EDITOR ’ S QUESTION
The European technology industry is facing strong headwinds in the next 12 months , amidst rising economic uncertainty and geopolitical tension on the continent . Major technology brands , many of which increased hiring and salaries to capitalise on demand as the world reopened post-COVID , have been forced to make deep and significant cuts to their workforces . This radical realignment of the workforce will be the common theme in 2023 as more technology companies look to deliver sustainable , long-term growth .
Flexibility lies at the core of every successful workforce transformation . To keep pace with the rate of change , companies need to accept it as a constant and commit to the continual development of workforces in a cost-effective way . To achieve this , they need to prevent the ‘ bloated middle ’ and avoid excessive hiring of expensive mid-level employees who , while experienced , may lack the knowledge of emerging technologies and systems . Given the ongoing digital skills shortage ( which pre-dates the pandemic ) these people tend to have inflated salaries but a skillset that has more potential to become obsolete as technologies evolve .
Radical realignment of the workforce will be the common theme in 2023 as more technology companies look to deliver sustainable , long-term growth .
Given the ongoing geopolitical issues and rollout of new technologies , it is more important than ever that organisations have effective cybersecurity and software developments skills and systems in place . Whether it is shifting to a cloud-only supply strategy , employing the right CRM software , or reinforcing cybersecurity infrastructure , organisations – especially the largest technology companies – need to have a clear action plan for developing sustainable capabilities to meet these demands .
As we look to the future , there are – to coin a phrase being used by many politicians right now – ‘ choppy waters ahead ’. But the European technology industry is , for the most part , resolute and well-placed to come through this challenging time .
The most effective approach for technology companies looking to stay lean and agile is to adopt a model whereby one expert of 10 – 15 years ’ experience leads and mentors an underlying team of four – whether that is engineers , developers , or consultants . For simple repeatable tasks the ratio could extend to 1:8 but , for more complex tasks , 1:4 is the ideal .
It is important to note the short-term need to reshape workforces does not mean demand for digital talent will dissipate . Rapid and widespread digitalisation has transformed the nature of work to the point that digital skills are now a prerequisite in the modern workforce .
New technologies will continue to emerge that will transform the human resources and IT requirements of large businesses . They may find they require less of certain skills and more of others but being able to hire and retain the required talent and equip them with the right skills for Digital Transformation projects at an effective cost is critical for businesses that wish to continue to enjoy a competitive advantage . p
TONY LYSAK , CEO OF THE SOFTWARE INSTITUTE
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