Australia is currently experiencing significant disruption as IT companies pursue acquisitions to enhance their capabilities and expand into new markets. For IT professionals, this means that updating certifications is crucial to seize the best opportunities.
Transact to Transform” Becomes the Focus
According to PwC, “transact to transform” will be a key theme across Australia in the coming year. CEOs view technological change as the most significant driver of transformation, with 59% planning to execute a deal within the next three years. This trend is having a considerable impact on the IT industry in Australia, where consolidation is widespread as companies seek to diversify their portfolios and acquire skills that are in short supply. In fact, Australia is expected to face a shortage of 30,000 cyber security professionals over the next four years.
Acquisitions as a Strategy for Skills and Growth
Gaining access to critical skills and pivoting business operations has become more feasible through acquisitions than organic growth. This strategy presents both opportunities and challenges for IT professionals.
For instance, Australian MSP Spirit recently shifted its focus to cyber security to counter declining revenues. To facilitate this pivot, the company made a significant investment in acquiring Infotrust. Similarly, ASX-listed Atturra has spent over $90 million on five acquisitions, growing its workforce to over 800 employees to compete with major players like IBM, Accenture, and DXC.
SEE ALSO: Australia’s IT Sector Faces a Skills Shortage.
Overseas Acquisitions Target Australian Market
There is also a trend of overseas companies using acquisitions to enter the Australian market. For example, the U.S.-based Evergreen Services Group recently acquired New Zealand-based Lancom Technology and announced the acquisition of Centrered in Australia as its first foray into the local market.
Cyber Security and Data Skills in High Demand
Cyber security skills and capabilities are a top priority for companies looking to acquire. A recent study by Westcon-Comstor on the Australian IT market found that data capabilities are critical for an organization’s ability to transform. Nearly all Australia-based respondents (94%) identified data skills as a key investment priority for the coming year.
According to the latest report by Hays, other in-demand IT development skills include project management, business analysis, and software development. Matthew Dickason, CEO of Hays Asia-Pacific, noted, “We’re only eight weeks into the new calendar year, but it’s clear that certain skills are sought after more than others.” The ongoing skills shortage is amplifying challenges for employers in attracting and retaining top talent.
Certifications Make Australian IT Professionals Essential
For Australian IT professionals in specialized areas, the current market conditions may lead to acquisition opportunities. Those in larger or growth-focused companies might see their employers investing and pivoting toward these in-demand skills areas.
SEE ALSO: Psychological Insights May Help Australian IT Pros Grow as Leaders.
However, acquisitions can pose challenges for employees, including uncertainty about the future direction of the organization, job security concerns, and increased job stress. Research indicates that retention becomes a significant issue for organizations post-acquisition. Employees may feel uncertain about continuing with their new organization due to these factors.
The positive news is that whether IT professionals choose to stay or move on, they have control over their own career trajectories. Given the current severe skill shortages, now is an excellent time for IT professionals to refresh their certifications and training. Aligning their skills with current IT development trends will ensure they remain valuable in the job market.
By focusing on these key areas and staying updated on the latest industry developments, IT professionals in Australia can turn the ongoing industry consolidation into an opportunity for career advancement.