Equinix research reveals one in seven businesses in Ireland planning cuts to IT teams

IT teams in today’s enterprises are being tasked with significant responsibilities that are central to business success. While ensuring their business stays ahead with advanced technologies such as AI, they must also drive forward the sustainability agenda and simultaneously combat the growing threat of cyberattacks and data breaches. They are stretched to the point where, according to recent research from Equinix, 59% of IT leaders in Ireland say they are uncomfortable with their existing team’s ability to accommodate the growth in use of AI.

And yet, Equinix’s research shows that 15% of businesses in Ireland are planning on making cuts to their IT teams in the next 12 months. This is in contrast to the majority (67%) who will be expanding their IT teams in the next year.

The research also found that IT leaders in Ireland are continuing to grapple with skills shortages. And, in the last two years, while 57% of global enterprises expanded their IT teams, just 49% of those in Ireland did so.

Peter Lantry, Managing Director for Ireland, Equinix, said: “As businesses plan for the future, they must ensure that their IT departments have the budget and means to expand in line with the overall business’s expansion plans. To reduce IT teams at a time when technology and data are so central to success is likely to prove short-sighted.

“However, those who are looking to grow their IT teams are also facing challenges as demand continues to outweigh supply. The current pace of change will not wait or be sympathetic to those encountering talent shortages. IT leaders must therefore confront this head-on and ensure that if they cannot find the talent they need, they need to nurture it themselves.”

The findings in Equinix’s research, for its Global Tech Trends Survey 2023, are highlighted below:

• 49% of IT decision makers in Ireland reported that their team size grew in the last two years – versus the global average of 57%
• Despite this, more than two-thirds (67%) of IT leaders in Ireland are expecting to grow their tech teams in the next 12 months.
• 15% of IT leaders in Ireland anticipate their teams shrinking in the next 12 months.
• The top areas for IT team growth, cited by IT leaders in Ireland, are: cloud computing (39%), IT technician (38%), and AI/machine learning (34%)
• 59% of IT leaders in Ireland are uncomfortable with their existing team’s ability to accommodate the growth in use of AI
• 71% cite a shortage of IT talent as a threat to business success. Other threats include a lack of diversity and inclusion in the industry (cited by 55%) and challenges posed by moving to a hybrid workplace (52%)
• The biggest skills challenge facing the IT teams in Ireland is talent retention (cited by 43% of IT leaders). Wrong skill sets (39%), changing workforce expectations (33%), along with the speed at which the tech industry is transforming and a lack of available talent (both 32%) were also cited.
• 81% of IT decision-makers see improving cybersecurity as the top priority for their organisation’s technology strategy. On that front, 34% of IT leaders have, or will, increase headcount in security software developer roles (34%), as well as security analyst (30%) and security architect (26%) positions.

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