• Emergence of New Age skillsets in ‘Software Engineering’ Job family

8-14

This section covers:

• Key trends impacting Software Engineering job function

• Impact of trends on the skillset of Software Engineering job roles

• L&D strategies becoming critical for building Software Engineering teams

• Actionable L&D strategies to build Software Engineering workforce with emerging skillsets

Source: Draup

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Growing complexity in Software Engineering (SE): Evolving trends in technologies such as Cybersecurity, Blockchain, and AI are increasing the complexity of Software Engineering

Critical role of Software Engineering

Crucial technologies with base as Software Engineering

Currents Trends in Technologies leading to major changes in Software Engineering

Cyber-security to Cyber-Immunity

Building resilient systems to strengthen Cyber Security

Cybersecurity

Software Engineering is central to multiple technologies as it enables the creation of sophisticated, powerful, and userfriendly systems

AI/ML (Generative AI)

Blockchain Low-Code/ No-Code

Internet of Things

Metaverse

Blockchain

Software Engineering

& Other Technologies

Oriented Software (BOS)

Building decentralized and secure software ecosystem through application decentralization

Generative AI

Based Software Dev. Assistant such as ChatGPT

Generative AI automating code building, supporting Software Engineering

DevOps & DBMS

Server/Cloud Operating System

Tech. & Methodologies supporting SE

Industry - Cloud Integration

Cloud integration with Microservice to enable agile, scalable, and flexible applications

AI based

Automation in DevOps

Automated CI/CD with AI-based monitoring for detecting issues, speeding up deployment

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Note: Insights have been extracted from Draup’s ML model which analyses 2 M+ publications, Industry reports, and news articles on a weekly basis. Data has been collected from publicly available sources such as Government portals, news articles, and recent reports on the Global Market

Emerging Skillsets in Software Engineering: Increasing complexity is expanding the Software Technology stack, leading to demand for emerging and New Age skillsets

Emerging functional skillsets and tools in Software Engineering job family

Soft skills required at each level of Software Engineering job family

Emerging Functional Skills

Tools addition due to emerging skillset

Leadership Business Acumen Negotiation Skills

IoT & Wearable

Devices Mobile App Development (WebRTC, RTSP)

Software Design, Development & Documentation

Systems Design Interfaces

Software Systems & Frameworks (AnglularJS, Git, .NET)

Traditional Functional Skills

Databases And Objectrelational Mapping (ORM) Frameworks

Front-end Technology Stack (ReactJS)

Software Engineering

Software Development Life Cycle (SDLC) Ruby on Rails

GO language

Build Automation Tools (Gradle, Maven)

Time Management

Cognitive Flexibility

Presentation Skills

Version Control Software Tools

(IBM Rational Clearcase, Git)

Empathy

Strategic Thinking

CustomerCentricity

Computer Ar., OS, And Data Structures

Programming Languages (JavaScript, Java, C++, PHP, Python, Go)

Source Code Management & Revision Control System

Containerization (Docker, Kubernetes)

ORM Frameworks (Hibernate, Apache OpenJPA)

Decision-Making

Organizational Skills

Emotional Intelligence

Analytical Skills Problem Solving

Development Frameworks (ReactJS, AngularJS, Node JS, Next.js)

SDE or ‘Software Development Engineer’ is one of the critical role (analyzed further in detail)

Critical Thinking

Communication Skills

Collaborative Skills

Detail-Oriented

Soft skills

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Source:
Note: Above mentioned skillsets are not exhaustive. Draup analyses 30K skills for 4,500 job roles from 350 Mn Job description Databases and 750 Mn+ Talent profiles.
Draup’s AI-Driven Talent Intelligence Platform
Job Role Maturity

Total Tech talent

Challenges in building a Software Engineering team by hiring

Actionable & Cost-effective Reskilling strategies to overcome lateral hiring challenges

Narrowing hiring pipeline

Number of Bubbles indicates talent availability

Internal Upskilling

• Identify emerging skillsets required in firm

• Assess the current gap by mapping skills

• Develop custom L&D programs

Internal Reskilling

• Identify adjacent talent within the firm

• Simulate the feasibility of reskilling transitions

• Reskill with targeted L&D modules

Recruit to Reskill

• Identify low-cost locations with high availability of adjacent talent

• Recruit talent with high skills overlap

• Reskill with emerging skillsets

Note: Illustrative representation

Note: Draup has a dedicated ‘Reskilling Navigator’ module that tracks 4 Million career paths to understand the Reskilling feasibility between job roles. Using Machine Learning models, Draup analyses the skills gap and suggests targeted learning modules from a corpus of 300K+ courses. Sample Visual representation of decreasing talent availability, actual data may vary

