The Russia-Ukraine conflict could disrupt the services of 80,000 to 100,000 highly qualified professionals with digital engineering and IT skills from Ukraine, Belarus, Russia and other neighboring countries in Eastern Europe, according to Everest Group.
Those jobs need to be moved to safe havens, and about 70% of those jobs are likely to come to India, the Dallas-based management consulting and IT analytics firm said.
Ukraine is a major global supplier of IT and engineering R&D services. Now the war has created widespread uncertainty and significant concerns for businesses, including Indian players, in the region, the company said.
Exclusive data shared by the analyst firm shows more than 30,000 third-party digital engineering technicians are working with clients in the banking, retail, automotive and healthcare industries in the affected region. About 20,000 people work in Global Business Service (GBS) centers in Ukraine, another 20,000 work for third parties in Belarus and Russia, and about 10,000 work in GBS centers in Belarus and Russia.
“The resource pool numbers alone paint a picture of the disruption to services due to the war in Ukraine and the economic impact of the sanctions imposed on Russia,” said Everest Group Chief Executive Officer Peter Bendor-Samuel.
Unfortunately, he said, this war and the resulting disruption to the services market, particularly in Ukraine, Russia and Belarus, occurred at the same time as there was an acute global talent shortage.
“The talent shortage is already affecting the price of talent. It’s time for tech providers to be prepared for further price hikes as the impact of war will only add to already severe inflationary pressures,” Bendor-Samuel warned.
Even if the impact temporarily lasted 3-6 months, the disruption would fuel inflationary pressures and therefore the impact would be felt long after the dust has settled in Ukraine, he noted.