Nearshore Americas
Tech Layoff

Study: Massive Talent Shortage Threatens to Scuttle US Tech Growth

A massive talent shortage is threatening to scuttle growth in the US technology sector, according to the latest study by Harvey Nash.

In the survey, more than 69% of digital leaders said they were unable to keep pace with growth due to a lack of talent.

Thanks to the COVID-19 pandemic, a large number of American businesses are set to undergo digital transformation. The number of businesses intending to boost technology investment and headcount has reached record levels, while talent shortage is worsening by the day.

A staggering 61% of respondents expressed their intention to increase technology investment, while 60% of them talked about increasing headcount.

Cybersecurity (43%) is the most sought-after tech skill, up by 11% in the last 12 months, followed by DevOps (39%), and big data/analytics (38%).

There has been a 39% increase in the demand for software developers compared to the previous year.

The pandemic has convinced everyone that remote working is possible, and this new life priority, according to the research firm, is complicating the ability of CEOs to retain talent.

In the survey, just four in ten digital leaders admitted that they can retain employees in key roles for the tenure they would like.

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Despite the challenges, only one in three organizations (29%) have redesigned their employee offers to make them more attractive to staff in the new hybrid working world.

They are exploring a variety of options to retain talent and boost skilled human capital. Some of them are planning to offer more internships and apprenticeships in the days to come, while a few others are intending to cross-train their own employees in other parts of their organization.

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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