it workforce development: trends and implications kevin gallagher florida state university copyright...

IT Workforce IT Workforce Development: Trends Development: Trends

and Implicationsand Implications

Kevin GallagherKevin GallagherFlorida State UniversityFlorida State University

Copyright IT Workforce Team

Research BackgroundResearch Background

Why Study the IT Workforce?Why Study the IT Workforce?

• Reallocation due to global sourcingReallocation due to global sourcing

• Shift from IT to business process servicesShift from IT to business process services

• Pending baby boomer retirementsPending baby boomer retirements• Declining university IT enrollmentsDeclining university IT enrollments

Copyright IT Workforce Team

Research BackgroundResearch Background

Sponsored Sponsored • SIM Advocacy ResearchSIM Advocacy Research• Phil Zwieg Northwestern Mutual Phil Zwieg Northwestern Mutual

20 Academic Researchers20 Academic Researchers • Kate KaiserKate Kaiser Marquette University Marquette University• Working in U.S. and EuropeWorking in U.S. and Europe

Data CollectionData Collection• One hour structured interviewsOne hour structured interviews• May to October 2005May to October 2005

Collegial CollaboratorsCollegial CollaboratorsKate KaiserKate Kaiser Marquette UniversityMarquette UniversityCynthia BeathCynthia Beath University of Texas AustinUniversity of Texas AustinChristine BullenChristine Bullen Stevens Institute of TechnologyStevens Institute of TechnologyPamela AbbottPamela Abbott University College DublinUniversity College DublinTom AbrahamTom Abraham Kean UniversityKean UniversityErran Carmel Erran Carmel American UniversityAmerican UniversityRoberto EvaristoRoberto Evaristo University of Illinois ChicagoUniversity of Illinois ChicagoMike Gallivan Mike Gallivan Georgia State UniversityGeorgia State UniversityTim Goles Tim Goles University of Texas-San AntonioUniversity of Texas-San AntonioSteve Hawk Steve Hawk University of Wisconsin-ParksideUniversity of Wisconsin-ParksideJoy Howland Joy Howland Seattle SIMSeattle SIMSeamas Kelly Seamas Kelly University College DublinUniversity College DublinMary Lacity Mary Lacity University of Missouri University of Missouri John Mooney John Mooney Pepperdine UniversityPepperdine UniversityC Ranganathan C Ranganathan University of Illinois ChicagoUniversity of Illinois ChicagoJoe Rottman Joe Rottman University of MissouriUniversity of MissouriTerry Ryan Terry Ryan Claremont Graduate SchoolClaremont Graduate SchoolJudy SimonJudy Simon University of MemphisUniversity of MemphisRick Wion Rick Wion Smith Bucklin AssociatesSmith Bucklin Associates

Committed CollaboratorsCommitted Collaborators

Kate KaiserKate Kaiser Marquette UniversityMarquette University

Cynthia BeathCynthia Beath University of Texas AustinUniversity of Texas Austin

Christine BullenChristine Bullen Stevens Institute of TechnologyStevens Institute of Technology

Kevin GallagherKevin GallagherFlorida State UniversityFlorida State University

Judy SimonJudy Simon University of MemphisUniversity of Memphis

Tim Goles Tim Goles University of Texas-San AntonioUniversity of Texas-San Antonio

Joy Howland Joy Howland Seattle SIMSeattle SIM

MethodsMethods

SIM chapter solicitationSIM chapter solicitation Structured InterviewsStructured Interviews

>100 held (79 SIM members) >100 held (79 SIM members) 89 organizations89 organizationsNon-IT 88%, IT firms 11%Non-IT 88%, IT firms 11%Senior IT Management 82% Senior IT Management 82%

>10 yrs in IT 89%>10 yrs in IT 89%<3 yrs in current position 43%<3 yrs in current position 43%

May to October 2005May to October 2005

Mix of Industries Mix of Industries among 89 companiesamong 89 companies

25%19% 21%

35%

0%5%

10%15%20%25%30%35%40%

Mix of Firm SizesMix of Firm Sizes

16%11%

4%11%

4%

4%

4%

10%

4%

3%12%

13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Heavy Ind Fin & Insur ProfServices

