Contractors with skills in the digital and big data sectors will see demand for their services soar as large companies struggle to keep up with the pace of digital innovation.
According to the Harvey Nash/KPMG 2015 CIO Survey, the race to innovate in the digital and big data sectors has left many organisations lacking a comprehensive digital strategy and the skills to implement it. Despite efforts to recruit, the survey highlights that the skills gap is one-third bigger than in 2013.
ContractorCalculator CEO Dave Chaplin is confident about contractor prospects in the digital and big data sectors: “Contractors who can acquire the right skills and then target clients and market their digital and big data capabilities effectively can look forward to a strong forward pipeline of lucrative contracts.”
Contractors hired for access to specialist skills
This year, six out of seven CIOs intend to increase their contracting spend. Now is certainly the time for IT and computing contractors working in digital and big data to seek out the best contracting opportunities.
The CIO report – which with almost 4000 responses from IT leaders in over 50 countries, is believed to be the largest survey of IT leadership in the world – reveals that only one in ten CIOs believe their organisation will be unaffected by digital in the future.
“Half of CIOs are increasingly using contractors to supplement skills they cannot find in-house,” continues Chaplin. “That leaves the door wide open for skilled contractors to step inside and fill that void.
“Even more interestingly, there is a huge shift away from companies using contractors to save money, with only 25% still doing this. The role of contractors is evolving into something far more significant.”
Big data and digital dominate skills demand
Demand for big data skills analytic skills is now at number one, the survey shows, having skyrocketed to almost six times higher than the next scarcest skill, which is change management.
In particular, larger client organisations report that they are already at a disadvantage with digital. Only 17% say they will do ‘much better’ than competitors in managing the disruption caused by digital innovation when compared with 35% of small businesses.
Albert Ellis, CEO of Harvey Nash Group, believes that client organisations need to act fast or be left behind:“What’s most striking about the results is the speed of change. In the seventeen years we have conducted the survey we have never seen a new role grow so quickly as we have the chief digital officer (CDO).
“We have never seen demand for a skill expand so quickly as we have for big data analytics. As technology increasingly becomes focused on the customer, the IT, marketing and operations teams are working together in new ways.
“Sometimes it creates friction, uncertainty and skills challenges, but for a CIO with the influence, connections and technical ability to bring it all together, it’s an exciting place to be.”
Contractors are a source of competitive advantage
Lisa Heneghan, head of EMA CIO Advisory, KPMG in the UK highlights that only by acquiring digital and big data skills can organisations secure their source of competitive advantage: “CIOs are concerned that they could lose significant market share to competitors more adept at using technology, yet despite this threat, three in four still don’t have a company-wide approach to digital.
“Unless CIOs cement this vision, the chance of being overtaken appears a foregone conclusion. To get ahead CIOs need to focus on defining their operating model to support a digital business now, and driving through the cultural shift which is fundamental to success.”
Two-thirds (66%) of CIOs report digital disruption – or the changes that arise as a result of digital technologies that disrupt established business models – as a very significant change to their business, driving them to create new business models and bring new products and services to market faster than before. Contractors seeking the next major contracting opportunity should monitor where this might lead to in terms of new openings.
Are CDOs the new contractor client to target?
Contractors often target programme and project managers for new contracts, but the CDO role is becoming ever more important. With the marked shortage of specialists flagged by the CIO survey, the growing question is: will contractors need to bridge this gap too?
Digital as a corporate service is moving from marketing (down 24%) to IT departments (up 18%); again this is good news for IT contractors looking to extend their reach.
Contractors with knowledge of cyber security may also see an expanding need for their services, as one in four (25%) CIOs reported having to deal with major IT threats in the last 12 months. Only 23% of respondents are “well prepared” for security breaches, which is down 6% on last year.