Overcoming the digital skills gap

Ambrozy Rybicki, Co-founder and CEO, ARP Ideas

 

2022 was a challenging time for SMEs. Rising inflation has increased the costs of running a business, made more complex by successive interest rate hikes and the UK now finding itself in the midst of a recession, which could last throughout 2023.

At an operational level, SMEs are also facing pressure due to a widening gap between workforce demand and supply. This is particularly prevalent in the digital and IT space. It is estimated that 75% of UK companies are struggling to fill vacant positions, while the widening digital skills gap is estimated to be costing £6 billion in lost GDP every year.

ARP Ideas has been working closely with clients across a range of different sectors to ensure they have the correct IT solutions in place to support how they operate. Based on our expertise and experience, it has become clear to us that many companies are suffering from a knowledge gap when it comes to understanding and implementing IT solutions that ultimately support their ways of working.

For this reason, SMEs across all sectors need to prioritise their access to IT and digital services in 2023. Doing so will ensure they are best positioned to tackle prevalent challenges, enhance their operational efficiency and ultimately find opportunities to leverage new technologies to improve how they engage with their clients and facilitate long-term growth.

 

Top IT trends for SMEs in 2023

While there are challenges specific to each industry, there are three trends linked to the implementation and use of IT and digital services.

Ambrozy Rybicki

The first is cybersecurity. The migration to the cloud and adoption of remote working practices has increased the digital footprint of SMEs. At the same time, we are seeing a risk in cyber attacks taking place, with evolving new threats being deployed to exploit weaknesses in current defence systems. SMEs are a prime target and can fall victim should they rely on outdated software or lack the knowledge to effectively minimise their risk of being attacked.

The second is finding talent. As mentioned above, finding and hiring an inhouse tech and IT team can be costly and time-consuming, particularly for companies which are planning to launch a new CRM system or deploy a new internal IT process. The gap between demand and supply in hiring talent will widen in 2023, making it more difficult for talent acquisition.

The third trend is linked to innovation and proliferation of new technologies. Through its modern evolution, IT has naturally become embedded into SMEs due to its ability to simplify and enhance how they operate. Innovations like AI and machine learning means SMEs can use these technologies to reduce the time and resources traditionally required for manual and tedious activities. There are huge advantages here, yet understanding which technologies are relevant and how they can be integrated requires careful strategic planning and industry insight.

Having worked with a diverse range of enterprises across many verticals, it is evident that the majority of companies face similar obstacles when attempting to address their digital skill needs. This has become more important following the rapid digitalisation of business processes instigated by the COVID-19 pandemic.

So what can UK businesses do to ensure they are able to meet their digital skill and IT needs in 2023?

 

Outsourcing talent to overcome skill shortages

One solution lies in outsourcing IT – that is engaging with external, third party service providers who are able to provide the necessary services. The concept of outsourcing has been around since the 1990s and has slowly established itself as a viable tactic for companies that don’t have the resources to have on hand a full time, internal support team.

There are multiple advantages to this.

Companies choosing to outsource IT services can do so at the fraction of price compared to having one or more people working in house. Certain providers, like ARP Ideas, can also provide a diverse team of specialists depending on the needs of the project, from analysts and programmers to software architects and technical consultants.

On top of this, there is the ability to quickly scale-up the amount of resources dedicated to particular IT services that might warrant attention, and scale-back accordingly.

For example, if an e-commerce platform is preparing to roll out a new CRM system, they can focus on the strategy and find an IT provider with the creative talent and experience needed to successfully deliver on this project. This removes the stress of having to implement a new CRM system and overcome any initial problems that could be encountered following the launch.

Ultimately, it is this flexibility and cost-efficiency on offer from outsourcing which makes an attractive option for scaling SMEs. However, the decision to outsource IT services isn’t a decision to be taken lightly. Like any IT project, an SME needs to do the necessary research to find an IT partner that can not only take on the necessary work but also aligns with the company culture. Doing so ensures there are clear and transparent lines of communication, laying down the foundations for a long-term partnership.

Outsourcing is one way SMEs can improve access to IT and digital services, promoting cost-efficient and secure online processes that can help overcome the challenges they may face over the coming 12 months. With a digital skills gap, macroeconomic pressures and a likely increase in cyber attacks, engaging with a third party provider is one way of making sure that IT and digital remains a top priority in 2023.

 

Ambrozy Rybicki, Co-founder and CEO, ARP Ideas  an IT company specializing in custom software development, outsourcing and consulting. As a Gold Microsoft Partner, ARP Ideas supports clients with Microsoft Dynamics 365, Microsoft SharePoint and dedicated solutions based on the Microsoft .NET Framework.

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