Other

Fortune 500 (>3B) Large (500M-3B) SME (<500M)

74 Non-IT Organizations74 Non-IT Organizations15 IT Providers15 IT Providers

34

4

19

21

92

0

10

20

30

40

50

60

70

80

Internal IT Department IT Provider**

SME(<500M)Large(500M-3B)Fortune 500(>3B)

Data Analysis Presented in Data Analysis Presented in Upcoming SlidesUpcoming Slides

Analysis of organizations - 74 non-IT Analysis of organizations - 74 non-IT companies analyzedcompanies analyzed

Analysis of all other questions - interviews Analysis of all other questions - interviews with 83 participants from the 74 with 83 participants from the 74 organizations analyzedorganizations analyzed

ProvidesProvides• Greater certainty regarding findingsGreater certainty regarding findings• Generalize findings to non-IT organizationsGeneralize findings to non-IT organizations

Changes in IT Sourcing MixChanges in IT Sourcing Mix

Mix of sourcing solutionsMix of sourcing solutions• In-House IT staff levels?In-House IT staff levels?

• FTE use of independent contractors? FTE use of independent contractors?

• FTE use of 3PPs?FTE use of 3PPs?

• Mix of domestic and foreign 3PPs?Mix of domestic and foreign 3PPs?

• Mix of domestic and offshore 3PPs?Mix of domestic and offshore 3PPs?

Total projected FTEs Total projected FTEs remains stable from 2005-2008 remains stable from 2005-2008

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

55000

60000

2005 2008

Fu

ll-t

ime

Eq

uiv

ale

nts

Third-partyProvider

IndependentContractor

In-house

77% 71%

9%9%

14% 20%

Expected Change in FTE Expected Change in FTE by Organization Sizeby Organization Size

0

10000

20000

30000

40000

Fortune Large SME

Organization Size

Fu

ll-t

ime E

qu

ivale

nts

2005

2008

78% 78%

19% 18%

4%3%

Expected Change in Total FTEs Expected Change in Total FTEs by Company Sizeby Company Size

0

5

10

15

20

25

Fortune Large SME

Change in FTEs

Nu

mb

er

of

Fir

ms

Increase

No Change

Decrease29%

11%

61%

33%

6%

79%

16%

5%

60%

Expected Change in Total FTEs Expected Change in Total FTEs by Industryby Industry

0

5000

10000

15000

20000

25000

Heavy Industry Finance &Insurance

ProfessionalServices

Other

Industry Type

Fu

ll-t

ime

Eq

uiv

ale

nts

2005

2008

16%17%

47%

3%

33%

46%

3%

35%

Expected Changes in Total FTEs Expected Changes in Total FTEs by Industryby Industry

0

4

8

12

16

20

24

Heavy Industry Finance/Insurance ProfessionalServices

Other

Change in FTEs

% o

f Firm

s in

Eac

h In

dus

try

Increase No Change Decrease

57%

10%

33%

61%

11%

28% 18%

79%

40%20%

40%

4%

Changes in IT Staffing Levels Changes in IT Staffing Levels

In-house IT department staffing (IH)In-house IT department staffing (IH) Independent Contractors (IC)Independent Contractors (IC) Third Party Providers (3PP)Third Party Providers (3PP)

• How did staffing levels changed from How did staffing levels changed from 2002 to 2005?2002 to 2005?

• What are the projected changes from What are the projected changes from 2005 to 2008?2005 to 2008?

