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| Middle Eastern companies are investing in technology to bridge the skills gap |
A new study published by Rackspace Technology shows that due to the challenges they face in hiring and having superior skills and capabilities, 77% of Middle Eastern companies are looking for technology capable of accomplishing the tasks previously assigned to people.
Nearly half (49%) of companies in the Middle East say they have had to rely on technology to reduce their workforce. 68% of business decision makers rank customer service functions and departments as their top priority for business process automation, followed by IT operations (68%), sales and marketing (60%), and finally business operations (56%). Then human resources and management (49%).
Due to the current economic environment, more than half of companies in the Middle East (58%) have increased their investment in information technology, recognizing that technology will play a major role in improving performance and reducing skills gaps.
Nearly two-thirds (57%) of organizations say the main reason to invest in technologies such as migration to the cloud is to improve operational efficiencies. The lack of skills is also one of the reasons behind the increase in investment in technology, with Middle Eastern companies investing 1.5 times more in technology jobs than in personal jobs.
These numbers reflect the challenges of the labor market, with half of companies (48%) struggling to fill vacancies in technology positions, while (59%) struggling to retain IT staff.
Firms' commitment to technology to address the challenges of skills shortages and the consequent increase in investment in IT is driven by entrepreneurs' increasing confidence in the return on those investments, with three out of five firms (60%) realizing a stable return on technology investments. as an incentive for them to make more financial commitments.
Research also shows that organizations are changing the roles and needs of teams across all departments, not just those in IT. The vast majority of companies in the Middle East (89%) would prefer their non-technical teams to have some level of technical competence, whether or not it is an essential part of their role.
“With the prevailing economic uncertainty, the commitment to increase spending on technology is a risk that most companies must take due to the lack of technical skills in areas and processes. In any case, technology can make up for the lack of skilled workforce, but also create a clear roadmap for improving efficiency business, which is only possible when the use is optimized.”
Polizen added: “Nearly three-quarters of companies in the Middle East (72%) say that cloud operations will be one of their most important areas of investment over the next 12 to 18 months, and while these companies see cloud computing as an improvement, these investments and strategies need to Further refinement to take advantage of these gains and benefits.”
He concludes: “It should also be noted that technology itself is very different from a technically competent workforce. Therefore, a challenging job market can lead to technology playing an increasing role in companies. However, attracting and retaining qualified employees will still be critical. for the prosperity of the company.