Deliveroo, technology investment and the future of IT employment
by Heat Recruitment
Technology is the enabling force behind many marvels of the modern world, integrated in everything from the internet and telecoms, to manufacturing infrastructure and hiring processes. Where modern technology is substantially lacking, however, is within individual businesses. Instead of investing in talent and cultivating it from within, we have seen IT and technology specialists hiring on a consultancy basis… but is this still the case?
Deliveroo, in announcing further expansion, has confirmed it is hiring 250 new technology experts, including data scientists, software engineers, product designers, and cybersecurity specialists. The move is reportedly to help build and support the technology behind the company, making it more efficient and secure in the face of greater market demands and cyber threats.
Digitally based food delivery services, however, are far from the only firms investing heavily in their digital transformation. Research from IDC confirmed that global spending on digital transformation technologies is set to reach $1.3 Trillion in 2018 – a 16.8% increase on the $1.1 Trillion spent in 2017 with a Compound Annual Growth Rate (CAGR) of 17.9%.
So what does this mean for the IT specialists required to facilitate this demand?
With Deliveroo in particular, this is a sign of things to come. Employers are beginning to see the benefit of having a range of IT specialists on hand to manage systems – within the current data economy such news will be warmly welcomed by tech professionals.
Indeed, the number of employers seeking permanent placements has increased across all sectors by 10% year on year according to new research from Association of Professional Staffing Companies (APSCo). Further, the survey noted that whilst employment figures for February sit at 75.3%, the demand for IT contractors fell by 8% – a year-on-year fall of 38% and a trend mirrored by a recent HIS Markit / REC Report on Jobs in 2018.
Speaking on the figures, John Nurthen, Executive Director, Global Research at Staffing Industry Analysts (SIA) commented: “There continues to be a clear split in demand for skilled professionals as staffing firms are finding it easy to place candidates into permanent roles but much more difficult to fill temporary and contract positions … With the latest unemployment rate down in February to 4.4% from 4.8% a year earlier, this tight labour market is likely to continue for the foreseeable future.”
The UK’s tech sector, in 2017, attracted a record amount of venture capital (VC) funding – close to £3bn in the months to the end of December…almost twice that seen in 2016 (£1.63bn). On a more micro scale, individual businesses are also investing more in their technology. As the millennial workforce becomes more prominent, and with them, the preference for flexible work, mobile working requirements are rising as a result.
Where, previously, these technological requirements would be outsourced to separate firms, organisations are starting to reassess the need to bring this top talent in house, securing the value they bring for long term, and increasing the flexibility of any ‘fix’ that may be required… instead of relying on the timescales of an outside company.
For IT specialists, this marks yet another item in a long list of good news. With businesses investing not only in digital transformation systems, but also the talent required to facilitate this shift and keep any technology operational, the requirement for permanent IT staff has grown dramatically… demand that is predicted to continue for some time.
If you’re looking for your latest role in IT or tech, or are an employer looking to secure the best talent in your industry, get in touch with our expert team today.
By Marcus Granville