Majority of companies will add IT Majority of companies will add IT staff between 2005 and 2008staff between 2005 and 2008

42%

23%

35%

56%

19%25%

0%

10%

20%

30%

40%

50%

60%

INCREASE NO CHANGE DECREASE

% o

f O

rgan

izat

ion

s

2002-2005 2005-2008

Changes in IT Staffing Levels Changes in IT Staffing Levels 2005-2008 by Company Size2005-2008 by Company Size

51%47%

74%

19%24%

16%

30% 29%

11%

0%10%

20%30%

40%50%

60%70%

80%

Fortune Large SME

% o

f O

rgan

izat

ion

s


Number of in-house IT employees Number of in-house IT employees will decline between now and 2008will decline between now and 2008

29302

6746

1284

26935

6066

1448

0

5000

10000

15000

20000

25000

30000

35000

Fortune Large SME

Organization Size

Fu

ll-ti

me

Eq

uiv

ale

nts

2005

2008

FTE of Independent Contractors FTE of Independent Contractors Remains Stable from 2005 to 2008Remains Stable from 2005 to 2008

0

500

1000

1500

2000

2500

3000

Fortune Large SME

Organization Size

Fu

ll-t

ime E

qu

ivale

nts

2005

2008

59% 60%

40%38%

2%1%

FTE Staffing by 3PPs FTE Staffing by 3PPs will Increase from 2005-2008will Increase from 2005-2008

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Fortune Large SME

Organization Size

Fu

ll-t

ime E

qu

ivale

nts

2005

2008

85%

83%

13%

15%

2%1%

Changes in Third Party Providers Changes in Third Party Providers by Sourcing Location 2005-2008by Sourcing Location 2005-2008

0

500

1000

1500

2000

2500

3000

3500

4000

Domestic3PPdomestic

Domestic3PPoffshore

Foreign3PPdomestic

Foreign3PPoffshore

Domestic vs. Foreign 3PP Staff

Fu

ll-ti

me

Eq

uiv

ale

nts

2005

2008

Changes in Third Party Providers Changes in Third Party Providers by Size and Location 2005-2008by Size and Location 2005-2008

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2005 2008 2005 2008 2005 2008

Fu

ll-ti

me

Eq

uiv

ale

nts ForeignHQ/Off

shoreStaff

ForeignHQ/DomesticStaff

DomesticHQ/OffshoreStaff

Domestic/HQDomesticStaff

Fortune

Large

SME

Trends and ImplicationsTrends and Implications

Majority of companies will increase Majority of companies will increase their in-house IT staff 2005-2008their in-house IT staff 2005-2008

6 % projected decline of In-house 6 % projected decline of In-house staff across all companiesstaff across all companies

Demand for contractors stable at Demand for contractors stable at 10%10%

Demand for 3PPs is growingDemand for 3PPs is growing• Domestically and especially offshoreDomestically and especially offshore• Especially by Fortune 500 companiesEspecially by Fortune 500 companies


IT Workforce IT Workforce Shortages Shortages + = ?

Declining Declining enrollments enrollments in IT related in IT related majorsmajors

Increasing Increasing demand demand across all across all sectorssectors

Baby Baby boomer boomer retirementsretirements

+


Will shortage necessitate Will shortage necessitate movement toward movement toward moremore

global sourcing!global sourcing!

IT Workforce IT Workforce Shortages Shortages + = ?

Declining Declining enrollments enrollments in IT related in IT related majorsmajors

Demands Demands across all across all sectorssectors

Baby Baby boomer boomer retirementsretirements

+


More companies are hiring than notMore companies are hiring than not Demand is up across all industries Demand is up across all industries

and in organizations of all sizesand in organizations of all sizes Yet the number of job in our data Yet the number of job in our data

remained flatremained flat


More companies are hiring than notMore companies are hiring than not Demand is up across all industries and in Demand is up across all industries and in

organizations of all sizesorganizations of all sizes Yet the number of job in our data Yet the number of job in our data

remained flatremained flat

What is an IT worker? Do all IT What is an IT worker? Do all IT workers report to the CIO?workers report to the CIO?

Skills and CapabilitiesSkills and Capabilities

Critical to keep in-house?Critical to keep in-house? Provided by independent contractors?Provided by independent contractors? Provided by 3PP?Provided by 3PP?

Going away in 2008?Going away in 2008? Emerging as important in 2008?Emerging as important in 2008?