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Low High Low Moderate Moderate Moderate High Moderate High Time required Cost effectiveness Scalability Emerging/New Age ..Skillsets requirement by companies Highly inflated Talent cost for the existing talent pool Limited talent availability in hiring location A B C
Inflated software talent salaries and budget cuts are prompting enterprises to adopt ‘Reskilling’ as a sustainable and cost-effective alternative to ‘Lateral hiring’

CONTENTS

4-6 Pages

• Emergence of New Age skillsets in ‘Software Engineering’ Job family

8-14

• Actionable L&D strategies to build Software Engineering workforce with emerging skillsets

This section covers:

• Internal upskilling for SDE or ‘Software Development Engineer’ talent with New Age skillsets

• Internal Reskilling:

• Job role assessment

• Transition analysis

• Recruit to Reskill:

• MSA assessment across the United States

Source: Draup

• Deep-dive analysis for adjacent talent in Atlanta

• Cost analysis of Reskilling vs Hiring

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Draup analyzed 100+ companies to understand the emerging and in-demand cloud skillsets of a sample role - ‘Software Development Engineer’

Software Systems And Frameworks

GPT Prompt Engineering for Developers (AutoGPT , OpenAI etc)

Ruby on Rails

GO Language (and other in-demand languages )

Debugging

Front-end or Client-side Technology Stack (Reactjs)

Database Management Systems

Data Engineering & Infrastructure Management

Application and Web development Cloud Computing DevOps

Understanding of Data Structures And Algorithms (Leetcode, Etc. )

Software Systems & Frameworks (Anglularjs, Git, Github, and . NET

Programming Languages (JavaScript, Java, C++, PHP, Python)

Performance Tuning (Profiling Tools, Code Optimization & Load Testing)

Cloud Debugging (CloudWatch Logs, Azure Application Insights, & Google Stackdriver)

Security Debugging (penetration testing, static code analysis, etc.)

Non-relational Database Mgmt.: MongoDB, Cassandra, Redis, Elasticsearch)

Data Warehousing: (Amazon Redshift, Google Big Query, Snowflake etc.)

Natural Language

Processing Tools (NLTK, spaCy)

IoT Protocols and Frameworks (MQTT, CoAP, AMQP, LoRaWAN,etc )

Low-code or Nocode Platforms (Appian,Mendix, Kisslfow etc)

Serverless & Hybrid Cloud Computing Programs(Lambda , EC2 etc)

Debugging

Serverless Applications (AWS Lambda & Azure Functions)

Computer Architecture, Operating Systems & OOPs

Familiarity with Software Dev.

Methodologies (e.g., Agile, Scrum)

Operating Systems

Knowledge (Linux & Windows &other OS-tech)

Profiling (Visual Studio Profiler, JetBrains dotTrace, and Apache Jmeter)

Debugging Tools and Techniques (Visual Studio Debugger, GDB, and LLDB, etc.)

NoSQL Databases (Cassandra, Aerospike, DynamoDB)

Big Data Processing and Analysis Tools (Hadoop, Spark)

Machine Learning

Algorithms: (Decision trees, Linear & Logistic Regression, etc.

Cross-platform Development: (React Native, Flutter, Xamarin)

Wearable Devices & Mobile App Development (WebRTC, RTSP)

Containerization & Orchestration (Docker, Kubernetes, etc.)

Continuous Integration/Conti nuous Delivery (CI/CD)(Jenkins, GitLab,CircleCI,etc)

DatabaseProcessing Engines (Presto.etc)

Databases and Object-relational Mapping (ORM)

Frameworks

Basic Relational Database Mgmt. Systems (MySQL, PostgreSQL)

Machine Learning Frameworks (TensorFlow, PyTorch)

Source Control Mgmt. Tools (GitHub, Bitbucket)

Big Data Querying and Analysis Tools (SQL, Hive, and Presto, etc.)

Source: The represented data has been derived using Draup’s Proprietary Talent Database which tracks 30,000 skills. Note: The research is based on internal analysis. The list of skills is not exhaustive.

