Software development remains one of the most sought-after technology jobs, but hiring is becoming more targeted as software systems are growing more complex, AI adoption is accelerating, and cloud-native solutions are becoming mainstream. With IT spending expected to total $5.61 trillion in 2025, an increase of 9.8% from the previous year, businesses are re-evaluating the skills and experience they need from developers to stay competitive. Here’s how this shift is influencing efforts to attract top tech talent.
1. Demand remains strong, but more specific
The integration of AI into software development has driven a growing demand for cloud-native solutions, contributing to the move from on-premises systems to cloud-based software as a service (SaaS), which now represents nearly a third of the software market. To stay ahead, employers prioritise candidates who bring versatility, with experience in cloud-native development, DevOps, AI integration, and cyber-security-aware coding.
Additionally, full stack developers are particularly valuable to tech teams, especially those skilled in modern frameworks such as React, Vue, and Node.js, along with cloud platforms like AWS and Azure. Their ability to work across both frontend and backend environments enables faster delivery and more agile teams, helping businesses maintain a strong position in the market.
2. Flexibility is now a standard, not a perk
Many companies are reinstating return-to-office policies, but with the right approach, this transition can still support flexibility.
A hybrid model remains one of the practical solutions to navigate this shift, particularly in regions like the UK, Switzerland, and Singapore, where it is already widely adopted. For software developers, flexibility remains a priority, and offering some choice in how and where they work can strengthen your position in a competitive hiring market.
It also pays to be clear. Sharing your working arrangements and team structure upfront helps attract candidates who align with your setup and streamlines the recruitment process.
3. Hiring is more strategic and globally minded
With access to global tech talent improving, businesses are expanding their search beyond local markets. This enables hiring teams to source software engineers with niche skills, often in locations with stronger availability or cost advantages. It also allows companies to build more diverse teams and respond more quickly to skill shortages in their core regions.
However, managing international hiring requires careful planning – from understanding local labour laws to setting up effective onboarding processes for remote teams. Partnering with a global recruitment agency can support this journey, as they offer guidance on compliance, team structure, and scalable hiring strategies.
4. Skill requirements are becoming more refined
Organisations are placing greater emphasis on adaptability, collaboration, and a mindset aligned with agile delivery.
Employers are also prioritising communication and teamwork skills to help teams move quickly, stay aligned, and future-proof their operations.
Charlie Adey, Consultant at Nicoll Curtin working in the US market, explains, “Some of our clients in the hedge fund space are looking for the very top 1% of candidates, which means that soft skills are equally important as their technical expertise.” He adds that for hiring managers and talent acquisition teams, defining the most relevant soft skills for the role is key, with communication, stakeholder engagement, and leadership qualities becoming vital for senior-level positions.
5. Employer branding matters more than ever
Tech professionals have plenty of options. What sets companies apart is often their ability to communicate their mission, values, and development culture effectively. In a recent survey we ran with our candidates, team culture ranked as the second most important factor when choosing a software development role, with 31% placing it just behind tech stacks. Additionally, developers want to understand how their work contributes to wider business goals and how they’ll be supported to grow.
That’s why it’s important to build a powerful employer brand – one that goes beyond job descriptions and highlights what makes your organisation worth joining. Additionally, a technology recruitment agency that communicates your message effectively can help your roles connect with the right candidates.
