Betting on the Workforce of the Future

The global workforce is rapidly evolving. Emerging markets have risen as hotbeds of innovation and adaptability. These economies offer fertile ground for businesses to invest in the workforce of the future. Companies can harness the potential of these markets and secure their position as industry leaders to drive immense growth. It's time to recognise the value that these markets can bring to the table.?

Global companies historically leveraged labour arbitrage and established business processes as strategies in emerging markets. Worker expectations were modest, and talent development took a backseat to cost-effective manufacturing and support functions. However, the landscape has transformed significantly. Emerging markets are now pivotal centres of the global economy, intensifying the competition for talent. Access to skilled workers has become a definitive measure of a country's competitiveness.

While traditional manufacturing leaders like the United States, Germany, and Japan continue to emphasise the importance of enhancing and expanding their talent base, emerging market contenders like South Africa, Nigeria, India, and the UAE are increasingly leveraging and developing a strong local talent force to drive economic growth.

?1. Untapped Potential

Emerging markets offer a unique opportunity for unlocking talent potential. They often have a larger proportion of young people compared to developed economies.

This demographic dividend means that emerging markets have a significant working-age population that can be harnessed for economic growth. With a large pool of young workers, emerging markets have the potential to meet the demands of expanding industries and drive innovation.

The most recent UN estimates project Africa's population to grow from 1.4 billion today to 2.5 billion by 2050. Without a productivity boost from the billion young people in Africa's population and other emerging markets, the world economy will slow dramatically. China, Japan, Korea, and European countries will likely experience a sharp decline in young workers.

This demographic dividend provides a unique advantage for businesses looking to infuse fresh ideas and energy into their operations. Companies can foster innovation and stay ahead of the curve by tapping into these markets.

2. Disruptive Innovation and Technological Leapfrogging:

Emerging markets are often characterised by rapid urbanisation and technological advancements. This combination creates an ecosystem that is ripe for disruption and innovation. From fintech to e-commerce, emerging markets have leapfrogged traditional models and embraced cutting-edge technologies to address the unique needs of their populations. This adaptability to new technologies and business models enables companies?in these markets to experiment and iterate at a faster pace.

Google for example,?has recognised the potential of emerging markets and has made efforts to tap into their talent pool. They established engineering and R&D centres in India and Brazil and also more recently established a product development centre in Kenya in 2022. These centres employ highly skilled engineers, researchers, product managers and user experience designers who contribute to the development of innovative products and services.

Emerging markets exhibit a remarkable ability to adapt to volatile and uncertain conditions. These markets have weathered economic crises and political changes, constantly demonstrating resilience and resourcefulness. The ability to navigate through adversity is a testament to the entrepreneurial spirit and flexibility ingrained in these societies.

By investing in the workforce of emerging markets, businesses can tap into this resilience and capitalise on the agility needed to thrive in today's fast-paced and unpredictable business environment.

3.Tapestry of backgrounds:

Emerging markets are home to a diverse range of cultures, traditions, and perspectives. This rich tapestry of backgrounds fosters an environment of cross-pollination and cross-fertilisation of ideas. Companies that embrace diversity and inclusion in their workforce stand to gain a competitive advantage by accessing a wide range of perspectives and insights. The workforce of the future demands an inclusive environment where diverse talents can collaborate and innovate, and emerging markets offer precisely that.

Microsoft has made significant investments in these regions. They have been operating in Asia for more than three decades and have a presence in 23 Asian markets today. They have a team of approximately 30,000 people across sales, marketing, operations, engineering, and developers. As proof of their commitment to Asia’s future, they have established two of their largest research centres outside the United States in China and India. Microsoft's presence in these emerging markets has enabled it to expand its global footprint and deliver products and services tailored to local needs.

By understanding the cultural nuances and unique characteristics of these markets, businesses can tailor their products, services, and marketing strategies to effectively engage with the local consumer. This cultural insight is crucial for companies to build strong connections, gain consumer trust, and succeed in diverse markets.

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The ground is shifting on global talent. Betting on emerging markets is a strategic imperative for businesses aiming to stay ahead in the global arena. The innovation, adaptability, resilience, and diversity found in these markets offer a powerful combination of advantages. By investing in emerging market talent, companies can enhance their culture of innovation, disrupt traditional models, and drive sustainable growth. We believe, the businesses that seize the opportunity and unlock the workforce of the future, will be the winners of tomorrow.