Creating an attractive IT environmentIt is no news that IT companies compete to recruit talent. Leading IT companies are eager to scout the best and most capable specialists. Simply put, they want the best people because their talents can bring unlimited impact. Naturally, companies work hard to bring in the best workforce and nurture them even further to accomplish greater success.
What about the companies in Korea, which claims to be an IT power? There are various state policies, but assistance for a spontaneous ecosystem is limited. For example, the Software Promotion Act restricts participation of conglomerates and regulates multi-layer contracting deals, which is considered to cause quality degradation in software products and poor treatment for developers. The policy intends to benefit small and mid-sized companies. Small and medium-sized businesses are given more opportunities and seem to have increased revenue, but in reality, cost-cutting and competition actually reduce business profits.
There is a structural problem. In other countries, when a project is placed, specific demands, appropriate duration and a budget are planned. However, in Korea, managers and non-specialists are involved to plan a project. In order to meet the timeline and budget set by non-specialists, lower bids and a cheaper workforce are used, and it leads to a multi-level subcontracting structure.
Companies need to make various attempts and work for improvements. For example, an IT service provider presented a corporate IT specialist referral platform, connecting IT professionals with other companies to cut down the time and cost wasted in the subcontracting structure.
Of course, this platform alone cannot change the market structure easily. However, we need to get out of the excessive price competition and create an environment where IT professionals are paid what they deserve.
by Youn Sun-hee CEO of Funny People