The IT sector is evolving faster than ever before. Technologies like artificial intelligence, cloud computing, and cybersecurity are reshaping the digital landscape. However, as innovation accelerates, a growing IT skills shortage arises. Businesses worldwide are struggling to attract and retain this skilled tech talent to drive transformation.
In this blog, we’ll explore what the IT skills shortage means, why it’s happening, the skills in highest demand today, and how companies can close the gap to maintain a competitive edge.
What is a skill shortage?
A skill shortage is when the demand for certain skills is greater than the supply of skilled professionals in the field. These shortages occur in IT when employers cannot find the right technical expertise.
Data from the mid-market report indicates that 93% of the organisations are currently experiencing an IT skills shortage. When companies find it difficult to attract and retain talent, it affects their timelines, operations, customer experience delivery and revenue. As technology continues evolving, the gap between skill availability and businesses’ needs starts to widen.
Why is there an IT skill shortage?
The alarming numbers on the skill gap are a cause for concern. These IT shortages occur due to rapid advancements in technology, where employees aren’t able to keep themselves updated. Another factor which contributes to this skill gap is the lack of clarity and connection between the skills taught in educational institutions and the demands in the evolving IT sector.
Generational change also leads to skill shortage, where filling it with the younger generation is not as easy as it may seem. These groups of workforces place a significant emphasis on factors like work culture, well-being support and hybrid and remote working options, along with job offers. These contribute to slower hiring across these roles.
“IT is our core business, and we have a pipeline and plan for talent development. Combining global access with our apprentice and graduate schemes, we have a clear line of sight for recruiting, developing, and harnessing the talent of tomorrow.”
Ian Thomas, Chief Operations Officer
There is also global competition for these technical talents. Companies across the world are competing for these specific talent pools for top tech skills. This, in turn, drives up salaries and makes hiring harder for companies.
Which IT and AI skills are in demand right now?
Cybersecurity: Cyber threats are growing, making cybersecurity no longer a niche but a business-critical skill. Also, with 61% of mid-market businesses looking into AI for enhancing security, it is no doubt a skill in high demand. Organisations are seeking professionals with skills in behavioural analytics, zero-trust architecture, regulatory compliance and encryption.
Roles in demand: Security Engineers, Cybersecurity Analysts and Chief Information Security Officers.
Cloud Computing: The adoption of cloud-based infrastructure is growing. This has created a demand for skills in DevOps, Kubernetes and Terraform.
Roles in Demand: DevOps Engineers and Cloud Architects.
AI and Machine Learning: AI is reshaping industries across sectors, and there is no doubt that it has rapidly evolved over the years. This rapid evolution has left little to no time for employees to hop on to these skills. Generative AI, along with Machine Learning (ML), Natural Language Processing (NLP) and data science, are now becoming the most sought-after jobs in the market.
Roles in demand: AI Engineers, Machine Learning Engineers, Data Scientists and NLP Specialists.
Software Development: Software is crucial for the operation of mid-market businesses, and software development skills are crucial. Python, JavaScript, Java, and C# are popular coding languages.
Roles in Demand: Full-Stack Developer, Frontend and Backend Developer and QA Engineer.
Network and Infrastructure Management: As companies are adopting hybrid and remote working options, there is a need to maintain a secure and reliable infrastructure. Organisations are looking for experts with skills in risk analysis, network architecture, virtualisation technologies and identity management to protect data.
Roles in Demand: Network Engineers, Infrastructure Engineers and System Administrators.
Are these skill shortages slowing down AI adoption?
These technical skill shortages are not just a staffing issue but are an underlying cause for slow AI adoption across mid-market organisations. Without the right AI skills, companies face challenges including
- Poorly trained AI models due to inadequate data preparation.
- Security vulnerabilities in AI systems.
- Inability to scale AI from proofs of concept to enterprise-wide applications.
As a result, many companies are outsourcing AI projects, investing in upskilling programs, or partnering with specialist providers to stay competitive.
How can companies close this IT skill gap?
Bridging the IT skills gap requires a multifaceted approach. Here are proven strategies businesses can implement:
Investing in upskilling and Training
The latest figures from the mid-market report show that 43% of mid-market businesses will invest in upskilling and training their employees. This is one of the most sustainable ways to address skill shortages. Provide your IT staff with internal training programs on emerging tech like AI, data analysis, automation and cybersecurity. Look into areas that align with your business goals to bridge gaps and achieve outcomes.
Partnering with MSPs
One of the ways to tackle these IT challenges is by partnering with a specialist IT provider. Managed Service Providers can support you with all your IT needs, ranging from cloud migration, cybersecurity to AI and automation goals.
With expertise across cloud infrastructure, cybersecurity, AI readiness, and digital transformation, Node4 helps you bridge the IT skills gap while delivering scalable, future-proof solutions. With our skills and capabilities, we can become your IT partner of choice.
“IT is our core business – We can often do it better, cheaper, and more effectively than clients whose core business is not IT. We can deliver scale, complexity, and have the skills to support without the client having to foot the bill for a full-time employee skilled in that area.”
Ian Thomas, Chief Operations Officer
Redefine your hiring strategies
Traditional hiring practices no longer attract younger and newer talent. Look into more remote and hybrid job models to gain access to a global talent pool. Partner with universities and launch internship and apprenticeship programs to focus on these high-demand tech skills. Offering flexible working arrangements, competitive salaries, and learning incentives can make roles more attractive to top candidates.
Adopt Automation
Leverage AI to automate repetitive tasks and not to replace human jobs. Companies need to approach AI strategically. Implement low-code and no-code platforms for developers to create applications. Automate repetitive IT tasks to free up skilled staff for more important tasks.
“AI can’t replace the human element, which is crucial for understanding and articulating client needs and problems.”
Ian Thomas, Chief Operations Officer
Building a Future-Ready Workforce
Organisations that act now to upskill their teams, adopt flexible hiring, and partner strategically will be ready to lead the digital future. By closing the skills gap, businesses can not only mitigate risks but also unlock new opportunities for innovation and growth.
Speak to our experts to see how we can provide customised managed service packages to meet the specific needs of your business.
Unlocking Growth in the Mid-Market: The Node4 Report
The 2025 Node4 Mid-Market Report reveals how business and IT leaders can close the productivity gap and unlock their next growth phase, with insights from 600+ decision-makers across six sectors.
In an era of economic uncertainty, the UK’s mid-market continues to power ahead – but something’s slowing it down. Based on original research with over 600 IT and business leaders, this report exposes the key tensions holding mid-sized organisations back: misalignment between teams, underused technology, and stalled transformation efforts.
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