• 3,000 firms
  • Independent
  • Trusted
Save up to 70% on staff

News » Australia’s IT skills gap fuels outsourcing reliance

Australia’s IT skills gap fuels outsourcing reliance

australia-it-skills-gap-fuels-outsourcing

SYDNEY, AUSTRALIA — New research from SolarWinds highlights a pressing issue in Australia’s public sector IT workforce: only 4% of IT professionals believe graduates are adequately prepared for real-world roles. This alarming statistic underscores a widening skills gap driven by the rapid pace of technological advancement that the public sector struggles to match.

The findings, based on a survey of over 100 global public sector IT professionals, reveal that the skills deficit is particularly pronounced in areas like cybersecurity, data management, and emerging technologies. This gap is not only impeding productivity but also creating significant operational challenges.

Delays and outsourcing: The cost of inaction

The skills shortage is having tangible effects on public sector projects. Nearly 18% of IT professionals surveyed reported delays and increased costs due to the lack of skilled staff. Additionally, 25% admitted to relying on outsourcing to fill critical gaps—a stopgap measure that raises concerns about long-term sustainability amidst tight budget constraints.

Rich Giblin, Head of Public Sector and Defence at SolarWinds, noted, “Despite various plans and initiatives being put in place, the public sector is facing a significant ‘skills gap’ problem, hampering its productivity in the short and long term.”

Grim forecast: Widening gap expected

The outlook for addressing the skills shortfall appears bleak. A third (33%) of respondents predict that the gap will widen over the next year, while over half (52%) report difficulties in hiring qualified professionals. Alarmingly, 22% describe it as “impossible” for current training systems to keep pace with technological innovation.

This issue reflects broader challenges within Australia’s public service. According to the Australian Public Service Commission’s 2023-24 report, 76% of agencies face difficulties recruiting ICT staff, highlighting systemic issues across multiple sectors.

Call for action: Training and retention strategies needed

Experts are calling for urgent reforms to address this crisis. Giblin emphasized the need for improved training programs aligned with public sector needs, continuous learning opportunities, and collaboration with skilled third-party providers. 

He stated, “It’s not too late to make much-needed changes to ensure the public sector is equipped for the future.”

Additionally, upcoming initiatives like Australia’s National Skills Plan and a digital workforce strategy from the Australian Public Service aim to tackle these challenges by reforming vocational education and attracting digital talent.

Read more here.

Start your
journey today

  • Independent
  • Free
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO)

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between Philippines outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 4000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

Learn more
Banner Image
Get 3 Free Quotes Verified Outsourcing Suppliers
3,000 firms.Just 2 minutes to complete.
SAVE UP TO
70% ON STAFF COSTS
Learn more

Connect with over 3,000 outsourcing services providers.

Banner Image

Transform your business with skilled offshore talent.

  • 3,000 firms
  • Simple
  • Transparent
Banner Image