GFG imzdvSdage

Contact Us

HomeinterviewsAI Boom Meets Talent Bust: Enterprises Turn to Vendors as Skills Shortages...

AI Boom Meets Talent Bust: Enterprises Turn to Vendors as Skills Shortages Bite

Global firms lean on external partners and upskilling to offset networking, cybersecurity, and AI talent gaps, IDC and Expereo report finds.

Businesses racing to harness AI’s promise are finding themselves tripped up by an old problem: people. According to new research from IDC, commissioned by network solutions provider Expereo, persistent skills shortages in networking (39%), cybersecurity (40%), and data/AI/automation (33%) are stalling digital transformation and forcing enterprises to rethink how they staff—and lead—their tech strategies.

That shortage isn’t easing anytime soon. The figures largely mirror 2024’s findings, underscoring just how entrenched the problem has become. For enterprises, it’s not just about finding the right technical chops—it’s about retaining them, as demand for AI fluency outpaces supply.

Outsourcing the Skills Gap

To plug holes, many organizations are reaching for outside help. Nearly half (45%) expect to lean more heavily on external vendors for networking expertise, while 37% plan the same for cybersecurity. The calculus is simple: why fight the talent war alone when a specialist partner can deliver at scale?

But companies aren’t abandoning their internal bench. Upskilling, cross-training, and a renewed emphasis on “human” skills—creativity, collaboration, adaptability—are rising priorities. The double-pronged approach is quickly becoming the only viable playbook: nurture internal talent while relying on vendors to shore up critical capabilities.

The CEO-CIO Power Couple

If talent shortages are slowing down transformation, AI is speeding up boardroom dynamics. IDC found 29% of CIOs now report working more closely with their CEOs than a year ago, as AI urgency makes IT strategy a core business issue rather than a back-office function.

Perhaps more telling: 79% of technology leaders say AI’s rise has elevated their own profile at the board level, up from 60% in 2024. Once relegated to operational discussions, CIOs are now central to shaping enterprise growth strategies.

The Chief AI Officer That Never Was

Last year, 40% of tech leaders predicted the rise of the Chief AI Officer (CAIO), expecting the role to shoulder much of the CIO’s future responsibilities. Fast-forward to 2025, and reality hasn’t caught up to the hype—87% of organizations still haven’t hired one.

The takeaway? For now, the CIO remains AI’s quarterback, and the idea of a standalone CAIO looks more like speculation than a near-term shift.

Why It Matters

The IDC-Expereo report makes one thing clear: the AI era won’t be defined by who has the flashiest algorithms, but by who can secure and scale the people who make them work. That may sound like déjà vu—skills gaps have been a recurring theme in tech for decades—but with AI reshaping industries at breakneck speed, the stakes are higher than ever. Enterprises that can balance external expertise with internal development will be the ones still standing when the dust settles.

Join thousands of HR leaders who rely on HRTechEdge for the latest in workforce technology, AI-driven HR solutions, and strategic insights

Business Wire, a Berkshire Hathaway company, is the global leader in press release distribution and regulatory disclosure. Public relations, investor relations, public policy and marketing professionals rely on Business Wire for secure and accurate distribution of market-moving news and multimedia. Founded in 1961, Business Wire is a trusted source for news organizations, journalists, investment professionals and regulatory authorities, delivering news directly into editorial systems and leading online news sources via its multi-patented NX network. Business Wire’s global newsrooms are available to meet the needs of communications professionals and news media worldwide.