67% of digital transformations delayed due to skill shortages

Businesses have always struggled with IT skills shortages, but the “accelerating arrival of new technologies” such as AI has widened the shortage gap even further, resulting in business delays, lower customer satisfaction, and loss of revenue, according to a recent report from research firm 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,” says Gina Smith, PhD, research director at IDC.

“The impacts are huge here,” Smith adds. “Global organizations tell IDC that a dearth of skills has directly led to a host of enterprise and business problems.”  

The firm’s survey of IT leaders from North America, Asia, and Europe found that a shortage of IT skills has caused delays in product development at 54% of organizations, with 58% reporting product or service quality issues as well. IT leaders also report suffering from customer satisfaction problems (52%), difficulty hitting revenue goals (55%), and loss of revenue (54%).

“By the end of 2026, IDC predicts that more than 90% of organizations will feel similar pain, costing as much as $5.5T USD globally,” says Smith.

While the IT skills shortage is a global issue, North American companies appear to be hardest hit, with 87% of IT leaders from North America reporting digital transformation delays due to a lack of sufficient IT skills on hand, while only 60% of IT leaders in Asia and 54% in Europe say the same.

In North America, the length of skills-related digital delays varies, with 57% saying it has pushed them one to five months behind schedule, 32% saying it has delayed transformation initiatives by five to 10 months, and 11% saying they have been delayed 10 to 15 months due to insufficient skilling.

According to IDC, businesses are most likely to be looking for tech workers with skills in AI (94%), cybersecurity (89%), IT operations (84%), ITSM (75%), and gen AI (73%).

IDC recommends IT leaders to leverage generative AI to create personalized and improved training courses and upskilling programs for employees. By creating robust learning environments, giving employees the opportunity to gain hands-on experience with new skills, and rewarding learners for upskilling by offering tangible benefits such as cash bonuses, time off, and other incentives, IT leaders can help shore up existing skills gaps.

“The best IT training initiatives offer plenty of course options for learners, whether they learn best from video, audio, or text,” Smith says. “It is also critical that organizations find ways to give employees hands-on learning opportunities. More than a century of educational research reveals that humans learn best when they get their hands dirty. Experiential learning — labs, games, journeys, hackathons — gives learners the opportunity to practice new material. It can greatly speed and improve training outcomes.”

Organizations that leverage generative AI to improve training tools may not solve the skills shortage overnight, but it can help set companies up for better success in the future as IT skills continue to change and evolve, the firm advises.