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New Research Shows the IT Talent Shortage Is Wreaking Havoc on the Enterprise

Despite more than one-third of total HR budget dedicated to the IT talent gap, 25 percent of projects are abandoned altogether because of IT capacity limitations

Ninety percent of C-level executives agree that recruiting and retaining technology talent is a top business challenge, according to a new survey by Appirio, a global cloud services company and leader in enterprise crowdsourcing. Developed in conjunction with Wakefield Research, the IT Talent Wars and the Gig Economy Survey explores how the gig economy is impacting enterprise IT by examining key drivers in the war for talent, and outlining worker expectations for retention and workplace satisfaction.

Based on responses from 200 C-level executives and 200 IT staff in the US and UK, Appirio’s report finds that more than half of IT staff have already worked in the gig economy in some manner, yet C-level executives believe just 28 percent of employees supplement their full-time job with gig-based work. While the C-Suite admits that finding top talent is a significant barrier to business growth, executives see the shift towards gig-based work as a threat instead of an opportunity, with 77 percent responding that the gig economy will result in the loss of IT staff.

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“The intense competition for tech talent has placed a major strain on the enterprise, and it’s costing companies millions,” said Chris Barbin, CEO of Appirio. “Those in the tech and services industries spend too much time talking about the systems they are implementing, and not enough on the talent needed to architect, develop, or manage those systems. The way organizations add technical capabilities — such as mobile app development and data science — is changing due to a rise in gig-based employment and the changing demographics of the workforce. This needs to be a bigger topic of discussion among the C-Suite in any size business.”

The IT Talent Wars and the Gig Economy survey highlights the constant battle against talent turnover, which hinders overall productivity and innovation. Survey results include:

  • More than one-third of HR budgets are dedicated specifically to recruiting and retaining technical talent.
  • At least 25 percent of projects are abandoned altogether because of IT capacity limitations, and projects that are eventually finished are delayed an average of 5 months.
  • The top three criteria IT staff look at when evaluating new job opportunities are a well-resourced IT department, up-to-date technology, and flexibility.
  • Eighty-four percent of C-Suite respondents believe the economy will shift toward gig-based work over full-time work by 2050.

To bridge the talent gap and meet demands of both businesses and employees, many companies are embracing crowdsourcing. Nearly 70 percent of enterprises have implemented crowdsourcing within their organization in some capacity as a way to get access to on-demand expertise and modernize their workforce.

For more information on how crowdsourcing provides easy access to IT talent, please visit: crowdsourcing.appirio.com.

Survey Methodology

The Talent Wars and the Gig Economy survey was conducted by Appirio and Wakefield Research among 400 total respondents, including 200 US and UK C-level executives at companies with 500+ employees, and 200 US and UK IT staff at companies with 500+ employees, between July 30th and August 11th, 2015.

About Appirio

Appirio is a global services company that helps customers innovate and win in the new cloud economy. As the leader in enterprise crowdsourcing, we deliver unmatched customer value by combining the world’s top talent with a unique cloud services platform. Our platform harnesses the power of one of the world’s largest crowdsourcing communities, thousands of ready to deploy assets, and leading cloud, industry, and technical experts, to help our customers drive competitive advantage. Appirio is a trusted partner to some of the world’s largest brands, including Cardinal Health, Coca-Cola, eBay, Facebook, Georgia-Pacific, Home Depot, Moen, and Sony Playstation.

 

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