The Belitsoft custom software development company reports that the market for developers has changed significantly as a result of the 2025 tech layoffs. Due to a rush into automation and artificial intelligence, more than 200 companies globally lost over 112,000 tech jobs. As AI automates tasks that were previously completed by humans, industry leaders have openly stated that they are eliminating jobs. There was a shortage of skilled workers as a result of this “AI-inspired” downsizing, and cost control became urgently necessary. In response, many firms are turning to outsourcing of software development, especially for Python projects. Outsourcing can offer greater flexibility and cost-savings than large permanent staff. Indeed, analysts predict that much of the work cut due to AI will return via offshored or contract labor. Forrester warns a “new wave of offshoring” is coming as companies rehire by using lower‑wage workers offshore under the guise of AI.
Global outsourcing is growing as businesses adjust to the shifts brought about by layoffs in 2025. Companies prefer to hire outside experts for project work when headcounts are reduced. In reality, companies are using nearshore or strategic outsourcing to control risk and guarantee outcomes. For instance, businesses no longer frequently choose generic low-cost vendors over partners with specialized knowledge or close proximity. According to a Deloitte survey, 76% of IT executives work with offshore development teams, and many are pursuing nearshore partners. Remarkably, 83% of Global 2000 companies say that outsourcing lowers operating costs, and nearly 92% of them outsource at least some IT functions. According to a Gartner analyst, because tech talent is still in short supply even after layoffs, businesses will “turn to IT services firms to fill in the gaps.” In summary, the surge in outsourced development, particularly for languages like Python, is being driven by cost pressures and AI priorities.
Python’s Soaring Demand
Python is a major element of these trends. These days, it’s widely used in domains like web development, data science, cloud services, and artificial intelligence. According to a StackOverflow developer survey, Python is one of the languages with the fastest rate of growth, with 57.9% of respondents using it in 2025 – a 7 percentage point increase from 2024. Python was one of the most sought-after skills in 2025 tech job postings, according to Business Insider. Companies explicitly seek Python for machine learning, big data, and backend systems. Because of this, demand for Python expertise now outstrips supply. McKinsey notes that in “agentic AI” roles – jobs involving autonomous AI systems – required skills include Python programming, machine learning, and software engineering, but Python specialists are in short supply. Similarly, McKinsey finds “skills in DevOps, Kubernetes, and Python face significant shortages,” as companies rush to build AI/cloud infrastructure. In other words, qualified Python engineers are still in short supply compared to demand, even though layoffs have increased the talent pool. Companies hire outsiders as a result of this mismatch.
Python specialists are sought-after in artificial intelligence, backend development, and data science. Given the talent crunch, outsourcing or contracting Python developers is an obvious strategy. According to surveys, external teams can staff “24/7” development across time zones and ramp up more quickly than local hires by more than 40%. Additionally, outsourcing Python development allows internal teams to concentrate on core innovation. According to a study by Gartner, 70% of businesses claim that outsourcing allows them to access top talent that they would not be able to hire locally. Another finds 59% of businesses outsource to save money, and 78% do so to boost productivity and innovation. When combined, these patterns suggest that until 2026, there will be a significant demand for Python projects that are outsourced. Companies racing to launch AI features, data platforms and cloud services will continue to source developers via global partners rather than hire full-time staff.
Regional Hubs and Nearshoring
North American and Western European firms are looking to specific regions for outsourced Python talent. Eastern Europe stands out as a deep tech pool. It is anticipated that there will be about 3.5 million IT professionals in Eastern Europe by 2025. According to JetBrains, Python is widely used in this area, particularly for web backends and AI/ML. According to Statista, competitive rates and skilled talent will propel the Eastern European software outsourcing market’s growth from $5.32 billion in 2025 to $7.17 billion by 2029. For instance, the cost of hiring DevOps and AI developers in Poland or Romania is 30-50% lower than in the US or the UK. Deloitte’s Global Business Services survey confirms that India, the US and Poland are currently the top three global delivery locations, and even names Mexico and Portugal rising as nearshore favorites. In practice, many U.S. tech companies are partnering with firms in Poland or other EU countries for Python/AI projects.
In general, the geographic scope of outsourcing is expanding. While India continues to play a significant role in providing large IT services, astute businesses are increasingly dividing projects among Eastern Europe, Latin America, India, and even North Africa in order to balance costs and acquire specialized skills.
Market Growth and Spending
The outsourcing industry is expanding on its own. Global IT outsourcing revenue was approximately $540 billion in 2024, according to industry data, and is still rising. By 2028, it is expected to have grown to about $700 billion. Since half of the biggest businesses in the world currently outsource important tasks, this is now seen as necessary for digital transformation rather than an option. Corporate IT spending is also increasing in North America and Europe. According to Gartner, IT spending in the EU will increase by 11% by 2026, and global IT spending will reach $6 trillion (nearly +10%) by the same year. Importantly, a large portion of this is being used in software and cloud projects, which are exactly the domains in which Python shines (AI features, analytics applications, etc.). In other words, even as businesses reduce their workforce, there is more money available for new technology. That sets the stage for outsourcing firms to capture this capital by delivering software projects.
From a buyer’s perspective, outsourcing helps de-risk and accelerate development. Outsourcing partnerships, according to analysts, can reduce time-to-market by facilitating 24/7 collaboration with international teams. Businesses claim that using offshore/nearshore models can reduce labor costs by 40-70%. Prominent consulting firms point out that businesses that outsource during recessions are roughly 20% more resilient than their counterparts. According to the Harvard Business Review, task distribution among specialized firms is now simpler than ever thanks to contemporary “digital integration” (through cloud platforms, APIs, etc.). To put it another way, technology now facilitates highly modular workchains, allowing for real-time integration between teams. For example, one team can handle data pipelines, while another can code a Python backend. This change in structure solidifies outsourcing as a tactical instrument.
About the Author:
Dmitry Baraishuk is a partner and Chief Innovation Officer at a software development company Belitsoft (a Noventiq company). He has been leading a department specializing in custom software development for 20 years. The department has hundreds of successful projects in AI software development, healthcare and finance IT consulting, application modernization, cloud migration, data analytics implementation, and more for startups and enterprises in the US, UK, and Canada.
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