As we can see how another year has passed after the COVID-19 pandemic destroyed several businesses and lives worldwide. Although only little changes h...
As we can see how another year has passed after the COVID-19 pandemic destroyed several businesses and lives worldwide. Although only little changes have come over the past couple of years, there are a few important changes to keep in mind for the tech industry in the upcoming year, that is 2022.
Changes to the Tech Industry in 2022
Purchases Will Decline as Company Valuations Overtake Available Assets
Global M&A activity reached new heights aided by low-interest rates and high stock prices in 2021. And in 2022, we will definitely see that momentum shift. Larger purchases will be few and far between as company valuations continue to grow. Only ingrained, cash-rich firms will have the money needed to make new acquisitions.
The higher acquisition approach will make it really tough for medium- and small-sized businesses or companies to rise and evolve, giving the benefit to larger, established firms.
AI and Automation Will Replace Entry-Level Jobs in Several Industries, Including Software Industry
The shortage of talent will leave several jobs unfilled, making space for the progress of artificial intelligence and automation to fill those empty roles. We all have already seen technology start its takeover in the service industry with the inauguration of robotic waiters during the COVID-19 pandemic.
Additionally, in 2022, we will see AI and automation with an ability that can fill positions in other hard-hit sectors like the healthcare, finance, legal, and even software industries. Though these developments will mostly affect entry-level positions, such as interns, and make it tough for recent graduates making their way to gain job experience in the future.
Tech’s Labor Market Will be Met With Big Money and Big Challenges
The economy of the COVID-19, and the great resignation – throughout the last two years really made their mark in the tech industry. As we continue to see turnover and decreasing employee maintenance, there is a probability of growth in tech salaries in 2022 to encourage talent to stay.
The tech giants are the only ones who can meet the high salary demand and deliver certain advantages for a talented and competitive workforce. So, it will definitely be interesting to see in the upcoming years, what this does for ideas, which usually come from the hungry startups where people work for very little for a long time.
Although, we could very well see a resurgence of tech talent returning to the “old guard” companies to meet their requirements for stable (and large) salaries, forgoing the competitive, hard-knocks of startups that could create a skill and talent gap that lasts for upcoming several years.
Containers Will Become Mainstream to Support the Cloud Explosion of 2021
Companies have wrongly predicted that their employees would return to the office, as normal, in 2021. Rather, remote working continued, and businesses were forced to develop long-term remote working plans to make sure efficiency, sustainability and to maintain employees seeking flexibility.
This remote work procedure demanded cloud-based solutions, which resulted in an explosion of cloud service adoption. To meet this point, in 2022, the containers will become mainstream, making the final shift to the cloud easier and more efficient for companies.
So, get ready to enter this year with the expectations of the above-mentioned changes in the tech industry!