This report provides analysis into skills gaps for UK graduates as they transition into software engineering and data science roles within industry and the public sector. Drawing on qualitative data from 26 interviews with employers, recent graduates and industry stakeholders, we analysed perceptions of the skills graduates bring as well as skill gaps, and the causes of these gaps. Our findings did not reveal substantial technical skills gaps. Employers felt that widely applicable technical skills in coding and good foundations in maths and science were well represented in recruits. However, those technical skills developed through practical experience were less present. Employers were more concerned about the gaps they perceived in recruits’ professional skills: communication, teamwork, project management and commercial awareness were seen to be lacking. While large employers were able to address skill gaps, small and medium-sized enterprises (SMEs) had more constrained resources, meaning they struggled to provide training, making workforce readiness more challenging in this vital part of the sector. Several recommendations are made to improve graduate readiness. There should be more collaboration between employers and HEIs to integrate practical teaching and industry-like work into modules to ensure that students gain practical, real-world experience before entering the workforce. Internship programmes should be expanded with HEIs developing stronger partnerships with local employers to provide opportunities for all students. SMEs should consider investing in their own training or work with external trainers to provide this. Increasing industry involvement in curricula development, dealing with technical skill gaps that exist by increasing the teaching of applied digital skills needed in industry, and supporting professional skills development, especially related to working within teams, the UK can cultivate a workforce equipped with the skills necessary to sustain digital transformation and competitiveness in the UK economy.