A Digital Skills Gap Signals Rebound in IT Services Spend

Recent survey data from ETR shows that enterprise tech spending is tracking with projected U.S. GDP growth at 6-7% this year. Many markers continue to point the way to a strong recovery including hiring trends and the loosening of frozen IT project budgets. However, skills shortages are blocking progress at some companies, which bodes well for an increased reliance on external IT services. Moreover, while there’s much talk about the rotation out of work from home plays such as video conferencing, VDI and other remote worker tech, we see organizations still trying to figure out the ideal balance between funding HQ investments that have been neglected and getting hybrid work ‘right.’ In particular, the talent gap combined with a digital mandate means companies face some tough decisions as to how to fund the future while serving existing customers; and transforming culturally.

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