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Brazilian Firms Forced to Outsource Due to IT Talent Crunch

Brazilian businesses are left with no option but to outsource to cushion the impact of the IT talent shortage hampering their operations. Retaining existing talent has also been difficult, according to a survey published by the Brazilian Association of Software Companies (ABES).

In the survey, 78% of respondents said they had hired (outsourced) managed services providers to deal with the labor shortage and skill gap.

There is a lack of professionals in just about every area of IT services, including application management, IT security, cloud, technical support, networks/systems, IoT (Internet of Things), data science and Artificial Intelligence (AI).

The rising trend in remote-working, combined with fierce competition to poach the best talent among large firms, has made talent retention an uphill task, said Fábio Martinelli, an analyst with IDC, which carried out the survey for ABES.

Martinelli added that the sudden spike in demand for digital transformation services in this post-covid era has worsened the talent shortage.

The skill gap, the report warns, may have a devastating impact on the “agility” of Brazilian businesses, leaving little room for innovation.

Almost 40% of companies admitted that they are struggling to fill vacant IT positions, while 87% of businesses expressed a desire to hire engineers/IT specialists over 50 years old.

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The research firm claims to have interviewed 100 executives tasked with managing IT departments in various sectors across the country.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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