An Overwhelming Majority of 81% Organizations are Experiencing a Shortage in Skilled Tech Workers: EY and iMocha report
- 28% of organizations believe that they would need to revamp tech skills for a third of their talent base by 2025 to stay competitive
- Merely 19% organizations have established a skill taxonomy
BANGALORE, India, May 5, 2023 /PRNewswire/ -- EY, the leading professional services organization and iMocha, the world's leading skills intelligence and skills assessment platform, today released a report titled 'Tech skills transformation – Navigating the future of work in 2025 and beyond'. The report is a comprehensive study on how technology skills are increasingly integrating across all job roles, beyond traditional IT roles. The study assesses the topic from three lenses – in-demand tech skills across domains, the organizational impact of tech skills transformation and organizations' response to tech skills transformation.
The report indicates that a significant majority, or 81%, of surveyed organizations acknowledged encountering a shortage in 'power user or developer' tech skills. Merely 19% of the organizations reported having established a skill taxonomy, while 43% had conducted skill benchmarking at the employee level. There is an estimated global tech talent pool of over 26 million people with 65% in software engineering roles followed by 27% in IT roles and 8% in business app related roles.
Speaking about the report, Amit D Mishra, Founder and CEO, iMocha, said, "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. The adoption of skill taxonomy and benchmarking is a clear indicator that the increasing complexity of tech skills is necessitating leaders to reconstruct their talent acquisition, development, and management strategies."
Nonetheless, the shortage of future tech skills is expected to arise from the high demand for application developers and business app users, as indicated by 76% and 62% of the surveyed organizations, respectively. 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%.
Adding to it, Alpana Dutta, Partner, People Advisory Services, EY India said, "It is clearly evident that technology skills are seen as valuable across job roles, functions, and industries. 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. Hence it is not surprising 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. For HR leaders, enabling tech skills transformation will necessitate taking a multi-disciplinary approach, with focus on developing granular, real-time intelligence into an organization's skills inventory. We also expect to see increasing investment in skills intelligence platforms."
The report's findings are based on in-depth interviews with industry leaders from various sectors, ensuring that multiple industries were represented from 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%).
It was discovered that the ISV (Independent Software Vendor) and IT/ITeS (Information Technology enabled Services) industries prove to be the biggest tech talent incubators accounting for almost half (more than 47%) of the resources. Other major industries that incubate tech talent include BFSI (Banking Financial Services and Insurance) (10%), logistics and supply chain (8%) and telecom (5%).
The holistic nature of the surveyed organizations and the identification of key challenges clearly highlight that there is a steady and sector-agnostic shortage of adequate tech skills especially on the application development and usage fronts. 28% companies surveyed have opined that tech skills transformation of about 35% of their teams would become critical to retain competitive edge by 2025.
The report offers insights for HR leaders to evaluate their current HR tech stack and integrate skills intelligence tools as a critical component for business continuity. Skills intelligence enables dynamic and more accurate decision making and also underscores the role of power users. These are users that need multi-disciplinary skill development across HR systems, data analytics, and program management skills alongside cross-functional knowhow. The report can be downloaded from https://www.imocha.io/tech-skills-transformation-report
About EY
EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate. Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data, and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws.
For more information about our organization, please visit ey.com
About iMocha
iMocha is a skills intelligence and assessment platform that enables talent leaders to make smarter talent decisions with its skills-first insights. 500+ organizations across 70+ countries trust the platform to acquire job-fit talent faster and to measure the ROI from their talent development initiatives. It empowers talent teams with the largest skill library with 2500+ assessments, AI-LogicBox (AI-based pseudo-coding simulator), AI-EnglishPro (AI-powered language analyzer), skill benchmarking, upskilling dashboard, talent analytics, proctoring, fraud detection, and custom assessment consulting, etc.
For more about iMocha, visit www.imocha.io
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