Looked for in entry-level hires?Looked for in entry-level hires? Looked for in mid-level hires?Looked for in mid-level hires?

Skills and CapabilitiesSkills and Capabilities TECHNICALTECHNICAL Systems AnalysisSystems Analysis Systems DesignSystems Design ProgrammingProgramming System TestingSystem Testing Database Design / ManagementDatabase Design / Management IT Architecture/StandardsIT Architecture/Standards Voice/Data TelecommunicationsVoice/Data Telecommunications Operating SystemsOperating Systems Server HostingServer Hosting SecuritySecurity Mainframe/Legacy Mainframe/Legacy OperationsOperations Continuity/Disaster RecoveryContinuity/Disaster Recovery Desktop Support/Help DeskDesktop Support/Help Desk

PROJECT MANAGEMENTPROJECT MANAGEMENT Project Planning, Budgeting and SchedulingProject Planning, Budgeting and Scheduling Project Risk ManagementProject Risk Management Project LeadershipProject Leadership NegotiationNegotiation User Relationship ManagementUser Relationship Management Working with Virtual TeamsWorking with Virtual Teams Working GloballyWorking Globally Capability Maturity Model Utilization Capability Maturity Model Utilization

BUSINESS DOMAINBUSINESS DOMAIN Industry KnowledgeIndustry Knowledge Company Specific KnowledgeCompany Specific Knowledge Functional Area Process KnowledgeFunctional Area Process Knowledge Business Process Design and Business Process Design and

ReengineeringReengineering Change Management/Organizational Change Management/Organizational

ReadinessReadiness Managing StakeholdersManaging Stakeholders CommunicationCommunication

SOURCINGSOURCING Sourcing StrategySourcing Strategy Third Party Provider SelectionThird Party Provider Selection Contracting and LegalContracting and Legal Managing 3Managing 3rdrd Party Provide Party Provide

IT ADMINISTRATIONIT ADMINISTRATION Financial ManagementFinancial Management Internal T HR ManagementInternal T HR Management IT GovernanceIT Governance

Top Skills Identified as Critical to Top Skills Identified as Critical to Keep In House 2005Keep In House 2005

76%66%69%

72%66% 65% 65% 64% 63% 59%

0%10%

20%30%

40%50%

60%70%

80%

Pro

jec

t

Pla

n/B

dg

t/S

ch

Fu

nc

t/P

roc

es

s

Kn

ow

led

ge

Co

mp

an

y

Kn

ow

led

ge

BP

De

sig

n/R

e-

Sy

ste

ms

An

aly

sis

In

du

str

y

Kn

ow

led

ge

Pro

jec

t

Le

ad

ers

hip

Pro

jec

t R

isk

Mn

gt

Sy

ste

ms

De

sig

n

Ch

an

ge

Mg

mt

% o

f re

sp

on

de

nts

Business Project Mgt Technical Sourcing IT Admin

Skills Least Identified as Skills Least Identified as Critical to Keep In-houseCritical to Keep In-house

23%24%25%27%27%28%30%30%

34%36%

0%5%

10%15%20%25%30%35%40%

% o

f re

sp

on

den

ts

Skills Most Provided by Skills Most Provided by Independent ContractorsIndependent Contractors

46%

27%23% 23%

17% 16% 14% 13% 13% 13%

0%5%

10%15%20%25%30%35%40%45%50%

% o

f re

sp

on

den

ts

Top Skills Provided by Top Skills Provided by Third-Party ProvidersThird-Party Providers

43%

31% 29% 27% 24% 22%18% 17%17% 17% 14% 14%

0%5%

10%15%20%25%30%35%40%45%50%

% o

f re

spo

nd

ents

In-House Skills Going Away in In-House Skills Going Away in 2008 because they are Automated, 2008 because they are Automated,

