Why CIOs Need to Embrace a Blended Workforce of Internal Resources and Open Talent

By

Rich Wilson
November 27, 2024

I recently finished the excellent book OpenHR by Dr Rochelle Hayes and Jeremy Blain. The book goes into detail how the rapid pace of technological change has fundamentally altered how organisations operate, innovate, and compete. I then read the CIO Report by Gartner which shared the following:

“Sixty-nine percent of CIOs intend to upskill/reskill current employees in 2024, up from 47% in 2023. High demand for skills like generative AI, AI/machine learning (ML), cybersecurity, analytics and data platforms has led organisations to up compensation to outbid competitors. CIOs will also need to look for force multipliers, such as business technologists who reside outside IT, to fulfil the promise of their digital business transformation and other business goals.”

Chief Information Officers (CIOs) are at the forefront of the skill revolution, more so than the Chief Human Resource Officer (CHRO). In this blog, we explore why CIOs must adopt this workforce model, its benefits, and how to overcome challenges in its implementation.

The Case for a Blended Workforce

1. Addressing the Tech Skills Shortage

The tech talent market is in crisis. According to Deloitte, 91% of tech leaders report difficulty finding the right skills​​. This shortage is delaying 57% of digital transformation initiatives, costing enterprises time and revenue. A blended workforce helps CIOs access specialised skills on-demand, filling gaps without the prolonged and costly processes of traditional hiring.

2. Accelerating Innovation

Freelancers and gig workers bring fresh perspectives, niche expertise, and adaptability. They’ve often worked across multiple industries and projects, allowing them to provide innovative solutions to complex problems. Combining these insights with the institutional knowledge of internal teams creates a synergy that accelerates innovation and problem-solving.

3. Increasing Agility and Scalability

In a fast-moving business environment, CIOs need to pivot quickly to seize opportunities or address challenges. A blended workforce offers flexibility, allowing organisations to scale up or down based on project needs. For example, during a cloud migration, a company can onboard freelance specialists for the duration of the project rather than overburdening internal teams or hiring permanent staff.

4. Cost Efficiency

Blended workforce models can significantly reduce operational costs. By engaging freelancers for specific projects or milestones, CIOs avoid the overheads associated with permanent employment, such as benefits, training, and idle time between projects. A Gigged.AI analysis found that milestone-based gigs typically save 30% compared to traditional contractor hiring​.

5. Enhancing Internal Talent Utilisation

Internal employees often possess untapped skills. By deploying an internal talent marketplace powered by AI, CIOs can identify and mobilise these resources for the right projects. This approach not only improves employee engagement and retention but also complements open talent by ensuring a seamless alignment of internal and external expertise.

Building a Blended Workforce: Strategic Considerations for CIOs

To fully harness the power of a blended workforce, CIOs must adopt a strategic approach. Here are key considerations:

1. Adopt Skills-Based Talent Strategies

Traditional role-based hiring is outdated. CIOs should embrace skills-first approaches to identify the right talent for each project, whether internal or external. Platforms like Gigged.AI enable real-time skills visibility, allowing CIOs to match needs with internal capabilities or quickly source freelancers with complementary skills​​.

2. Leverage AI and Digital Talent Marketplaces

AI-driven platforms streamline talent acquisition, screening, and matching, reducing time-to-hire from weeks to hours. Open talent marketplaces like Gigged.AI’s Open Talent Marketplace (OTM) offer CIOs access to a global pool of vetted freelancers who can be hired in a compliant and efficient manner​.

3. Integrate Internal and External Talent Management

A blended workforce thrives on seamless integration. CIOs should focus on breaking down silos between internal teams and external hires. This involves clear project scopes, collaboration tools, and fostering a culture that values contributions from all talent sources.

4. Focus on Compliance and Risk Management

Engaging freelancers requires a strong compliance framework. This includes ensuring legal and tax compliance, as well as safeguarding sensitive data. CIOs can leverage platforms like Gigged.AI, which offer built-in compliance tools and secure digital contracts.

5. Promote Upskilling and Reskilling

While open talent addresses immediate needs, internal upskilling is essential for long-term sustainability. CIOs should invest in training programs that enable employees to learn emerging skills and transition into new roles, ensuring they remain competitive in a dynamic market.

Overcoming Resistance to Change

Adopting a blended workforce may encounter resistance from traditionalists within the organisation. To address this, CIOs should:

  • Communicate the Benefits: Highlight cost savings, faster project delivery, and improved innovation outcomes to stakeholders.
  • Demonstrate Success: Start with pilot projects that showcase the value of blending internal and open talent, using measurable results to build buy-in.
  • Build Trust: Address concerns among internal employees by ensuring transparency, fair treatment, and opportunities for professional growth.
  • Partner with HR: Most CIO’s want to own skills management which can then result in an HR led skills approach and a CIO led skills approach.Transparency and even collaboration can be important.

The Future of CIO Leadership: A Blended Approach

The blended workforce isn’t just a trend—it’s the future of work. For CIOs, embracing this model is essential for staying competitive in an era defined by disruption and rapid technological change. By combining the strengths of internal teams with the flexibility and expertise of open talent, CIOs can:

  • Drive digital transformation at unprecedented speed.
  • Foster a culture of collaboration and innovation.
  • Build a resilient, future-proof workforce that adapts to changing needs.

In the end, the blended workforce is more than a strategy—it’s a mindset. It represents a new way of thinking about talent, work, and value creation. For CIOs ready to lead their organisations into the future, now is the time to act.

At Gigged.AI, we’re helping enterprises unlock the potential of a blended workforce. Learn more about our solutions for internal mobility and open talent.

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