The latest report by Hyve Managed Hosting paints a picture of the UK’s tech industry, showing that 80% of businesses struggle to find the skilled professionals they need to stay competitive.

“Our report highlights just how complex a strategy is required to address today’s skills gap – one that increases collaboration between business, government and educational institutions to promote STEM subjects and the importance of IT skills across the modern working landscape,” said Charlotte Webb, Operations Director at Hyve Managed Hosting.

According to the report, 42% of leaders believe the pace of technological advancement is outstripping the development of new talent, leaving businesses exposed. Academic institutions are also seen as lagging behind, with 31% of respondents criticizing universities for not adequately preparing graduates for entry-level roles and 30% saying the current school curriculum is insufficient for the industry’s needs.

Additionally, 35% of decision-makers blame the competition from larger companies, particularly tech giants, for making it harder to hire skilled professionals, while 27% believe high recruitment costs widen the gap.

In terms of the most in-demand skills, cybersecurity (43%) and cloud computing (34%) top the list, followed closely by machine learning (ML), artificial intelligence (AI) (33%), developers (26%), and data specialists (25%). However, 52% of UK business leaders admit they often hire less qualified candidates due to a lack of suitable talent.

To combat this issue, many businesses are investing in upskilling their in-house teams and working with managed service providers (MSPs). Nearly 65% of companies currently partner with MSPs, and of those, 90% use MSPs to bridge the skills gap. A third of businesses (33%) said they rely heavily on MSP expertise to manage key IT functions.

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