Countries around the world are experiencing a huge uptick in demand for qualified technology and software talent—and India is no exception. According to a report by Naukri JobSpeak, the need for candidates within the IT software and services sector was 55 percent higher in June of 2021 than it was in January. It’s predicted that by 2030, the global labor skills shortage will reach 4.3 million workers and roughly $450 billion in unrealized output in the technology, media, and telecommunications industry alone and India will be the only country in the world to have a talent surplus—amounting to nearly 250 million workers.
So what has caused the massive increase in demand for candidates in this field? How has Indian tech talent been in such high demand when the rest of the Indian economy has been slow to recover from the impacts of the coronavirus? Our Acara Solutions India team has the latest on why companies around the world have insisted on bolstering their IT teams with premier Indian tech and IT candidates.
Pandemic accelerates advancements in tech
One of the most substantial positives to come from the COVID-19 pandemic was the acceleration of digitization within business operations. Regardless of industry, companies from around the world have taken a more strategic and innovative approach when solving problems and creating process efficiencies. For example, in the Asia-Pacific region, 53 percent of customer interactions were considered digital in July 2020—compared to only 32 percent in December 2019. Taking advantage of breakthrough software and technology has worked to the benefit of these organizations. But opportunities for continued advancement are present—and companies are eager to bring in qualified tech talent to realize this substantial value.
Heightened demand for IT candidates
It should come as no surprise to see roles such as IT security and full-stack developers witness 166 percent and 110 percent growth, respectively, between October 2020 and March 2021. As the business world has evolved over the past year-and-a-half and embraced the technology wave, companies have felt increasing pressures to keep pace. To modernize IT and business operations, organizations have sought candidates that are agile, creative, and well equipped to improve their technology capabilities. Today, skills like big data analytics, artificial intelligence, machine learning, and cybersecurity have become top-of-mind for many business and tech leaders. “Our team is witnessing a surge in the number of companies in the U.S. outsourcing to India, “ said Sayantan Biswas, Acara India’s Business Development Manager. “The number is multiplying fast and includes startup organizations—not just larger companies.”
Shortage of qualified tech talent
While the demand for talent with digital skillsets is at an all-time high, the number of workers that actually possess these technical abilities is low. This shortage of qualified candidates has created a massive war for tech talent, causing employers to enter all-out recruiting battles for these workers. In a recent report commissioned by Amazon Web Services, the number of workers requiring digital skills in India will need to increase nine times by 2025 to keep pace with current demand. That’s another reason why Indian companies have been so deliberate about creating learning and development programs—the need to upskill or reskill workers is growing by the day.
Ongoing talent and retention challenges
As the demand for tech talent continues to grow exponentially in the months ahead, companies in India will undoubtedly face challenges in not only recruiting new candidates but retaining current employees. With a widening gap between the supply and demand of qualified workers, candidates will continue to control the labor market for the foreseeable future. Organizations are being forced to meet the expectations of prospective employees, and as such, salaries have been driven up by as much as 50 percent. Candidates with niche IT and tech skillsets know that they’re in the drivers’ seat—and they’re taking full advantage of the situation. If today’s workforce trends continue, it would not be surprising to see the talent acquisition and retention difficulties currently hindering Indian companies remaining pervasive for years to come.
Acara Solutions India can find the tech talent you need
Is your company struggling with finding qualified tech talent? With a full suite of talent and workforce services—including contract staffing, permanent hiring, executive search, and recruitment process outsourcing—our team at Acara Solutions India can help connect you with the candidates you need to keep your business moving forward. Contact us to learn how we can address your recruiting and talent acquisition challenges.
To learn more from our team of employment experts, check out our blog here.
Original publish date for this blog is August 18, 2021.