Work-from-home options are quickly becoming the most in-demand work models in America. Many blame the pandemic as the major driver in the shift to workers demanding more flexibility and work-life balance. However, it was already well in motion. According to a study by FlexJobs, the number of people working from home at least part-time has increased by 115% since 2005.

And this trend doesn’t show any signs of slowing down.

New demographics; new attitudes

There are many reasons for this shift, but one of the biggest drivers is changing workforce demographics. As Millennials increasingly enter the workforce, they are starting to demand a better work-life balance than their predecessors.

They watched their parents spend their days stuck in traffic or crammed into a small office cubicle. When they entered the workforce themselves, Millenials were also met with the same anemic wage growth, job insecurity and long work demands. But now they also had ballooning student loan debt, exploding housing costs, and lived through multiple economic crashes in their young lives.

And they thought, to what end?

Massive productivity gains have done little for workers

Over the last few decades, there has been a remarkable increase in productivity across many sectors in America. Workers have become increasingly efficient and productive, leading to major gains for companies and shareholders. However, they have not benefited workers proportionally.

Thanks to stagnant real wage growth, workers have actually seen little benefit from their increased productivity. Most businesses are focused on maximizing their profits and meeting the demands of shareholders at almost all cost, rather than on increasing pay for their workers.

Millennials look at this and wonder why businesses get to hold all the power. They are now turning away from seemingly endless work for inusffient pay that sacrifices home and social lives. The pandemic only brought these worker inequalities into sharper focus.

Courtesy of NorthOne

Worker flexibility–or else

Employees are demanding more give-and-take in the employer-employee relationship. They want the flexibility to work from home when they need to take care of their kids or run errands. They want to be able to take a mental health day or leave early for a doctor’s appointment without having to call out sick.

A big part of this is retaining the work flexibility they had during the pandamic–or they walk. And they have in record numbers. In November and December of 2021 alone, 8.8 million people quit their jobs in the U.S.; more than 47 million over the entire year.

The confluence of once-in-a-century economic turmoil, changing demographics and pandemic shutdowns that accelerated Boomers leaving the workforce has, for the moment, given workers more leverage. In a tight labor market, smart companies are embracing this social wave by instituting more flexible work models that provide employees with the work-life balance they crave.

Clash of ideologies leaning toward workers

As more companies adopt these policies, it will become increasingly difficult for those who don’t to attract and retain top talent. Some, like Goldman Sachs is holding its line of demanding all workers return to the office. But on the day they reopened, half of its workers didn’t show in defiance of the order.

So while the fully remote or hybrid work models may not be perfect, they’re quickly becoming the expected, new normal for a growing portion of American workers. If your company is one of the holdouts, you might want to reconsider. The talent war for the best and brightest workers is only going to heat up and those that can offer what workers want will be the big winners.

Outsourcing software development has become a popular way for businesses to get their products or services to market quickly and at a lower cost. However, the Russian-Ukrainian war is having a major impact on the once-booming tech outsourcing industry of the region. Here are 5 ways the war is impacting software development outsourcing: 

Businesses are hesitant to outsource to Russia or Ukraine

With the Russia-Ukraine war raging, businesses are understandably hesitant to outsource any work to companies based in these countries. The political instability in the region makes it a risky place to do business, and there is no telling how the situation could escalate in the future. Many countries and business interests are also cutting business ties with Russia. This will unlikely change for the foreseeable future as Russian war atrocities mount and the present regime remains in power.

There is a shortage of workers in both countries as people flee conflict zones 

The conflict in Ukraine has led to a mass exodus of people from the country, with over 5 million people fleeing since the start of the war. This has resulted in a shortage of workers available to do software development work. It has also driven up wages for those who are still in the country and available to work.

Companies are understandably relocating their operations out of the region, which further limits available developer resources.

Quality of work may be impacted as developers are working under more stressful conditions 

The ongoing conflict in the region is no doubt having a negative impact on the mental health of workers in Ukraine and the region. This, in turn, could lead to a lower quality of work as developers are working under more stressful conditions. 

Project deadlines may be impacted as companies struggle to get work done in the midst of the chaos. These risks are pushing clients to look elsewhere for development services while the conflict ensues.

There is an increased demand for IT professionals in other countries, such as Poland 

The Russian-Ukrainian war is having a major impact on neighboring countries, as well as a corresponding increase in wages. Due to the risks associated with outsourcing to the region, businesses are increasingly looking to other countries in Central and Eastern Europe, or to Asia, for resources. This has led to an increase in demand for IT professionals, which is showing no signs of decreasing in the short term.

As Outsourcing Options Tighten, Costs are Rising

Outsourcing software development services to the Ukraine and Russia was once a popular option for Western businesses looking to save on costs. However, with the current conflict between the two nations disrupting business activity in the region, many companies are now moving their operations elsewhere and building resiliency plans. 

The instability in eastern Europe is causing wages to rise and businesses are becoming more risk-averse, both of which are making it difficult for Ukrainian, as well other regional service providers to remain competitive. If you’re looking for a cost-effective alternative to outsourcing software development services, it’s time to consider India or the Philippines.