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New data suggests that critical IT skills continue to command intense — and expensive — competition across employers. This is a major opportunity for MSPs… if they can be the employer of choice for these in-demand professionals.

Talent’s More Than Money Salary Guide 2024 shows that several core IT skills are becoming unaffordable to many employers. According to the data, salaries have increased by as much as 35% across both cybersecurity and data analytics, and contract rates have increased by between 10% and 30%.

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IT skills shortage creates opportunities for MSPs

The skills in highest demand include AI, cybersecurity, data analytics, cloud computing, and software development. The top industries employing tech talent are IT itself, as well as healthcare and higher education.

What this data suggests is that employers — particularly those outside of these “big three” hiring sectors — are going to find it ever more difficult to recruit the IT skills that they need. Particularly given that nearly 70% of IT jobs are in shortage in Australia.

Those companies that are unable to recruit internally will need to leverage the services of MSPs.

MSPs need to prioritize being great places to work

The Talent report also highlights that while salaries are increasing, IT professionals know they’re the ones in the position of strength when it comes to job choice and negotiation, and so they’re looking for more than a salary.

More than three-quarters (76%) say that a positive company culture matters when looking for a job. Flexibility is expected, and even if the employer is unable to offer remote work, being flexible with start and end times or compressed work weeks are appreciated.

Meanwhile, around half (48%) of jobseekers in IT are looking for career progression and development opportunities, and 85% want “exciting and meaningful work.”

MSPs have an opportunity here, especially those who work across a breadth of clients and sectors and are a strategic partner to their customers. And, in a market heavy on acquisition, those MSPs that can demonstrate strong retention across the business will be all the more attractive as an acquisition target, given that often the acquisition is being made to deepen capabilities and reach.

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