How Upskilling Can Boost the Competitiveness of IT Service Companies in 2025?

What is upskilling and why is it crucial for IT service companies?

In an era marked by the rapid advancement of artificial intelligence (AI) and automation, IT service companies face a critical question: are their teams prepared for the challenges of tomorrow? Upskilling—the process of enhancing employees’ skills—has become a strategic imperative.

According to the OECD, automation could eliminate 14% of jobs and transform 32% of them within the next 20 years (BCG Global, 2023). For IT service companies, these figures highlight the urgency of equipping their workforce with future-ready skills. However, upskilling goes beyond standalone training programmes; it entails fostering a culture of continuous learning at all organisational levels.

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Strategic advantages of upskilling

1. Anticipating skill obsolescence

The average shelf life of skills is now less than five years in certain technology sectors (BCG Global, 2023). This compels IT service companies to regularly reassess their skill requirements and adapt their workforce to market evolutions.

2. Combining technical and cognitive skills

AI has shifted the demand from purely technical skills to a blend of abilities that include judgement, creativity, and collaboration (McKinsey, 2024). Companies must invest in balancing hard skills with soft skills to remain competitive.

3. Emphasising workplace flexibility

PwC reports that 88% of employees consider flexible work arrangements essential (Anaïs Pierre - People Innovation Director at PwC). By offering remote work options and adaptive schedules, IT service companies can not only enhance employee engagement but also attract top-tier talent.

4. Addind meaning to work

According to PwC, 80% of millennials seek roles with significant impact, particularly on topics such as Environmental, Social, and Governance (ESG) issues (Anaïs Pierre - People Innovation Director at PwC). By integrating these values into their projects, IT service companies can align with employee aspirations and strengthen their appeal.

Effective upskilling strategies for IT service companies

1. Allocating time for training

Aurélien Magnan, CEO of Elevate Agency, advises dedicating 10% of consultants’ time to training. This ensures continuous skill enhancement (Consulting Insider, episode #10).

2. Creating personalised internal training programmes

Companies like PwC have introduced innovative initiatives such as the My+ programme, which offers personalised career paths incorporating flexibility, mentorship, and continuous learning (PwC, 2024). This approach addresses employee expectations while broadening their skillsets.

3. Promoting certifications

Encourage employees to earn at least one certification annually to validate critical skills. Include tailored modules for generative AI and automation.

4. Establishing mentorship programmes

Samir Sadaka, CEO of Siza Conseil, advocates for personalised coaching to address individual needs (Consulting Insider, episode #5).

5. Leveraging technological tools

PwC employs AI and data analytics to customise training pathways and forecast future employee needs (Anaïs Pierre - People Innovation Director at PwC). These tools enable a better alignment with workforce requirements and enhance the effectiveness of upskilling initiatives.

6. Embedding learning into organisational culture

Caroline Sauvegrain, CEO of Theodo, emphasises the importance of fostering knowledge-sharing and experimentation as core cultural values (Consulting Insider, episode #11).

The role of leadership in driving upskilling

Leadership support is a critical factor. For example, Ericsson’s leadership oversaw an initiative that upskilled 15,000 employees in AI and automation over three years (BCG Global, 2023). Leaders must also align upskilling programmes with business strategies and cultivate an environment where employees thrive.

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Overcoming the challenges of upskilling

• Employee Resistance: Convincing employees to adopt upskilling programmes can be challenging, but it is important to note that 74% of employees seek career development opportunities (Anaïs Pierre - People Innovation Director at PwC). Misalignment between employee expectations and initiatives can lead to disengagement and productivity losses.‍
• Measuring Impact: Develop clear metrics to assess the effectiveness of upskilling programmes.
• ‍Scaling Efforts: Adopt scalable and systematic learning methods to reach all employees.

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Conclusion: becoming a “Learning Company”

Upskilling is no longer optional but a necessity. By embedding a culture of continuous learning, IT service companies can stay competitive and prepare their teams for technological disruptions.

Companies that prioritise upskilling do more than react to change; they anticipate it, delivering value to clients and creating enriching career opportunities for their employees.

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Want to learn more about upskilling strategies?

Contact our experts for a personalised audit of your needs or explore our free guide on best practices for IT service companies.