The IT skills shortage has cost the average Irish enterprise €1m over the last year, according to a study of 143 IT decision-makers from Irish-based organisations.

The survey, commissioned by Expleo and carried out by TechPro in August, found that 76pc of these organisations are losing money because of the skills deficit.

“A significant majority of large enterprises are losing a lot of money in Ireland and this isn’t sustainable”

Forty-one percent say their company is not scaling at the pace they want due to IT knowledge gaps, while 13pc say it has halted revenue growth.

Not only that but one-in-four (25pc) say IT talent shortages put them at greater risk from cybersecurity.

How skills shortages are hampering revenue growth

The survey also revealed the impact of this lack of IT talent on innovation. Almost half (47pc) 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 (52pc) are outsourcing some of their IT work, while 22pc of those surveyed outsource IT functions completely.

When it comes to recruiting, nearly two-in-five Irish enterprises (39pc) hire contractors on a project-by-project basis, while 30pc seek candidates from outside Ireland. One-in-five (20pc) of IT decision-makers are recruiting more graduates, while 19pc are increasing their spend on IT training.

“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,” said Expleo managing director Phil Codd.

Expleo is a trusted partner for end-to-end, integrated engineering, quality services and management consulting for digital transformation.

“Most worryingly,” Codd continued, “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.”

Main image: Phil Codd, managing director, Expleo Ireland

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Written by John Kennedy (john.kennedy3@boi.com)

Published: 3 October, 2019

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