How to navigate the $5.5 trillion IT skills gap

By:  John Kundtz

The IT skills gap is expected to impact 90% of organizations and cost more than $5.5 trillion globally through 2026 in delayed product releases, reduced competitiveness and loss of business.¹

Many organizations are leaning on cybersecurity, generative artificial intelligence (generative AI) and cloud adoption as pillars of their digital transformation initiatives. Yet, 44% of organizations report challenges finding candidates with requisite cloud skills², and more than a quarter of CIOs expect to have difficulty finding the appropriate AI and ML skills.²

These are not challenges that a one-time hiring or training initiative will adequately resolve. The IT skills gap must be approached in stages and continuously evaluated. By identifying small  projects that can be quickly and cost-effectively implemented, you can apply learnings—good and bad—from one project to the next one. Here’s how I tell my customers to approach the journey.

Identify priorities and timeline

Begin by prioritizing your organization's key technology-enabled business transformations for the next 12 to 18 months. Starting with such a timeframe allows for more accurate forecasting.

Assess and map skill gaps

At least once per quarter, assess the IT team’s capabilities and identify gaps in skills relative to your 12 to 18-month near-term strategic goals. The assessment can provide an agile roadmap for skills development, hiring and partnering with service providers for specialized needs.

Ensure that the skill gap analysis is closely aligned with your organization's most critical and imminent transformation objectives to maximize impact and resource allocation. Review and adjust the plan quarterly to stay responsive to technology changes and emerging business needs.

Prioritize AI, security and cloud skills

AI and, in particular, generative AI are increasingly being integrated into various business processes for automation, prediction and decision-making. Skills in this area include data science, machine learning algorithms, AI model development, and the ethical application of AI.

As digital transformations increase the surface area for potential cyber-attacks, robust cybersecurity skills are crucial. This includes threat detection, incident response, security architecture, and data protection skills.

Cloud computing is fundamental to many modern business transformations, enabling scalability, flexibility and cost-efficiency. This category would include skills related to cloud architecture, migration, security and management across various cloud platforms.

Foster a culture of continuous learning

Cultivate a supportive environment that values continuous learning and development. Provide opportunities for professional growth, such as workshops, certifications and access to online courses. This can help foster knowledge-sharing and mentorship within the organization, as well as employee loyalty.  

Invest in soft skills and leadership development

Although technical skills are vital, soft skills such as problem-solving, communication and adaptability are equally important for driving change. Invest in leadership development programs to prepare teams for the challenges of digital transformation.

Use partnerships and collaborations

Form strategic partnerships with educational institutions, technology companies and service providers. These relationships can provide access to training resources, cutting-edge technologies and specialized expertise to complement and enhance internal capabilities.

If your organization chooses to partner with a technology services provider, here are key characteristics to look for:

• Dedicated to prioritizing open integration
• Able to enhance cyber resilience and decision readiness
• Experts in navigating systems modernization complexity
• Aligned with your organizational culture

As enterprises ramp up IT modernization and shift to hybrid multicloud environments, these practices can help organizations close the skills gap.

John Kundtz is a director of offering management for Kyndryl.

¹Enterprise Resilience: IT Skilling Strategies, 2024, IDC, May 2024, IDC, May 2024

² State of the CIO, 2024: Change makers in the business spotlight | CIO. CIO. April 2024