May 4, 2023 - There is an overwhelming shortage of developers in tech skills and the talent shortage is on the rise. However, India is one of the top tech talent markets at par with Europe and US, according to a report by consulting firm EY and skill assessment platform iMocha.
According to the study called -‘Tech skills transformation – Navigating the future of work in 2025 and beyond- about 81%, of surveyed organizations acknowledged encountering a shortage in “power user or developer" tech skills.
Just 19% of the firms reported having established a skill taxonomy, while 43% had conducted skill benchmarking at the employee level.
“Job roles and skill needs are changing faster than ever. In this report, we discovered 28% of the leaders believe they will have to revamp tech skills for a third of their talent base by 2025 to stay competitive," said Amit D Mishra, Founder and CEO, iMocha.
The firms expect skill shortages to arise from the high demand for application developers and business app users. The report highlights India's standing as one of the top tech talent markets, with a market share of 16%, putting it on par with Europe's 16% and the USA's 20%.
“With the increasing usage of different tools, complexity of skill needed across various functional areas (software engineering, IT, and business application power user) is also increasing," said Alpana Dutta, Partner, People Advisory Services, EY India.
Dutta noted that 62% employers believe that 5-15% of their talent base will require skills transformation in the next 2-3 years, with 33% employers estimating that 15-35+% of their talent base will require this upgrade.
The study covered firms across geographies like India, US, UK and EU. Respondents came from a range of industries, including independent software vendors (ISVs) (16%), IT/ITeS (41%), BFSI (29%), and Telecom (9%).