18 July 2017

Innovation is one of the best ways to create competitive advantages nowadays. In this context, the competencies in developing new software are essential for every company that provides this type of services. According to the latest studies, the technology industry is going to increase its importance as organizations understand that embracing technology means development.

The Deloitte’s 2017 Technology Outlook report highlighted that digitization of enterprises is a real trend. The tendency to use smart applications and software opened new markets for organizations that are technology savvy. And it will continue to be one of the top priorities for the C-level.

The evolution of technology industry

After more than 25 years of technology development, we’ve seen how software evolved, driving impressive efficiency in the global economy and launching some of the most valuable tech companies.

The approach changed after companies started to adopt mobile applications, as well as other IT services. The digitalization began to be an essential differentiator, according to the PwC report on Building the Digital Enterprise, the level is expected to be much higher in the next five years.

Technology services demand

Source: Industry 4.0: Building the Digital Enterprise by PwC

According to the data provided by the report, it doesn’t matter what type of industry we are talking about, because the demand for technology and customized software is high in each of them. This digitization is expected to have a crucial impact on reducing the operational costs.

Technology services

Source: Industry 4.0: Building the Digital Enterprise by PwC

The demand for new technologies

Forrester’s latest report on the European tech market forecast showed that the investments made on technology software, hardware and services will grow in 2018 from 1.6% to 2.2%. And that is no surprise. The Global Innovation 1000 study revealed that the improvements made when it comes to software sector were influenced by the customer expectations to use technology at its best.

As the below graphic shows, the investments made in technology were massive in five years, and the predictions look the same.

Technology

Source: Global Innovation 1000

Moreover, the banking industry has been analyzed in a research conducted by SourceMedia, and the results were impressive. Technology spending for banks of all sizes increased across a broad spectrum of technology in 2016. Here are the areas of investment:

Technology demand

Source: SourceMedia research

Challenges faced by companies: the „demand gap”

The most significant challenge faced by companies when they want to join the technology era is the access to talents. Even Silicon Valley faces this situation according to an interview with a CEO, Greg Becker. The problem in the US is that there are still jobs that need to be filled, but few candidates with high education. In this context, lots of companies are starting to look for highly-qualified people in other countries across the globe to fill the gaps.

Indeed conducted a study that revealed that the lack of tech talents is a real problem for companies, which could affect the development of organizations on a long-term period. According to the report, almost 90% of companies find it challenging to hire technical talents, and 35% reported that the hiring process is complicated. The „demand gap” as specialists called it, could be visible in the following sub-sectors:

Technology roles

Source: Indeed report

How can ITSG help you?

ITSG Global is a leading IT organization located in Poland. Its experienced and highly-educated engineers and consultants are dedicated to delivering IT services using the best solutions and latest technologies. Polish IT industry provides services for many foreign companies. While many countries face lack of labor for the technical positions, Poland has still available specialists. ITSG also has a team of engineers ready to work remotely for extern companies, and the members are open even for relocation.

You can contact us by phone or email.