Addressing the Pressing Technology Skills Gap
Solutions are required across all learner life stages, tech skilling verticals, accreditation levels, delivery methods and price points.
Digital transformation has been catalysing the need for technology skilling across industries. It is estimated that by 2030, there will be a global human talent shortage of more than 85 million people, equivalent to c.$8.5 trillion in unrealised annual revenues¹. Consequently, over 150m new tech roles are required by 2025, with software development, data analysis, followed by machine learning, being most demanded².
The launch of Microsoft’s .Net framework in 2011 was one of the first globally recognised training providers. Since then, there has been a proliferation of both accredited and unaccredited providers seeking to service the technology skills gap globally. The majority of new providers supply solutions that address immediate skill gaps at entry level, rather than provide a holistic career pathway. Learners seeking technology skills include K12 students, fresh graduates, upskillers, and career switchers.
e-Learning courses are the most prevalent solution, where technology skills are taught by instructors or asynchronously where content is self-paced. In terms of Indian EdTech giants operating in this space, UpGrad, Simplilearn and Great Learning provide accredited degrees and unaccredited courses partnering with global universities. There are also intensive bootcamps delivered on-campus or online; for example, IronHack is online and has 9 on-campus locations. Further, a multitude of career services seek to support the learner journey, from mentorships with experienced peers to specialist interview preparation and job marketplaces.
Programs which are longer and require more involved teaching command a higher price from learners. One of the highest noted was c.$20,000 upfront for an eight-month unaccredited career mentorship course. Thus, income-sharing agreements are increasingly implemented to mitigate the high upfront cost for learners, commonly in US and India. Pathrise requires no upfront payment and charges 5–18% of the learner’s salary across the initial years after a job is secured.
On the employer side, Recruit-Train-Deploy (RTD) provides solutions for companies to source and train their talent pipeline, typically charging a staffing or placement fee to the employer. Code First Girls works with 100+ corporate clients across various industries to train and source diverse tech talent via courses at no cost to learners.
Another notable trend is the growth of solutions for K12 students, particularly tutoring and games to supplement the core curriculum of schools that have been slow or unable to adapt to the need for technical skills.
To address the skills gap effectively, a variety of solutions is required across all learner life stages, tech skilling verticals, accreditation levels, delivery methods and price points. In our view, this sub-sector will continue to show promising growth and consolidation in the years to come.
For the full IBIS EdTech report on Technology Skills, please contact info@ibiscap.com
¹Korn Ferry 2021
²Microsoft Data Science 2020
