UK's technological posture has reached the point where it is now one of the world's leading destinations for digital businesses. This rapid transformation has, however, come at a price. There is a critical and widening gap in IT skills, which is now one of the significant roadblocks that UK businesses face today.
Various industries in the UK struggle to find people with the expertise to effectively manage complex IT systems and new technologies, including Artificial intelligence. This shortage hinders business growth and has long-term implications for the country's performance in the competitive global tech market.
Between 2017 and 2022, the number of skills shortage vacancies doubled to 531,200. Several surveys and studies reveal data emphasising the need for strategic interventions and collaborations to bridge the widening skills gap.
Forbes' 2023 IT Skills Gap Report surveyed 500 British businesses and revealed that 93% of businesses think there is an IT skills gap. 42% of businesses out of these believe that the problem is due to the rapid pace of technological development. Other reasons cited in this study include insufficient training opportunities, salary disparities, and low attraction to IT careers.
Understanding UK Skill Gaps
These skill gaps are more than just numbers on a report. They pose real-life challenges to businesses, such as increased operational costs, reduced competitiveness, and delays in adopting new technologies.
Contributing factors to the UK's IT skills gap include rapid technological advancements that challenge many workers to keep their skills up to date. Additionally, there needs to be more clarity between the skills taught in educational institutions and the demands of the modern IT sector, exacerbated by a lack of sufficient training opportunities within companies.
Compounding these issues, demographic shifts, such as the retirement of baby boomers, have reduced the availability of skilled labour. This generational change results in vacancies that are not being quickly filled by younger generations, who often enter the workforce later and exhibit different workplace values, including a preference for improved work cultures, better well-being support, and hybrid working options.
The skills gap severely affects the UK economy, notably its capacity to innovate and grow without inducing inflationary pressures. A constrained labour supply limits the country's potential output, affecting the ability to harness new technologies and improve productivity.
Market Trends:
Despite a recent slight increase in the unemployment rate, the job vacancy rate remains significantly higher than pre-pandemic levels, indicating persistent demand for labour. This ongoing demand-versus-supply imbalance contributes to rising wages, which, while beneficial for employees, can strain businesses financially, especially in high-inflation environments.
Addressing these gaps requires a concerted effort to align educational outputs with market demands, enhance organisational training and development opportunities, and make IT careers more attractive and financially rewarding for emerging talent.
The Most In-Demand IT Skills in the UK Job Market
The UK is currently facing a critical shortage of IT skills, which is affecting the country's overall economic growth and impairing the confidence, investments, and productivity of UK businesses. Here's a look at the most sought-after IT competencies:
- Artificial Intelligence and Machine Learning: 40%
- IT Support and Troubleshooting: 32%
- Cybersecurity: 30%
- Data Analysis and Data Science: 27%
- Programming (e.g., Java, Python, C++): 24%
- Cloud Computing (e.g., AWS, Azure): 23%
- Mobile App Development: 16%
- Project Management: 14%
- Network Administration: 12%
- DevOps and Automation: 10%
Alongside highly technical skills such as AI and app development, there is a substantial need for IT support and cybersecurity expertise. In fact, in 2023, 50% of all UK businesses report a basic cyber security skills gap, and 33% of them report an advanced cyber security skills gap.
When scaling IT assets is imperative to remain competitive, these skill gaps make it challenging for businesses to maintain secure, efficient, and reliable systems. Companies looking to stay competitive must actively develop these capabilities within their workforce or seek partnerships to address these issues effectively.
How UK Businesses Can Address IT Skill Shortages
- Collaboration with Educational Institutions
Businesses can actively engage with educational institutions to influence their education methods and curricula to meet industry needs. Forming valuable collaborations would ensure graduates are job-ready and equipped with relevant skills. This would also reduce the time and resources spent on training new hires.
- Internal Talent Mobility
Internal talent mobility must be encouraged within organisations to allow employees to transition into different roles whenever required. This will also prompt them to develop more relevant skills and discover roles to which they might be more comfortable. This strategy would help fill skill gaps and retain employees by providing career development opportunities.
- Embracing Managed IT Outsourcing
Embracing managed IT services can be a strategic move to reduce skill shortages. With about 7 in 10 British B2B companies already outsourcing key business operations, managed IT outsourcing has proven to be a highly effective solution. It allows businesses to focus on core operations while leveraging external expertise to handle complex IT challenges. With a reliable managed IT partner, UK businesses can access a broad range of expertise and advanced technologies without the overhead costs of hiring and training IT staff.
Pathways to a Resilient UK Economy
The UK can build a resilient and skilled IT workforce by taking a comprehensive and collaborative approach among public, private, and educational sectors. By promoting diversity, supporting ongoing training, and fostering collaboration between industry and government, the UK can effectively overcome the complexities of the digital skills gap.
The only way to cover the digital skills gap is to teach relevant coursework in educational institutes and train a qualified future workforce under experienced mentorship. However, this is highly unlikely to materialise in the short or medium term.
Instead, what's needed is a different approach to managing IT resources efficiently and keeping the workforce suitably trained. Leveraging innovative solutions such as IMS Nucleii's Managed IT Services can provide an immediate, effective bridge.
By embracing these strategies, the UK can ensure it remains at the forefront of technological innovation and sustains economic momentum. The time to act is now!
