Korean SMEs Turn to Overseas Software Developers Amid Talent Shortage
Key Highlights :
The Ministry of SMEs and Startups in Korea recently conducted a survey that revealed more than half of small and medium-sized enterprises (SMEs) in the country are looking to hire software developers from overseas due to a talent shortage. The survey of 187 companies revealed that 75.4 percent of respondents found it difficult to hire and retain professional software engineers.
The biggest challenge for SMEs was identified as a lack of talent, with 74.3 percent of respondents citing this as the main issue. The gap in pay between SMEs and large companies was identified as the main cause for the talent shortage. The survey also revealed that 27.3 percent of respondents had already hired foreign engineers, while 54.5 percent had plans to do so in the future.
When asked which countries Korean SMEs prefer for offshore engineers, India, Vietnam, China and Indonesia topped the list at 36.4 percent, 31 percent, 11.8 percent and 10.2 percent respectively. These countries are preferred as the engineers from these countries are paid at a lower rate than their Korean peers.
The Ministry of SMEs and Startups is taking steps to address the talent shortage issue by nurturing 100,000 software talent by 2027 and actively acting as a bridge between SMEs and local and offshore talent. Such steps are necessary to ensure that SMEs are able to remain competitive in the global market.