Advanced Code Editors (IntelliJ, Eclipse)

Microservices

Architecture Tools (Spring Boot, Apache Kafka)

Data Integration and ETL (Apache NiFi, Talend, and Informatica)

Basic Web Development Tools (HTML/CSS, JavaScript)

Front-end Development: (HTML, CSS, JavaScript, React, Angular, Vue.js)

API Development: (REST, GraphQL, OpenAPI, Swagger etc.)

Source: Draup

Back-end Development: (Node.js, Ruby on Rails, ASP.NET, Django, Flask, etc.)

Serverless Architecture & Platform (AWS Lambda, Azure Functions)

Infrastructure as Code Tools (Terraform, CloudFormation, & ARM templates)

Platform & Infrastructure asa-Service tools (Heroku)

Configuration Management Tools (Chef, Puppet)

Cloud Platforms (AWS, Azure, Google Cloud, Platform, etc.)

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A. Internal Upskilling(1/2) B. Internal Reskilling C. Recruit to Reskill Emerging skills Existing skills
Emerging Skillsets: Roles such as SDE are evolving rapidly. New-Age SDE skills such as Containerization, NLP tools and Microservices architecture are in high demand

Upskilling analysis: Upskilling Internal SDE talent can meet the requirements of emerging skill sets; Saving up to 50% cost on Lateral hiring and boosting employee satisfaction

Draup’s analysis of SDE that can be upskilled into In-demand Software Development Engineer (SDE) job role with emerging skillsets

Learning modules* required to acquire missing skills

Traditional Software Development Engineer

Generative Deep Learning with TensorFlow

AWS Fundamentals: Building Serverless Apps

Software Development Engineer with emerging skills

Benefits of Upskilling

Saving in talent cost

Employees with new-age skill have high talent cost which can be saved by upskilling the current talent with emerging skills

Talent cost with emerging skillsets

~$134,000 ~$150K-$200K

Event Monitoring and Alerting with Prometheus

Introduction to ZigBee

Smart Contracts

Decentralized Applications (Dapps)

MQTT Masterclass

Natural Language Pro. with Attention Models

Cost savings

Competitive advantage

Companies with emerging skillsets can gain competitive advantage by offering cutting-edge products and services

Source: Draup

Improved efficiency for organization

SDEs with emerging skillsets can leverage new tools to build better products faster and with fewer resources.

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9
A. Internal Upskilling(2/2) B. Internal Reskilling C. Recruit to Reskill
Note: *Sample Learning modules mentioned. Source: Draup’s dedicated Reskilling module ‘Reskilling Navigator’ intelligently prompts targeted courses for 4,500+ job roles from a corpus of 300K courses Coursera 16 hours 10 hours Coursera Pluralsight Udemy Udemy Coursera 5 Hours 35 hours Coursera 17 hours 17 hours 4 hours 9 hours
SDE talent cost (base pay) 95th percentile Median salary
Standard

Identifying adjacent talent: Reskilling adjacent (disrupted) talent to SDE can also help meet future demand if the hiring challenges persist

Identifying and Reskilling low-demand and low-cost adjacent talent (with high skills overlap)

Key Insights

Top reasons to choose Database Administrator, IT Service Manager, and System Engineer:-

• Moderate talent cost

• Moderate to high talent availability

• Low to moderate talent demand

• High-Cost ROI compared to hiring

• Provides viable and disruption-proof career path

Source: Draup

Top reskilling areas include:

• Programming Language & Algorithms

• Agile/Scrum Methodologies

• Software & Web Development

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Notes: Above analysis is done using Draup’s ‘Reskilling Simulator’ and ‘Reskilling Navigator’ features. Existing Skills and Core skill gaps for Reskilling propensity have been identified for 4,500+ job roles through the analysis of relevant JDs from a dataset of over 350 Million+ Job Descriptions.
Reskilling Propensity A. Internal Upskilling B. Internal Reskilling(1/2) C. Recruit to Reskill Talent Size in United States K = 1,000 Low High Desktop Engineer Maintenance Engineer Server Engineer Network Engineer Database Administrator Firmware Engineer System Support Engineer Mainframe Developer Technical Support Specialist System Engineer IT Service Manager .NET Developer​ Network Administrator​ Linux Administrator​ Technical Support Engineer​ Middleware Engineer K 50K 100K 150K 200K 250K 300K 350K Bubble Size denotes ‘Job Role’ Talent Demand in United States

