The IT World of Work: Insights and Outlook for 2025
It is no secret it is a challenging and exciting time for the IT industry around the world as the pace of innovation and change continues to accelerate. What does this mean for the future of work? As we release our new 2025 IT World of Work report, I wanted to share insights from both the research and my own conversations with our clients in the tech sector.
Uncertainty and Optimism: The Market Landscape
A common topic in my discussions with clients is persistent uncertainty in the tech sector. As we entered 2025, many organizations expressed optimism for the latter half of the year. Recent events have introduced unpredictability, but steady tech earnings and demand show it isn’t all doom and gloom.
As I have begun working more closely with the team at SEMI, one of the technology industry's largest global advocacy organizations, I see some reasons for optimism. In the wake of the global supply chain disruptions we all experienced a few years ago, they are at the forefront of helping the industry increase future resilience as their members build more regional supply chains.
They understand the next challenge is human capital. When these state-of-the-art facilities reach completion in the coming years, they will require a highly skilled local workforce. This will create new and highly lucrative job opportunities in these local communities, and we are excited to work with them to help.
Skills in Flux: The Talent Acquisition Dilemma
The rapid evolution of technology has significantly impacted talent acquisition strategies. As skills demand shifts swiftly, organizations face challenges in identifying the expertise they will need in the near future. Emerging areas such as artificial intelligence (AI), cybersecurity, cloud computing, and software engineering are at the forefront of this shift.
Cybersecurity, in particular, remains a pressing priority. According to our research, global cybercrime is projected to cause $10.5 trillion in damages this year, while the average cost of a data breach has risen to $4.88 million. The industry requires an additional 4.8 million cybersecurity professionals worldwide to address these increasing threats. However, the cybersecurity skills gap has grown by 8% since 2024, making talent acquisition in this domain increasingly difficult.
In addition to cybersecurity, organizations are seeking expertise in AI, data science, and cloud architecture. The adoption of agentic AI—autonomous systems that can independently perform tasks—has fueled demand for specialized skills. By 2028, approximately 33% of enterprise software applications are expected to include agentic AI capabilities, underscoring the need for skilled talent to implement and oversee these technologies.
Regional IT Business Trends
The IT landscape is not homogenous; regional differences play a significant role in shaping opportunities and challenges. In Asia Pacific, growth remains resilient, driven by the expansion of global capability centers in India. Many companies are transitioning from outsourcing to managing their own centers, a shift that highlights India’s prominence in the IT ecosystem. However, this growth comes with its own set of challenges, including infrastructure constraints and talent shortages.
Japan, on the other hand, presents a unique challenge. While companies are investing heavily in the region, the scarcity of local talent and restrictive immigration policies make workforce expansion difficult. In contrast, Malaysia is emerging as a promising market, with government investments in hire-train-deploy programs aimed at bolstering the semiconductor industry.
Latin America is another region experiencing growth, particularly through its nearshore capabilities. While language barriers pose challenges, the availability of skilled talent and cost advantages make it an attractive option for businesses seeking to expand operations. However, as geopolitical and trade tensions continue, our IT clients are still facing challenges in Europe and North America.
Managed Service Providers: Streamlining Supply Chains
Amid this uncertainty, our clients are increasingly focusing on cost reduction and supply chain optimization through work with Managed Service Provider (MSP) staffing programs such as TAPFIN. Those with existing programs are looking to improve visibility and structure, while others are exploring alternative solutions. The integration of AI into MSPs offers enhanced efficiency, enabling capabilities such as candidate matching and global spend reporting. These technological advancements are revolutionizing how organizations manage their workforce at scale.
Workforce Implications: Adapting to Emerging Trends
The shifting landscape of IT work demands proactive strategies to address talent challenges and seize opportunities. Continuous learning and development are essential for both employees and employers to keep pace with rapid innovation. Upskilling in areas such as AI, cybersecurity, and data science can bridge the widening skills gaps and prepare workers for the future.
Organizations must also evaluate how emerging technologies, like low-code and no-code platforms, can democratize software development and reduce skills barriers. According to industry analysts, 70% of new applications this year will be developed using these technologies—a threefold increase from 2021. While AI is not expected to replace low-code and no-code platforms, it is likely to enhance their efficiency, creating new opportunities for collaboration between technical and non-technical teams.
Retention remains another critical focus. Nearly half of IT workers plan to voluntarily change jobs within the next six months, driven by concerns over skills obsolescence and economic uncertainty. Strategic workforce planning, coupled with effective retention strategies, can mitigate turnover costs, which average $18,591 per employee globally.
Looking Ahead: The Future of IT Work
The IT industry is entering a transformative era that transcends technological innovation. It encompasses shifts in how work is done, where it is done, and who does it. From the integration of agentic AI to the expanding role of low-code solutions, the future is rife with opportunities for organizations that can adapt to change and embrace new paradigms.
Closing skills gaps, fostering cybersecurity vigilance, and leveraging AI to complement existing workforce capabilities are among the strategies that will define success in this new landscape. As businesses, governments, and individuals navigate these changes, collaboration and continuous learning will remain essential. To learn more, download your complimentary copy of our 2025 IT World of Work research.
