How Indie Devs and Small Teams Can Win in a Tech Downturn
After a grim year of turmoil in the tech industry — marked by layoffs, ongoing unemployment, corporate re-alignments, the disruptive impact of AI, and tech workers experiencing prolonged unemployment — there seems to be at least some promising news on the horizon, with Computerworld reporting on an increase in tech job openings.
Other segments of the industry showing signs of life are smaller companies and new businesses, with the former being agile enough to respond to the changing tech industry more quickly, while the latter is seeing growth as some laid-off tech workers start their own gigs and launch new businesses.
We wanted to take a closer look at how indie developers and small teams might be thriving in this new tech industry landscape, so I reached out to a few to get their take on the current tech economy, how they’ve managed to be successful, and if they had tips and advice for freelancers and other small teams looking to make headway in the current tech industry environment.
Wrestling With AI and Navigating Tech Doldrums
Richard Rutter is co-founder of Clearleft, a web design consultancy based in Brighton in the United Kingdom. Rutter acknowledges that there are “…all sorts of headwinds against business at the moment, particularly in the service industry like design agencies,” pointing to a conference of agency owners that recently described 2024 as a “brutal” one for business.
With 2024 in the rear-view, Rutter says he’s beginning to see some bright spots. He doesn’t view AI as a serious threat, arguing that “…[AI is] not going to replace the role of the serious designer, whose main job is understanding people and problem solving. You should look at how AI can be used to help your productivity, whether that’s interpreting briefs, writing proposals, putting together prototypes more quickly, or transcribing and summarizing user research,” said Rutter. “Use with care though — you should consider anything GenAI produces as an input into your work, not the final output.”
“Without meaning to sound mercenary, tech layoffs can provide opportunities for agencies and freelancers.”
– Richard Rutter, co-founder of Clearleft
Rutter also suggests that the recent spate of tech layoffs presents some opportunities for smaller businesses and those looking for side gigs. “Without meaning to sound mercenary, tech layoffs can provide opportunities for agencies and freelancers. While companies are sometimes keen to lower their salary bill, they often still need the work to be done, so instead of staff they bring in short-term outside help from a different budget,” said Rutter.
Kristian Ranstrom, the owner of Rainstorm Technologies, a small development agency based in Fort Collins, Colorado, also says you need to understand the impact AI is having on the tech industry and adapt to customers’ needs in a changing market.
“AI is going to change the landscape of how tech does work in a huge way. Instead of worrying about how it could change your business, dig deep and learn it,” said Ranstrom. “See the benefits it can give your business and apply them as quickly as you can.”
When it comes to layoffs, Ranstrom encourages impacted devs to also consider agencies and small development shops for potential full-time or contract employment. “With layoffs, as an owner of a small business, there are lots of people in the market looking for work, so [as a small business owner] you may be able to score some great talent if you’re in need,” suggests Ranstrom.
Echoing Rutter’s comment about large companies that “still need the work to be done,” Ranstrom encourages devs to consider doing consulting or contract work.
“Many companies don’t want to pay for extra headcount, but still have projects that need to get done.”
– Kristian Ranstrom, Rainstorm Technologies
“If you’re on the other end and need a job, don’t be afraid to consult while you’re looking for full-time employment,” said Ranstrom. “Many companies don’t want to pay for extra headcount but still have projects that need to get done. Pick up a short-term gig and a few companies and see how it goes. [You may find you] like that style of work better than full-time work.”
Small Teams Doing Big Work
The ability of small, motivated teams of professionals to do great work together has been well-documented over the years, and everyone I spoke with agreed with that assertion. Whether having a unique angle on web development or creating novel and noteworthy projects, smaller agencies and small teams of developers sometimes have the edge when it comes to creating something new for the web development ecosystem.
Alex Barashkov, CEO of Pixel Point — a small web development agency based in London — points out several successful web projects that his team recently completed, including new sites for Huly.io and Neon.tech.
“These sites generated quite a buzz in the design community and brought in a lot of new users to the products, proving that using design as a marketing tool is a very successful strategy,” Barashkov said. “My vision is that, in the future, we will either have generic websites built by AI for AI, or well-crafted masterpieces that focus on the experience of real users.”
