In the ever-changing tech landscape, we pride ourselves on staying ahead of the curve and aligning our recruitment expertise with the latest trends and opportunities our community are facing. Our annual CTO Pulse Check offers critical insights into the priorities, challenges, and strategies of technology leaders across the UK. Here’s all you need to know about the current state of technology leadership.
Innovation and Strategic Investments Lead the Way
Innovation is a top priority for CTOs in 2024, with 47% identifying the development of new products and services as their primary focus. Over 80% of tech budgets are being directed toward innovation—enhancing platforms, upgrading features, and launching new products to stay competitive. Nearly 50% of CTOs expect IT budgets to increase, signaling continued investment in technology roadmaps.
Hiring Challenges in a Competitive Market
Attracting and retaining top talent remains a significant challenge. 75% of CTOs say recruitment is key to achieving their technology goals, and 38% of companies attribute successful hiring to working with external recruitment partners. Despite this, many expect headcounts to remain stable in 2024, indicating a focus on backfilling roles rather than expanding teams.
A main barrier to successful hiring is the shortage of technical skills and experience, especially in data-related functions. The top five skills gaps identified across technology functions include:
- AI
- Data Engineering
- Machine Learning
- Technical Leadership
- Data Science
The Evolving Role of CTOs
CTOs are facing increasing pressure to balance customer demands with team capacity, especially as AI continues to reshape technology roadmaps. 42% of CTOs identify AI as the most disruptive external factor in 2024, but with opportunities come risks—such as inaccuracy, regulatory compliance, and intellectual property concerns. To address these, companies are putting in place more robust processes to manage AI implementation.
The first 100 days in a CTO's role are crucial for setting the foundation for success. During this time, aligning with stakeholders, collecting data, and developing strategic plans are top priorities for tech leaders.
The biggest challenge I face as a CTO is...
AI and the Next Generation of Tech Jobs
As AI becomes more embedded in product strategies, CTOs are prioritising the development of skills in Product Management with an AI focus. Generative AI is pushing companies to evolve how they approach DevOps, transitioning toward ModelOps and requiring a new skillset in the workforce.
As Jeff Watkins, Chief Product & Technology Officer at CreateFuture, notes: "Most people in existing roles will need to add AI awareness and skills to their tool-belts."
Diversity and ESG: Room for Growth
Diversity remains a challenge in the tech industry, especially at the leadership level. 15% of UK organisations report no gender diversity in senior management, and 33% lack ethnic diversity. While 62% have a DEI strategy in place, more work is needed to elevate diverse talent into leadership roles.
Environmental, Social, and Governance (ESG) considerations are also gaining traction, with 50% of CTO's acknowledging that they currently have no specific ESG targets. However, the increasing focus on ESG across the industry suggests that this is an area where many companies will need to step up their efforts this year.
For more in-depth insights on diversity, hiring trends, and salary benchmarks, download our Technology Hiring Report 2024. Equip your tech leadership with the knowledge needed to succeed in 2024.
At Burns Sheehan, we’re here to help you navigate these challenges and seize the opportunities ahead. Get in touch with us at 📧 hello@burnssheehan.co.uk.
