US entrepreneurs are set to spend more money on their tech staff, as the COVID-19 pandemic stokes demand for digital transformation in all economic sectors.
The spending on technology employees may increase 4.6% this year and another 5.4 % in 2022, according to an estimation released by research firm Forrester.
The research firm stated that it had taken into account all the factors- including the number of employees, salary, bonus, and incentives – on its way to calculate the employment cost.
Many companies are offering exorbitant salaries to data scientists and professionals with expertise in artificial intelligence (AI). The talent shortage in the cybersecurity sector is also contributing to the surge in tech staff spending.
Forrester expects tech spending in the United States to increase 6% this year, predicting that outsourcing too will increase in volume.
“We predicted that the US tech market would grow by 6.6% in 2021 and 7.0% in 2022. Spending on software will lead the expansion with 10% growth in 2021 and 12% in 2022,” wrote Andrew Bartels, VP and principal analyst at Forrester, in a blog post.
The tech talent shortage does not seem to ease even though the industries hit hard by the pandemic, such as oil and gas, hospitality, and entertainment, have laid off a significant number of their tech employees.
Similarly, the rising rate of cyber-attacks and remote-working arrangements are stocking demand for cybersecurity experts.