War In Ukraine Impacts
The It Industry In The U.S
As Ukrainians leave their country in large numbers, and GBS/BPO operations are disrupted, the world is experiencing a disruption in the supply of offshore IT services.
Ukraine is a major source of IT talent, with a majority of their 85K-100K export service workers employed in IT (Sources: Gartner, StaffingIndustry).
In an article published last month in Forbes, Peter Bendor-Samuel sizes this disruption at 10% of the offshore IT talent pool worldwide.
He sees this disruption as transitory in nature: 3 to 6 months should be enough for client firms to locate new resources in Poland, Turkey, and Israel. Though he doesn’t mention India, considering the size of this country’s pool of software engineers, it is likely that it will provide a percentage of replacement IT resources.
Peter Bendor-Samuel also notes that even before the events in Ukraine, a shortage in qualified IT resources worldwide was already inflationary.
The disruption due to the war in Ukraine will accentuate the trend — until the market reconfigures its geography.
Considering the weight of IT in our service economy, expect an impact on inflation, notably through IT salaries. Expect qualified U.S.-based talent to look for greener pastures.
Businesses relying on IT for their top and bottom line growth ought to be diligent in finding out what makes their engineers’ clock tick.
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