A recent report by IDC highlights a significant challenge faced by businesses worldwide: 67% of digital transformation initiatives are delayed due to skill shortages in IT. These gaps in expertise, worsened by the rapid arrival of new technologies like AI, are hindering progress and causing widespread business disruptions.
Skill shortages in IT have long been a challenge, but the rise of advanced technologies such as artificial intelligence (AI) has made it even harder for organizations to find suitable talent. This has resulted in delays, reduced customer satisfaction, and revenue losses, according to Gina Smith, PhD, Research Director at IDC.
“The arrival of emerging technologies like AI puts organizations under new pressure. That means getting the right people with the right skills into the right roles is tougher than ever,” Smith explained. The report underscores how these shortages lead to numerous problems, with 54% of organizations experiencing delays in product development and 58% reporting quality issues in products or services.
Customer satisfaction is also taking a hit, with 52% of IT leaders citing negative impacts, while 55% report difficulty achieving revenue goals. The shortage of IT skills is so significant that IDC predicts it could cost businesses globally up to $5.5 trillion by the end of 2026.
The report found that North American companies are particularly affected, with 87% of IT leaders in the region reporting digital transformation delays due to skill shortages. Comparatively, only 60% of IT leaders in Asia and 54% in Europe reported similar challenges. North American organizations also experience varying lengths of delays, with 57% citing one to five months, 32% facing five to ten months, and 11% reporting delays exceeding ten months.
The areas most in demand for IT skills include artificial intelligence (94%), cybersecurity (89%), IT operations (84%), IT service management (75%), and generative AI (73%). These fields are critical for driving digital transformation, yet businesses struggle to find adequately skilled professionals.
IDC recommends leveraging generative AI to address these skill shortages. By using generative AI tools to develop personalized training programs, businesses can improve upskilling and reskilling efforts for their workforce. Customized training courses that cater to different learning preferences—whether video, audio, or text—can create a more engaging and effective learning environment.
Experiential learning, which includes activities like labs, hackathons, and hands-on projects, is another key recommendation. “More than a century of educational research reveals that humans learn best when they get their hands dirty,” Smith emphasized. Such interactive training methods accelerate learning outcomes and better prepare employees for evolving IT roles.
To motivate employees, IDC suggests organizations offer tangible incentives for upskilling, such as bonuses, additional time off, or career advancement opportunities. Rewarding efforts can inspire employees to close the skill gaps critical for their company’s success.
Although addressing the IT skills shortage is not an overnight fix, adopting strategies like leveraging generative AI for training and fostering hands-on learning experiences can position companies for long-term success. As IT roles continue to evolve, businesses that prioritize proactive solutions will better adapt to future technological challenges.
This global challenge serves as a call to action for organizations to invest in their workforce, ensuring that they remain competitive in an era where technology drives progress. By embracing innovative training tools and strategies, companies can minimize delays, improve productivity, and enhance overall business performance.