The leading global management and strategy consulting firm, Zinnov, provides actionable insights for both revenue and optimization. The unforeseen requirement of organizations for innovation and faster digitalization has made talent a foremost priority. Companies have been struggling to manage the ‘Great Resignation‘ along with finding the right talent. The ever-broadening gap between the talent demand and its supply serves as proof for the same. The global AI/ML talent gap shows how companies are struggling as they embrace platforms and data-driven models.
The analysis by Zinnov showed that 69% of the employers find filling job vacancies hard with increased demand in technology & logistics segments; 76% of the tech talent do not possess the required skillsets for the job roles; and the top COE hotspots globally are India, China, Canada, Poland, and Mexico. Also, it is expected that Digital Engineering and the resultant spend will accelerate across industries, leading to a convergence of skills and will further widen the talent supply-demand chasm. While the global AI/ML talent gap stands at a huge 1.2 million (approx.), only around 650,000 AI & Big Data/Analytics professionals are there who are directly employable.
Newer talent strategies like leveraging global talent hotspots need to be explored for bridging the gap. Zinnov’s study, “COE Hotspots of the World,” offers a comprehensive look at the foremost global destinations with under-tapped talent pools.
Globalization – The Gamechanger
The CEO of Zinnov, Pari Natarajan, said that talent will be at the core of decision-making for businesses across the globe. It will be critical for leaders to identify new talent hotspots and build Centers of Excellence that can take end-to-end ownership and be scaled at optimal costs. He added that while Eastern European countries possess high-quality talent, there are scalability challenges owing to limited talent pools. India has emerged as the best-fit location given it will be home to one-eighth of the global digital talent by 2030.
Zinnov’s analysis revealed that companies with globalized engineering R&D locations get valued higher at a multiple of 7.1, as compared to the enterprise software companies having domestic ER&D at a 5.4 multiple. The acceleration of Digital Engineering spend globally across industries is predicted to result in a confluence of skills and put a premium on skilled talent. Hence, if this global talent crunch is not addressed by finding the source of talent, over competing with the same pools, it will hamper business growth and also cripple organizations with scaling challenges.
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COE Hotspots Worldwide
The study evaluates countries including India, China, Brazil, Mexico, Philippines, Canada, Poland, Bulgaria, Lithuania, Estonia, Belarus, Romania, and the Czech Republic. The primary and secondary research of the study covers 13 countries – Asia Pacific (APAC), Latin America (LATAM), North America, and Eastern European regions and assesses 4 key dimensions of software engineering ecosystem maturity, ease of doing business, talent availability, and cost analysis.
The countries exhibit great potential for setting up Centers of Excellences (COEs) to house software engineering teams but show varying degrees of potential in terms of scalability of teams, affordability, availability of diverse talent to build complete software engineering teams, and ecosystem maturity.
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