10 Factors Behind the Shortage of Skilled IT Professionals

Struggling to find skilled IT professionals? You're not alone. Uncover the causes of the IT talent shortage and learn how to overcome recruitment challenges.

By
James Ball
,
Founder
of Coburg Banks
LinkedIn Profile
May 13, 2025

If you have tried to hire a developer, an infrastructure engineer or a decent IT manager lately, you already know the pool feels shallow. Roles sit open for months, salaries keep climbing, and the good people vanish off the market in days. It is not your imagination, and it is not going away soon. Here is what is actually behind the shortage, and what each factor means for how you hire.

1. Demand has outrun supply for years

Almost every business now needs technical people, not just tech companies. A manufacturer, a retailer, a care provider, all of them are hiring for software, data and infrastructure. The number of roles has exploded while the number of qualified people has crept up slowly. Basic maths, and it is not in your favour.

2. The best people are not looking

A strong engineer who is happy and well paid is not on the job boards. They are heads-down building something, being looked after by an employer who knows what they have. So the pool actively applying is skewed towards people who are between jobs, and the ones you really want have to be approached directly.

3. The skills keep moving

The stack changes fast. Frameworks, cloud platforms, security practices, whatever is hot this year. Someone with fifteen years of experience might have five years of relevant experience, and someone with three years might be bang up to date. Counting years on a CV tells you much less than it used to about who can actually do the job.

4. Remote work globalised the competition

Your local engineer can now work for a company anywhere, often for more money. You are no longer competing with the firm down the road, you are competing with everyone who will hire remotely. That widened the market for talent and made it a lot harder to hold onto your own.

5. Salaries have run ahead of many budgets

Tech pay climbed hard and fast, and a lot of employers are still working from figures that are a couple of years stale. Advertise a role at yesterday's salary and strong candidates simply scroll past. You have to know the current market rate before you go out, not discover it after nobody applies.

6. Contractors soak up a chunk of the talent

A good number of experienced technical people have gone contract or freelance, where the day rates are high and the flexibility suits them. That takes them out of the permanent pool you are fishing in, and it is a big slice of the senior end.

7. Counter-offers are fierce

When you finally make an offer to a good engineer, their current employer often panics, because they know how hard the person is to replace. A big counter-offer lands, and unless you have moved fast and managed the process well, you lose them at the last hurdle.

8. Reputation spreads in tight communities

Developers talk, on forums, in Slack groups, on LinkedIn. If your company has a name for a painful interview process or a grim culture, the people you want hear about it before they ever apply. Your reputation as an employer is doing your recruiting for you, one way or the other.

9. Screening technical skill is hard if you are not technical

A non-technical hiring manager struggles to tell a strong engineer from a confident talker, and even technical interviewers disagree wildly on what to test. Weak screening lets the wrong people through and, worse, screens out good ones who did not perform on the day. It is a genuine skill in itself.

10. Bad hires make the hole deeper

And every mis-hire in a scarce market costs you double, the wasted months and the empty seat you now have to fill again in the same thin pool. Getting it right first time is the only real way to stop the shortage from grinding you down.

You cannot conjure more engineers into existence. What you can change is how you compete for the ones who exist, and that means approaching the people who are not looking and screening them properly. That is where we earn our keep. Our piece on why developers keep leaving before you can make an offer covers the retention side. When you want a hand filling something, here is how we work, or book a call.

Coburg Banks IT Recruitment
We help outstanding IT professionals get brilliant jobs in top companies.

Continue reading

Coburg Banks IT Recruitment Agency

The Dangerous Myth of the Rockstar Developer

The "rockstar developer"myth hinders collaboration and team growth. Learn why focusing on balanced, cohesive teams leads to long-term IT success.
Coburg Banks IT Recruitment Agency

Your Best IT Leader Might Be About to Do Paperwork

Why the Cyber Security and Resilience Bill could quietly pull your best IT people off technical work and onto compliance paperwork instead.
Coburg Banks IT Recruitment Agency

What Football Can Teach You About Tech Hiring

Building a tech team is like creating a winning football squad—strategy, role clarity, and teamwork are essential. Learn how football-inspired hiring principles can transform your recruitment success.
Coburg Banks IT Recruitment Agency

The Rule Change That Could Break Your IT Contract Hiring

A rule built to protect gig workers could quietly reshape how UK employers bring in contract IT talent, and few have noticed yet.
Coburg Banks IT Recruitment Agency

Is Your IT Team Understaffed? Signs You Need More Support

Understaffed IT teams lead to missed deadlines, errors, and high turnover. Discover the signs and solutions to keep your business running smoothly.
Coburg Banks IT Recruitment Agency

Your IT Team Just Got 24 Hours to Make the Right Call

A new bill gives some UK firms just 24 hours to report a serious cyber incident, and most haven't worked out who actually makes that call.
Coburg Banks IT Recruitment Agency

Monzo’s £10bn Question: Who Actually Runs the Tech?

A possible £10bn Monzo deal is a reminder that growing businesses need senior IT leadership sorted before the crunch hits, not after.
Coburg Banks IT Recruitment Agency

Permanent IT Hiring Is Recovering. Contract Got There First

The data shows why contract IT roles picked up before permanent hires did, and what that gap actually means for you right now.
Coburg Banks IT Recruitment Agency

8 Skills Every Modern IT Team Should Have

Equip your IT team with essential modern IT skills to stay ahead. Discover the top eight capabilities crucial for navigating today’s competitive tech landscape.
Coburg Banks IT Recruitment Agency

How Our Hiring Tools Make Interviews Easier for You

January 1, 2026
Struggling to manage time-consuming IT interviews effectively? Discover simple strategies to streamline your process and hire top tech talent faster.
Coburg Banks IT Recruitment Agency

Why Our Onboarding Process Helps Clients Hire Faster

December 25, 2025
Struggling to hire IT talent quickly? Discover how a streamlined, specialised process can cut delays, attract top candidates, and keep your projects on track.
Coburg Banks IT Recruitment Agency

Why Our Clients Trust Us With Senior Dev Roles

December 18, 2025
Struggling to hire senior developers? Discover why traditional methods fall short and how tailored IT recruitment can help you secure top talent effortlessly.
Coburg Banks IT Recruitment Agency

Why Our Clients Recommend Us Internally

January 2, 2026
Internal referrals for IT recruiters prove exceptional results and trust. Learn how consistent value and tailored solutions can transform your hiring success.
Coburg Banks IT Recruitment Agency

How We Work With Fast-Growth Tech Teams

December 26, 2025
Struggling to scale your tech team as your business grows? Discover smarter hiring strategies to keep pace with demand and drive success.
Coburg Banks IT Recruitment Agency

What Sets Our Dev Shortlists Apart

December 19, 2025
Struggling with shortlists full of mismatched candidates? Learn how high-quality IT shortlists save time, cut costs, and deliver the perfect fit for your team.
Coburg Banks IT Recruitment Agency

What Makes Our Candidate Briefings So Effective

Unprepared candidates can derail your interviews and hiring process. Learn how effective IT candidate briefing ensures confident, aligned, and successful interviews.
Coburg Banks IT Recruitment Agency

Why Our Clients Recommend Us Internally

Internal referrals for IT recruiters prove exceptional results and trust. Learn how consistent value and tailored solutions can transform your hiring success.
Coburg Banks IT Recruitment Agency

How We Work With Fast-Growth Tech Teams

Struggling to scale your tech team as your business grows? Discover smarter hiring strategies to keep pace with demand and drive success.