Local orgs grappling with IT budgets, skills gaps

Australian organisations are lagging behind their global peers in terms of IT budgets and are struggling with talent shortages, according to new research from KPMG.

The company’s Global Tech Report found that while Australian organisations are making good progress with cloud adoption, with 70% currently migrating strategic workloads to the cloud, progress is being threatened by a lack of talent.

Nearly half (47%) of organisations are being held back by a lack of key skills. Meanwhile, 59% of Australian respondents reported that less than 10% of their organisation’s annual budget is being devoted to technology, compared to 46% globally.

Meanwhile, 45% of Australian organisations report progressing their AI and automation strategy, while over half of Australian respondents expect to invest in metaverse technology within the next two years.

Another major motivation is improving the customer experience, with 52% of respondents reporting that customer centricity is the key driver of digital transformation and 55% planning to invest in the customer experience over the next 12 months.

Improved customer experience is likewise seen as a key driver for cybersecurity spending for 40% of respondents. But while 47% have leadership support to improve cybersecurity, implementation has been slower than expected, in part due to a lack of skills again.

“The skills shortage tops the list of challenges when it comes to technology adoption. Progressive businesses are recalibrating their approaches to hiring and training specialist talent from the ecosystem,” KPMG Australia Chief Digital Officer Jon Munnelly said.

“Long-term talent strategies should encourage organisations to widen their perspectives and expand the universe of talent. Some technology leaders are also looking to automation to address staff shortages and repair skill gaps. By automating workflows to take on the low-complexity, high-volume tasks, companies can redeploy staff and upskill teams to fill more strategic gaps elsewhere in the business.”

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