Rocketing wages yet shortage in skills in the IT sector

The Manchester Digital 2023 Digital Skills Audit report gives us insightful information about the IT labour market. The growth of the hybrid working model is unstoppable. In 2022, 44%, while in 2023, 78% of workers will be in hybrid jobs in the tech sector. Salaries have risen for all positions, but the most significant, 53% increase within a year, is for developers.

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Skills shortages remain the biggest problem for IT companies. A strong demand labour market is driving up wages – this is normal. But the percentage of the developers’ salaries increase, more than 50% in a year, is shocking. Nearly every second, 43% of businesses have not found the right person for their open positions in 12 months. To put this high rate in perspective, it is actually significantly lower than last year’s 54%. The reason for this drop is likely the rise of the hybrid working model, which allows companies to employ people remotely. In addition, more and more firms have rediscovered the benefits of outsourcing and employing or contracting remote workers abroad.

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Companies continuously seek alternatives to lower their operational costs while keeping the quality of their services to keep their business competitive. Integrating remote workers into the organisation, creating virtual teams and outsourcing IT processes can significantly mitigate companies’ labour and cost problems. But proper preparation and monitoring of activity are essential to success.

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Download the complete study here.