The Ministry of SMEs and Startups (MSS) organised a "Venture Startup Talent Matching Festival" in New Delhi, India, at the end of February, aimed at local university students. This job fair facilitated connections between developers and engineering talents from Indian universities with small and medium-sized enterprises (SMEs) and startups within the country. While the event has been an annual affair under the same name in South Korea, this year marked its debut in India. The festival witnessed the participation of 120 domestic startups and attracted over 1,000 Indian university students.
Facing a significant talent shortage, domestic information technology (IT) startups are seeking developers from countries such as India, Vietnam, and Eastern Europe. This scarcity stems from a strong preference for medical schools and a reluctance towards science and engineering among top talents. Various data sources have highlighted this talent shortage issue. A survey conducted by the Software Policy & Research Institute on IT companies last year revealed a deficit of around 21,300 software personnel in South Korea. Furthermore, a report released by the Korea International Trade Association (KITA) earlier this month projected a shortage of 59,600 individuals in the country's major new technology sectors (artificial intelligence, cloud, big data, nano) over the next five years, starting from 2023. Particularly, a shortage of about 30,000 individuals is expected in the AI and cloud sectors.
Amid the surge in salaries of software developers during the coronavirus pandemic, domestic startups have been grappling with labour shortages and escalating labour costs. The most skilled developers prefer employment at IT giants like Naver and Kakao, while top talents are seeking opportunities abroad, including Silicon Valley. Consequently, approximately 88% of the software talent shortage is observed within startup companies.
The startup industry emphasises that the talent shortage extends beyond developers and is prevalent across all sectors of the IT industry, with projections indicating a worsening scenario. Suggestions have been made, including the abolition of department quota regulations by universities to increase the number of majors in future business areas and the establishment of an education system capable of producing high-quality personnel, according to an AI startup official.
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