Scarcity of IT Talent

Scarcity of IT Talent and What It Means for Businesses

Hiring the right IT talent for your business remains one of the biggest challenges facing companies in 2018. And the issue is set to continue, with EU 28 countries likely to suffer a shortfall of 500,000 software engineers by 2020 according to the latest study of nexten.io.

In the Netherlands, across all sectors, an average of 13.6% of vacancies remained unfilled in 2014, with that number rising to nigh on 22% for the Information and Communication industry. Hop across the border to Germany and the Cologne Institute for Economic Research reported that 96 job types were facing a shortage of skilled labor in Germany with the tech sector as the most affected.

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And it’s not just in Europe where demand for software developers is outstripping the supply: the US Labor Department has indicated that IT job vacancies are set to rise by 25% over the next 8 years.

But we hardly need official figures to tell us what most companies already know. It is hard and getting harder for companies to attract the talent they need, especially in the software development area. A better question may be, “Why?”

What Makes it Hard for Companies to Fill IT Positions?

In the countries where Techloop is active, that is the Czech Republic, Slovakia, Hungary, Sweden, and the Netherlands, 3 companies out of 5 cite a lack of sufficient applications as the main reasons for the inability to fill IT positions.

In Sweden, the main reason cited is not the supply of applications but instead that the applicants do not possess the requisite level of qualification to be considered for the positions. A shortage of applicants and a lack of work experience were listed at the second most pertinent reasons.

In Hungary, companies state lack of supply, lack of qualifications, and overly high salary expectations as of equal importance when it comes to hiring tech talent for their businesses.

So it’s therefore clear that is it not only a question of there not being enough candidates to fill open IT positions but also a problem with the quality of applications and finding the right match between company and IT professional.

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