Talent crunch fuels IT budget hikes, automation, outsourcing
ONTARIO, CANADA — The IT industry is grappling with a severe talent shortage, prompting companies to increase budgets and embrace automation and outsourcing, said IT solutions provider Auvik.
In its latest industry report based on a survey of 2,100 IT professionals, Auvik revealed that the lack of skilled workers is the top challenge facing IT teams. As a result, organizations are prioritizing automation, outsourcing to managed service providers (MSPs), and adopting new tools to seek improved efficiencies.
“With many IT teams reporting difficulty sourcing talent, it comes as no surprise that the theme for this year’s IT Trends Report is automation,” the report stated.
Highlighting the urgency, 49% of respondents cited a shortage of skilled professionals as their primary challenge. Budgetary constraints (47%) and infrastructure and performance issues (45%) followed closely behind.
To address the talent gap, companies are ramping up investments in automation. The report notes a 24% year-over-year increase in planned investments for network automation, making it the largest area of growth for 2024.
The report added that nearly three of four respondents are outsourcing some network-related tasks or functions, the same number as outsourced in 2023.
Outsourcing is particularly prevalent in utilities (87%), financial services (80%), and healthcare (80%) sectors, where IT teams are more likely to outsource tasks like configuration, troubleshooting, and Wi-Fi management.
Auvik CEO Doug Murray said that the trend towards automation and outsourcing echoes customers’ desire for “frictionless IT.”
“Automation allows them to do more with less and free up time and resources to focus on more strategic projects while ensuring the day-to-day runs smoothly and employees still enjoy a seamless user experience,” he added.
According to a report by employment agency ManpowerGroup, the global talent shortage peaked at a 17-year high in 2023, with 77% of employers worldwide (77%) struggling with finding a skilled workforce
