IT service companies in Taiwan are facing numerous challenges both domestically and internationally, creating a strong need for technology solutions to optimize operations. Let’s explore how automation can be a game-changer in navigating these challenges!
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Challenges in IT service company in Taiwan
The IT service industry in Taiwan is currently grappling with a range of challenges, pushing companies to seek innovative solutions to stay competitive and efficient. Here are some notable challenges.
The aging population and talent shortage
Taiwan’s demographic challenges are intensifying despite a slight population growth in July 2024 (Taiwan Gov). The nation grapples with persistently low birth rates and an aging population, pushing it toward a “super-aged” society and eroding its demographic dividend.
These trends significantly impact the labor market, as early retirements and reduced productivity among older workers lead to a severe talent shortage. According to Manpower Group’s Talent Shortage Survey, 78% of employers in Taiwan report difficulties filling roles, with sales, engineering, and IT positions being the hardest to recruit. Businesses face rising labor costs and operational challenges, struggling to maintain performance amidst these shifts.
Intense competition
The Taiwanese government has proposed a record-breaking 2025 budget to enhance digital infrastructure and foster critical emerging technologies, creating significant business growth opportunities. In response to an aging market and labor shortages, many IT companies in Taiwan have implemented competitive policies to attract and retain talent. For instance, TSMC plans to increase employee wages by an average of 20% (Global Taiwan), intensifying domestic competition within the industry
Beyond its borders, competition is equally fierce. Taiwan’s strategic role in the U.S.-China technology rivalry positions it at the heart of global tech competition (DigiChina from Stanford). As China advances its “Digital Silk Road” initiative to strengthen its technological capabilities, Taiwan must continuously enhance its advantages to maintain its leadership in the technology race.
Cybersecurity concerns
According to senior government officials, Taiwan faces approximately five million cyberattacks daily, highlighting the immense pressure on its cybersecurity defenses. Reports from the IBM Cyber Security Intelligent Index and PwC reveal that human error, intentional or unintentional, is a critical factor in 95% of all security breaches. This alarming statistic has prompted IT enterprises in Taiwan to explore technological solutions that minimize human intervention, reducing the risk of such vulnerabilities.
Automation use cases in IT service companies
Automation is the ideal solution for Taiwanese IT companies to address the abovementioned challenges. Its use cases are particularly effective in scenarios such as:
- Data auto back-up process: Real-time back-up for optional data security
- Password auto reset: 100% of the process is automated
- Server status auto checking: Real-time update of server status for the best management
- Network management: Automating configuration, monitoring, and troubleshooting to reduce downtime.
- System monitoring: Using automated tools to monitor system performance and proactively identify potential issues before they escalate.
- Helpdesk operations: Implementing chatbots and virtual assistants to handle routine queries and support requests.
- Testing and quality assurance: Automated testing tools are employed to identify bugs and ensure software reliability.
Advantages and limitations of automation application in Taiwan IT service companies
The application of automation in Taiwan’s IT service companies brings both significant advantages and some limitations, requiring careful consideration as businesses navigate the path toward digital transformations.
Advantages
- Boosting productivity to handle labor shortages: With Taiwan’s aging population and a growing labor shortage, automation helps address the gap by streamlining tasks like incident management, system monitoring, and software updates, enabling IT service companies to maintain productivity without relying on a shrinking workforce.
- Cost efficiency: As labor costs increase due to talent shortages, especially in IT roles like engineers and technicians, automation allows Taiwanese companies to reduce reliance on human labor, optimizing resource allocation and cutting operational costs.
- Improving security: Given Taiwan’s exposure to frequent cyberattacks, automated cybersecurity systems are crucial for detecting and responding to threats in real time, improving data protection, and reducing vulnerabilities caused by human error.
- Support for digital transformation: Taiwan is heavily investing in digital infrastructure, and automation plays a key role in supporting this transformation. By automating processes, IT companies can ensure smoother integration of emerging technologies, staying competitive in a rapidly evolving global tech market.
- Real-time Insights: With automation tools providing constant updates on server status, backups, and system performance, IT service companies in Taiwan can make faster, more informed decisions to ensure smooth operations.
Limitation
- High initial cost: The high cost of implementing automation technologies may be a barrier, particularly for smaller IT service companies in Taiwan. Although automation provides long-term savings, the upfront investment in software, infrastructure, and training may be challenging for some businesses to manage.
- Job displacement: While automation can help alleviate labor shortages, it may also lead to job displacement. McKinsey estimates that between 400 million and 800 million individuals could be displaced by automation and need to find new jobs by 2030, creating anxiety for employees.
- Need for specialized talent: While automation helps fill the gap in routine tasks, it also increases the need for skilled workers who can manage and optimize these systems. Taiwan’s talent shortage means businesses may struggle to find qualified personnel to maintain automated solutions, further stressing an already constrained labor market.
- Integration challenges: Integrating automation into Taiwan’s existing IT infrastructure, particularly in legacy systems, can be complex and disruptive, requiring additional resources for testing, implementation, and training to ensure smooth deployment.
Advice when applying automation in Taiwan IT service company
Research and Planning
According to Asssociation For Advancing Automation, first and foremost, conducting thorough research and planning is essential to align automation initiatives with the specific needs of the organization. This approach helps avoid unnecessary expenditures associated with implementing technology that does not fit the business model. By understanding the unique requirements of their operations, companies can identify the most suitable automation solutions that offer the best return on investment.
Tailored solutions
It is crucial to choose tailored solutions that integrate seamlessly with existing IT systems. Businesses should avoid a one-size-fits-all mindset when selecting automation tools. Instead, they should focus on customized solutions to meet their specific demands and workflows.
Many major companies in the market, such as TPI Software, Panasonic ITS and HSBC, have chosen akaBot (FPT) for intelligent automation. akaBot utilizes core technologies like RPA combined with AI, Process Mining, OCR, IDP, ML, and Conversational AI. This flexible automation solution can be tailored to customer needs and easily integrated into existing enterprise systems. As an end-to-end solution offered at a competitive price, akaBot is a choice that IT service companies should seriously consider.
Continuous growth mindset
Organizations must recognize that implementing new technology is not an endpoint but the beginning of an ongoing journey toward digital transformation (Appian). The IT sector, in particular, requires constant adaptation and innovation to thrive in a competitive market. Embracing this mindset will enable companies to remain agile and responsive to market changes.
Conclusion
While automation presents its challenges, such as initial costs and the need for skilled personnel, its benefits far outweigh the potential drawbacks, making it a strategic investment for IT companies aiming to stay competitive and drive continuous growth.
Now is the time for Taiwanese businesses to adopt automation and pave the way for a more efficient, secure, and innovative future. Contact akaBot now to stay ahead on this journey!
akaBot (FPT) is the operation optimization solution for enterprises based on the RPA (Robotic Process Automation) platform combined with Artificial Intelligence, Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 21+ countries, across 08 domains such as Banking & Finances, Retail, IT Services, Manufacturing, and Logistics…, akaBot is featured in “Voice of the Customer” for Robotics Process Automation” by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, Everest Group’s RPA Products PEAK Matrix® 2023, etc.
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