Demand for tech talent to surge in 2021: study

Businesses are expected to focus resources in digital initiatives.

Businesses that have rapidly adopted technology have heightened the demand for tech experts and developers, according to the 2021 Market Outlook by Randstad.

According to Microsoft, by 2025 there will be 149 million new technology-oriented jobs globally across privacy and trust, cybersecurity, data analytics, and cloud and software development.

The Randstad study said that even non-tech space companies such as retail, banking, and food & beverage are pivoting their business models from offline to online. This resulted in a resounding growth in digital wallets, payment processors, and e-commerce platforms.

Daljit Sall, senior director of information technology recruitment at Randstad Singapore, said that there will be a surge in demand for tech talents such as developers, digital transformation, data scientists, cloud architects, and cybersecurity experts.

Sall said the major driving force for this demand will be the small and medium-sized enterprises (SMEs) that are still developing technical competency and sophistication. Specifically, software engineers who have worked in big tech companies are highly sought-after by SMEs due to their technical expertise, industry exposure, and experience.

Multinational companies, however, have no such need because they already have a mature technology team to provide support or have engaged agencies to help maintain
their systems, but they are more likely to hire digital transformation experts to drive innovation and further push the boundaries of technology.

However, the tech talented workforce is dwindling and cannot keep up with the demand. Sall notes that the small talent pool is slowing down technology advancements.

“Even though there are more active job seekers in the market, the reality is that a majority of them are not equipped with the technical skills that employers need. Companies also face greater challenges bringing highly- qualified talent from abroad due to border and visa controls,” he added.

Tech experts likely to switch employees

With the greater demand for tech talent, salary expectations have been driven up.

The hiring market, especially in the tech scene, will be very active this year with focus on Singaporeans and permanent residents. More employees will be motivated to jump to new employers especially if they do not feel that they have made any progress in their existing role.

Sall said tech experts will be looking for new opportunities and exposure to build upon their existing skills and become better at what they do.

The study said that on average and across the board, the salary increment for tech talent looking to switch employers ranges between 8% and 12% but due to the scarcity and strong demand for tech talent, local tech professionals may receive a 20% to 30% salary increment when they switch employers in 2021.