Can Managed IT Service Providers Help Combat the Digital Skills Shortage?

You don’t need to be an industry whizz to understand that the rapid pace of technological change is a defining feature of our current era. Profoundly impacting almost every aspect of society, business, and leisure, it is, perhaps, little wonder that more and more businesses are placing emphasis on tech skills when it comes to recruitment. 

Conversely, though, research undertaken by Forbes Advisor at the back end of 2023 indicates that British employers – across a broad range of different industry sectors, including utilities, engineering and manufacturing – are struggling to find workers with the necessary digital expertise. Worryingly, out of five hundred businesses surveyed, 93% reported a gap in IT skills within the UK jobs market, with the pace of technological advancements and insufficient training opportunities named as top contributors to this outcome.

Key trends in technological advancement utilised (in one form or another) by most UK organisations reveal an urgent and growing need among businesses for tech expertise.

These may include the following:

• Artificial intelligence – the rising popularity of AI and machine learning, driven by advancements in computing power, are transforming industries by enabling automation, enhancing decision-making, and providing more personalised user experiences. From healthcare diagnostics to financial modelling, these technologies are becoming integral.
• Internet of Things (IoT) – the proliferation of internet connected devices is leading to smarter homes, cities, and industries. IoT enables organisations to collect and analyse data in real time, improving efficiency and enabling new services.
• 5G and advanced connectivity – the rollout of 5G networks is providing faster, more reliable internet connections, facilitating innovations in areas such as autonomous vehicles, remote monitoring, and augmented reality.
• Blockchain and distributed ledger technology – blockchain technology is revolutionising sectors like finance, supply chain, and healthcare by providing transparent, secure, and decentralised transaction systems.
• Cloud computing – the adoption of cloud services continues to grow, offering scalable resources, cost savings, and flexibility to all kinds of organisations. The more organisations move their operations to the cloud, the larger the need for professionals who understand cloud architecture, deployment, and management becomes.

What is the current state of the digital skills shortage?

The demand for digital skills has been rising for several decades, with significant acceleration over the past 20-30 years due to various factors, including emerging technologies, changing work environments, and economic shifts.

Not responding effectively to the digital skills shortage could lead organisations to suffer challenges in achieving digital transformation, lack of innovation, and losing the competitive edge.

When we speak about ‘the digital skills shortage’, we refer to a wide range of digital competencies, from basic IT skills to advanced capabilities, however, critical areas of digital skills shortage include:

• Cyber security – increased connectivity and data generation means there is a high demand for cyber security professionals to protect organisations from evolving cyber threats.
• Data science and analytics – businesses require data scientists and analysts to make data-driven decisions.
• Software development – there is a shortage of skilled software developers and programmers.
• Artificial intelligence and machine learning – expertise in AI and machine learning is in high demand but in short supply.

Using a managed service provider (MSP) 

A managed IT service provider might offer functions including IT service desk, modern workplace management, network and infrastructure management, cloud computing, and potentially cyber security.

As specialist areas with hard-to-recruit-and-maintain skillsets, it makes sense for many organisations to look outward for IT services rather than recruiting in-house, which can prove time-consuming and expensive.

As well as bridging the skills gap in these areas, outsourcing IT can help improve efficiency and productivity through strategic IT consultancy and investments in better digital employee experiences (DEX). Constant digital transformation is fast becoming an essential process for organisations too and, with the help of outsourced IT support, can be utilised to improve operational agility and collaboration, enhance data privacy/security, and offer better customer experiences (to name but a few benefits).

MSPs may undertake a range of business-critical responsibilities; many of which include service level agreements (SLAs) or even experience level agreements (XLAs) to define expected levels of service/experience and ensure both parties have a clear understanding of the performance standards, responsibilities, and expectations.

Indeed, IT service providers can play a crucial role in helping organisations combat digital skills shortages through various strategies and services. Some ways an MSP can contribute include the following:

Providing specialised expertise

Strategic consulting

IT service providers can offer consulting services that bring in specialised expertise for short- or long-term projects. This helps organisations access skills that are otherwise difficult to hire in-house and helps align the company’s IT strategy to its business outcomes.

Project-based assistance 

IT service providers can also be hired for specific projects, particularly large-scale, more complex projects, to ensure these are managed and completed by skilled professionals (and without requiring the organisation to hire permanent staff).

Outsourcing and managed services

IT outsourcing

In outsourcing IT functions to service providers, organisations can focus on their core business activities while the service provider handles IT operations behind the scenes. This leaves organisations more room to regroup and focus on the bigger picture of how to drive the business forward.

Managed services

Providers offer managed services for specialised areas such as cyber security, cloud computing, and infrastructure management, allowing organisations to leverage the MSP’s expertise and tooling without needing to build these capabilities internally.

Training and compliance

Skills development

Some IT service providers offer user training as part of new technology roll-outs, helping to upskill the organisation’s existing employees and smooth out any teething problems along the way. Some service desks also provide users with access to digital knowledge bases on an ongoing basis. This helps users develop necessary digital skills going forwards and maintains efficiencies through self-service.

Regulation

Your MSP will have the experience and knowledge necessary to take care of compliance and training requirements – an area that is especially important when it comes to IT due to data protection regulations and the modern requirement for robust cyber security. By outsourcing specialist IT tasks to people who have the right level of expertise, it will be easier to monitor, plan for, and mitigate operational risks and keep your data safe.

Implementing advanced technology

New technologies

Providers can help organisations implement advanced technologies like AI and automation. This reduces the need to recruit for certain skill sets and optimises operations by making them more effective and efficient.

Tools and platforms

MSPs can introduce and manage sophisticated tools that may otherwise be out of reach for some organisations, helping to enhance productivity and potentially allowing internal teams more breathing-room to focus on other activities, e.g., prioritising customers or concentrating on personal development.

Offering tailored solutions

Custom IT solutions 

Providers can develop custom IT solutions tailored to an organisation’s specific needs and business goals, helping them to achieve long-term success rather than constantly ‘fire-fight’ smaller issues.

A different perspective 

By introducing innovative approaches and solutions to IT, service providers can help organisations stay ahead of the curve and mitigate the impact of skill shortages.

Final word

It’s true that outsourcing IT can benefit organisations looking to bridge the digital skills gap and receive fast access to expertise and specialised tooling.

Before partnering with an MSP, though, it’s important to understand exactly what you’ll be getting as part of your service. What skills and talent does your IT partner have and how do these relate to your needs? Does your MSP focus on user-experience? Are they able to understand and respond agilely to your business needs?

By carefully evaluating service offerings, SLAs, security measures, experience, scalability, cost, communication, onboarding, and support structures, organisations can make an informed decision and establish a successful long-term partnership with their chosen MSP.

To find out more about Littlefish’s award-winning and user-centric IT services, visit our customer stories page, or feel free to contact us through our get in touch button.