The majority or 81% of surveyed organisations, acknowledged encountering a shortage in “power user or developer” tech skills, according to a report titled “Tech skills transformation – Navigating the future of work in 2025 and beyond” by EY and iMocha, a skills intelligence and skills assessment platform.
Merely 19% of the organisations 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.
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 organisational impact of tech skills transformation, and organizations’ response to tech skills transformation.
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 organisations, 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 at 16% and the US at 20%.
“It is clearly evident that technology skills are seen as valuable across job roles, functions, and industries. With the increasing usage of different tools, the complexity of skills needed across various functional areas (software engineering, IT, and business application power user) is also increasing. Hence it is not surprising that 62% of employers believe that 5-15% of their talent base will require skills transformation in the next 2-3 years, with 33% of employers estimating that 15-35% of their talent base will require this upgrade,” said Alpana Dutta, Partner, People Advisory Services, EY India.
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, the US, the UK, and EU. Respondents came from a range of industries, including independent software vendors or ISVs (16%), IT/ITeS (41%), BFSI (29%), and Telecom (9%).
The report revealed that ISVs and IT/ITeS 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 (10%), logistics and supply chain (8%), and telecom (5%).