CIOs Say Outsourcing is Fundamentally About Filling Talent Gaps, Demand for Data Analytics Rises

Thanks to the shortage in talent, there has been a fundamental shift in the reason for outsourcing. The report says companies are primarily “outsourcing for skills and flexibility, not to save money.”

Chief information officers (CIOs) across the world are saying that they have been hindered by the shortage in skilled technology workers, with more and more companies outsourcing for skills and flexibility rather than to save money.

This is the outcome of the 2016 Harvey Nash/KPMG CIO Survey. A majority of IT directors (CIOs) surveyed are of the belief that a lack of talent would prevent their organization from keeping up with the pace of change.

What is more worrying is the fact that the number of IT leaders expressing concern at the declining rate of technology talent is on the rise – by about 10 percent year after year. According to the report, the skill shortage has been there since the Great Recession.

However, nearly 45 percent of CIOs surveyed stated they expect to hire more technology talent over the coming months. Thanks to the shortage in talent, there has been a fundamental shift in the core justification for outsourcing. The report says companies are primarily “outsourcing for skills and flexibility, not to save money.”

Half of CIOs (50 percent) will increase investment in outsourcing this year, up by four percent from 2015.  Data analytics is the most in-demand skill for the second year running, at 39 percent. The biggest jump in skill demand year-over-year is digital, up 21 percent, and security, up 17 percent.

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The report says most corporate companies hunt for professionals with newer digital and IT strategy skills. CIOs in Asia-Pacific are said to be significantly more worried about skills shortages compared to their European and North American counterparts.

“The IT landscape has dramatically shifted in the last three years more so than we’ve seen in the past 18 years of the survey,” said Harvey Nash USAPAC President and CEO Bob Miano. “As the CIO role grows in influence, there is more opportunity for the CIO than ever before. The impact of digital strategies, increase in diversity leadership and importance of cyber security are driving this change.”

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