The U.K. has long been seen as a hub of innovation and technological advancement; mainly, because it's driving progress across various sectors. For example, London is considered a global hub for financial technology, with companies developing new payment systems, lending platforms and blockchain solutions.
Unfortunately, a looming crisis threatens to undermine this reputation: a severe shortage of skilled IT professionals. This talent deficit is not a localized issue but a pervasive challenge impacting businesses of all sizes and industries.
In fact, a new report by Hyve Managed Hosting shows that 80% of U.K. businesses struggle to find the skilled IT professionals they need to meet today's technological challenges. This skills gap is having a profound impact on industries across the board, from finance and healthcare to manufacturing and retail.
The report, conducted in partnership with Censuswide, surveyed U.K. business and IT decision makers to understand the root causes, challenges and potential solutions to this pressing issue. One of the key factors driving the skills shortage is the pace of technological advancement. (It’s rapid.) As new technologies like AI, machine learning and cloud computing emerge, the demand for skilled professionals to develop and implement these solutions is outstripping the supply of talent.
According to the research, 42% of U.K. business and IT leaders attribute the skills shortage to the increasing complexity of technology. The speed of technological evolution is simply outpacing the current rate of training and development of new talent, leaving businesses vulnerable and exposed. Many respondents feel that academic institutions are not keeping up with industry progress, which results in a shortage of qualified candidates entering the workforce. A lack of training in schools doesn’t help because it is not adequately preparing individuals for entry-level roles.
The competition for tech talent is also exacerbating the skills shortage. Larger companies, with their deep pockets and attractive benefits packages, are drawing many skilled professionals away from smaller businesses. This makes it difficult for smaller firms to compete for top talent, further widening the gap.
When it comes to the most sought-after skills, cybersecurity and cloud computing are in high demand, followed by machine learning, AI and data analysis. However, many U.K. business leaders admit to struggling to identify the specific skills they should be looking for when recruiting tech talent. This is a problem because it leads to hiring less qualified professionals due to a lack of suitable candidates.
"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.”
To address the IT and tech skills gap, businesses have turned to training and development initiatives. Almost two-thirds of business leaders surveyed said they are investing in the training and development of their in-house talent, including reskilling and upskilling. Many businesses are also improving their recruitment processes and partnering with suppliers or MSPs to access the talent they need.
MSPs play a crucial role in helping businesses bridge the IT and tech skills gap. A third of the businesses surveyed stated that they rely heavily on the expertise of their MSP to manage IT and tech processes. By partnering with an MSP, businesses access a pool of skilled professionals and avoid the costs and complexities associated with hiring and managing in-house IT teams.
“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,” said Webb. “At Hyve, we recognize 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.”
The U.K.'s tech talent crisis is a serious challenge that requires urgent attention. By investing in training and development, improving recruitment processes and partnering with MSPs, businesses bridge the skills gap and ensure the continued growth and innovation of the U.K.'s tech industry.
Edited by
Alex Passett
