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Global Software and Services Industry Analysis: Need for New Skills to Increase Hiring of Tech Talent

 Published Date: 2019-06-14   |   Views: 81   |  Miscellaneous  

Technological advancement and digitalization are at the core of the global software and services industry, according to industry experts. Software and IT companies are expected to have transformed workplaces with the addition of highly innovative and sophisticated models such as digital-human models. A good way to describe digital-human models is that they can obviously work independently based on objective and stimuli and also respond to instructions while functioning in collaboration with humans, much like co-bots.

The deadly combination of 5G, edge computing, and cloud computing is anticipated to transform the global software and services industry for good. It could be safe to say that the combination will help with a novel way of approaching IT applications and create opportunities for tech firms to innovate. Talking about tech firms, they are predicted to continue to face tough competition from other companies as innovation, partnership, collaboration, expansion, addition of new facilities, and launch of new products become more prominent in future.

One of the ways tech firms can differentiate themselves from their IT competitors is adding vertical industry specializations. This will also help them to achieve a know-it-all status in their niche markets and become more granular in their services and operations while moving beyond horizontal solutions. In addition, applications-specific vertical expertise can help tech firms to attain a strong position in the modern cloud-based software industry.

According to the CompTIA IT Industry Outlook 2019 report, some of the key drivers for tech firm vertical specialization in the IT industry are:

         Competitive differentiator reported by 42% of the respondents

         Significant revenue opportunity voted by 54% of the respondents

         Customer demand indicated by 62% of the respondents

Players to Focus on Partnership and Collaboration to Improve Services and Enhance Experiences

US tech giant, Microsoft is a leading developer and supporter of computer software, PCs, consumer electronics, and related services. In June 2019, the company launched its AI Digital Labs in India through collaboration with 10 higher educational institutions for providing training, curriculum, infrastructure, and access to developer support and tools and AI and cloud services. According to the company’s press release in May 2019, Microsoft and Sony will form a new innovations partnership to improve customer experiences with their AI solutions and direct-to-consumer entertainment platforms.

Oracle, an American multinational computer technology corporation, offers enterprise software products, cloud engineered systems, and database software and technology. In June 2019, the company partnered with Microsoft in a cloud interoperability collaboration. The partnership is meant to interconnect Oracle Cloud and Microsoft Azure.

German multinational software company, SAP is a business applications and technology leader that offers enterprise software for managing business operations as well as customer relations. In May 2019, the company introduced its SAP Integrated Business Planning application for smarter supply chain planning. In the same month, it collaborated with global strategic service partners, Google Cloud, Amazon Web Services, and Microsoft Azure for the project Embrace to guide customers to the cloud.

In May 2019, US multinational computer software company, Adobe partnered with Software AG to help enterprises take their customer experience management to the next level. In the same month, the company collaborated with Amazon to give third-party merchants a seamless way of accelerating their business growth.

VMware, a US-based global leader in cloud infrastructure and digital workspace technology, announced in its June 2019 press release that it intends to acquire Avi Networks. The acquisition will expand VMware’s networking and security portfolio, according to the company.

Trend of Hiring New Talent to Continue in IT Industry

According to the CompTIA IT Industry Outlook 2019 report, high demand for tech talent in the IT industry is expected to keep the labor market busy in 2019. A healthy 34% of US tech companies report having job vacancies for sales engineers, market specialists, project managers, and other positions in the business unit area, according to CompTIA research. Additionally, close to 4 in 10 tech companies in the country are actively looking for candidates to fill technical jobs. Talent hiring is an activity that is mostly witnessed in medium and large-size companies.

Moreover, the report shows that 58% of tech firms in the IT industry hire talent for the reason of adding new headcount or expanding operations. Furthermore, around 52% of tech firms are surveyed to hire candidates to cover skills required in new IT areas such as emerging tech. Another 43% hire people to fill vacancies created due to retirements or departures. According to the same report, some of the leading hiring challenges in the IT industry are:

         Limited pool of available talent in a local region

         Increasing salary expectations

         Strong competition for technology talent

         Finding talent with desired soft skills

         Finding talent with experience or skills in emerging domains such as AI, AR, and IoT

Adoption of Customer-centric Approach to Increase Demand for Cloud Computing

The global software and services industry is a highly lucrative one with availability of strong revenue streams. It comprises several sectors such as application software, cloud computing, system software, IT, data center networking, and analytics. Demand for cloud enterprise application software is expected to increase due to high preference for customer-centric approach and growing adoption of cloud-based solutions. The global cloud computing market is foretold to attain growth while riding on the need to improve customer experience and aggressive development of IoT and IT infrastructure services.

Demand for data center networking is predicted to see a rise as a result of the increasing use of big data and cloud services. Improvement in awareness about various benefits of data center networking, including enhanced safety and security, increased performance, reduction in operational expenses, and flexibility, is foreseen to push the growth of the global data center networking market. Adoption of IT professional services is anticipated to improve on the back of the rising demand for customizable and flexible professional and knowledge-based services.

Key Trends: Companies to Advance Customer Experience with Hyper-personalization

Creative Thinking: The IT industry could see new and creative solutions being birthed as companies move away from age-old technical job criteria and accept alternatives, if not equivalents, to the traditional four-year academic path. Clearly, there is pressure on the labor market to make available suitable IT job candidates. However, companies are encouraging self-learning, providing on-the-job-training, and even helping employees to achieve professional credentials and complete IT certifications to fill the new skills gap and address the dearth of qualified talent.

Hyper-personalization: During the CompTIA IT Industry Outlook 2019 survey, 46% of the respondents said they are planning to concentrate on personalization in 2019. Tech-savvy IT channel firms are expected to focus more on business innovation, creative customer services using advanced tools, and digital engagement with customers through different platforms.

Ambient Computing: It could be a result of the combination of AI automating different tasks and reducing complexities and IoT enabling the emergence of new capabilities and effective data collection. It will allow seamless completion of activities with minimal user interaction.

Distributed Ledger Technology: It provides an enhanced technique to record several kinds of digital transactions and helps with a novel architectural approach on the back of cryptography and distributed networks.

Partner-to-partner Collaboration: Such partnerships will become more common in the global software and services industry as the need to fill gaps in the new tech ecosystem increases.

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