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5 Challenges Faced by Tech Companies In 2021

It’s been a tough year for multinational tech companies. The Covid-19 pandemic continues to severely affect many businesses, but many other challenges owing to or separate from the virus have negatively affected countless firms. In this article we look at five of the greatest challenges faced by high-tech companies, and the steps businesses can take to solve them.

Data security

High-tech companies are connected, with a heavy reliance on IT. Many allow staff to work remotely or in a hybrid fashion. And their value and productivity are heavily reliant on intellectual property. That makes them prime targets for cyber-attacks.

According to the government’s Cyber Security Breaches Survey, in 2021, 39% of businesses experienced a cyber breach or attack. This number is down from 6% in 2020, but is still staggeringly high, and the average cost of each breach has increased to £13,400, from £5,220 last year.

The problem is not going to significantly decrease any time soon, so businesses need to invest in strong approaches to data security: bring your own device policies, identity and access management, and end-to-end encryption.

Legal changes

In 2021, European Union legislation has come into effect that will affect most tech companies – given their reliance on the European market. This includes new copyright legislation within the Digital Single Market that impact content shared on tech platforms, Irish data protection legislation, the legal implications of remote working, and of international data transfers.

To ensure they are not caught out by legal changes, its crucial companies utilise legal experts in the field of technology. That way, they can alter their working practices and ensure compliance well in advance.

Staying social

With many businesses adopting hybrid and remote working policies to provide employees with the flexibility they have come to expect during the pandemic, many companies are finding a new challenge rear its head: maintaining social interactions and collaboration.

It’s a difficult challenge to broach – especially if full remote working has become the norm. Yet, with policies like the blanket use of video during calls, regular team chats and one-to-one catchups, and semi-regular in-person meetings (once or twice a month), teams can get back to working closely, and socially, together.

Tackling the skills shortage

As the world has reopened, so have businesses, and as millions of furloughed workers retrained and switched jobs, companies of all types have experienced severe skills shortages. Tech, with its need for highly skilled and experienced staff, has been hit hard by this issue, creating a bottleneck in hiring and the ability of businesses to grow.

To attract the best staff, it’s important that companies improve what they can offer applicants – flexibility, working conditions, and pay. Taking on apprentices can also be an excellent way of building up a strong future workforce too.

Promoting equality, diversity, and inclusion

Equality, diversity, and inclusion are not going anywhere in 2021. Younger generational cohorts are making up a continually large make-up of firms, and ensuring a business matches the ethos of these groups is crucial to hiring them and reducing turnover.

By hiring EDI staff and acting on their recommendations, tech companies can alter their processes and cultures to enable diverse staff to enjoy their roles and succeed in work.

 

What do you think are the chief challenges facing tech companies in 2021? Let us know in the comments section.

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