CTOs fear rising budgets, recruitment issues, cyber security and AI
Chief technology officers are most concerned over cyber security threats, talent shortages, rising costs, and generative AI, according to a new survey.
According to a study by marketplace platform Deazy, 52% of CTOs identified cyber security as their foremost worry. In 2021, the average downtime from a ransomware attack was around 20 days. The knock-on effects of such sudden halting of businesses include loss of revenue and overworked employees.
Just over a decade ago UK telecommunications company TalkTalk suffered huge backlash after acknowledging the unauthorised exposure of personal information for over 150,000 customers. Beyond the loss of £60 million, the company witnessed a departure of over 100,000 customers and lost a third of its total market value.
Around a third of CTOs are also concerned about a talent shortage, and 44% said the challenge of managing in-house development capacity is stopping projects from getting off the ground.
CTOs also said budgets (43%), a lack of support from the board/executive team/ senior leaders (42%), and minimal resources (41%) can keep projects from launching effectively.
The State of Development Landscape and Trends for 2024 report found that although a third of CTOs had seen their IT budget increase significantly over the past 12 months — a 72% increase from last year — “the cost of doing business is probably higher than it has been in decades, so any budget increases have to be viewed with that in mind,” explained Andy Peddar, CEO, Deazy.
“The fact is, CTOs are being asked to do more and more and are struggling to find the resources, finances and talent to do so. Whether protecting the organisation against data breaches or maximising emerging GenAI technologies, CTOs are facing a real shortage of technology talent to achieve their goals,” he added.
And a third of CTOs are struggling to keep up with the rapid rise of artificial intelligence.
By leveraging AI, CTOs have an opportunity to secure a competitive edge. Research by Hootsuite suggests that 54% of organisations are already reaping the benefits of AI: tangible cost savings and operational efficiencies across their IT, business, and network processes.
These issues are further exacerbated by the digital skills gap experienced by businesses across every sector. According to a McKinsey & Company survey, over 44% of well-known organisations expect a significant talent gap in the next five years.
“CTOs are under pressure from the rest of the business to see projects through to completion and to ensure technology supports broader organisational goals,” continued Peddar.
“But it’s hard to do so when the cost of business is so high, and there’s a lack of the right people required to do the job. With pressure mounting ahead to manage and evolve both complex and often legacy tech environments, as well as introducing AI across the business, it’s clear that in the short-term, CTOs need to look beyond their own organisation to plug the technology talent gaps they are facing.”
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