Tech Skills Shortage: Challenges and Implications

A recent study from EY and iMocha titled “Tech skills transformation – Navigating the future of work in 2025 and beyond” examines the impact of technology skills transformation across various domains and organizations. The findings reveal that 81% of surveyed organizations face a shortage of "power user or developer" tech skills. Only 19% have established a skill taxonomy, and 43% have conducted skill benchmarking at the employee level. The global tech talent pool comprises over 26 million individuals, with the majority in software engineering (65%), followed by IT roles (27%) and business app-related roles (8%).

The report highlights that the future shortage of tech skills will mainly arise from the high demand for application developers and business app users, according to 76% and 62% of surveyed organizations, respectively. India emerges as a significant tech talent market, sharing market space with Europe at 16% and the USA at 20%. The findings are based on interviews with industry leaders from diverse sectors and geographic locations. Independent software vendors (ISVs) and IT/ITeS industries are the largest contributors to tech talent, accounting for over 47% of resources, followed by BFSI(10%), logistics(8%), and telecom sectors(5%).

T he survey reveals that there is a consistent shortage of tech skills across various sectors, emphasizing the need for application development and usage skills. Approximately 28% of surveyed companies believe that transforming tech skills for around 35% of their teams will be crucial for maintaining a competitive edge by 2025. The survey includes companies from India and the UK/EU, with 75% of UK/EU respondents identifying a tech-skills gap in business app user roles, while 60% of Indian and 50% of US respondents acknowledged the same gap.