Obsolete or OutsourcedObsolete or Outsourced

7%7%7%7%7%8%

10%11%11%

12%

14%

0%2%4%6%8%

10%12%14%16%

Skills Emerging as Critical Skills Emerging as Critical for 2008for 2008

13%13%13%13%14%14%14%14%14%17%17%

18%23%

0%

5%

10%

15%

20%

25%

% o

f re

sp

on

den

ts


Emerging Skills for Fortune 500Emerging Skills for Fortune 500

20% 20%20%20%20%20%23%23%23%

28%28%

0%

5%

10%15%

20%

25%

30%

% o

f re

spo

nd

ents

(F

ort

un

e 50

0)


Emerging Skills for SMEsEmerging Skills for SMEs

27% 27%27%23%23%23%

18%18%18%18%18%18% 18%18%18%18%

0%

5%10%

15%

20%25%

30%

% o

f re

spo

nd

ents

(S

ME

)


Top Skills Critical to Top Skills Critical to Keep In-House in 2008Keep In-House in 2008

0

10

20

30

40

50

60

70

80

% o

f re

sp

on

de

nts



Top critical in-house skills 2005 & Top critical in-house skills 2005 & 2008 are all from three categories2008 are all from three categories• Business domain knowledgeBusiness domain knowledge• Project managementProject management• Client-facing technical skillsClient-facing technical skills

Top skills supplied by IC and 3PPs are Top skills supplied by IC and 3PPs are all in the Technical categoryall in the Technical category

Emerging skills differ by company sizeEmerging skills differ by company size


As the IT As the IT industry industry matures, Non-IT matures, Non-IT companies arecompanies are

More focused on leveraging technology for More focused on leveraging technology for business valuebusiness value

Looking to third party providers to deliver Looking to third party providers to deliver technical solutions and supporttechnical solutions and support


As the IT As the IT industry industry matures Non-IT matures Non-IT companies arecompanies are

More focused on leveraging technology for More focused on leveraging technology for business valuebusiness value

Looking to third party providers to deliver Looking to third party providers to deliver technical solutions and supporttechnical solutions and support

Do differences in skills emphasis Do differences in skills emphasis cyclical or structural changes for cyclical or structural changes for the IT workforce?the IT workforce?

Hiring at mid and entry-levelHiring at mid and entry-level

Number of hires in 2005?Number of hires in 2005? Type of entry level positions?Type of entry level positions? Preferred degree?Preferred degree? Desired skill?Desired skill?

Mid-Level Hiring in 2005 Mid-Level Hiring in 2005 by Organization Sizeby Organization Size

0%

10%

20%

30%

40%

None 1 to 2 3 to 5 6 to 10 11+

# of Positions

% o

f R

esp

on

den

ts

SME

Large

Fortune

Focal Mid-Level Positions: Focal Mid-Level Positions: Senior AnalystSenior Analyst

Project/Development ManagerProject/Development Manager

0%

10%

20%

30%

40%

50%

% o

f R

esp

on

den

ts

SME

Large

Fortune

Adequacy of Supply Adequacy of Supply by Mid Level Position by Mid Level Position

67%62%

20%

29%

50%

60%

75%

33%38%

80%

71%

50%

40%

25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes

No

Skills desired in mid-level hiresSkills desired in mid-level hires


0%

10%

20%

30%

40%

50%

60%

% o

f R

es

po

nd

en

ts

Mid-Level Position Preferred Type Mid-Level Position Preferred Type and Degree and Degree

0%

10%

20%

30%

40%

50%

60%

% o

f R

esp

on

den

ts

SME

Large

Fortune

Hiring at entry-levelHiring at entry-level

Number of hires in 2005?Number of hires in 2005? Type of entry level positions?Type of entry level positions? Desired skill?Desired skill? Preferred degree?Preferred degree?

