The Russia-Ukraine conflict may disrupt the services of 80,000 to 100,000 highly qualified professionals with digital engineering and IT skills from Ukraine, Belarus, Russia and other neighbouring countries in Eastern Europe, according to Everest Group.
These jobs will have to move to safe havens and some 70% of these jobs are likely to come to India, the Dallas-based management consulting and IT analyst firm has said.
Ukraine is a key global delivery location for IT and engineering R&D services. Now, the war has created widespread uncertainty and significant concerns for companies, including Indian players, in the region, the firm said.
Exclusive data shared by the analyst firm shows that more than 30,000 techies working in the digital engineering space for third-party service providers, with clients in the banking, retail, automobile and healthcare industries in the affected region. About 20,000 people are employed in global business service (GBS) centres in Ukraine, another 20,000 are working for third-party service providers in Belarus and Russia, and about 10,000 are working in GBS centres in Belarus and Russia.
“The resource pool numbers alone paint a picture of disruption of services because of the war in Ukraine and the economic impact of the sanctions imposed on Russia,” said Peter Bendor-Samuel, Chief Executive Officer, Everest Group.
Unfortunately, he said, this war and the consequent services market disruption, especially in Ukraine, Russia and Belarus, was happening at the same time when there was acute global talent shortage.
“The talent shortage is already affecting the price of talent. It is time for tech providers to be prepared for further increase in pricing, as the impact of the war will only add to already strong inflationary pressures,” Mr. Bendor-Samuel cautioned.
Even though the length of the impact would be a temporary 3-6 month period, the disruption would fuel inflationary pressures, and therefore the effects would be felt long even after the dust settles in Ukraine, he observed.