Software Development Jobs Are a Bright Spot in Uncertain Economic Times. Here’s What Business Leaders Need to Know.

Economic uncertainty, rising inflation, changing lifestyles and a volatile labor market are unprecedentedly influencing company hiring and prospective IT job markets. Businesses are intensifying recruitment in critical areas, such as AI and data analytics, yet pulling back on long-term IT positions and employment. At the same time, rising IT talent is pursuing more flexible and engaging work environments as new opportunities open up and desirable lifestyle options evolve.

Software developers, data analysts and cybersecurity jobs are bright spots in a rapidly moving IT employment landscape. According to a recent report by the U.S. Bureau of Labor Statistics, software developer jobs were projected to grow by 21% by 2028, the fastest-growing sector of the national job market. Year over year, job postings for software developers and coders approximately doubled in the third quarter of 2022, while other computer-related and IT job-skill categories increased more modestly. Most non-digital economy job postings remained steady or declined. Getting on top of the changes in job growth patterns and required skill sets within the IT sector is essential for business leaders as a possible recession looms.

Related: The Future of Software Development in 2022 and Beyond

Software development trends

New software development trends are accelerating as businesses and organizations recognize the strategic importance of IT and prioritize digital transformation and innovation. Consumers are moving online in record numbers, and companies are increasing digital channels and products to accommodate skyrocketing demand. Changes in supply chains, cloud and remote working environments along with technology tipping points drive strategic IT investments and personnel needs. Flexibility, scalability and security remain popular software features as businesses search for unique and efficient solutions across their operations.

Forward-looking businesses seeking IT innovation are moving swiftly to leverage AI, cloud computing and data science applications. Some managers look outside their organizations to kick-start change. This trend fits neatly with the rise of a growing pool of freelance talent with niche skills available to spearhead specific project-based initiatives. Companies manage innovation challenges and IT infrastructure investment amid active personnel and the job market.

Job specialization … or generalization?

Do new market realities affect the answer to this age-old question? The debate continues in the IT field and across the digital economy and career spectrum. For computer scientists and software engineers, generalization means understanding core concepts and principles and having transferable skills to work with multiple languages and documentation. Specialization has come to mean a deep but relatively narrow focus on one language, framework, and platform. Freelance software developers often find specialization an efficient way to engage the market but then see the logic of a broader perspective as their career develops. Businesses tend to promote generalists in the longer term and more permanent positions.

A successful software developer’s career strategy is to build a generalist foundation of computer and data science concepts and then specialize in one or two hot areas. The IEEE Computer Science Society’s computer science career guide recommends a set of academic courses covering core topics, such as computer theory and systems, security, and engineering concepts. Students are then encouraged to consider specialty areas in later years and at the graduate level. Successful business leaders recognize this pattern and provide opportunities to students in work placement and employee career development initiatives. Historical trends in the digital economy would seem to favor specialists until the market swings and a new technology moves to the fore. The challenge is to understand where the market is going and anticipate change.

Related: How AI Will Transform Software Development

Specializations for the future

Machine learning software developer and data scientist skills top the list of high-demand software development talent and are two of the hottest growth areas. Business leaders increasingly view AI as indispensable in multiple business areas, including supply chain logistics and transportation, finance and natural language processing. Machine learning augmented software development is an exciting case — will AI decrease the demand for software engineers in the future? Mainstream AI applications today are limited to testing code and automating routine programming sequences. Still, an advancing wave of AI experts is bringing fresh ideas and a new set of robust machine-learning tools. In the meantime, most observers expect human software engineers to remain an essential piece of the puzzle for years to come.

The position of data scientist — a job title first used in 2008 — has gained prominence and will continue to expand in breadth and scope as businesses increasingly grapple with overwhelming data volumes and a pressing need for data-driven forecasts and predictions. Databases show no signs of slowing down. Talented data analysts and emerging AI tools provide the insights and interpretations to capitalize on all kinds of ever-growing mountains of data. Data scientists often operate in interdisciplinary teams and draw upon a robust set of complementary soft skills, including critical thinking, communications, leadership and more.

Recognize the pattern, and get on board

Consumer and work lifestyle choices, influential macroeconomic trends, and strategic business needs drive IT innovation and investment. Organizations and companies in virtually every economic sector are embracing rapid digital transformation and tech-smart solutions. Software development has rarely been more complex, more urgent or more in need of creative and motivated talent. Many companies are looking for an evolving mix of permanent IT staff, freelance software developers, generalists and specialists to provide crucial business solutions. The go-to hot software development areas are machine learning, data science and robust AI specialist tools. Organizations seek a competitive edge to solve seemingly intractable issues, such as supply chain bottlenecks. Are you thinking of a career in software development? The future is very bright indeed.

Related: Hiring the Modern Programmer: Does That Smart New Software Developer of Yours Also Have ‘Soft’ Skills?