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The impact of the COVID-19 pandemic as well as the recent world instability have been challenging companies across the IT sector. We will discuss 7 major challenges in the IT industry that are changing the priorities of IT leaders in the middle of 2022.
As technology evolves, end-to-end digital transformation is no longer nice-to-have. These days, not only HR or sales but almost all business processes require digitization to meet the advancing market and customer expectations, particularly when the COVID pandemic has brought the customers to the digital world.
Another aspect that will be fueled by digital transformation is data-driven decision-making models. When enterprises’ data gather in one hub, it facilitates big data analysis and allows more logical decision making.
Still, digitizing throughout the enterprise simultaneously and keeping up with the general speed is one of the biggest challenges facing IT companies, as there’s no business process standing alone. For example, sales should be accompanied by the supply chain and inventory. That’s why CIOs are focused on “transversal transformation”, connecting all together, such as what cloud computing and ERP systems are striving for.
The high labor and operation costs in the IT sector are not a new concept, yet becoming more serious amid the recent unfavorable conditions of the world’s economy. In 2022, the high inflation rates, the increased Fed interest rates, and concerns about a possible recession have made cost containment a top priority for CEOs across the IT industry.
So, what kinds of costs got affected? Staff salary, infrastructure expenses, costs for borrowing money, costs for using outsourced IT services, etc. Budgets might shrink when these costs go up and CEOs, CIOs, CTOs have to think of re-balancing costs to prepare for any possible scenarios regarding the health of the economy.
Not only the tech talent war that creates the talent shortage but the “Great resignation” is bothering tech leaders with 72% of the tech employees considering leaving their jobs in the next 12 months.
The tech talent shortage is among the key challenges in the IT industry which through a Gartner Survey creates 64% adoption barriers to new technologies. This also leads to a headache of ability gap between the company and the market needs, forcing tech leaders to upskill team members or outsource IT tasks to an outside vendor.
Recruiting and retaining tech talents have significantly contributed to HR challenges in the IT industry, particularly when the pandemic effects have temporarily brought a relative number of tech workers out of the labor market (or at least out of onsite work).
In 2022, the top IT skills that tech companies are seeking consist of Cloud computing, Data analysis, Security, Programming, DevOps, and Machine learning. Apart from these specific skills, organizations also demand people with broad skill sets who can scan the landscape, learn new paradigms, and keep the company up with the trends. Unfortunately, these positions are in high demand but low supply, making the skill gaps a critical issue across the IT industry.
Amid the tech talent war, many CIOs choose to up- & re-skill the available IT workforce to bridge the skill gaps. Another way is to nurture potential candidates via STEM education, early seeking young tech students via Assessment tests and investing in them to have a talent pool later on.
The above talent shortage and the workforce changes have accelerated tech companies’ adoption for hybrid and/or remote work to attract talents. People are seeking more flexibility and work-life balance when 97.6% of remote workers would love to work hybrid or remotely for the rest of their careers, via Buffer’s State of Remote Work.
Still, remote work creates some issues and challenges in information technology. For example, 54% of IT professionals say remote employees pose a higher security risk than onsite staff. Also, managing and motivating a remote developer team is not always easy. When people work from everywhere, “team building” becomes more like something luxury.
Apart from that, remote working requires task managing and productivity tracking systems in most cases. This leads to more costs and efforts from the companies to run a remote IT team smoothly and effectively.
Cybersecurity risk is among the ever challenges facing IT for many years and even becomes a bigger issue this year. Cybersecurity-based challenges exist in two manners:
According to 2022 CIO Leadership Perspectives, cybersecurity strategies are the no. 1 priority within the CIO functions. More specifically, the challenges around cybersecurity strategies of companies are:
Also, the rise of remote working contributes to the rise of cybersecurity risks as we’ve mentioned in the previous section.
Hardware companies are facing some difficulties due to supply disruptions, such as Intel’s CEO predicted in April that the chip shortage will last through 2024.
Supply chain-based challenges can exist in three manners:
The first factor is not new but the other two have emerged the recent years, increasing costs and creating more barriers in manufacturing and logistics. To deal with this, many companies are driving down their expectation of equipment they will get, such as waiting longer to get the equipment or getting it from a lower-standard manufacturer.
With 6 years of experience in providing IT solutions and services, LTS Group can assist you with consultation and help you deliver your IT services with minimal resources consumed. Don’t hesitate to contact LTS Group if you need consultation regarding the current challenges in the IT industry.