Concurrent Session: Riding the IT Staffing · March 18‐21, 2014 | Hilton San Diego Bayfront Labor Supply for IT Professionals Remains Tight U.S. Computer Sience Degrees Awarded:

March 18‐21, 2014 | Hilton San Diego Bayfront

Concurrent Session: Strategy & OpportunitiesRiding the IT Staffing Growth Wave

Moderator: Sona Sharma, Senior Research Analyst,Staffing Industry Analysts

Panelists: Mahfuz Ahmed, CEO, Digital Intelligence Systems LLC Tiffany Crenshaw, President & CEO, Intellect Resources Inc. Kevin Horner, President & CEO, Mastech Inc. Gary Zander, President, Project One Inc.

THUR, MAR 20 11:45 AM AQUA CD

Sponsored by:


Market Size for IT StaffingU.S. Temp. Staffing Revenue‐ IT (1997‐2014P)

Source: Staffing Industry Analysts, © Crain Communications 2013

14.5

17.819.8

21.5

18.7

14.814.315.8

17.419.0

20.519.8

15.817.9

20.622.7

24.225.9

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013P

2014P


Growth Trends in IT StaffingChange in U.S. IT staffing market size, 1998‐2014

7% 7% 7%

‐9%‐3%

4%

14%

7%3%

‐4%‐8%

‐25%

19%13%

8% 5%

23%

11%9%

‐13%

‐21%

‐4%

11% 10% 10% 8%

‐4%

‐20%

13% 15%10%

7% 7%



IT Employment Growth Outpacing National Employment Growth

‐5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Total Employment IT Employment



Employment Growth Steady In Industries That Purchase IT Staffing


‐5%

‐4%

‐3%

‐2%

‐1%

0%

1%

2%

3%

2007 2008 2009 2010 2011 2012 2013

Weighted average year‐over‐year change in employment for industries served by IT staffing

‐8%

‐6%

‐4%

‐2%

0%

2%

4%

6%

2007 2008 2009 2010 2011 2012 2013

Tech/Telecom Energy/Chemical

Financial Services Government


Labor Supply for IT Professionals Remains Tight

U.S. Computer Sience Degrees Awarded: Actual and Projected, 1996‐2017*

0

5,000

10,000

15,000

20,000

25,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1966 1976 1986 1996 2006 2016

Num

ber o

f Und

ergraduates w

ith Declared CS/CE

Majors, Adjusted Fo

rward 4 Acad

emic Years

Num

ber o

f CS Und

ergrad

Degrees Awarded in U.S.

Computer Science Undergraduate Degrees Awarded



Unemployment Trends For IT‐Related Occupations

(A) Median

4Q11‐3Q12

(B) Median

4Q12‐3Q13Difference (A vs B)

Employment (3Q13) (x1,000)

Computer and mathematical occupations 3.9% 3.5% ‐0.4% 3,949Software developers, applications and systems software 3.1% 2.3% ‐0.7% 1,088

Computer systems analysts 3.4% 3.5% 0.0% 559

Computer support specialists 6.7% 5.7% ‐1.0% 520

Computer programmers 4.0% 4.6% 0.6% 516Network and computer systems administrators 5.1% 2.5% ‐2.0% 203

Web developers 4.0% 2.7% ‐0.5% 192

Computer network architects 1.7% 1.8% 0.1% 127

Operations research analysts 1.8% 2.8% ‐0.8% 119

Database administrators 4.2% 3.2% ‐1.4% 101

Unemployment Rates by Occupation (%)

Source: Staffing Industry Analysts and U.S. Bureau of Labor Statistics

March 18‐21, 2014 | Hilton San Diego Bayfront©2013 by Crain Communications Inc. All rights reserved.

Skills in Demand

Among buyers whoprimarily bought…

…these were their biggest challenges

Information technology

Java (8), SAP (5), mobile/app development (4), business intelligence (3), business analysts/experience (5), IT security (6), TIBCO (2), SharePoint, .NET, gaming, data integration, EHR, ERP, LISA QA, guidewire, AS400, Python, Ruby on Rails, Groovy/Grails, Oracle, telecom, UI/UX



Staffing Segment Revenue Growth (2014‐2022)

27%

29%

32%

42%

42%

42%

45%

48%

51%

56%

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

Legal

Office/Clerical

Clinical/Scientific

Engineering/Design

Industrial

Finance/Accounting

Marketing/Creative

Education/Library

Information Technology

Healthcare

Long‐Term Outlook for IT Staffing



So, How Are You Riding This Wave?


Digital Intelligence Systems LLC $320 million global IT staffing firm; ranked No. 27 on SIA’s 2013 Fastest‐

Growing Staffing Firms list

Point of differentiation: ERP and custom application upgrades

Secret sauce: ‐‐ Focus on the business side‐‐ Educating clients on the value proposition‐‐ Sales accountability

Key opportunities‐‐ Bundling staffing in SOW format with PM oversight ‐‐ Have a managed services offering

Key challenges‐‐ Finding the right sales talent ‐‐MSP/VMS


Ranked No. 1 on SIA’s 2013 Fastest‐Growing Staffing Firms list with 126% growth from 2008‐2012

Point of differentiation: Focus on Health Information Technology

Secret sauce: Four different models to serve customers‐‐ Traditional direct hire‐‐ Deliverables‐based consulting‐‐ Staff augmentation‐‐ Out‐of‐the‐box creative services

Key opportunities & challenges‐‐ Opportunities: Big data and a blossoming international market‐‐ Challenges: Recruiting qualified candidates


$100 million plus publicly traded IT staffing firm growing at 2.5x the industry growth rate.

Point of differentiation: Recruiting centric business model; Trusted talent partner delivering the right talent at the speed of our customers’ business.

Secret sauce: ‐‐ High‐volume, low cost centralized model‐‐ Financial strength and transparency‐‐ Up to 4x as many recruiters as our peers building and maintaining relationships

Key opportunities and challenges:‐‐WE LOVE MSP


25 year‐old privately held IT staffing firm

Point of differentiation: Specialization in digital media & entertainment

Secret sauce: ‐‐ Focus on highly skilled/high margin business‐‐ Emphasis on high performance recruiting & quality candidates‐‐ Serve as a source of industry/market information‐‐ Create “ambassadors” for Project One – candidates & clients‐‐ Service national clients sans multiple offices nationwide

Key opportunities and challenges‐‐ Opportunities: Expand into business & creative; new client growth‐‐ Challenges: Internal hiring & continued margin pressures

March 18‐21, 2014 | Hilton San Diego Bayfront©2013 by Crain Communications Inc. All rights reserved.

What’s Driving Growth?


Documents

Concurrent Session: Riding the IT Staffing · March 18‐21, 2014 | Hilton San Diego Bayfront Labor Supply for IT Professionals Remains Tight U.S. Computer Sience Degrees Awarded: