AI, Cloud, & You: The Skills IT Leaders Need Now
By: Javid Amin
The Indian IT services industry, a powerhouse in global talent recruitment for years, is undergoing a metamorphosis, particularly in senior-level hiring practices. While the pressure to achieve financial targets remains, a confluence of factors – including global market conditions, the rise of AI, and a focus on productization – is shaping a new hiring landscape.
This article delves into these changes, exploring what they mean for both employers and IT professionals in 2024.
A Shift in Gears: The Evolving Hiring Landscape
Ashutosh Khanna, Co-founder and Director at WalkWater Talent Advisors, paints a picture of a cautious market. He anticipates muted hiring at the senior level for the next 2-3 quarters, with companies prioritizing profitability over aggressive expansion. However, Khanna highlights a continued trend of overseas hiring for specific skillsets. “Clients are looking for a good mix of Indian and local talent,” he says, indicating a strategic approach to talent acquisition.
Shelton Guinn, Senior Vice President-Human Resources at Innova Solutions, provides a more optimistic outlook. He observes an “interesting transformation” in senior-level hiring, with leadership positions across the board experiencing an uptick. This optimism, he suggests, is fueled by anticipated economic growth, leading to projected salary hikes of 8-10% in the traditional IT space and a staggering 20% increase for senior talent across industries (as per Michael Page estimates).
Beyond Traditional IT: The Demand for New-Age Skills
The roles and skills sought after by IT companies are evolving rapidly. While positions in core functions like finance, delivery, consulting, and program management remain critical, companies are increasingly seeking leaders with expertise in cutting-edge technologies. Domains like artificial intelligence (AI), cloud computing, and machine learning (ML) are now considered essential for senior leadership.
The specific job titles reflect this shift. Companies are actively recruiting for Chief AI Officers, Partner or Practice Heads specializing in AI, Delivery Heads with AI expertise, Chief Digital Officers (CDOs), CISOs (Chief Information Security Officers), Partnership and M&A Heads, and CFOs with a strong understanding of the digital landscape. Furthermore, sales leaders who can consult and advise clients on digital transformation strategies are in high demand.
Siva Prasad Nanduri, CEO of Diensten Tech Limited, emphasizes the importance of data science, data engineering, analytics, ML, AI, and cybersecurity skills. These areas are becoming crucial differentiators in the competitive IT landscape.
The Talent Conundrum: Attrition, Upskilling, and New Frontiers
Khanna cautions that the movement of talent between companies for in-demand roles will likely lead to higher attrition rates. Additionally, he predicts continued layoffs as companies streamline their operations and eliminate redundant roles.
However, there’s also a silver lining. Gartner’s latest forecast paints a promising picture. Worldwide IT spending is expected to reach a staggering $5 trillion in 2024, reflecting an 8% increase compared to the previous year. This revised forecast signifies a strong trajectory, potentially pushing global IT spending beyond $8 trillion before the decade ends. India too is expected to experience a boom, with IT spending estimated to grow by a healthy 13.2% in 2024, reaching a total of $138.9 billion.
Nanduri believes that to stay competitive, mid-career and senior-level professionals need to adopt a proactive approach to upskilling. This can involve mastering contemporary tech stacks, seeking diverse project experiences, and aligning responsibilities with skillsets. “Upskilling in cloud computing, AI, and data analytics is crucial,” he emphasizes. “These candidates need to lead strategic initiatives and coach teams towards achieving organizational goals to thrive in the ever-changing work environment.”
Furthermore, Nanduri advocates for fostering a culture of continuous learning within organizations. This includes identifying new talent, recognizing their potential, and providing them with the necessary training. He highlights the importance of swiftly identifying talent with the most in-demand skills at the mid-senior level. Effective talent management fosters team growth and contributes significantly to maintaining a competitive edge.
In line with Nanduri’s observations, many IT service organizations are embracing a dual strategy of reskilling and upskilling their existing workforce. This proactive approach ensures that employees possess the skillsets necessary to navigate the evolving technology landscape and meet the dynamic demands of the market. Additionally, companies are actively seeking new hires with these cutting-edge “new-age” skills.
Diversity and Inclusion: A Growing Focus
Shelton Guinn of Innova Solutions highlights a growing emphasis on diversity and inclusion (D&I) within the hiring process. Headhunting firms report a rise in searches for seasoned leaders from a wider talent pool. This signifies a positive shift towards creating a more inclusive and representative IT workforce.
Conclusion: Adapting to the New Normal
The IT industry in 2024 is a dynamic landscape with evolving demands. While traditional IT skills remain valuable, companies are increasingly seeking leaders with expertise in new-age technologies like AI, cloud computing, and cybersecurity. Additionally, fostering a culture of continuous learning, upskilling, and embracing diversity and inclusion is crucial for success in this competitive environment.
Here’s what IT professionals can do to thrive in this evolving landscape:
- Embrace lifelong learning: Continuously expand your skillset through online courses, professional certifications, and industry conferences.
- Focus on “new-age” skills: Develop expertise in areas like AI, data science, and cloud computing to boost your marketability.
- Become a strategic leader: Think beyond technical expertise. Develop strong leadership skills and a strategic vision to guide teams through complex projects.
- Network and build relationships: Connect with industry professionals at conferences, online forums, and through professional organizations.
- Showcase your value: Highlight your accomplishments and expertise on your resume and online profiles.
- Negotiate your worth: Be confident in your value and don’t hesitate to negotiate for competitive compensation packages.
For IT companies, the key to success lies in:
- Identifying and nurturing talent: Develop robust talent acquisition strategies that attract and retain top talent with the necessary skills and experience.
- Investing in upskilling and reskilling: Empower your existing workforce through comprehensive training programs and skill development initiatives.
- Fostering a culture of innovation: Create an environment that encourages continuous learning, experimentation, and embracing new ideas.
- Promoting diversity and inclusion: Build a diverse and inclusive workforce that reflects the global nature of the IT industry.
- Prioritizing employee well-being: Implement initiatives that promote work-life balance, employee engagement, and overall well-being.
By adapting to these new realities, both IT professionals and companies can navigate the evolving landscape of the IT industry and ensure their continued success in the years to come.