As a small web development shop, Ranstrom also points to the power and flexibility that AI tools can provide developers looking to focus on a quality user experience. “As a full-time consultant, I’ve been expanding my offerings to include AI and big data,” Ranstrom said. “Those areas are growing at break-neck speed and most companies aren’t able to keep up with the change. I’m learning that if I become an expert, there is a ton of work out there. Don’t get stuck with what you offer — learn, learn, learn and apply it. I recently created an application that used crowd-sourced data, then applied AI to it to create valuable reports…[and] these reports helped save companies over 90% of their previous spending.”
“…we will either have generic websites built by AI for AI, or well-crafted masterpieces that focus on the experience of real users.”
– Alex Barashkov, CEO of Pixel Point
That focus on providing value and a quality user experience was also the hallmark of recent work by Clearleft. “Our highest profile project in the last 12 months was our redesign for Imperial College London,” explains Rutter. “We’ve worked a lot with universities over our past 20 years, but every challenge is different. In Imperial’s case extensive research was necessary to understand user needs, especially with a large and diverse audience.”
Rutter explained that they had a four-month discovery phase for the project that demonstrated the importance of collecting insights from stakeholders, users, and analytics before making design decisions. That also involved adapting brand guidance from another agency (Pentagram) to create a digital-first experience.
“We needed to test color contrast (over 700 combinations) and refine the typography — including working with the bespoke font designer — for accessibility and the consistency required across a huge and complex site,” said Rutter.
Sometimes It Pays To Be Small
One dog-eared comparison I’m frequently guilty of making is to contrast the speed and agility of small companies and teams of developers with the Brobdingnagian enterprises they compete with as a modern-day corollary to the first mammals and their lumbering, gargantuan dinosaur contemporaries. Thankfully, that comparison still holds true: Lean, agile teams of motivated developers and designers often see success when slower, larger competitors may stumble.
“Big enterprises, despite having vast resources, often struggle to move quickly,” says Barashkov. “Take Apple, for instance. It’s a company with billions in cash that has mostly missed out on AI, and Siri now lags behind many other offerings. Smaller teams, on the other hand, don’t have to maintain huge codebases or wrestle with lots of bureaucracy. They can focus on the problem at hand, pivot rapidly, and ship results much faster. That agility is your superpower — use it.”
Lean, agile teams of motivated developers and designers often see success when slower, larger competitors may stumble.
Ranstrom also prefers to see development projects started, developed, and completed without having to hack through thickets of red tape and bureaucracy. “With startups, I’ve found that it really helps to have a bunch of solid developers. When you [first get started] there’s so much that needs to happen, and you don’t need a lot of C-level people or managers — you need people who can make it happen,” argues Ranstrom. “That will change over time, but in the beginning, you need people who code.”
Rutter echoes the same sentiments as Barashkov and Ranstrom, emphasizing the importance of having a dedicated team of agile professionals.
“Clearleft is a relatively small team, but we can achieve big results because we are nimble and extremely experienced. As strategic design partners, we have a privileged position where we can work around a large company’s politics,” Rutter said. “We need to understand those politics — and help the client staff navigate them — but we don’t need to be bound by them. We bring a thoroughly user-centered approach to our design partnership, and that can be something novel to companies. By showing them what good design looks like (not so much the interface, as the actual process of getting to really well-designed products and services), we can be disruptive within the organization and leave them in a much better place.”
Tips and Advice For Making an Impact With a Small Team
Whether you’re a solo freelancer or work as part of a small team, creating great things sometimes requires you to take a leap of faith.
“Don’t be afraid to fail,” urges Barashkov. “If you have an idea, build it. Leverage AI and tools like v0 by Vercel or Lovable to skip lengthy design phases and just ship. Once you find the product-market fit, invest in brand, quality, and prove you’re the best in your field.”
“If you have an idea, build it. Leverage AI and tools like v0 by Vercel or Lovable.”
– Barashkov
For freelancers and small studios looking to take the next step, Ranstrom suggests having a solid business plan — backed by a tech plan that supports the business plan — and then hire smart, reliable developers as needed. “Keep the rest of your business streamlined, and don’t [add a lot of] managers or non-technical staff yet. Try to cash-flow your business to the best of your ability, build an MVP [project or client relationship] that can make you money, then expand.”
One superpower that smaller teams often have is that they can more easily integrate with teams at larger organizations, thanks to a lack of stifling bureaucracy and layers of middle management. Building relationships directly can make projects move smoothly and makes it easier to win repeat business. Lastly, Rutter encourages small teams to focus on people rather than brands or corporate entities.
“Be brave, but most of all be curious and listen,” advises Rutter. “Treat clients as people not companies — that way they are far more likely to come back for more.”
