A Tenth Revolution Group Company

Careers and Hiring Guide menu >

The digital skills gap

Whatever the Microsoft Cloud role, use our guide to benchmark your salary or contact rate, or to uncover what you should be paying employees in your team.

The hunt for skilled Microsoft talent remains as competitive as ever—perhaps even more so in the past twelve months, as the rapid evolution of technology has led to a surge in demand for the specialized expertise that can drive these projects.

Despite consistent, multifaceted efforts to bridge skills gaps by increasing the supply of qualified professionals, finding the right talent continues to be a significant challenge for both Microsoft end users and partners. The impact of this should not be underestimated: over a third (35%) of organizations we spoke with have been understaffed for more than three months due to unfilled job vacancies, which has significantly affected project timelines and execution.

So, what’s preventing businesses from securing the talent they need to fully leverage Microsoft Cloud solutions? In this section, we’ll examine how this talent shortage is impacting organizations and, more importantly, what employers within the Microsoft ecosystem are doing to address and close these skills gaps.

Does an IT skills gap exist in the Microsoft community?

A skills gap occurs when the current workforce’s skill set doesn’t align with the skills needed to do their jobs.
  • Yes, there is a skills gap
    Yes, there is a skills gap 51%
  • No, there is no skills gap
    No, there is no skills gap 22%
  • Not sure
    Not sure 27%

Currently, 51% of hiring managers (down from 57%) recognize an IT skills gap within the Microsoft community. Among them, 41% believe the gap has widened over the past year, while another 43% report no change—suggesting that, for many, the skills shortage hasn’t been tackled sufficiently or may be part of a broader issue.

A message from Microsoft

We caught up with Rob Smithson, UK Business Applications Lead at Microsoft, to learn more about how partners and customers are tackling internal skills gaps, and discover his top tips for organizations across the ecosystem looking to do the same within their teams.

LinkedIn poll

We asked Microsoft professionals about the primary reasons their organizations work with freelancers*, and topping the list was addressing hiring gaps. By bringing in freelancers, organizations can access specialized expertise not available in-house, which is particularly valuable for complex or specialized projects. This strategy addresses immediate needs and helps close skills gaps without requiring long-term hiring commitments.
To fill a hiring gap

58%
To ease team workload

26%
To start new projects

16%
*Data from a poll conducted on Nigel Frank’s LinkedIn in Oct 2024.

What is your organization’s biggest challenge in closing the digital skills gap?

Among those who believe there is an IT skills gap, 56% highlight the time taken to find talent as the main challenge in bridging the gap in their organization—this was also the main issue reported in our previous study.

Finding the right talent is time consuming 56%
There is a lack of qualified/experienced candidates in the marketplace 37%
Attracting candidates with the right skills for our industry is difficult 31%
Technology innovation is outpacing skills development 31%
Too much competition for talent 26%
An over-inflated market rate for candidates 13%
Other 4%
Finding the right talent is time consuming 56%
There is a lack of qualified/experienced candidates in the marketplace 37%
Attracting candidates with the right skills for our industry is difficult 31%
Technology innovation is outpacing skills development 31%
Too much competition for talent 26%
An over-inflated market rate for candidates 13%
Other 4%

To what extent is the skills gap affecting organizations’ strategic objectives?

  • Minimally
    Minimally 7%
  • Slightly
    Slightly 13%
  • Moderately
    Moderately 52%
  • Considerably
    Considerably 22%
  • Extremely
    Extremely 6%

How is the skills gap impacting businesses’ strategic objectives?

In our previous survey, the biggest challenge posed by the skills gap was increased employee workloads. However, this time, missed project deadlines have emerged as the top concern, followed by slower company growth. This shift underscores the increasing impact the skills gap is having on organizational performance and progress.
Missing project deadlines 53%
Less growth than expected 40%
Increased workload of current staff 40%
Difficultly keeping up with demand for services 40%
Increased costs due to hiring contractors 27%
Increased staff turnover (e.g. as a result of employee burnout or losing staff to competitors) 20%
Decreased profitability 13%

Almost two-fifths (38%, up slightly from 33% in our previous study) of hiring managers express concern about the impact of the skills gap on their organization’s performance.

How high a priority are organizations giving to addressing the talent gap compared to other tasks?

  • None at all
    None at all 8%
  • A little
    A little 17%
  • A moderate amount
    A moderate amount 43%
  • A lot
    A lot 30%
  • A great deal
    A great deal 2%

How are organizations looking to address the skills gap?

Building skills in-house

60%
Hiring new permanent staff

34%
Hiring contractors

34%
Not sure

9%
Other

4%
‘Other’ responses include building partnerships with IT outsourcing firms.

Need help finding the right skills for your Microsoft team?

Finding the right candidate when Microsoft skills are in such high demand isn’t easy—but Nigel Frank can help you find your next hire. Our extensive database of pre-qualified Microsoft professionals means we have access to an unrivalled network of cloud talent with the skill sets you need to succeed—connecting you with your ideal candidate in no time.

Conclusion

Although fewer hiring managers than last year see a significant skills gap in the Microsoft community, its impact is still widely felt. A substantial 80% of respondents reported that this shortage is having a moderate-to-extreme effect on their organization’s ability to meet objectives. But on a positive note, nearly 60% of employers are now focusing on in-house upskilling to address this gap, investing in their existing workforce and building Microsoft expertise internally.

Our key findings report contains highlights from this year’s Careers and Hiring Guide, plus our salary tables to allow you to compare your compensation or benchmark your teams’ salaries or rates no matter their role in the Microsoft ecosystem.