HR faces challenges due to digital transformation, wage inflation, and a shift in global tech talent from the Global North to decentralized regions. Key metrics are changing from FTE counts to Effective Digital Capacity (EDC). By 2027, 40% of tech skills may become obsolete due to AI. Emerging Tier-2 cities are gaining importance as competitive tech hubs, while significant supply-demand gaps exist in software development and cybersecurity roles. The half-life of tech skills is under two years, emphasizing skill adaptation. Companies must transition to a strategic focus on skills, with an urgency for Builders in the workforce, as traditional labor cost advantages diminish. Competitive advantage will rely on capability, innovation, and skill-based compensation systems.
https://draup.com/talent/data-books/economics-of-skills-ai-augmentation