Expleo, the technology partner for innovative companies, today announces the results of a survey which found that Ireland’s IT skills shortage cost €981,439 to the average Irish enterprise over the past year.
As Ireland continues to be hit by an IT skills deficit, Expleo asked the country’s IT leaders how this is affecting their organisations. Expleo commissioned a survey of 143 IT decision-makers* from medium to large-sized enterprises across all Ireland and found that more than three-quarters (76%) of Irish enterprises are losing money as a result of an IT skills gap in their organisation.
Expleo’s research also shows that businesses are experiencing stunted growth. 41% of enterprises are not scaling at their desired pace as a result of IT skills shortages, while 13% say it has halted revenue growth. As for the security of their enterprise, one-quarter of IT decision-makers said that their business is at greater risk from cybersecurity threats and 18% are finding it difficult to meet their regulatory requirements due to a lack of in-house tech skills.
The survey also revealed the impact of this lack of IT talent on innovation. Almost half (47%) of those surveyed said it is hampering their company’s digital transformation, while one-third said it has slowed down their speed to market for innovative new products.
To address the skills shortages, Expleo’s research found that medium to large-sized businesses are taking multi-faceted approaches. More than half (52%) are outsourcing some of their IT work, while 22% of those surveyed outsource IT functions completely.
When it comes to recruiting, nearly two-in-five Irish enterprises (39%) hire contractors on a project-by-project basis, while 30% seek candidates from outside Ireland. One-in-five (20%) of IT decision-makers are recruiting more graduates, while 19% are increasing their spend on IT training.
Phil Codd, Managing Director Ireland, Expleo, said: “It’s evident from our findings that skills shortages negatively affect every function of an organisation – from halting revenue growth to putting the company’s cybersecurity, and therefore customer data, at risk. Most worryingly, a significant majority of large enterprises are losing a lot of money in Ireland and this isn’t sustainable. Addressing the skills shortage needs to be front and centre for businesses and government.
“After all, organisations that have availability to IT talent and technological know-how will continue to develop innovative solutions and get to market quicker than their competitors.
“As our findings show, many enterprises are actively tackling the skills shortage by outsourcing certain IT functions to third parties – something that we in Expleo are seeing more and more of. In doing so, they can continue to drive innovation, attract new customers, and ultimately facilitate long-term business growth.”