Entry-Level Hiring in 2005 by Entry-Level Hiring in 2005 by Organization Size Organization Size

0%

10%

20%

30%

40%

None 1 to 2 3 to 5 6 to 10 11+

# of Positions

% o

f R

esp

on

den

ts

SME

Large

Fortune

Focal Entry-Level Positions Focal Entry-Level Positions are Programmer and Help Deskare Programmer and Help Desk

0%

10%

20%

30%

40%

% o

f R

esp

on

den

ts

SME

Large

Fortune

Adequate Supply of MostAdequate Supply of MostPosition was ReportedPosition was Reported

0%

20%

40%

60%

80%

100%

120%

% o

f R

esp

on

den

ts

Yes

No

Organizations look for technical Organizations look for technical skills in hiring at the entry-levelskills in hiring at the entry-level


48%44%

35% 33%29% 27% 27% 25% 23%

0%

10%

20%

30%

40%

50%

% o

f R

es

po

nd

en

ts

Skills most often missing in Skills most often missing in entry-level hiresentry-level hires

6% 6% 6% 6% 6%7%7%7%10%

13%

19%

0%

5%

10%

15%

20%

25%

% o

f re

sp

on

den

ts


Preferred degree for entry-levelPreferred degree for entry-level

0%

10%

20%

30%

40%

50%

60%

70%

80%

% o

f R

esp

on

den

ts

SME

Large

Fortune


Mid-level hires need project management Mid-level hires need project management and business skillsand business skills

Most in demand are senior systems Most in demand are senior systems analyst & project-development managersanalyst & project-development managers

Supply is inadequate for: Supply is inadequate for: • IT architects/DBAs IT architects/DBAs • Project/development managersProject/development managers

Technical and business skills are still Technical and business skills are still needed for entry-level positionsneeded for entry-level positions

Most often missing are business skillsMost often missing are business skills Supply is perceived to be adequateSupply is perceived to be adequate

