War looms over global tech talent

A global war for technology talent is looming that will lead to severe skills shortages and rising salaries, according to a new study by PricewaterhouseCoopers (PwC).

But businesses will not simply be able to rely on tapping more affordable and plentiful tech labour overseas and in emerging economies, which will be hit by skills shortages, the report warned.

The survey of 153 senior executives in technology companies around the globe found that European executives, in particular, anticipate a "severe shortage" of overseas pools of talent within the next three years.

It is a similar picture in emerging markets, with 41 per cent of all survey respondents finding it difficult to locate technical skills and almost half (48 per cent) having trouble retaining the talent they do find.

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A result of this increased competition for skills has led to salaries in the technology sectors of emerging markets rising, and the report claims compensation levels are increasing to the point where China and India will no longer be viewed as more cost-effective locations to source talent.

Graham Wyllie, director at PwC, said in the report: "Competition for talent has never been fiercer and there is likely to be another industry talent war if demand increases."

Despite this, the survey found widespread weaknesses in recruiting capabilities, developing in-house talent and training for senior executives.

But some organisations are taking action to address the skills shortage by working with schools to encourage students to study maths and sciences, and using "talent maps" to assess their present and future skills needs.

The Technology Executive Connections - Successful Strategies for Talent Management report was conducted by the Economist Intelligence Unit for PwC.