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BRA | Jul 13, 2022

Brazil struggling amid IT talent crunch

/ Our Today

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(Photo: Venture Beat.com)

Brazil is now facing a chronic shortage of information technology (IT) talent, which has left businesses in the South American country with no option but to outsource.

Brazilian businesses are now outsourcing the IT talent needed to operate their businesses to cushion the impact of the talent shortage hampering their operations. Retaining existing talent has also been difficult, according to a survey published by the Brazilian Association of Software Companies (ABES).

In the survey, 78 per cent of respondents said they had hired (outsourced) managed services providers to deal with the labour shortage and skill gap. The research firm claims to have interviewed 100 executives tasked with managing IT departments in various sectors across the country.

Lack of professionals in every area of IT services

The conclusion is that there is a lack of professionals in just about every area of IT services, including application management, IT security, cloud, technical support, networks/systems, Internet of Things, data science and Artificial Intelligence.

The rising trend in remote-working, combined with fierce competition to poach the best talent among large firms, has made talent retention an uphill task, explained Fábio Martinelli, an analyst with IDC, which carried out the survey for ABES.

Martinelli told Nearshore Americas that the sudden spike in demand for digital transformation services in this post-covid era has worsened the talent shortage. The skill gap, the report warns, may have a devastating impact on the “agility” of Brazilian businesses, leaving little room for innovation.

Almost 40 per cent of companies admitted that they are struggling to fill vacant IT positions, while 87 per cent of businesses expressed a desire to hire engineers/IT specialists over 50 years old.  

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