Entry Level Skills Entry Level Skills ≠≠ Career Success Career Success

48%44%

35% 33%29% 27% 27% 25% 23%

0%

10%

20%

30%

40%

50%

% o

f R

esp

on

den

ts

0%

10%

20%

30%

40%

50%

60%

Project M anagement Business Domain Technical

% o

f R

es

po

nd

en

ts

76%66%69%

72%66% 65% 65% 64% 63% 59%

0%10%

20%30%

40%50%

60%70%

80%

Pro

jec

t

Pla

n/B

dg

t/S

ch

Fu

nc

t/P

roc

es

s

Kn

ow

led

ge

Co

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an

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Kn

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led

ge

BP

De

sig

n/R

e-

Sy

ste

ms

An

aly

sis

In

du

str

y

Kn

ow

led

ge

Pro

jec

t

Le

ad

ers

hip

Pro

jec

t R

isk

Mn

gt

Sy

ste

ms

De

sig

n

Ch

an

ge

Mg

mt

% o

f re

sp

on

de

nts

13%13%13%13%14%14%14%14%14%17%17%

18%23%

0%

5%

10%

15%

20%

25%

% o

f re

sp

on

den

ts


Skills critical to keep IH Emerging as important in 2008

Desired in entry-level hires Desired in mid-level hires


23%24%25%27%27%28%30%30%

34%36%

0%5%

10%15%20%25%30%35%40%

Sys

tem

Tes

ting

Dat

a W

areh

ousin

g

CM

M U

tiliza

tion

Con

tinuity

/Rec

overy

Ope

ratio

ns

Ope

ratin

g Sys

tem

s

Voice

/Dat

a Tele

com

Supp

ort/H

elpdesk

Mainf

ram

e/Le

gacy

Serve

r Hos

ting

% o

f re

spo

nd

ents

43%

31% 29% 27% 24% 22%18% 17%17% 17% 14% 14%

0%5%

10%15%20%25%30%35%40%45%50%

Pro

gram

ming

Sys

tem

Tes

ting

Supp

ort/H

elpdesk

Sys

tem

s Des

ign

Sys

tem

s Ana

lysis

Voice

/Dat

a Tele

com

DB D

esig

n/Mngt

Con

tinuity

/Rec

overy

Ope

ratio

ns

Serve

r Hos

ting

Ope

ratin

g Sys

tem

s

IT A

rch/S

tds

% o

f re

spo

nd

ents

7%7%7%7%7%8%

10%11%11%

12%

14%

0%2%4%6%8%

10%12%14%16%

Pro

gram

ming

Supp

ort/H

elpdesk

Ope

ratio

ns

Mainf

ram

e/Le

gacy

Voice

/Dat

a Tele

com

Serve

r Hos

ting

Con

tinuity

/Rec

overy

Ope

ratin

g Sys

tem

s

DB D

esig

n/Mngt

Sys

tem

Tes

ting

Sys

tem

s Ana

lysis

46%

27%23% 23%

17% 16% 14% 13% 13% 13%

0%5%

10%15%20%25%30%35%40%45%50%

Pro

gram

ming

Sys

tem

Tes

ting

Sys

tem

s Ana

lysis

Sys

tem

s Des

ign

DB D

esig

n/Mngt

Supp

ort/H

elpdesk

IT A

rch/S

tds

Con

tinuity

/Rec

overy

Serve

r Hos

ting

Voice

/Dat

a Tele

com

% o

f re

spo

nd

ents

Sourced from ICs Sourced from 3PPs

Going away Least identified as critical IH


+ = ?Less hiring Less hiring of entry of entry level in IT level in IT departmentdepartment

Sourcing Sourcing to 3PP for to 3PP for technical technical skillsskills

Demands Demands for PM and for PM and senior senior analyst analyst positionspositions

+Smaller Smaller pool from pool from which to which to develop develop tomorrow tomorrow PMs and Sr. PMs and Sr. analystsanalysts


Where will tomorrow’s PMs Where will tomorrow’s PMs and Sr. system analysts and Sr. system analysts come from?come from?

+ = ?Less hiring Less hiring of entry of entry level in IT level in IT departmentdepartment

Sourcing Sourcing to 3PP for to 3PP for technical technical skillsskills

Demands Demands for PM and for PM and senior senior analyst analyst positionspositions

+Smaller Smaller pool from pool from which to which to develop develop tomorrow tomorrow PMs and Sr. PMs and Sr. analystsanalysts

Some skills are just clearly Some skills are just clearly CORECORE to organizationsto organizations

User Relationship User Relationship ManagementManagement

NegotiationNegotiation Company Specific Company Specific

KnowledgeKnowledge Functional Area Process Functional Area Process

KnowledgeKnowledge Industry KnowledgeIndustry Knowledge Business Process Business Process

Design/Re-engineeringDesign/Re-engineering

Change Management/ Change Management/ ReadinessReadiness

Project Risk Project Risk ManagementManagement

Project Project Integration/Program Integration/Program ManagementManagement

Project LeadershipProject Leadership Project Plan/$/SchedProject Plan/$/Sched Managing Stakeholder Managing Stakeholder

ExpectationsExpectations

Other skills were clearly Other skills were clearly COMMODITIESCOMMODITIES

Continuity/Disaster recoveryContinuity/Disaster recovery Desktop Support/Helpdesk Desktop Support/Helpdesk

Mainframe/Legacy Mainframe/Legacy System TestingSystem Testing Operating SystemsOperating Systems OperationsOperations Server HostingServer Hosting Voice/Data Telecom Voice/Data Telecom

Other are Other are ESSENTIALESSENTIAL

Systems AnalysisSystems Analysis Systems DesignSystems Design Architecture/StandardsArchitecture/Standards

Others are Others are PREREQUISITPREREQUISIT, , meaning necessary, but not sufficientmeaning necessary, but not sufficient

ProgrammingProgramming System TestingSystem Testing Database Design/ManagementDatabase Design/Management Voice/Data TelecommunicationsVoice/Data Telecommunications

Some skills are Some skills are EMERGINGEMERGING

IT Governance IT Governance Managing 3rd party providers Managing 3rd party providers SecuritySecurity CommunicationCommunication


CoreCore competencies for IT departments is competencies for IT departments is business, PM and client facing technical business, PM and client facing technical skillsskills

Technical skills are Technical skills are CommoditiesCommodities Skills in analysis, design and architecture Skills in analysis, design and architecture

are are EssentialEssential in all rolesin all roles Technical skills are still a Technical skills are still a PrerequisitePrerequisite

for entry into the fieldfor entry into the field

ImplicationsImplications Decline in IT enrolments Decline in IT enrolments Largest growth in outsourcing is overseasLargest growth in outsourcing is overseas Retirements of baby boomers has just Retirements of baby boomers has just

begun begun

Where will IT workforce of Where will IT workforce of tomorrow come from?tomorrow come from?


