By the time today’s students graduate, the job market they enter will be drastically different from what they prepared for. The World Economic Forum predicts that up to a quarter of jobs will transform in the next five years due to advancements in AI, data science, and software development. Globally, industries are grappling with a widening talent gap as countries accelerate their digital transformation efforts.
For countries like the UAE and Saudi Arabia, where diversification objectives depend on significant investments in digital infrastructure, it is crucial to equip not only the government sector but also companies in various industries with the necessary expertise to drive a non-oil economy.
The talent gap may seem increasingly pronounced, but organisations should view this as an opportunity to evaluate existing digital transformation strategies and set realistic growth goals. The need of the hour is not simply to jump onto the latest technology trend, but to design a roadmap that effectively leverages new technologies and fosters innovation to meet long-term goals.
Identifying the core problem in the business is half the battle won
Employers in the UAE identify AI, software development, and data science among the top ten skills shortages, according to the 2024 Cooper Fitch Salary Guide. But addressing the talent gap first requires resolving the confusion surrounding the application of new technologies. Company leaders often struggle to define their needs clearly, which can complicate hiring the right talent.
Before recruiting specific roles, employers must identify the core problem—the key “job to be done.” The solution could then involve advanced technologies like Generative AI (GenAI) or more conventional in-house approaches. By clarifying their goals, companies can streamline the hiring process and ensure they acquire the right skills to meet their digital transformation needs effectively.
The issue isn’t just the supply of skilled professionals either. The nature of the demand is equally challenging. Companies are sometimes unclear about how to apply new technologies to enhance their operations, leading to uncertainty that makes it difficult to define specific roles and needs. This confusion can create the illusion of a skills gap.
However, it can be mitigated through better decision-making and using existing technologies to address current problems. By improving their understanding of how technologies can be applied, and integrating them thoughtfully into their operations, companies can also reduce the overheads associated with constant technological updates.
Companies need to redefine their understanding of expertise
Then there’s the question of how employers are defining expertise. AI is advancing so rapidly that no one can claim to be an absolute expert. Given that many regional companies aim to benefit from the experiential aspects of emerging technologies to boost productivity and enhance customer experiences, bridging the expertise gap means fostering continuous learning among employees. Investing in up-to-date training resources and development programs will ensure that the workforce remains adaptable and skilled in the latest advancements.
Partnering with educational institutions like the UAE’s Mohammed Bin Zayed University of Artificial Intelligence and Khalifa University, and Saudi Arabia’s King Saud University for mentorship programmes and on-campus recruitment can also provide a steady pipeline of skilled graduates ready to enter the evolving workforce. This benefits students and businesses to stay competitive and contributes to sustainable digital transformation in the region.
Strategic partnerships can alleviate the talent shortage in certain tech sectors
Software development remains a significant challenge in the region, with many companies relying on offshore capabilities. There’s a noticeable shortage of senior, hands-on talent to address quality concerns associated with outsourcing abroad. The issue is compounded by the fast-paced nature of software development, where new updates and technologies continuously emerge, necessitating ongoing adaptation and learning.
One solution is to establish focused and strategic partnerships with global development firms and AI partners. These partners can embed their specialists and consultants to upskill and mentor local developers, helping enhance their expertise and knowledge.
Additionally, companies must consider forming partnerships with startups, tech firms, and educational institutions to drive innovation and build expertise. The UAE has strong examples of such strategic collaborations, including The Dubai Future Foundation’s Generative AI Alliance, which collaborates with global technology companies to accelerate the adoption of AI and other emerging technologies.
There’s also the Abu Dhabi Department of Economic Development’s Smart Manufacturing initiative, part of the federal “Industry 4.0” strategy, to enhance the digital capabilities of local manufacturers through partnerships with leading global tech companies. These initiatives are pivotal in creating a robust and mutually beneficial technological ecosystem in the region.
A comprehensive approach is key for digital transformation success in the region
A country’s robust digital infrastructure provides a strong foundation for companies’ digital transformation aspirations. Initiatives such as the UAE’s National Program for Artificial Intelligence and Saudi Arabia’s Vision 2030 are pivotal steps to actively nurture talent, ensuring a future-ready workforce that can seamlessly integrate with and create new technologies.
Bridging the talent and expertise gap, however, requires a multi-faceted approach. Both governments and private entities must play a crucial role, focusing on strategic investments in collaborations and ongoing skills development. As the region evolves into a digital hub, adopting emerging technologies should be seen as a means to create a versatile workforce equipped with critical and transferable skills. This, in turn, will drive innovation and economic growth across the region.
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