Partner Content: Shortage of IT Talent is Biggest Challenge Faced by MSPs, New Research Says

A lack of IT talent is the biggest challenge managed service providers (MSPs) have today, new research shows.

According to a new report by CRN , in partnership with cybersecurity firm Huntress, 56% of MSPs currently see a lack of high-quality IT talent as their largest concern. This is closely followed by the growing complexity of security threats and budget constraints for cybersecurity investments.

The IT talent shortage has been well-documented over the last few years and is stifling growth in both growing companies and enterprises as demand for skills in emerging areas like AI and intelligent cybersecurity outpaces supply.

But as this gap continues to widen - and with more layoffs in the technology space looming - what are the biggest blockers to hiring IT talent?

Obstacles in hiring new talent

For many MSPs, the search for skilled IT professionals has become more and more difficult. According to recent research, 61% of MSPs report struggling to find candidates with the right technical skills, making it the most significant hiring challenge. As businesses grow more dependent on technology, the demand for professionals with skills in areas like network management, IT support, and cloud infrastructure continues to outpace supply, delaying critical projects and limiting their ability to scale effectively.

Beyond basic technical expertise, 54% of MSPs cite a lack of experience in specialized areas like cybersecurity, AI, and cloud technologies , as a major hurdle. With cyber threats evolving rapidly and AI-driven automation reshaping IT operations, MSPs need highly specialized talent to stay competitive, but finding professionals with deep expertise in these areas is challenging. MSPs are left with no choice but to upskill their existing workforce or risk falling behind.

Another pressing issue is competition from larger organizations or tech firms offering higher salaries and better benefits, cited by 32% of MSPs. Unlike large enterprises with extensive budgets, many MSPs operate on tighter margins, making it hard to match the financial incentives provided by major tech companies. This salary gap puts smaller MSPs at a disadvantage when attracting top talent, particularly in high-demand fields like cybersecurity and cloud computing, where skilled professionals can command premium pay. 30% of MSPs also reported facing challenges due to candidates' unwillingness to relocate or work in-office.

How MSPs can overcome IT talent challenges

To address the IT talent shortage, MSPs can invest in upskilling and training programs. MSPs can close skill gaps and reduce reliance on external hiring by developing internal talent through certifications, mentorship, and hands-on experience. Partnering with educational institutions and offering internships can also help build a pipeline of skilled professionals.

Another strategy is expanding recruitment and resourcing efforts beyond traditional hiring pools. “Understanding your specific skill gap is key,” Adam Shilcock, Team Lead, Account Management at Huntress, told CRN. “Where are those gaps in the skills you’re looking for? Is it in the security side or the softer skills side? There are plenty of ways that MSPs can bridge those gaps, especially with AI and automation here to help, but I think the most effective way for MSPs to fill gaps of those more refined skills, is partnerships and outsourcing. Understanding what vendors can provide you can be incredibly transformative in what you’re able to achieve, and can also be surprisingly affordable.”

To compete with larger companies offering higher salaries to match, MSPs can also focus on non-monetary incentives like career growth opportunities, workplace culture, and work-life balance. Many IT professionals value flexibility, professional development, and meaningful work over salary alone.

“In terms of retaining talent, communication is incredibly important,” said Phil McGowan, Team Lead, Sales Engineer at Huntress. “The trust built into the relationship between employer and employee is central to this struggle, and those individual conversations will make or break this. Understanding where they are, what they need, how they like to work; these open lines of communication won’t reduce your attrition rate to zero but it will put you in a really good stead to retain your valuable employees.”

With talent being a top concern across the technology industry, companies that invest in their employees, recruitment strategy, culture, and workforce retention will ultimately be better positioned to achieve the growth they’re after.

Want to hear more about how MSPs can address and overcome the shortage of IT talent? Hear from The Channel Company and Huntress on this and more in our latest on-demand webinar , How MSPs Can Protect Themselves from Cybercriminals in 2025, here.

This article is sponsored by Huntress.