LONDON, UK - Lorien, technology and digital talent solutions specialist, has released new research showing that UK tech leaders are rapidly reshaping their workforce models to keep pace with rising skills shortages, AI-driven transformation, and shifting business demands. 

According to the UK CTO & CIO Research: Tech Talent Strategy 2025–2027, drawn from insights from more than 240 CIOs and CTOs across the UK and EU, organisations are accelerating the move away from fixed, permanent hiring and building more agile, blended teams instead. 

Tech Leaders Shift Toward Flexible Workforce Planning 

The report reveals that 68% of tech leaders have already planned their workforce needs for the next 12 months, with a further 19% planning one to two years out. But while strategic planning is increasing, reliance on traditional permanent workforces is declining. 

Only 34% of organisations rely primarily on permanent staff. Over the next 12–24 months: 

  • 32% plan to increase outsourcing
  • 26% will expand their contingent workforce
  • Only 8% are investing in in-house recruitment 

“This shift reflects the pressure tech leaders are under to deliver specialist work quickly, with teams that can flex around complex project demands,” said David Gettins, COO of Lorien. “Organisations are no longer looking for talent strategies built for stability -they’re looking for talent strategies built for speed, innovation, and adaptability. The businesses that embrace flexible, skills-first workforce models will be the ones that stay ahead.” 

Hiring Challenges Intensify: Candidate Quality Tops the List 

When asked to identify their biggest hiring barriers, tech leaders pointed to: 

  • Candidate quality (27%)
  • Difficulty sourcing niche technical skills (19%)
  • Rising salary expectations (16%) 

Despite the competitive landscape, fewer than 20% are prioritising employer branding, highlighting a missed opportunity to attract top talent. 

Demand for specialised digital talent is surging. The hardest roles to fill include: 

  • Cybersecurity specialists (21%)
  • AI/ML engineers (19%)
  • Software developers/engineers (19%) 

Looking ahead, 40% of CTOs and CIOs expect AI/ML skills to become the most business-critical by 2027, followed by cybersecurity (22%). 

Building AI Capability 

To keep pace with transformation: 

  • 73% of organisations are investing in upskilling
  • 74% are developing AI-specific talent programmes
  • 43% are redesigning roles to incorporate AI
  • 36% are hiring AI/ML specialists directly 

Among organisations focused on upskilling, 91% are investing specifically in AI programmes, showing the scale and urgency of capability building. 

The Path Forward 

The report signals a decisive shift in how organisations think about workforce planning, talent acquisition, and capability building. 

“Technology leaders are facing unprecedented levels of change. From AI adoption to increasingly complex security demands,” added David Gettins. “Success now depends on talent strategies that are dynamic, data-led, and built to evolve quickly. The organisations that build diverse, AI-capable, project-ready teams will define the next era of digital transformation.” 

About Lorien 
Lorien is a specialist in technology and digital recruitment solutions, with over 45 years of experience helping organisations build the teams they need to grow and innovate.  

From individual hires to large-scale outsourced solutions, Lorien partners with clients to deliver tailored talent strategies backed by deep market insight and a data-driven approach. 

 

 

For more information, visit: https://www.lorienglobal.com/  

For media enquiries, contact katie.davies@lorienglobal.com