The Impact Of Global Talent Drought & How Are Businesses Dealing With It?

The Impact Of Global Talent Drought & How Are Businesses Dealing With It?

"An Indian web developer who works remotely full-time for an Australian firm headquartered in the United States." - This may have been a pipe dream a few years ago, but for hundreds of businesses that have understood the potential of employing software talent from emerging countries such as India, it is now a reality.

Advancements in technology and remote work have blurred the distinctions between talent pools from all around the world. It has hastened the transformation of enterprises by supplying them with carefully selected and screened talent from around the globe at a relatively cheap operational cost.

The ability to locate a high-caliber developer from anywhere in the globe has facilitated social interaction amongst teams.

Why Is There A Global Scarcity Of Tech Talent?

Microsoft CEO Satya Nadella was cited as stating, "All businesses are software businesses." This is exactly what we see in 2021.

Software is the adhesive that ties an organization together. It is the primary driver of innovation and agility for businesses throughout the world. Regardless of the sort of service they offer, many businesses utilize software every day to organize operations, assist customer inquiries, maintain databases, and even sell their products.

And because 90% of an average organization's activities are backed by software, it is only logical that there is an extraordinary surge in the demand for talented technology professionals. The problem is that demand has outpaced supply, resulting in one of the world's most severe skill shortages in recorded history.

In addition to this aspect, other contributors to the global skills shortage include:

• The departure or retirement of Gen-X from their current positions.
• Lack of qualified personnel in innovative and emerging technologies.
• STEM (Science, Technology, Engineering, and Mathematics) education is lacking.
• Contribution of Covid-19 to the worldwide talent shortage

Due to the coronavirus epidemic, the shortage of technology professionals is currently greater than it has ever been. When Covid-19 was released in 2020, many firms had not yet digitalized their procedures. Concurrently, there was a significant migration of client relations to online platforms. This made businesses realize that in order to maintain their business and stay viable, they needed to go digital immediately. Additionally, this necessitated the addition of qualified technological resources to their current personnel.

Companies accelerated years' worth of digital transformation in a matter of months and engaged massive teams to assist them. During the Covid-19 crisis, many firms improved A McKinsey Global Survey found that companies could speed up their digital customer and supply-chain interactions by three to four years.

However, automation is an essential component of digital transformation. And while automation will produce more than 50 million jobs worldwide over the next several years, it will also need retraining to do new activities. And this contributes significantly to the scarcity of scarcity.

How Much Does The Global Talent Gap Cost Businesses?

ManpowerGroup says that more than 36% of companies around the world can't fill open jobs. This is the highest number in seven years.

However, how does this impact the company's bottom line?

54% of respondents feel that the IT skills shortage has a moderate to high impact on their bottom line and their ability to satisfy customer demands, according to the report. When translated into revenue terms, the results are astonishing.

In a study of over 1,000 company executives in the United Kingdom, it was found that around €7.6bn is spent annually on inflated wages, temporary hiring, recruiting fees, and training, a 39% rise from €3.3bn in 2017. In the same way, the US could lose €132 billion in annual income due to a lack of talent.

Offshore Staffing Solution: Low Cost, Better Talent

Employers all over the world prefer hiring tech talent with years of experience, industry expertise, and language proficiency under their belt. When you go through the traditional route of outsourcing and freelancing, it’s very hard to find professionals with these qualifications.

Employers can look further, both nationally and internationally, for workers to fill the jobs that aren't being filled. With all the communication and management tools available today, you can work with software engineers in any part of the world, and it won't feel any different than working with them in the same room. Also, onboarding training can be helpful to make sure that new employees don't have any skill gaps.

The average annual salary of developers in India is almost 2.5 times lower than the average salary of all developers all over the world, almost 5 times lower than the average salary in the US, almost 4 times lower than the average salary in the UK, and almost 3 times lower than the average salary in Germany. More than 50% of Indian developers are working on a yearly salary of less than $10,000.

Hiring tech talent from IT staffing companies can cut the cost of hiring by 50%. The companies get access to a better talent pool, and the talent gets global opportunities, a comfortable location to work at, and a good company to progress their career.

Conclusion

Adroit Innovative Solutions seems all set to help companies fight the talent shortage and find skilled talent easily and quickly.

Good talent doesn’t care about borders, and neither should you.?