Extending the hand of IT partnership

How MSPs can offer a solution for UK businesses amid persistent tech skills gaps

Partner Content The future for all organisations is clearly data-driven.

And yet new research reveals that business leaders in the UK are struggling to keep pace with the rate at which technology is evolving – especially when it comes to having the skills required to manage it.

The IT and Tech Skills Gap Report 2024 conducted by Hyve Managed Hosting in collaboration with Censuswide, found that a whopping 84 percent of decision-makers at UK businesses feel as though they are impacted by an IT and tech skills gap. Among the leading causes of this skills gap that UK IT leaders identified are rapidly advancing technologies, high competition for existing talent, and inadequate training and education.

But while the government understands the issue and is already focusing on developing long-term strategies to address it, such as Labour's proposed Skills England Bill, businesses today still face an urgent and immediate need for more specialised IT professionals. This need is one of the primary reasons organisations are turning to managed service providers (MSPs) for help, taking advantage of the on-demand expertise tailored to specific business needs they offer to fill critical gaps.

In-demand tech skills: what businesses need right now

The new Hyve research helps decipher which skills are most in-demand right now. Surprisingly, technical AI knowledge ranks as only the third most in-demand skill in the UK. It trailed behind cyber security and cloud computing, highlighting the critical importance of these skills for business success in the UK today. What's more, 20 percent of UK businesses surveyed reported outages, data breaches or ransomware attacks as a result of the IT/tech skills shortage, demonstrating the significant risks the skills gap in these areas already poses to operations.

Identifying the right skills during the hiring process is another major challenge for companies in the UK. According to the IT and Tech Skills Gap Report 2024, nearly half (49 percent) of respondents find it difficult to prioritise essential tech skills, and 58 percent struggle to define what makes a "good" tech hire. As a result, 52 percent of businesses said they often settle for less qualified candidates due to lacking suitable talent, thereby increasing the risk of vulnerabilities in their systems and overall business operations.

Embracing MSPs for IT needs

In the face of these challenges, many UK organisations are finding that technology – adopted to solve pressing issues and enhance efficiencies – isn't working how it should. In turn, businesses and products aren't innovating at the rate they could be, and organisations are falling behind their competitors and clients.

Needing an urgent solution, many businesses are seeking help from MSPs - third-party providers of IT services such as cloud management, cybersecurity and network monitoring. The Skills Gap Report found that 35 percent of respondents are already working with suppliers or MSPs explicitly to plug the IT and tech skills gaps they're experiencing. This is because MSPs are in a unique position of being able to offer immediate and scalable solutions by providing specialised, on-demand expertise, ensuring that businesses can continue to operate and grow without the burden of delaying projects due to challenging hiring processes and being unable to find specialists with the specific skillset.

How do MSPs support businesses' growth?

MSPs can help businesses address the IT and tech skills gaps they may be experiencing in the following ways:

- MSPs offer expert support for companies that lack the in-house IT skills or capacity: With the pace of tech development and new solutions emerging, it's difficult for organisations to build in-house teams with up-to-date expertise on the latest tools and platform updates.

MSPs are often early adopters of new technologies, continuously monitoring new integrations, which helps build specialised expertise. This enables them to consult and support organisations through various critical technological transitions - such as migrating to the cloud or adopting AI-driven solutions - designed to work for the specific company's requirements without that company needing internal technical expertise.

- Cost-effective scalability and flexibility: Businesses often need to react quickly to market changes, demands, or digital disruptions but may lack the in-house expertise or resources to do so. MSPs provide scalable teams and platforms as well as immediate support, helping companies stay flexible and responsive to changes without the costs and delays involved in recruiting the right talent.

By partnering with MSPs, businesses can significantly reduce recruitment and training expenses, as well as expenses associated with project delays and misconfigurations, while accessing specialised experts, whether for temporary or long-term projects.

- CapEx to OpEx shift for lower costs and increased innovation: Partnering with MSPs can help businesses minimise their upfront capital investment in hardware, moving to an operational expenditure (Opex) model. This reduces the significant financial commitment needed to buy and maintain their own IT infrastructure, as, typically, the provider manages hardware purchases and upgrades, while businesses pay a monthly service fee.

In addition, MSPs provide access to cutting-edge technology through their relationships with hardware and software vendors, ensuring that businesses are kept updated on and can take advantage of the latest innovations, for example, in cloud computing, AI tools, or advanced cybersecurity, without having to continually upgrade or replace ageing hardware. This allows businesses to remain competitive while simultaneously reducing long-term costs.

- Growing a talent pool of skilled professionals: MSPs work across a broad spectrum of projects for multiple companies in various industries. This enables them to develop highly skilled professionals with extremely valuable diverse, hands-on experience. They are hyper-focused on identifying challenges and then presenting and implementing highly personalised solutions that are tailored to a company's individual needs.

MSPs: both an immediate solution and long-term strategic partner

The government anticipates that the MSP market is well-placed for growth, with an estimated compound annual growth rate (CAGR) of 12 percent to 2027. This expansion reflects the rising demand for specialised skills and expertise, underscoring the importance of MSPs in addressing the talent shortage.

While the government and private sector are working on long-term strategies to address the causes of the skills gap, MSPs provide an immediate solution by offering companies access to specialised skills on demand. Partnering with MSPs not only helps organisations overcome their pressing IT challenges but also reveals new opportunities for their business growth and innovation. As a result, many businesses view MSPs not as a temporary solution but as long-term strategic partners, supporting their growth and digital transformation initiatives.

The vast experience of professionals who develop their skills at technical MSPs are both a solution to the UK's growing demand for technical talent and a way to help boost the overall concentration of skilled talent on offer in the UK market overall. These companies will, therefore, continue to play an integral role in bridging the skills gap in this country and ensuring the technological growth and stability of businesses across all sectors.

Contributed by Hyve Managed Hosting.