UK faces significant IT skills shortage reveals new report

Hyve Managed Hosting has released its IT and Tech Skills Gap Report 2024, revealing a significant shortage of skilled IT professionals in the UK.

The report, developed in collaboration with Censuswide, surveyed 500 UK business and IT decision makers. It highlights challenges businesses face due to a lack of skilled staff, including 20% of companies experiencing outages and data breaches.

A significant 81% of UK businesses reported being negatively impacted by this skills gap, which poses a threat to their operations in the rapidly evolving tech landscape.

The research uncovers that technological advancement is outpacing the training and development of new talent. Decision makers have identified this issue, with 42% attributing the skills shortage to the quick pace of technological development.

Concerns were also raised about the educational sector's role, with 31% of respondents indicating that academic institutions are not keeping up with industry progress. This results in a shortage of qualified candidates entering the workforce from schools and universities.

Furthermore, 30% of respondents pointed to inadequate training in schools for entry-level roles, questioning the relevance of the current curriculum to the demands of the tech industry.

The private sector also contributes to the skills gap, with 35% of those surveyed noting that competition from larger companies attracts much of the available talent. Moreover, 27% consider the high cost of hiring skilled professionals as an issue further widening this gap.

The report identifies cybersecurity and cloud computing as the most in-demand IT skills, with 43% and 34% of businesses seeking these skills, respectively. Machine learning and artificial intelligence (33%), developer roles (26%), and data analysis/visualisation (25%) follow closely.

Despite recognising these needs, 52% of UK business leaders admitted to hiring less qualified individuals due to a shortage of candidates with the necessary skills.

To bridge this gap, businesses are focusing on enhancing their internal training programs, improving recruitment processes, and collaborating with managed service providers (MSPs).

The report shows that nearly two-thirds (65%) of respondents are currently working with an MSP, with 90% of these organisations doing so specifically to mitigate the skills gap challenges. A significant portion, 33%, relies heavily on their MSPs for managing IT and tech procedures.

Charlotte Webb, Operations Director at Hyve Managed Hosting, commented, "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. 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."

Webb further noted, "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. 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."