[Digital Brink SME] Developer Workforce Shortage, Growing Digital Gap Between Large and Medium-Sized Enterprises

A Foundation Must Be Established for Developers to Upgrade Skills Even in SMEs

One of the reasons why the digital gap between large corporations and small and medium-sized enterprises (SMEs) and small business owners is widening is the difference in securing IT professionals such as developers. Recently, as the industrial application of new technologies like artificial intelligence (AI) has expanded, large corporations, IT companies, and promising startups alike have been competing to secure developers by offering high salaries, making it practically difficult for SMEs to attract capable developers.

A typical example is retail distribution companies that have to compete with e-commerce platforms. Although sales have been hit by the spread of non-face-to-face consumption, most of these companies lack the capacity to develop systems that receive orders and deliver products non-face-to-face. Even if they introduce systems through outsourcing, they lack specialized personnel to maintain, repair, and manage them. Ultimately, due to the lack of specialized personnel, they have to join existing platforms and bear commissions exceeding 10%. Song Yoo-kyung, director of the Gyeonggi Southern Supermarket Cooperative, pointed out, "Unlike large and medium-sized companies that have their own development personnel, SMEs do not have personnel capable of development," adding, "Although various government ministries talk about support measures, since they operate separately, the support does not realistically reach the field."

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Moreover, while the field cries out about the shortage of competent mid- to high-level personnel, the reality is that even when job postings are made, only low-skilled developers who are difficult to deploy immediately in SMEs apply. Also, if there are personnel who have developed their skills in SMEs, they are often poached by financially strong companies. This is why it is openly said in the SME sector that selecting and nurturing IT personnel is meaningless. Additionally, the 52-hour workweek system is criticized for exacerbating the manpower shortage in small and venture businesses. Kang Sam-kwon, chairman of the Korea Venture Business Association, said, "Along with the severe shortage of technical personnel across all industries, rigid labor policies such as the introduction of the 52-hour workweek have worsened the manpower shortage in venture companies."

Given this situation, SMEs are realistically relying on government support to secure the insufficient IT workforce. In a survey on the response trends of SMEs and venture businesses to business structure transformation by the Small and Medium Business Corporation, the most frequently cited necessary support policy direction for digital transformation response was ‘support for digital professionals’ (38.5%).

Industry insiders explained that rather than salary or treatment issues, it is more important to create an environment where IT personnel can demonstrate their achievements and expertise even in SMEs. A CEO of an edutech startup with a developer background said, "Capable developers follow projects where they can demonstrate and develop their abilities rather than large company nameplates or high salaries," adding, "A foundation must be established in SMEs where developers can upgrade their skills to the next level."

Since IT personnel have higher labor flexibility compared to other occupations, there is also a suggestion that a connecting role is needed to link capable professionals with places where they can demonstrate their abilities, regardless of whether they are in SMEs or large corporations. Professor Choi Kyung-jin of Gachon University said, "The reality is that even with the same skills, it is difficult to demonstrate them in SMEs," and added, "Creating a platform that connects them so they can demonstrate their abilities in SMEs could be one solution."

This content was produced with the assistance of AI translation services.