Digital Transformation for Enterprises Could be Impacted Due to Lack of Skilled Workforce

Digital Transformation for Enterprises Could be Impacted Due to Lack of Skilled Workforce

A new research says that a majority of companies’ digital transformation journeys are held back due to lack of skill shortage.

Nearly 45% of organizations struggle in their digital transformation journeys due to shortage of skilled workforce, according to a new report from Veeam. The company surveyed more than 1,500 global enterprises to understand the problems that digital transformation journeys in IT organizations are facing. The Veeam 2020 Data Protection Trends Report is based on a survey of 1,500 decision-makers in global enterprises on data protection and the IT challenges they face.

The majority of businesses said appropriate training and the ability to implement technology are crucial in a business’s digital transformation journey. More than half of companies believe digital transformation can help them improve customer service. Less than half (48%) said it could transform business operations and 47% said it can deliver cost savings.

The top challenge that within the next 12 months is cyber threats as per 32% of respondents. Other key hurdles cited were a shortage of skilled workforce to implement technology (30%) and meeting changing customer needs (29%). Nearly a quarter of respondents said their progress towards digital transformation initiatives and goals are fully implemented. Meanwhile, 30% of them are in the early stages of implementing or planning digital transformation.

A large number of organizations also suffer unexpected outages which last for an average of almost two hours. The cost of downtime can be as high as $67,651 per hour, for the most important apps. Around 10% of respondents said that their servers having unexpected outages for years that last for hours have been costing them hundreds of thousands of dollars. Thirty- two percent of enterprises use on-premise backup tools while, 43% of them are planning to move to cloud-based backup tools by 2022, the report found.

The report further notes, 23% of data is replicated and made disaster recovery capable via a cloud provider. Forty percent of respondents also said there is a lack of budget for new
initiatives and a lack of visibility on operational performance.

Digital transformation is not restricted only to the latest technology but more about resolving problems using digital technologies. The challenges brought about by a shortage of skills could derail some well-laid plans for digital transformation.