IT Workforce: Balancing Client and Provider Needs

© ITWF Team

Christine V. Bullen, Ph.D.Christine V. Bullen, Ph.D.Stevens Institute of TechnologyStevens Institute of Technology

© ITWF Team

Motivation for Studying the IT WorkforceMotivation for Studying the IT Workforce

Consistent top concern of IT

management

Changing times Lowered university IT enrollments

Pending baby boomer retirements

Migrating skills

Clients increased use of providers -

2005 study

© ITWF Team

TECHNICALTECHNICAL•Systems AnalysisSystems Analysis•Systems DesignSystems Design•ProgrammingProgramming•System TestingSystem Testing•Database Database Design/MgtDesign/Mgt•IT Architecture/StdsIT Architecture/Stds•Voice/Data Voice/Data TelecommTelecomm•Operating SystemsOperating Systems•Server HostingServer Hosting•SecuritySecurity•Mainframe/LegacyMainframe/Legacy•OperationsOperations•Continuity/Disaster Continuity/Disaster RecoveryRecovery•Desktop Desktop Support/Help DeskSupport/Help Desk

BUSINESS BUSINESS DOMAINDOMAIN•Industry KnowledgeIndustry Knowledge•Company Specific Company Specific KnowledgeKnowledge•Functional Area Functional Area Process KnowledgeProcess Knowledge•Business Process Business Process Design/ReengingDesign/Reenging•Change Mngment/ Change Mngment/ Orgl ReadinessOrgl Readiness•Managing Managing Stakeholders Stakeholders •CommunicationCommunication

PROJECT PROJECT MANAGEMENTMANAGEMENT•Project Planning, Project Planning, Budgeting, Budgeting, SchedulingScheduling•Project Risk Project Risk ManagementManagement•Negotiation Negotiation •Project LeadershipProject Leadership•User Relationship User Relationship ManagementManagement•Working with Working with Virtual TeamsVirtual Teams•Working GloballyWorking Globally•Capability Maturity Capability Maturity Model UtilizationModel Utilization

SOURCINGSOURCING•Sourcing StrategySourcing Strategy•Third Party Provider Third Party Provider SelectionSelection•Contracting and Contracting and LegalLegal•Managing 3rd Party Managing 3rd Party ProvidersProviders•Managing Customer Managing Customer RelationshipsRelationships•Customer SelectionCustomer Selection•Go-to-market Go-to-market StrategyStrategy

© ITWF Team

Phase 1 – Client Firms - 77Phase 1 – Client Firms - 77IndustryIndustry ShareShare

Professional ServicesProfessional Services 21%21%

Financial ServicesFinancial Services 21%21%

Heavy IndustryHeavy Industry 26%26%

Other ServicesOther Services 33%33%

RevenueRevenue

Fortune 500+ Fortune 500+ (over $3 billion)(over $3 billion) 41%41%

Large Large ($500 million – $3 billion)($500 million – $3 billion) 22%22%

SME SME (less than $500milion)(less than $500milion) 37%37%

© ITWF Team

Client Critical Capabilities

Functional Process KnowledgeFunctional Process Knowledge

Project Planning/Scheduling/BudgetingProject Planning/Scheduling/Budgeting

Business Process Redesign/reengineeringBusiness Process Redesign/reengineering

Industry KnowledgeIndustry Knowledge

Company KnowledgeCompany Knowledge

Project LeadershipProject Leadership

Systems AnalysisSystems Analysis

Managing Stakeholder ExpectationsManaging Stakeholder Expectations

User Relationship ManagementUser Relationship Management

Project Risk ManagementProject Risk Management

Systems DesignSystems Design

Change ManagementChange Management

Project IntegrationProject Integration

Capabilities Clients Source

ProgrammingProgramming

System TestingSystem Testing

Desktop Support/HelpdeskDesktop Support/Helpdesk



TelecommunicationsTelecommunications

Database DesignDatabase Design

Server HostingServer Hosting

OperationsOperations

Continuity/Disaster RecoveryContinuity/Disaster Recovery

IT Architecture and StandardsIT Architecture and Standards

Operating SystemsOperating Systems

Technical = orange Business Domain = blue Project Management = green

Phase one – Clients only – Critical TodayPhase one – Clients only – Critical Today

© ITWF Team

Mission Change for ITMission Change for IT

FromFromDelivering technology-based solutionsDelivering technology-based solutions

ToToManaging the process of delivering Managing the process of delivering

solutionssolutions

© ITWF Team

Phase 2 – Provider FirmsPhase 2 – Provider FirmsTotal in sample = 126

What capabilities do IT providers seek?Not internally, but rather to serve their

clientsLooking at the “other side” of the questionLooking at staffing and career patterns in the

providers around the world

How do provider responses compare to client responses?

