30.10.2024, Košice – Košice IT Valley, a key cluster representing IT companies in the region, highlights the serious challenges of the IT sector. A shortage of experts in key areas such as data analytics and cyber security can seriously threaten its growth. The cluster is therefore calling for investment in training and product innovation to make the region competitive again and attractive to global technology firms.
The IT sector (information and communication technology sector) is a key segment in the economic life of the Eastern Slovakia region. Together with U.S. Steel Košice and Volvo, it will form three economic pillars for the long term. The survey showed that the demand for IT specialists is also reflected in rising salaries, with the minimum wage offered exceeding €2,300 (gross). Despite this, many companies report problems filling positions.
Štefan Lacko, from GlobalLogic Slovakia in Košice, emphasises the high cost of labour: “It is higher than in Poland, Romania or Croatia, for example, which means that employees cost us more than in these countries. On the other hand, the net income of employees is lower, which puts us at a competitive disadvantage.”
Increasing product competence as the key to success
There is a significant shortage of experts in product management and data analytics in Košice. The key is to develop product competence and establish more research and development (R&D) centres.
“The region is dominated by nearshore companies, which, although they create many jobs and are important for employment in the region, offer limited scope for product and business development. Unfortunately, this trend has not changed in recent years,” said Miriama Hučková, Executive Director of Košice IT Valley.
“If we want our city and region to be competitive in the IT sector in ten years’ time, it is essential to focus on global trends and diversify the skills of our professionals. Not only the production of backend developers, which is currently our strength, but also other areas such as cybersecurity and data, hide huge potential,” points out Marián Kušnír, Technology Director at Vissim, which also has its own R&D centre in Košice. In addition to technical skills, business skills also need to be built, he says. “The ability to commercialise technologies, understand customer needs and sell products effectively will become increasingly important. Investing in education, training and business support in these areas can bring long-term success to the region,” Kušnír adds.
The cost of junior staff
The Košice IT Valley cluster has also mapped the situation regarding junior employees and revealed that the average integration time for juniors in Košice companies is at the level of 5.5 months, which can represent a cost of at least EUR 12,000.
“Optimally, the integration time of junior employees should be reduced to one to two months. Faster adaptation not only reduces costs, but also enables faster involvement of new employees in productive activities,” says Juraj Girman, Chairman of the Košice IT Valley Board of Directors.
The survey revealed that 56% of companies in Košice perceive a shortage of qualified people in IT. Reasons for the difficulty in filling positions include a lack of candidates with the necessary skills, high competition in a small labour market and high salary expectations. The solution to the shortage of people may not even be to focus on Ukrainian students. The survey revealed that Ukrainians in local IT companies represent only 1.5% of the total number of IT specialists.
New teaching programmes
One solution to counter this situation is interdisciplinary programs that will combine IT with disciplines such as medicine, law, economics, arts and social sciences. Today’s times call for professionals who can link their expertise in a specific domain with technological skills, especially in IT.
“We believe this is one of the key ways we can move away from low value-added service positions and transform the economy into a knowledge-based, competitive and technologically innovative one. By creating IT professionals, we can turn Slovakia into a country that not only responds to technological trends, but also actively shapes them and exports high added value,” concludes Hučková. According to her, there is a need for building R&D centres, new educational programmes, or connecting Ukrainian students with local IT companies.
