Techreviewer Finds Ongoing IT Skills Gap
•February 18, 2026
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Why It Matters
The widening skills gap forces IT firms to invest in training and flexible work models, impacting hiring costs and productivity. Understanding these trends helps executives align talent strategies with AI‑driven market demands.
Key Takeaways
- •71.6% rate talent pool strong, yet 53.7% lack skills.
- •Hiring growth 43.3%; declines 26.8% indicate volatility.
- •50.7% prioritize training; 83.6% provide upskilling programs.
- •Remote work adoption rises to 49.3%, becoming standard.
- •52.2% foresee AI reshaping required IT skills soon.
Pulse Analysis
The 2025 IT Labor Market report underscores a deepening skills gap that is reshaping hiring dynamics across North America, Europe, and Asia. Although a majority of firms feel confident about their talent pools, more than half report difficulty locating candidates with the right expertise, a mismatch that drives recruitment volatility. This paradox forces senior leaders to reassess talent pipelines, balancing growth ambitions with the reality of scarce specialized skills, especially in emerging technologies such as cloud, cybersecurity, and data engineering.
In response, organizations are turning inward, investing heavily in training, upskilling, and reskilling initiatives. Over half of the surveyed companies now place development programs at the core of recruitment, and a striking 83.6% have formal upskilling pathways. Coupled with a near‑50% adoption rate for remote work, firms are leveraging flexible models—hybrid, remote‑first, and on‑site‑first—to broaden access to talent while maintaining productivity, which 79.1% say has remained stable or improved. These structural shifts reduce reliance on salary wars and create more sustainable talent ecosystems.
Artificial intelligence further amplifies the talent narrative. Nearly half of respondents anticipate AI will lift productivity, yet a similar proportion expects it to overhaul required skill sets in the near term. Companies view AI as an efficiency tool rather than a job threat, focusing on augmenting workflows through automation and intelligent assistance. As work‑life balance overtakes compensation as the top retention lever, firms that blend AI‑enabled processes with robust learning cultures are poised to meet the projected 58.3% demand growth for IT professionals in 2026, while staying selective in hiring.
Techreviewer Finds Ongoing IT Skills Gap
Techreviewer Releases Annual IT Labor Market 2025 Report
Techreviewer, an independent platform analyzing IT service companies, released its annual IT Labor Market in 2025 research. The findings reveal a key contradiction: 71.6% of companies rate their talent pool as strong, yet 53.7% struggle to find candidates with the necessary skills.
Based on responses from over 100 IT services companies in North America, Europe, and Asia, the research shows that hiring demand remains positive but is increasingly volatile. In 2025, 43.3% of companies reported hiring growth, while 26.8% saw declines, indicating a shift from geographic to skill‑fit challenges.
Companies Focus on Building Internal Capabilities
Instead of only increasing salaries, organizations are investing in structural solutions. Training and development now lead recruitment strategies for 50.7% of companies, and 83.6% offer upskilling and reskilling initiatives. Remote work adoption rose to 49.3% from 29.0% year over year, establishing it as a standard hiring practice.
Work models are now evenly split among hybrid (31.4%), remote‑first (35.8%), and on‑site‑first (32.8%) approaches. Additionally, 79.1% of companies report stable or improved productivity under these arrangements.
AI Shapes Productivity Expectations and Skills Requirements
The report shows that 47.8% of respondents expect AI to boost productivity, while 52.2% anticipate a significant impact on required IT skills in the near term. Only 10.4% express concerns about job replacement, with most companies viewing AI as a tool to accelerate workflows rather than reduce staff.
Retention strategies remain effective, with work‑life balance (61.2%) now surpassing compensation as the top factor for employee retention. For 2026, 58.3% of companies expect IT professional demand to grow, but anticipate more cautious and selective hiring.
Full Report: https://techreviewer.co/blog/it-labor-market-in-2025
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