[TEST] Developer-Led Landscape: Complexity, Automation & A Future of Autonomous Development

[TEST] 1.5: A Postmodern Cycle Where Inflation Is A Bigger Risk

Ronda Scott

Nov 14, 2022 · < 1 min

1.5: A Postmodern Cycle Where Inflation Is A Bigger Risk Than Deflation Will Cause Energy And Labor Supplies To Become More Expensive Driving Higher R&D / COGS.

While historical wage growth numbers are not rising fast enough to be attractive for new developers to rapidly enter the industry, the inflationary period that we are entering will drive up wages and cause labor shortages (see Goldman Sachs: The Postmodern Cycle).

While the increased wage costs may drive more people to become developers, the bigger impact is the bottom line impact to companies producing software.

As wage costs increase, companies will face higher R&D and COGS in order to build and maintain software systems that could under-deliver against intense user expectations.

Next: [TEST] 2.0: Two Decades of Increasing Software System Complexity Has Limited Developer Productivity Gains.

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