Training Industry Magazine - November/December 2018 - 52

G L O B A L
O U T LO O K

BUSINESS NOT GROWING?
BLAME SKILLS GAPS.
THEN BLAME YOUR ORGANIZATION.
BY ZANE SCHWEER

Disruption. Did you wince with frustration
or did you grin with confidence at the
word "disruption"? It likely depends
on how you've responded to the latest
disruption-the digital revolution.
Companies that realize businesschanging
technology
has
been
democratized are continuing to invest in
technology like never before, disrupting
their own organization from within, and
ferociously pursuing and developing
intellectual property. As a result, they're
reaping the benefits of tremendous
growth. Meanwhile, companies that
have become too comfortable or too
slow to change are seeing their growth
shrivel, and some have closed their
doors all together.
Economic growth does not come out of
thin air. People have to "do something."
But too many organizations are waffling
on what "something" is because they
don't have the skills and knowledge to
attack challenges head on. And that's led
us to where we are now-a global skills
gaps epidemic in the area that provides
the greatest opportunities and risks to
an organization's success-information
technology.
IT SKILLS GAPS ARE SELF-INFLICTED
WOUNDS
In one of the largest global surveys
of IT professionals focused on skills,
certifications
and
professional
development, the 2018 IT Skills and
Salary Report revealed that 70 percent
of IT decision-makers said their teams
presently face a shortage of necessary
skills. Of the 30 percent who are not

| 52

currently facing a skills gap, 25 percent
expect one to form in the next 12 to 24
months.

31 percent to 70 percent around the
world (and rising to 75 percent in North
America).

IT analyst Cushing Anderson, of research
firm IDC, said that he estimated that as
of 2018, "more than 70 percent of all
organizations have adjusted project
plans, delayed product or service
releases or lost revenue from lack of IT
skills, resulting in more than $200 billion
of lost revenue annually worldwide,
and both the percentage and the lost
revenue will increase through 2020."

THE TOP FIVE IMPACTS OF SKILLS
GAPS ON ORGANIZATIONS

REDUCTIONS IN
TRAINING BUDGETS
HAVE INCREASED SKILLS
GAPS, DECREASED
ECONOMIC GROWTH
AND IS KILLING
BOTTOM LINES
AROUND THE WORLD.

UNDERFUNDED TRAINING BUDGETS
AND THE RISE OF SKILLS GAPS HAVE
SHOWN THE VALUE OF TRAINING IN IT
For the past four years, the number
one explanation for IT skills gaps has
been "we have not invested enough
in training to develop the skills we
need." Simultaneously, we've seen the
largest jump in skills gaps, going from

1. Increased stress on existing employees
2. Difficulty meeting quality objectives
3. Delays in developing new products
or services
4. Delayed deployments of new
hardware and/or software
5. Declining customer satisfaction
All of these impact the top and bottom
lines of an organization, and lack longterm sustainability. Behind each of these
are people-that's why they are the
heart of your organization. If you don't
care for your heart, it will not take care
of you.
GROWTH STALLS WHEN CHANGE
OCCURS AND SKILLS DEVELOPMENT
DOES NOT
Training budgets need to be viewed as
a strategic advantage for organizations,
which requires investment. Research
has found that training expenditures
between 2016 and 2017 skyrocketed
from $70.6 billion to $90.6 billion-a
32.5% increase. Organizations are
catching on. According to an IDC report,
IT training spending is growing at a rate
slower than the overall IT market.
Today's
operating
environments
are more complicated than ever, so



Table of Contents for the Digital Edition of Training Industry Magazine - November/December 2018

https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20210910
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20210708
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https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20210304
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20210102
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20201112
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20200910
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20200708
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20200506
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20200304
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20200102
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20191112
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20190910
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20190708
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20190506
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20190304
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20190102
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20181112
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20180910
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20180708
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20180506
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20180304
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20180102
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20171112
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20170910
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20170708
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20170506
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20170304
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20171112_se
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_20161112
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2016fall
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2016summer
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2016sales
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2016spring
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2016winter
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2015outsourcing
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2015fall
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2015summer
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2015leadership
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2015spring
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2015winter
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2014fall
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2014summer
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2014spring
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2014winter
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2013fall
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2013summer
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2013spring
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2013winter
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2012fall
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2012summer
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2012spring
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2012winter
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2011fall
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2011summer
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2011spring
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2011winter
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2010fall
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2010summer
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2010spring
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2010winter
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2009fall
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2009summer
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2009spring
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2009winter
https://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2008fall
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