When will the tech recession end?

At JetSoftPro, a software development service, we can say that the tech recession has already ended. According to preliminary data for the last quarter of 2023, private companies began to grow faster — for the first time in two years. Median revenue increased from 42% in the third quarter to 70% in the fourth. Also, the increase in revenue growth under GAAP has improved — this is the second consecutive quarter when it grows.

This growth began in the third quarter and is now continuing. Such improvement occurred thanks to some companies starting to grow faster and also becoming more efficient. Along with this, indicators for new customers have also improved, indicating that the tech sector is beginning to recover.

As for public companies, they also started to grow, but a little slower. It’s not as good as for private companies, but still promising.

Despite these positive numbers, the market still needs time to recover, as hundreds of thousands of programmers around the world remain unemployed.

How should tech companies act during this stage of the recession?

The end of the tech recession can be as stressful a period as its beginning, albeit with a different sauce. And here’s why:

1. Due to reduced demand for developers, many tech and especially outsourcing companies have downsized their operations, automated processes that now need to be scaled.
2. The market is focused on quality and expertise, which means that many developers will have to work on themselves, including both soft and hard skills. It is already evident that competition will increase.
3. A large number of new technologies, primarily related to artificial intelligence, still need to be mastered by programmers, and the pace of market development is accelerating.
4. To protect investments, customer companies will increasingly lean towards a fixed-price model, which means additional process restructuring for market players.
5. Finally, many people remain unemployed, creating additional strain on the economy as a whole. This resource needs to be redistributed.

We should admit that the software developers community has no clear vision of how the market will function further.

Outsourcing companies’ prospects after the recession

JetSoftPro, as a software development one-stop shop, offers software services, primarily outsourcing, so we are facing this problem from within. Although the market is still in disarray, it is worth noting that there are good prospects for outsourcers.

Companies will need to change to get new orders, namely:

• Automate all possible processes
• Implement new quality control and cybersecurity frameworks
• Develop expertise and strengthen brands with expertise in a particular niche
• Rethink lead generation, as now developers will be offering their services to businesses rather than businesses actively seeking developers.

Learn more in the article on our website:
https://jetsoftpro.com/blog/is-the-tech-recession-over/