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Why A/NZ organisations are seeing a decline in digital transformation - IDC

29 May 2019

IDC found that across Australia and New Zealand (A/NZ), over 70% of organisations are allocating more than 10% of their spending on technology associated with innovation and workspace modernisation.

Despite this level of investment, only 17% of A/NZ organisations say that they are better than their peers when it comes to attracting and retaining talent and developing digital skills. This demonstrates that most businesses are struggling to distinguish themselves.

What makes matters worse, only a quarter are in the process of transforming work culture and workspace in order to attract and retain talent, with 38% of A/NZ businesses planning workspace transformation in the next few years.

“Companies are seeing shortages in digital talent but aren’t proactive enough in attracting and retaining that talent.” says IDC A/NZ lead analyst for Future of Work research Liam Landon, “by digitally transforming and utilising cutting edge technologies companies are finding not only improved market position but improved work culture and talent retention.”

To close the skill gaps, employers are engaging in training, contracting and project-based hiring, with each method helping to match the needs of a digital business.

To exemplify this, 34% of employers across A/NZ are running targeted training programs, designed to fill the digital skills gaps they need today, whereas 39% are running training programs designed to meet digital skills needed for future projects.

By not only looking at current skill gaps but expectations of needs for the future, a business puts themselves in a strong position to overcome scarcities of digital skills.

On the other hand, 33% of Australian and New Zealand organisations have implemented or plan to implement project-based hiring policies to fill the digital skill gap.

This is an alternative, where businesses can source from a growing pool of contractors and adapt quickly to changing demands for skills brought about by different projects.

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