Reskilling transition: Identifying skills gaps and Reskilling with targeted modules can reduce the transition time drastically. Reskilling can future-proof job roles which are prone to disruption

Sample Job roles

Database Administrator

System Engineer

Database skills training not required

Flow of learning to bridge the gap for missing skills

Database Skills

Programming Language

Agile/Scrum methodologies Web Development

Software Development

Software Development Engineer (Basic Proficiency)

IT Service Manager

Sample suggested courses for each skillset

Advanced MySQL Topics Coursera

HTML, CSS, and JavaScript for Web Developers Coursera

Continuous Integration and Continuous Delivery (CI/CD) Coursera

The Complete Full stack Web Developer Course Udemy

Software Development Processes and Methodologies

Coursera

FS Web Development with React, React Native, Bootstrap Udemy

Troubleshooting & Debugging Techniques

Coursera

Transition analysed in slide-9 in detail

Advanced SQL

Queries in Oracle and SQL Server

Pluralsight

Programming for beginners with C++ | C# | Java |

Python Udemy

Developing Cloud Native Applications edX

Software Design and Architecture

Udacity

Software Development Lifecycle Coursera

Software Development Engineer with emerging skills

Desired Job role

Note: Draup performs complex assessment around various other critical Reskilling parameters between existing and desired roles to understand skill gap and match it with relevant learning modules. The path showcased are not exhasutive

Source: Draup’s dedicated Reskilling module ‘Reskilling Navigator’ intelligently prompts targeted courses for 4,500+ job roles from a corpus of 300K courses

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A. Internal Upskilling B. Internal Reskilling(2/2) C. Recruit to Reskill

Leveraging cost-effective locations in the US: Leading firms are evaluating emerging locations such as Atlanta (with abundant adjacent talent) to hire and reskill them into SDE

United States – SDE Talent Hotspots and skills overlap at top MSA

SDE Talent Hotspots with relevant, adjacent and emerging skillsets

Total SDE Talent Availability Talent with Adjacent Skillsets Talent with Emerging Skillsets

High Medium Low

Size of bubble represent Talent with adjacent skillset

Note: Above mentioned Hiring locations are not exhaustive. Source: Draup Talent Intelligence Platform which tracks 750M+ professional profiles, 30,000+ skillsets across 4,500+ job roles was leveraged to find talent skill breakdown

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A. Internal Upskilling B. Internal Reskilling C. Recruit to Reskill(1/3)
Talent
> 120K 60K – 120K < 60K H M L Talent with Adjacent Skillsets H M L Talent with Emerging Skillsets > 10K 5K – 10K < 5K H M L
Total Relevant
Availability
MSAs
New York San Francisco Seattle Washington D.C. Los Angeles Boston Dallas/Fort Worth Chicago Atlanta Austin Tulsa Detroit Denver Philadelphia Deep Dive Location > 120K 60K – 120K < 60K Talent with Emerging Skillsets Chicago Los Angeles Washington D.C. Austin Detroit Denver Philadelphia New York Atlanta Dallas/Fort Worth Tulsa Seattle San Francisco Boston Established location

Atlanta – Assessing Talent landscape: Though the SDE talent pool is limited, The adjacent talent pool (with high skillsets overlap) is relatively higher

Draup’s analysis of adjacent job roles available in Atlanta

Case study of transition from QA Engineer to SDE

Bubble Size denotes ‘Job Role’ Skills Overlap with Software Development Engineer

Transitioning to SDE will include acquiring skillsets such as:

• SQl

• Java/ Python

• Full Stack dev.

