Why the tech talent crunch can’t be ignored

Australia has all the ingredients to become a global leader in digital innovation, but only if we tackle the widening skills gap with urgency and intention, writes David Ridge.

Australia’s IT landscape is undergoing rapid transformations, driven by accelerating advancements in AI, automation, and digital operations. As organisations race to adopt new technologies, the demand for skilled tech professionals is surging, and the current talent pool simply isn’t keeping up. With the Australian government forecasting a need for 1.3 million tech workers by 2030 and fewer than 6,000 STEM graduates entering the workforce each year, the disparity between supply and demand is quickly becoming a critical barrier to innovation and long-term growth.

When it comes to supporting an organisation’s critical systems, we see the consequences of this skills gap every day. Whether it’s start-ups striving to scale or large enterprises maintaining complex systems, Australian technology teams are being asked to do more with less. The pressure to deliver seamless, 24/7 digital services is growing, yet many organisations lack the depth of expertise required to support and sustain this level of performance.

The result? A stretched workforce that often relies on outdated, manual processes that are inefficient and increasingly unsustainable.

How Australia’s skills shortage is holding back innovation

Recent research underscores just how serious the talent crunch has become.

The 2024 Jobs and Skills Report highlights widespread shortages across critical tech roles, largely due to the relentless pace of technological change and a workforce struggling to keep up. The AHRI 2024 Evolving Skills Landscape Report paints a similar picture, with 42 per cent of employers pointing to the constantly changing skills environment as a core contributor to the gap, while 25 per cent of respondents cite under-investment in training and a lack of suitable applicants as major hurdles.

These challenges are taking a toll on innovation as businesses grapple with the realities of limited talent, increasingly hindering their ability to scale, evolve and compete on a global scale.

Building resilient, high-performing teams

Solving the IT talent crisis requires more than just hiring. It demands a shift in mindset.

Organisations must adopt a dual focus: developing the capabilities of their existing workforce, while creating new and sustainable pathways into the tech industry. It’s about nurturing, training and empowering teams with the right blend of technical and operational expertise.

Encouragingly, the AHRI report notes that upskilling is now a priority for many businesses seeking to build a future-ready workforce. More organisations are investing in professional development, training and mentorship – not only to retain talent, but to future-proof their teams against further disruption. Based on the insights from ongoing industry collaboration and community engagement, three core strategies stand out:

1. Targeted training and upskilling: Regular, role-specific training is essential to stay ahead of evolving technologies. Engaging external experts and leveraging modern learning platforms can help teams gain the confidence and competence needed to drive operational excellence.
2. Mentorship programs: Structured mentoring is a powerful accelerator of professional growth, especially for junior employees. With 38 per cent of organisations now investing in mentorship initiatives, this proven model is helping to bridge both the experience and talent gap.
3. Partnerships with education providers: Building a sustainable talent pipeline starts early. Collaborations with schools, universities and TAFEs are critical in preparing the next generation of tech professionals.

Smarter digital operations: A catalyst for resilience and growth

In a constrained talent environment, technology must become an enabler, augmenting human capabilities and driving production at scale. Smarter digital operations, underpinned by automation and AI, are now essential for organisations aiming to build resilience and agility.

Recent research into operational best practices shows that leading organisations are using these tools to reduce manual work, accelerate incident response, and unlock more time for strategic, high-value work.

In Australia, where lean support teams are often responsible for managing complex, always-on environments, intelligent digital operations can make the difference between thriving and merely surviving. By automating routine tasks and streamlining workflows, organisations can scale more effectively, maintain performance standards and free up their talent to innovate and not just maintain.

Looking ahead

Australia has all the ingredients to become a global leader in digital innovation, but only if we tackle the widening skills gap with urgency and intention. Investing in upskilling, embracing smarter operations, and building inclusive pathways into tech are no longer optional. They’re essential strategies for ensuring long-term growth and competitiveness.

As part of the broader tech community, industry leaders, educators, and government all have a role to play in shaping a future-ready workforce. Whether through mentorship, training, or responsible use of automation, the actions taken now will determine whether Australia’s digital ambitions are fully realised – or held back by avoidable constraints.

David Ridge is the head of solutions consulting for APJ at PagerDuty.