Outsourcing IT functions has become a tactical win for businesses in South Africa, as they face tough economic conditions and an unsustainable skills gap. Craig Freer, head of division at qwerty, explains that the country has weathered many storms in recent years, including the pandemic and persistent load shedding. Interest rates are high, inflation is continuing to surprise on the upside, fuel prices offer little respite, and the economy contracted in the last quarter of last year. However, businesses in South Africa are resilient and have had to accelerate their digital transformation journeys.
Specialised skills are required for cloud computing, collecting large amounts of data, cybersecurity, data compliance, and more. Building a decent IT department requires at least seven highly skilled staff resources, as these skills are almost never present in the same person. Furthermore, the skills gap or skills shortage is becoming worse than ever, with companies taking up to five months to replace a skilled IT resource.
Outsourcing IT functionality is a solution that businesses are already accustomed to. It brings down costs by gaining access to aggregated skills and best practice from an entire team of IT specialists. Additionally, IT is no longer break-and-fix, as modern businesses have far more serious considerations when it comes to their technology. Outsourcing is a compelling option for businesses dealing with a crippling skills shortage in a cost-sensitive environment.