Why do large companies hire tons of developers?

Summary

In this video, Frederick discusses why large companies continue to employ many software engineers, even when it may appear that they aren’t constantly shipping new features. The key reasons include the complexity of large systems, the challenge of coordinating interdependent teams, and the limitations of scaling talent. As organizations grow, they face slower development speeds due to increased coordination and resource optimization challenges. Frederick emphasizes that effective management, talent utilization, and system architecture are essential to maintaining productivity, even in the face of inevitable inefficiencies in large teams.

Takeaways

• 😀 Large companies often have many software engineers even if they aren't shipping a lot of new code, because ongoing work is happening behind the scenes, like bug fixes and optimizations.
• 😀 Consumers might not see the full extent of development work because they only interact with a small part of a system. Many updates occur in areas users don't directly experience.
• 😀 The presence of many engineers doesn't always equate to faster shipping of new code; team coordination, dependencies, and resource allocation issues often slow down the process.
• 😀 Scheduling dependencies between different teams can be a significant challenge, often causing delays and reducing overall efficiency in large organizations.
• 😀 The more people you have in a company, the more difficult it becomes to ensure everything is scheduled correctly, leading to resource waste and productivity issues.
• 😀 Talent scaling doesn't work the way many assume—adding more highly skilled engineers to a system doesn't guarantee better performance if the overall structure is inefficient.
• 😀 Complex systems with many interdependent teams and services are difficult to manage, leading to delays and inefficiencies in shipping code.
• 😀 When teams grow, they become slower because managing their coordination and dependencies becomes more challenging. This leads to a reduction in velocity over time.
• 😀 A larger company or system often experiences inefficiencies where entire departments or teams are underutilized due to poor management, leading to wasted resources.
• 😀 The most effective organizations balance speed and scale, but the larger and more complex a company gets, the harder it becomes to maintain a high rate of code delivery.

Q & A

Why do large companies have so many software engineers, even if they aren't shipping much new code?

Large companies often have many software engineers due to the complexity of their systems and the need to maintain, optimize, and fix bugs in existing code. Even when visible new code isn't being shipped, a lot of backend work is happening, including bug fixing, ensuring stability, and addressing inter-team dependencies.

How do dependencies between teams affect the speed of development in large companies?

Dependencies between teams create bottlenecks, where one team cannot start work until another finishes their tasks. This scheduling issue leads to slower progress and inefficiencies, as some teams may have to wait for others to complete their tasks before they can proceed.

What is meant by the term 'resource optimization' in the context of large teams?

Resource optimization refers to the process of managing and allocating resources (in this case, software engineers) effectively within a large team. This includes coordinating schedules, reducing bottlenecks, and ensuring that teams work efficiently without unnecessary delays or idle time.

What challenges arise when scaling a software development company with many engineers?

When scaling a company, the challenge lies in maintaining coordination and communication across multiple teams. Larger organizations often face difficulty ensuring that all teams work in harmony, manage dependencies effectively, and continue to deliver code at a rapid pace despite the increasing complexity.

Why is it difficult to guarantee that all engineers in a large company will be productive?

It's difficult because as the company grows, it becomes harder to ensure that all engineers are well-coordinated and working efficiently. Even highly skilled engineers can be slowed down by issues such as dependencies on other teams, poor resource scheduling, or lack of clear direction in complex systems.

How does the process of scaling an IT company change its development velocity?

As an IT company grows, the complexity of its systems and the need for more coordination between teams increases. This typically reduces development velocity, as managing dependencies, resources, and communication becomes more challenging. Large organizations often move more slowly, even if they have more people working.

What is the impact of having a large team with varying levels of talent in a company?

A large team with varying levels of talent can lead to inefficiencies. If not managed well, some team members may be underutilized or waiting for other teams to finish their tasks. Conversely, highly talented engineers may face frustration if their work is impeded by bottlenecks or poor coordination.

How does the analogy of a small bicycle turning into a large truck relate to scaling a company?

The analogy represents how a small, agile company can quickly move and adapt (like a bicycle), but as the company scales and adds complexity (like a large truck), the process slows down. Larger organizations face increased overhead, and while they can handle more, they can't move as quickly.

What is the role of management in addressing inefficiencies in large IT organizations?

Management plays a crucial role in addressing inefficiencies by optimizing the scheduling and coordination of resources, ensuring that teams are aligned, and minimizing bottlenecks. They are responsible for creating a structure that balances productivity with employee satisfaction and maintaining a smooth development process.

Why can't large companies simply scale by hiring the best software developers?

Hiring the best developers alone doesn't guarantee success because even top talent can't solve systemic issues like inter-team dependencies and poor resource scheduling. Scaling a company requires effective management, clear communication, and a well-structured development process to ensure productivity across all teams.