The Great Resignation & IT Talent Crunch

How CIOs are adapting to critical skills shortages through automation, flexible sourcing, and cultural transformation.

By Robert Bales25/01/20237 min read

The numbers are staggering. Australia has over 60,000 unfilled technology roles, and the situation is getting worse, not better. CIOs who thought the Great Resignation was a temporary blip are discovering it's actually a permanent shift in how people think about work.

The traditional response—throwing more money at the problem—isn't working. Instead, smart CIOs are fundamentally rethinking how work gets done, who does it, and what skills are actually necessary for success.

Skills Gaps Across APAC: The Real Numbers

Australia & New Zealand

Software Development28,000 vacancies
Cybersecurity18,000 vacancies
Data & Analytics15,000 vacancies
Cloud Architecture12,000 vacancies

Regional Impact

Average time to fill role127 days
Salary inflation (YoY)23%
Contractor rate increase35%
Employee turnover31%

What's Driving the Crisis?

This isn't just about COVID-19 disruption. Fundamental shifts in employee expectations, accelerated digital transformation, and global competition for talent have created a perfect storm.

4.2x
increase in remote job applications
67%
of tech workers considering overseas roles
2.1x
demand growth vs supply growth

Flexible Sourcing: Beyond Traditional Hiring

The New Sourcing Mix

Leading CIOs are moving away from "hire full-time or nothing" mentality. The most effective approach combines multiple sourcing strategies based on the nature of the work and skill availability.

40%
Full-time permanent
Core team, strategic roles
25%
Contract specialists
Project-based, expertise gaps
20%
Managed services
Commoditized functions
15%
Automation
Repetitive tasks

Offshore & Nearshore Options

  • India: Mature market, 12-hour time difference challenges
  • Philippines: Cultural alignment, English proficiency
  • Vietnam: Growing talent pool, cost-effective
  • Eastern Europe: Timezone overlap, strong technical skills

Hybrid Team Structures

  • • Core local team + offshore development
  • • Follow-the-sun development models
  • • Specialized offshore centers of excellence
  • • Flexible contractor pools for surge capacity

Automation: From Nice-to-Have to Essential

When you can't hire enough people, automation stops being about efficiency and becomes about survival. Smart CIOs are identifying which tasks can be eliminated entirely, not just made faster.

High-Impact Automation Targets

Infrastructure & Operations

  • • Server provisioning and configuration
  • • Backup and recovery processes
  • • Security patching and updates
  • • Performance monitoring and alerting

Development & Testing

  • • Code testing and quality assurance
  • • Deployment and release management
  • • Environment setup and teardown
  • • Documentation generation

ROI of Automation Investment

Process AreaTime SavedCost AvoidancePayback Period
CI/CD Pipeline70% deployment time$480K/year8 months
Infrastructure Provisioning80% setup time$320K/year6 months
Security Scanning60% review time$240K/year12 months
Test Automation85% testing cycles$680K/year10 months

Cultural Change: Competing on More Than Money

What Tech Talent Actually Wants

Salary is still important, but it's not the primary driver anymore. The most successful CIOs are building environments that talented people choose over higher-paying alternatives.

Learning & Growth

  • • Access to cutting-edge technology
  • • Conference and training budgets
  • • Internal innovation time
  • • Mentorship programs

Autonomy & Impact

  • • Decision-making authority
  • • Flexible working arrangements
  • • Direct business impact visibility
  • • Minimal bureaucracy

Purpose & Recognition

  • • Meaningful work contributions
  • • Public recognition programs
  • • Clear career progression
  • • Company mission alignment

Atlassian's Talent Strategy: A Local Success Story

Atlassian has become a talent magnet in the Australian tech scene, not just through competitive compensation, but by creating an environment where technical talent can thrive.

Cultural Innovations

  • • 20% time for personal projects
  • • Open-source contribution encouragement
  • • Quarterly hackathons and ShipIt days
  • • Transparent internal communication

Retention Results

  • • Employee turnover: 8% (vs 31% industry avg)
  • • Internal promotions: 78% of senior roles
  • • Employee satisfaction: 92% positive
  • • Referral hiring: 45% of new hires

The Fractional CIO Advantage in Tight Talent Markets

When permanent talent is impossible to find or retain, fractional leadership offers a different approach. Instead of competing for the same scarce resources, you're accessing proven experience on a flexible basis.

Why Fractional Makes Sense Now

Market Reality

  • • Senior IT talent 40% more expensive than 2021
  • • Average tenure down to 18 months
  • • 6+ month hiring cycles for senior roles
  • • Limited local talent pool for specialized skills

Fractional Benefits

  • • Immediate access to senior expertise
  • • No recruitment costs or long hiring cycles
  • • Flexible engagement based on actual needs
  • • Experience across multiple organizations

60-Day Talent Strategy Reset

Weeks 1-2: Assessment

Capability Audit

  • • Map critical skills vs available talent
  • • Identify automation opportunities
  • • Assess current retention risks
  • • Benchmark compensation and benefits

Market Analysis

  • • Research offshore/nearshore options
  • • Evaluate managed service providers
  • • Assess fractional leadership needs
  • • Review competitor talent strategies

Weeks 3-6: Strategy Development

Sourcing Strategy

  • • Design optimal team composition
  • • Select offshore/nearshore partners
  • • Define automation roadmap
  • • Establish fractional leadership roles

Culture & Retention

  • • Redesign employee value proposition
  • • Implement flexible working policies
  • • Create learning and development programs
  • • Establish recognition and career pathways

Weeks 7-8: Implementation

Quick Wins

  • • Launch highest-impact automation projects
  • • Implement immediate retention initiatives
  • • Start offshore team integration
  • • Begin fractional leadership engagements

Measurement

  • • Track time-to-fill metrics
  • • Monitor employee satisfaction scores
  • • Measure automation impact
  • • Assess cost per delivered outcome

Struggling with IT talent shortages?

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