• Software Design

• SDLC (sample, not exhaustive)

Limited transition possibility as the basic SDE skillsets are needed to learn the emerging skillsets

Software Development Engineer

10-12 weeks

SDE with Emerging skills

Acquiring Skillsets in

• Ruby on rails/Go

• Virtualization(VMware),

• CI/CD Automation(CircleCI)

• Cybersecurity framework (sample, not exhaustive)

Note: Above mentioned job roles are not exhaustive. Source: Draup Talent Intelligence Platform that tracks 700M+ professional profiles, 350M+ Job descriptions across 4,500+ job roles was leveraged to find talent with adjacent skillsets. Draup’s dedicated Reskilling module ‘Reskilling Navigator’ intelligently prompts targeted courses for 4,500+ job roles from a corpus of 300K courses

13 .NET Developer​ C,
QA Engineer QA Test Automation Engineer Database Administrator System Engineer IT Service Manager Programmer Analyst Network Engineer System Analyst Linux Administrator​ Middleware Engineer 80K 90K 100K 110K 120K 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
C# Developer
A. Internal Upskilling B. Internal Reskilling
C. Recruit to Reskill(2/3)
Low Talent Demand Medium High
Talent Size
QA Engineer
K = 1,000
Talent Cost (In USD)

Benefits of ‘Recruit to Reskill’ strategy

Cost analysis of ‘Hiring SDE’ vs. ‘Recruiting QA Engineer and Reskilling to SDE’ in Atlanta

‘Recruit to Reskill’ vs. Hiring in Atlanta: Companies can save ~18% cost (per FTE) by recruiting an adjacent QA Engineer and Reskilling to an SDE role ~$30K

High availability of Talent with adjacent skills in the ecosystem

Adjacent talent can bring fresh perspectives and ideas to the organization

~$5K higher median salary in Atlanta as compared to overall US

~18% cost saving by reskilling adjacent talent into SDE job role

Improved diversity and Inclusion

Non-traditional hiring location can have diverse talent landscape

Cost of hiring new SDE-1(<5 years experience) with emerging skillset

Cost of recruiting adjacent talent and reskilling to SDE

Cost savings compared to overall US up to ~$70K

Base Pay Non-Recurring cost Incentive Reskilling Cost

Note: * Non-Recurring Cost: one-time expense during the hiring process, including advertising costs, background check fees, travel expenses for interviews, sign-on bonuses, relocation expenses, etc. Non-recurring cost is only indicative(might vary depending on location, company, skills, etc). Source: Draup analyses 16+ Million data attributes for 4,500+ job roles daily to help global HR leaders in Planning, Hiring & Reskilling their Future-Ready Workforce. ** Indicative, for first year only.

14 Increased talent pool Creativity and Innovation Cost savings
K 20K 40K 60K 80K 100K 120K 140K 160K 180K
Updated base pay
~$158K ~$128K
$139K ~$118K $102K $9.8K Base pay saved on
$19K $16K One-time cost saved on FTE ~$21K ~$9K Overall cost saved by company** ~34K Talent base pay
every FTE
A. Internal Upskilling B. Internal Reskilling C.
Recruit to Reskill(3/3)

About Draup

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Draup leverages Machine learning models to curate data provided in the report. Similar analysis can be performed for 4,500+ job roles or any job family

Reskilling & Upskilling

PEER BENCHMARKING

TALENT INTELLIGENCE

ROLES & SKILLS TAXONOMY

Strategic Workforce Planning

Career Path Development

DIGITAL IMPACT ON TRADITIONAL ROLES

Explore Diverse Job Roles, Locations and Ecosystem Insights

CAREER JOURNEY MAPPING

LOCATION INTELLIGENCE

Talent Acquisition

Digital Transformation

DIVERSITY ACQUISITION

Diversity & Inclusion

COURSES/ CERTIFICATIONS

UNIVERSITY INTELLIGENCE

University Relations

Peer Intelligence

and diverse other use cases…

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Draup Capabilities & Data Assets EMPOWERS DECISION MAKING IN

Draup for Talent: Draup analyses 16+ Million data attributes every day to help global HR leaders in Planning, Hiring & Reskilling their Future-Ready Workforce

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750M+ 350M+ JOB DESCRIPTIONS 4M+ CAREERPATHS ANALYZED 75+ MACHINE LEARNING MODELS DEYELOPED 16M+ DAILY DATA POINTS ANALYZED 100+ LABOR STATISTIC DATABASE 1,000+ CUSTOM TALENT REPORTS 30,000 SKILLS 47,000+ DIGITAL TOOLS & PLATFORMS 300,000+ COURSES 2,500+ LOCATIONS 14,000+ UNIVERSITIES JOB ROLES 4,500+ PEER GROUP COMPANIES 500,000+ INDUSTRIES 33 175,000+ UNIVERSITY PROFESSORS PROFESSIONALS
www.draup.com HOUSTON I BANGALORE © 2023 DRAUP. All Rights Reserved.

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