The 2023 IT Skills Gap Report

Technology is evolving and advancing at a rapid speed and it means more businesses are placing greater emphasis on tech skills when recruiting staff. But research by Forbes Advisor has revealed that many employers are hitting stumbling blocks when it comes to finding workers with the necessary experience and expertise.

We surveyed 500 British businesses – across a broad range of different industry sectors, including information technology, consulting and management, engineering and manufacturing among many others, to find out if there is a significant IT skills gap in the UK jobs market. We asked what steps firms are taking to tackle the problem, plus the future impact of artificial intelligence, among other questions.

Our study – The 2023 IT Skills Gap Report – shines a spotlight on tech skills in the UK workforce. It reveals an urgent and growing need among businesses for tech expertise, but shows that for a variety of reasons there is currently a shortfall in meeting it.

Overwhelming majority (93%) of businesses believe there is an IT skills gap in the UK job market 

Overall, out of 500 businesses surveyed, 93% report there is a gap in IT skills within the UK job market. 

A significant 42% of these businesses say the problem is due to the fast pace of technological advancements. Many aspects of technology, from artificial intelligence (AI) to data analytics and cloud computing, are rapidly evolving, contributing to the challenge.

Training and development issues are cited as an issue with 41% of businesses pointing to a lack of training opportunities. Similarly, over a third (37%) believe the gap also stems from the absence of relevant educational programmes.

A notable 35% of businesses say competition in the jobs market is a major challenge. The scarcity of skilled candidates and the number of opportunities in these sectors make recruitment and retention of staff a demanding task.

Adding to the mix, 29% of businesses highlight salary differences as a factor behind the IT skills gap. The attractiveness of higher-paying industries is pulling more IT professionals into different sectors.

Artificial Intelligence is the most in-demand skill in the UK job market In 2023

Artificial intelligence (AI) and machine learning are considered top priority skills in 2023, with two in five employers reporting it as the most sought-after skill in the UK job market. The increasing reliance on technology and data is fuelling the demand for AI experts who can leverage technology to drive innovation and efficiency.

This sentiment is felt most keenly by key decision-makers within businesses. A staggering 75% of business chairpeople and 71% of business partners believe that skills in AI hold the greatest value in today’s job market. 

But while AI is by far the most in-demand skill for businesses, it is closely followed by two other valuable technology skills: IT support and troubleshooting and cyber security. 

The growing threat of cybercrime and the constant need for IT support means that professionals equipped with these skills are likely to find themselves in high demand among employers.

One third of businesses have invested in internal training programmes to bridge the IT skills gap 

Our survey asked businesses about the ways they are tackling the IT skills gap within their organisations.

More than a third of businesses (34%) have invested in internal training programmes  to give new skills to their workforce. Businesses report this helps create a culture of continuous learning, equipping employees with expertise, and can help a company’s long-term growth.

Following behind, 31% of businesses outsource their IT projects to specialised providers or consultants as a way of tapping into external expertise and bridging the in-house skills gap. 

Alternatively, 30% are investing in top talent, by offering IT experts higher salaries or incentives. Plus 28% are headhunting the candidates they need from other companies. 

Collaboration with educational institutions, such as universities, is also popular, as more than one quarter (28%) of businesses are joining up with these types of organisations to bridge the gap between the IT skills they need and what’s available in their current workforce.

Problem solving is believed to be the most important soft skill in the IT sector 

Most employers and businesses are looking for key soft skills alongside technical expertise when recruiting staff. Businesses recognise that these soft skills can help with innovation and growth.

When asked in our survey about the most valuable soft skills for IT professionals to posess, 55% of employers answered that problem-solving, encompassing analytical and critical thinking and troubleshooting abilities, are the most important. 

More than half of respondents (52%) said adaptability, embracing change and learning new skills, was also crucial in an ever-evolving industry. Teamwork and collaboration was also cited by 52% of businesses as important. 

Four in ten businesses (40%) felt that effective communication was vital with the need for workers to be able to convey ideas through various channels, written and spoken for example. And while leadership ranks lower at 28%, for many employers it remains a valuable skill which can help guide teams, projects and strategies.

How is AI shaping the future job market?

The vast majority (96%) of British employers believe that artificial intelligence (AI) will be instrumental in shaping the future job market.

More than one third (36%) of those surveyed think AI will make a significant impact in the field of security. This reflects the growing need for professionals in IT who are skilled in AI-powered cybersecurity, a vital defence against complex digital threats. 

A third of businesses (34%) also envision a rise in demand for technical AI experts. These experts, including data scientists, machine learning engineers, and AI developers are believed to play a key role in driving innovation across a wide range of industries.

One third (33%) of employers predict that certain lower-skilled IT jobs may experience a decrease in demand, due to AI’s ability to automate repetitive tasks. Almost one in three respondents to our survey (30%) say some IT roles will need to evolve to include AI-related skills to stay relevant in the job market.

Customer support roles, in particular, are predicted to undergo transformative AI influence, with over one quarter (28%) of businesses envisioning AI-powered chatbots and virtual assistants increasingly covering this sector.

Beyond the tech skills and organisational change that AI will bring, 27% of businesses also say they anticipate a growth in AI ethics professionals, specialists and trainers, as companies look to ensure ethical and transparent AI practices. 

Additionally, 27% of employers draw attention to the enhanced infrastructure demands that AI will bring. This is due to AI implementation requiring robust infrastructure and cloud computing capabilities, for example. Those tech specialists and professionals with expertise in managing AI-related infrastructure will be particularly in demand.

How small businesses can manage the IT skills gap

Tackling the IT skills gap can be more manageable for small businesses, compared to larger companies. Smaller firms can use tools, such as software and website builders, for example, to help with various tech challenges if they don’t have a full IT team.

Tools such as website builders provide templates that companies can customise and tailor to their needs without needing to understand complex coding. E-commerce website builders simplify online selling, eliminating the need for specialist technical skills.

Certain software packages can also help to streamline operations by automating routine tasks and ensuring communication between systems. This reduces the need for manual intervention and there is usually less need for tech expertise. 

Cloud-based solutions can offer scalable alternatives to traditional IT infrastructure, minimising the need for specialised technical skills. Additionally, security concerns can often be addressed through built-in features in the software. 

Methodology

Forbes Advisor conducted a survey encompassing 500 businesses spanning across more than 25 distinct sectors. Each of these companies had a minimum of two employees, ensuring a robust and representative sample.

Among the respondents, one half consisted of senior managers, business owners, or executive board members – individuals occupying upper-tier positions within their respective organisations. The remaining half of participants consisted of middle managers.

It was commissioned by Forbes Advisor and conducted by market research company OnePoll. Data was collected in August 2023.