The majority of nations continue to experience a severe talent shortage in the technology sector. According to a recent NASSCOM report on supply and demand analysis, there is a global talent shortage for technology. In recent months, layoffs and hiring freezes have dominated tech executives’ quarterly earnings calls. According to Korn Ferry’s research on the talent gap, there will still be 85 million unfilled jobs worldwide by 2030, according to Korn Ferry research. Unsolved issues with the labour market could result in $8.5 trillion in annual revenue losses.
Although there have been reports of layoffs and hiring freezes at technology-focused businesses, the overall job market for technology professionals is still growing as businesses improve their digital infrastructure to meet consumers’ growing demand for online access to goods and services in the aftermath of COVID.
The question is, what factors have led to the meteoric rise in the need for qualified candidates in this sector? Why is there such a high demand for Indian tech talent when the rest of the global economy is still attempting to recover from the effects of the coronavirus?
Digital acceleration
One of the major benefits of the COVID-19 pandemic was the rapid digitalization of business operations. Regardless of industry, businesses from around the globe have adopted a more strategic and innovative approach to problem-solving and enhancing process efficiencies. These organisations have benefited from the use of innovative software and technology. However, there is room for growth, and companies are eager to hire skilled tech workers so they can seize these opportunities and reap the benefits of their substantial potential.
Increased demand for IT professionals
Companies have been under increasing pressure to keep up with the business world’s evolution over the past 1.5 years as it has embraced the technology wave. Organizations have been looking for candidates who are nimble, creative, and well-equipped to advance their technological capabilities to modernise IT and business operations. These days, many business and tech leaders place a high priority on having skills in Full Stack, big data analytics, artificial intelligence, machine learning, DevOps and cybersecurity.
Shortage of qualified talent
Although there is a high demand for talent with digital skill sets, there aren’t many employees who have these technical skills. This dearth of qualified candidates has sparked a massive war for tech talent, prompting employers to engage in all-out recruitment battles for these workers. According to a recent report commissioned by Amazon Web Services, India will need nine times more workers by 2025 than it does now to keep up with the demand for workers with digital skills. The need to upskill or reskill employees is growing by the day, which is another reason why Indian businesses have been so deliberate about developing learning and development programmes.
Ongoing challenges with talent acquisition and retention
Inevitably, the demand-supply gap has tipped the scales in favour of job candidates. Because there is a shortage of talent, businesses are engaged in a talent war and using talent poaching tactics. Candidates rule the roost and leave for greener pastures due to the constant demand for talent. Attrition rates are reaching all-time highs for almost all IT companies. Companies in India will undoubtedly encounter difficulties both in attracting new candidates and keeping hold of existing employees as the demand for tech talent grows exponentially in the months to come. As long as the gap between supply and demand for qualified workers continues to widen, candidates will continue to dominate the labour market for the foreseeable future. Salaries have increased by as much as 50% as a result of companies being forced to live up to the expectations of potential employees. Candidates with specialised IT and tech skill sets are aware of their advantage and are making the most of it. If current employment trends continue, Indian businesses will continue to face challenges in attracting and retaining top talent in the upcoming years.
Technology has become ubiquitous in almost every facet of our lives. Its application has aided even tasks that did not appear to require a digital component at first. Algorithms are used to determine the value of a home, restaurants use touch-screen tablets to accept customer orders, and social media suggests potential connections you may wish to make. In the future, the software will play a bigger role in our lives, assuming tasks like driving a car, enhancing our skills like finding the next career skill to learn, and generally enhancing our quality of life (tailoring diets or exercise regimens). As the world advances more quickly in this direction, there will be a greater need for tech expertise, and employment in fields related to technology will rise in tandem with that growth. The pandemic has increased both the demand for and the adoption of digital products, services, experiences, and conveniences. The pandemic has accelerated and expanded digital transformation. To be future-ready in the workplace, one needs to be familiar with cutting-edge technologies like AI/ML, AR/VR, IoT, robotics, cloud computing, data analytics, and data visualisation, to name just a few.
Future technological talent will consist of multi-skilled roles that can adapt to different technological demands. However, the bottom line is that today’s technology students need to be trained in the most cutting-edge technologies at an early stage of their education or career. Without thorough knowledge and experience of what is anticipated for future technology, developers might not be able to deliver the desired results for both users and businesses. India will be ready to build innovative solutions for successful outcomes and make a positive impact on the world if the proper policies are in place, market-oriented training is provided that focuses on real-world applications, and strong mentoring is provided for assisting future technology developers.
(The author is Mr. Daya Prakash, Founder, TalentOnLease and the views expressed in this article are his own)
