Scarcity of tech talent: A growing glitch for global industry

The tech industry is booming, and with it, the demand for skilled tech workers. However, there is a growing shortage of tech talent around the world. This is a major challenge for businesses of all sizes, as they struggle to find the talent they need to innovate, grow, and compete.

Image Source: Pexels

The world is facing a growing shortage of tech talent. According to a recent study by Korn Ferry, there will be a global shortage of 85.2 million tech workers by 2030. This shortage is expected to have a significant impact on the global economy, costing businesses trillions of dollars in lost revenue.

The tech talent shortage is not just affecting developed countries, such as the United States and Europe. Developing countries, such as India and China, are also feeling the effects of the shortage.

There are a number of factors contributing to the tech talent shortage. One factor is the rapid pace of technological change. As new technologies emerge, businesses need to hire more tech workers to keep up. Another factor is the ageing workforce. Many tech workers are nearing retirement, and there are not enough young people entering the field to replace them.

A recent report by EY and iMocha found that the tech talent shortage is having a significant impact on businesses in India. The report found that 81% of organizations in India are experiencing a shortage of tech talent and that this shortage is costing businesses billions of dollars each year.

The report also found that the tech talent shortage is having a negative impact on innovation in India. 62% of organizations in India are not able to innovate as quickly as they would like due to the shortage of tech talent.

Some key highlights from the report reveal that the ISV (independent software vendor) and IT/ITeS (information technology-enabled services) industries serve as the primary incubators of tech talent, accounting for over 47% of the resources. The BFSI (banking financial services and insurance) sector follows with a contribution of 10%, while logistics and supply chain (8%) and telecom (5%) are also significant industries nurturing tech talent.

The report emphasizes a consistent and industry-specific shortage of adequate tech skills, particularly in application development and usage. Around 28% of the surveyed companies state that the transformation of tech skills in approximately 35% of their teams will be crucial to maintaining a competitive edge by 2025.

Factors Contributing to this Glitch

• The rapid pace of technological change: New technologies are being developed all the time, and it can be difficult for businesses to keep up with the latest trends. This means that they need employees who are able to learn new skills quickly and adapt to change. For example, the World Economic Forum (WEF) predicts that the global shortage of tech talent could reach 85 million by 2030. In the United States alone, there were over 2.4 million open tech jobs in 2021. And the shortage is not just limited to the US. In Europe, there are over 1.5 million open tech jobs.

• The increasing complexity of tech skills: In the past, it was possible for businesses to get by with employees who had basic tech skills. However, today’s businesses need employees who have a deep understanding of technology and how it can be used to solve business problems.
• The lack of interest in tech careers: Many young people are not interested in pursuing careers in technology. This is due to a number of factors, including the perception that tech jobs are boring or difficult, and the lack of female role models in tech.

The Impact of the Shortage

The shortage of tech talent is having a significant impact on businesses of all sizes. Some of the most common challenges that businesses are facing include:

Difficulty finding qualified candidates: Businesses are struggling to find qualified candidates for open tech jobs. This is leading to longer hiring times, higher hiring costs, and a decrease in innovation.

According to a recent survey by CompTIA, 70% of businesses reported difficulty finding qualified tech workers. The average time to fill a tech job is now 122 days, and the average cost to hire a tech worker is $5,000.

The increased cost: Businesses are having to pay higher salaries and benefits to attract and retain tech talent. This is putting a strain on budgets and making it difficult for businesses to compete.

The average salary for a software engineer in the United States is more than $100,000. And the cost of providing benefits to a tech worker is now 25% higher than the cost of providing benefits to a non-tech worker.

Reduced productivity: The shortage of tech talent is leading to reduced productivity, as businesses are not able to fill all of their open tech jobs. This is costing businesses money and making it difficult to meet customer demands.

Possible Solutions to the Shortage

Upskill and reskill their employees: Businesses can help to close the gap in tech talent by upskilling and reskilling their employees. This can be done through training programs, on-the-job learning, and mentoring. It can be done by collaboration with the industry. Companies need to foster strong partnerships with industry to facilitate knowledge exchange, internships, and apprenticeship programs. This collaboration can provide students and upcoming professionals with practical exposure and real-world experience in order to reduce the skill gap.

Partner with educational institutions: Businesses can partner with educational institutions to develop programs that will prepare students for tech careers. This can help to increase the number of qualified tech workers in the pipeline.

Promoting STEM Education: Encourage and promote science, technology, engineering, and mathematics (STEM) education at an early stage. This will develop interest and aptitude in students for these fields. It can be achieved by introducing a STEM-focused curriculum, organizing workshops, and providing scholarships to students pursuing STEM education.

Summing Up

The shortage of tech talent is indeed a growing global problem. However, by taking steps to upskill and reskill their employees, partnering with educational institutions, and creating a more welcoming environment, businesses can help to close the gap. There is a high need to ensure that they have the workforce to succeed in the digital age, especially when we are dealing with new-age AI tools.

It should be noted that as industries become increasingly dependent on technology, the demand for skilled professionals will continue to grow. Companies are required to prioritize the acquisition and development of tech talent so that they can meet the evolving demands of the market and stay ahead in a highly competitive landscape.