going further together implications of offshoring for the ics disciplines elizabeth sparrow chair,...
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going further together
IMPLICATIONS OF OFFSHORING FOR THE ICS DISCIPLINES
Elizabeth SparrowChair, BCS Working Party on Offshoringand author A Guide to Global Sourcing
Implications of offshoring
Definitions
The global IT services market
The UK’s competitive strengths
Career development in the era of global sourcing
Challenges and issues
BCS offshoring publications
Definitions
In-house
Outsource
Offshore
NearshoreOffshore
Nearshore
Sourcing models
Service Responsibility Delivery Model
Retained in-house IT departments
Acquisitions
Organic growth
Shared Shared services
Joint ventures
Alliances
Transferred to external service provider
Outsourcing service suppliers
Implications of offshoring
Definitions
The global IT services market
The UK’s competitive strengths
Career development in the era of global sourcing
Challenges and issues
BCS offshoring publications
Market growth
IDC says that global offshore IT services will continue to grow at a remarkable rate
TPI says that nearly half of new outsourcing deals involve some global service delivery
TPI finds that nearly half of the value of these new outsourcing contracts is moved offshore
IDC says that offshore suppliers have begun to pose a serious threat to incumbent service providers
Global sourcing examples
Thames Water outsourced to WiproTesco’s own centre in BangaloreBritannia Airways hybrid model with LogicaCMGDHL’s centre in PragueColgate-Palmolive used EPAM developers in Russia and BelarusShell’s centre in Malaysia and outsourcing to Indian suppliers
Global trade in IT services
Major traders in computer and information services, 2000 and 2003Source: World Trade Organization, 2005
Jobs exported through offshoring
Total number of jobs exported (offshore outsourcing and offshore subsidiaries), 2002–2004
Source: Rosenthal, 2005
Implications of offshoring
Definitions
The global IT services market
The UK’s competitive strengths
Career development in the era of global sourcing
Challenges and issues
BCS offshoring publications
Our competitive strengths
Unless we understand our achievements and abilities we may underestimate global competition and miss out on opportunities in the future
Strengths Weaknesses
Opportunities Threats
SWOT analysis for Britain’s IT profession
Strengths
•Software innovation and hardware pioneering developments
•Experience in managing large, complex programmes
•Good problem-solving and analytical skills in new areas of work and a culture that encourages creativity
•Multicultural society and professionals drawn from different ethnic backgrounds
•High standard of general education
Weaknesses
•Professional training too focused on short term technical training
•Many professionals lack formal accreditation and training
•Lack of multilingual skills
•Britain has traditionally had a low regard for technical and engineering education and skills
Opportunities
•Business analysis and process re-engineering projects
•Biotechnology and nanotechnology developments
•Development and management of safety critical systems where low risk is paramount
•Outsourcing advisory services
Threats
•If low level work is moved offshore this leaves fewer opportunities for basic skills training
•IT careers may be seen as offering poor prospects and may attract fewer good candidates
•University research at limited locations means few graduates benefit
Implications of offshoring
Definitions
The global IT services market
The UK’s competitive strengths
Career development in the era of global sourcing
Challenges and issues
BCS offshoring publications
A new career model for a new era
Business skills development
Programme management experience
‘Soft’ skills training
Supplier management, negotiation and relationship development
Specialist technical training
Foundation IT training
IT professionals embedded in business areas
Project and programme management
IT strategy managers
IT service and contract management
Technical specialists
IT occupation changes
Old attitudes
Premium salaries are the norm
Soft skills are an optional extra for those interested in management
IT careers are for those who love technology
IT is separate from ‘the business’
Sometimes business people move into IT but they don’t really understand technology
New attitudes
Salaries closer to rates for other professional rolesAll IT professionals expect to develop interpersonal and technical skillsIT careers are for those who love to find out how technology can help othersIT is seen as a fully integrated part of the businessIT people regularly move into and out of other business functions gaining a rounded experience
Developing tomorrow’s IT professionals
Helping yourself to a successful career
Invest in your long-term career
Monitor skills shortages and employment trends
Don’t get locked into a technical role that is eminently suitable for offshoring
Be aware of the business skills and domain knowledge you possess
Make use of training opportunities to broaden and deepen your skills
Adopt lifelong learning
BCS Working Party on Offshoring tips:
Gartner tips for IT professionals
Master the underlying principles
Be prepared to change your attitudes
Develop your interpersonal skills
Use opportunities to broaden your business knowledge
Become an agent of change, not a victim
Source: Computing, June 2005
Implications of offshoring
Definitions
The global IT services market
The UK’s competitive strengths
Career development in the era of global sourcing
Challenges and issues
BCS offshoring publications
Recruiting tomorrow’s professionals
Higher Education Funding Council (HEFC) identified computing/IT as a strategic subject area of national importance
Forecasts by e-skills indicate that Britain’s IT workforce will need to grow substantially over the next decade to sustain the UK’s competitiveness
But applications to study computer science and IT at school and university are falling dramatically
HEFC asked the BCS to lead an initiative to increase the number of students studying computing/IT
Recruiting tomorrow’s professionals
18403
2185624019
27177
2270219852
15357 14708
0
5000
10000
15000
20000
25000
30000
1998 1999 2000 2001 2002 2003 2004 2005
Applications to undergraduate courses in core computing disciplines: UK home students only
Source: www.ucas.ac.uk
Recruiting tomorrow’s professionals
Projected changes in the population of 18-20 year oldsSource: Higher Education Demand, 2015-16, HEPI
Schools survey quotations
Quotations from focus groups and questionnaires…
ICT is a lot of work but it’s all repetitive… when they took the coursework out of maths loads more people started choosing it
ICT is not at all difficult but it’s very time consuming
ICT is a waste of a GCSE
I am not going to study Computing/ICT at university because the subject becomes mundane using standard software
ICT is really repetitive… it’s all spreadsheets
ICT is extremely boring and mundane
I did ICT and I never want to annotate another screen shot
Challenges and issues
Joined-up thinking:
Schools Universities Employers
Government funding incentives
Computer Faculty and Business School
Challenges and issues
Computer Science
or
IT?
Challenges and issues
Undergraduate or postgraduate?
STEM subject or business management?
Improving public perception and understanding
Implications of offshoring
Definitions
The global IT services market
The UK’s competitive strengths
Career development in the era of global sourcing
Challenges and issues
BCS offshoring publications
Offshoring publications
A Guide to Global Sourcing
by Elizabeth Sparrow, 2005
Offshoring: a challenge or opportunity for British IT professionals?
BCS Working Party on Offshoring, 2004
Embracing the Challenge, Exploiting the Opportunities: building a
world class IT profession in the era of global sourcing
BCS Working Party on Offshoring, May 2006
Recent BCS press release
BCS is warning that the shortage of computing/IT graduates could imperil long term success for Britain’s expanding IT economy
“The future success of the British economy … will rely on the delivery of computer science graduates. The UK is not delivering these with the threat of a major skills gap opening in our thriving IT industry”
David Clarke, BCS Chief Executive, Nov 2006