A majority of UK tech leaders are moving away from traditional hiring models in favour of more flexible, skills-based approaches, according to new research that reveals growing pressure to deliver digital transformation with agile, project-ready teams.
The findings, published by digital recruitment firm Lorien, show that permanent headcount is no longer the default for many organisations. Just 34 percent of CIOs and CTOs rely primarily on permanent staff, while more than half plan to increase outsourcing or contingent hiring over the next two years.
The data is based on the company’s latest study, UK CTO & CIO Research: Tech Talent Strategy 2025–2027, which surveyed more than 240 senior technology leaders across the UK and EU.
Flexible workforce planning ‘now the priority’
Nearly seven in 10 technology leaders (68 percent) have already planned their workforce needs for the year ahead, with a further 19 percent planning up to two years in advance, the research found. But while strategic planning is rising, employers are increasingly turning to blended teams to deliver complex digital projects.
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Among those surveyed, 32 percent said they plan to increase outsourcing, and 26 percent expect to grow their contingent workforce. In contrast, only 8 percent reported plans to invest in in-house recruitment.
David Gettins, chief operating officer of Lorien, said speed and adaptability had overtaken stability as the driving forces behind workforce strategy.
“This reflects the pressure tech leaders are under to deliver specialist work quickly, with teams that can flex around complex project demands,” he said. “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 remain high
Asked to name their biggest barriers to hiring, 27 percent of respondents cited poor candidate quality. Difficulty sourcing niche technical skills was named by 19 percent, and rising salary expectations by 16 percent.
Despite the challenges, only 18 percent of organisations are prioritising employer branding, suggesting that some may be missing an opportunity to improve visibility and appeal in a competitive recruitment environment.
Specialist roles remain in high demand. The most difficult vacancies to fill currently include cybersecurity specialists (21 percent), AI and machine learning engineers (19 percent), and software developers (also 19 percent). Looking ahead, 40 percent of tech leaders expect AI and machine learning skills to become the most critical to business success by 2027, followed by cybersecurity (22 percent).
Building AI skills across the workforce
The study found that employers are taking multiple approaches to develop their AI capability. Among respondents:
- 73 percent are investing in upskilling
- 74 percent are building AI-specific talent programmes
- 43 percent are redesigning roles to incorporate AI
- 36 percent are hiring AI and machine learning specialists directly
Among those focused on upskilling, 91 percent are investing specifically in AI training, the study found. Lorien said it reflected a growing urgency among employers to respond to rapid technological change by developing internal expertise rather than relying solely on external hires.
The report also suggested that role redesign and internal mobility may become more important as AI reshapes job content across engineering, data, operations and product teams.
Strategy ‘must evolve with transformation’
Technology leaders surveyed expressed concern that static hiring processes and traditional resourcing models were too slow or inflexible to keep pace with transformation. Many are now moving towards more dynamic, modular talent strategies that match team composition to changing project demands.
Gettins said adaptability would become the defining capability of future workforce models. “Technology leaders are facing unprecedented levels of change, from AI adoption to increasingly complex security demands,” he said. “Success now depends on talent strategies that are dynamic, data-led, and built to evolve quickly.”
The study said an approach combining permanent talent with flexible, outsourced and contingent support was now the preferred model for many UK tech leaders. The most effective strategies, it found, are those that allow organisations to scale, specialise and pivot without delay.
Experts say it all points to a need to rethink traditional workforce structures and align resourcing strategies with fast-changing business priorities.