Limits to growth in the current offshore trendLimits to growth in the current offshore trend• Hidden costsHidden costs• Business risksBusiness risks• Security Security • Rising labor costsRising labor costs• LegislationLegislation

Is the future really outsourcing, or Is the future really outsourcing, or is the move toward co-sourcing?is the move toward co-sourcing?

ImplicationsImplications

Diverging sets of core skills and Diverging sets of core skills and competencies in IT and non-IT competencies in IT and non-IT organizationsorganizations

Business skills, PM and client facing Business skills, PM and client facing technical systems skills in-housetechnical systems skills in-house

Technical skills for independent Technical skills for independent contractors and third party providerscontractors and third party providers

How does this effect career paths?How does this effect career paths?

Next Steps: Future ResearchNext Steps: Future Research

Replication of study with IT companiesReplication of study with IT companies• Software companiesSoftware companies• Hardware providersHardware providers• IT Service providersIT Service providers• CommunicationsCommunications

Next Steps: Future ResearchNext Steps: Future Research

Systems/Business Analysts Systems/Business Analysts

Project Managers Project Managers

Relationship ManagersRelationship Managers

Are technical skills a prerequisites?Are technical skills a prerequisites? What do successful career paths look like? What do successful career paths look like? Are career paths and incentives well defined?Are career paths and incentives well defined? What challenges and motivates these What challenges and motivates these

workers?workers?

IT Workforce Development: IT Workforce Development: Trends and ImplicationsTrends and Implications

Questions?Questions?Comments?Comments?

Concerns?Concerns?

Expected Change in Total FTEs Expected Change in Total FTEs by Sourcing Optionby Sourcing Option

0

10

20

30

40

50

In house IndependentContractor

Third partyProvider

% o

f org

aniz

atio

ns


50%

15%

35%29%

49%

22%

54%

35%

11%

Reason for using an Reason for using an Independent ContractorIndependent Contractor

0% 10% 20% 30% 40% 50% 60%

Provide specialized skills

Less expensive

Can't develop/retain in house

Provides flexible staffing

As needed-project based

% of Respondents

Fortune

Large

SME

Reason for using a Reason for using a third party providerthird party provider

0% 5% 10% 15% 20% 25% 30% 35% 40%

Provide specialized skills

Less expensive

Can't develop/retain in house

Provides flexible staffing

As needed-project based

% of Respondents

Fortune

Large

SME

Skills ClassificationsSkills Classifications

For each skillFor each skill rank in rank in each of 7 each of 7 questionsquestions

1.

1.

Cri

tica

l to

keep in

Cri

tica

l to

keep in

house

?house

?

2.

2.

Pro

vid

ed b

y

Pro

vid

ed b

y

independ

ent

independ

ent

contr

act

ors

?co

ntr

act

ors

?

3.

3.

Pro

vid

ed b

y t

hir

d

Pro

vid

ed b

y t

hir

d

part

y p

rovid

ers

?part

y p

rovid

ers

?

4.

4.

Goin

g a

way?

Goin

g a

way?

5.

5.

Em

erg

ing a

s Em

erg

ing a

s im

port

ant?

import

ant?

6.

6.

Looke

d f

or

in e

ntr

y-

Looke

d f

or

in e

ntr

y-

level?

level?

7.

7.

Looke

d f

or

in m

id-

Looke

d f

or

in m

id-

level?

level?

Desktop support/ Helpdesk

36 5 3 2 37 33 30 RANK

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