Over 4 in 5 UK businesses facing shortage of IT and tech skills

Hyve Managed Hosting has published its new IT and Tech Skills Gap Report 2024, which paints a bleak picture regarding the supply of skilled IT and tech professionals in the UK. A staggering 4 out of 5 UK businesses are currently struggling to source the talent they need to address today’s IT challenges. This presents a number of profoundly negative impacts across sectors to the workforce.

The report, conducted in collaboration with Censuswide, surveyed 500 UK business and IT decision makers and outlines in depth the key perspectives, challenges and solutions to an issue that has pervaded the tech industry for some time.

Key causes of the skills gap

According to research, the majority of decision makers surveyed cited the skills gap as one of the biggest challenges to the success of their business, together with ongoing economic uncertainty and keeping pace with competition and technological advances. The latter is what 42% of UK business and IT leaders attribute the skills shortage to. Right now, technological evolution is outpacing the current speed of training and development of new talent, which leaves businesses vulnerable and exposed:

· 31% of respondents feel academic institutions are not keeping up with industry progress, resulting in a shortage of qualified candidates coming out of school or university and into the workforce

· A further 30% claimed a lack of training in schools is not adequately preparing individuals for entry-level roles, calling into question current curriculum

Private sector companies also have a hand in the current state of play regarding skills and development. Over a third of the respondents (35%) believe the competition created by larger companies exacerbates the skills shortage, as tech giants draw many skilled professionals from the market. 27% believe the high cost of hiring talent is widening the chasm.

Cybersecurity and cloud computing are the most in-demand IT skills

When it comes to the most sought-after skills, cybersecurity (43%) and cloud computing (34%) top the list, followed by:

· Machine learning (ML) and artificial intelligence (AI): 33%

· Developers: 26%

· Data (e.g. analysis/visualisation): 25%

However, some UK business leaders admitted to often struggling to identify the specific skills they should be looking for when recruiting tech talent. 52% said they often settle for less qualified professionals due to a lack of suitable candidates.

Bridging the IT and tech skills gap and the role of MSPs

The most common approach to addressing the IT and tech skills gap is to invest in the training and development of in-house talent (including reskilling and upskilling), as well as improving recruitment processes and partnering with suppliers or managed service providers.

Almost two-thirds (65%) of business leaders surveyed said they currently work with an MSP. Of those companies that work with an MSP, a further 90% confirmed they do so to address the issues created by the IT and tech skills gap. A third (33%) stated they rely heavily on the expertise of their MSP to manage IT and tech processes.

"As we prepare for a data-driven future, there is clearly a growing divide between the technology skills employers need and the skills they actually have access to,” said Charlotte Webb, Operations Director at Hyve Managed Hosting. “Our report highlights just how complex a strategy is required to address today’s skills gap – one that increases collaboration between business, government and educational institutions to promote STEM subjects and the importance of IT skills across the modern working landscape.”

“MSPs have an important role to play in that strategy – helping businesses to bridge the skills gap, focus on their goals, and smartly reappropriate resources,” continued Webb. “At Hyve, we recognise the significance of the expertise we offer customers in the face of the issues outlined in this report and are committed to helping businesses unlock resources, talent and skills for long-term competitiveness and success.”