To strengthen its workforce, technology is focusing on analytical capabilities

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addressing the scarcity of analysis skills

With demand for analytical skills outstripping supply, how can technology firms overcome their personnel shortage?

AI and IoT technologies are creating a growing amount of data, but that data is meaningless if firms can't successfully use it—which is why the tech sector is increasingly looking for analysts. 1 For the second time in four years, the number of jobs posted by tech companies for analysis skills (including machine learning (ML), data science, data engineering, and visualisation) surpassed traditional skills such as engineering, customer service, marketing and public relations (PR), and administration in 2020. 

Another noteworthy trend over the last eight years has been the relative fall in the significance of fundamental engineering abilities. While engineering is still a valuable skill, the growth of cloud and XaaS services has impacted computer and hardware positions such as server administrators, computer hardware support specialists, and experts who work on the hardware side of router and storage management.

The COVID-19 epidemic has had a greater impact on electrical and hardware design engineering positions than on others in the tech industry. 3 In contrast, even as the pandemic worsened business circumstances in spring 2020, employment vacancies for data analyst, data engineer, and data architect jobs in tech majors remained strong. 4

Since 2014, tech recruiters have specifically recruited people with math and statistical abilities, hoping to harness their ability to study and analyse data to help solve real-world business difficulties.

The race to AI has hastened the crunch, as leading Silicon Valley firms have rapidly scaled up their personnel, focusing on sophisticated analytical capabilities such as machine learning, natural language processing, data engineering, data visualisation, and image processing. 7 In 2016, there was a surge in demand for data scientists, machine learning and artificial intelligence professionals.

Tech firms are continuing to hire data scientists and data analysts. 9 However, with organisations across sectors seeking to recruit AI expertise and improve their own data-driven decision-making, demand for data analytics specialists will likely outweigh supply for some time. 10

Tech businesses may manage this complicated personnel market by using a combination of strategies, including as adopting a systematic approach to hiring fresh analytical talent, maximising the potential of existing employees, and cultivating strategic alliances.

Considerations for executives in the technology industry

Hiring that is selective. Executives can use a selective approach, guided by strategic business objectives, to determine whether analytics professionals are truly required, or whether the goals can be met using automated tools, XaaS programmes, or AI-based services.

Reskilling that is focused and targeted. Leaders should strive to improve present employees' skills in specialised data and analysis sectors such as machine learning, data analytics, data modelling, data architecture, and data engineering.

Partnerships are being strengthened. Collaboration with academics and universities, commercial incubators and accelerators, and the startup ecosystem to identify and attract the finest and most appropriate data and analytics specialists.