© ITWF Team

Demographics of ProvidersDemographics of Providers

Geographical DistributionGeographical DistributionNorth & South AmericaNorth & South America 66%66%W. Europe, E. Europe/CISW. Europe, E. Europe/CIS 17%17%Australia, IndiaAustralia, India 16%16%

RevenueRevenueF500 >$3BF500 >$3B 14%14%Large $500M-$3BLarge $500M-$3B 15%15%SME <$500MSME <$500M 71%71%

© ITWF Team

Functional KnowledgeFunctional Knowledge

BPR/ReengineeringBPR/Reengineering



IT Architecture/StandardsIT Architecture/Standards

IT GovernanceIT Governance

Managing 3PPsManaging 3PPs

SecuritySecurity

User Relationship Mgmt.User Relationship Mgmt.


CommunicationCommunication

Managing Stakeholder Managing Stakeholder ExpectationsExpectations

Sourcing StrategySourcing Strategy

Working GloballyWorking Globally

Virtual TeamsVirtual Teams








SecuritySecurity

Client Emerging SkillsClient Emerging Skills Provider Emerging SkillsProvider Emerging Skills

© ITWF Team

Match between Client and Provider Match between Client and Provider Emerging CapabilitiesEmerging Capabilities

Business DomainBusiness Domain Industry Knowledge BPR Change Management Communication

TechnicalTechnical IT Architecture & Standards Security

Project ManagementProject Management No exact matches

SourcingSourcing Managing 3PPs

© ITWF Team

Client Declining SkillsClient Declining Skills Provider Declining SkillsProvider Declining Skills


Desktop Support/Help Desktop Support/Help DeskDesk


Mainframe/LegacyMainframe/Legacy

Voice/Data TelecommVoice/Data Telecomm


Continuity/RecoveryContinuity/Recovery

DB Design/ManagementDB Design/Management


Systems TestingSystems Testing


Mainframe/LegacyMainframe/Legacy


Desktop Support/Help Desktop Support/Help DeskDesk




CMM UtilizationCMM Utilization

Voice/Data TelecommVoice/Data Telecomm


Contracting & LegalContracting & Legal

© ITWF Team

Client Critical SkillsClient Critical Skills Provider Critical SkillsProvider Critical Skills

Project PlanningProject Planning














Project PlanningProject Planning

Customer Relationship Customer Relationship Mgmt.Mgmt.






Future Critical – 3 Years Hence

© ITWF Team

Hiring PracticesHiring Practices

What is the marketplace demanding in our graduates?

Entry Level data for both clients and providers

Mid-level data for both clients and providers

Conclusions regarding requisite skills

© ITWF Team

Client Entry Level Client Entry Level Provider Entry Level






Support/Help DeskSupport/Help Desk

TelecommunicationTelecommunication


Database DesignDatabase Design



Functional Process Functional Process KnowledgeKnowledge






Project Plan/Bdgt/SchedProject Plan/Bdgt/Sched


Working w/Virtual TeamsWorking w/Virtual Teams

Support/Help DeskSupport/Help Desk


Business Process Business Process Reengineering Reengineering

© ITWF Team

Entry-Level ObservationsEntry-Level Observations

Clients rank technical skills high in entry-level

hires

Softer skills are also emerging as important

SPs show a more balanced approach

Seek technical, project management and industry

knowledge

Other than the Project Management Skills, both

clients and SPs are seeking a mixture of

technical and business domain skills

© ITWF Team

Client Mid LevelClient Mid Level







Communication Communication




NegotiationsNegotiations

Business Process Business Process Reengineering Reengineering

Provider Mid LevelProvider Mid Level








NegotiationsNegotiations


Project IntegrationProject Integration

Working w/Virtual TeamsWorking w/Virtual Teams



© ITWF Team

Mid-Level ObservationsMid-Level ObservationsClients and SPs much closer in requirements

Both showing need for project management

skills

Very different from entry-level

More closely aligned with critical skills

Important question is how do entry-level IT

workers develop mid-level skills

© ITWF Team

Skill Category Analysis Skill Category Analysis Developed from client data

Results six categories to date

Next step is to validate categories with

vendor data

Categories begin to provide a framework of

REQUISITE SKILLS for IT Workers

Developed using thematic analysis

Examined skill rankings across questions

© ITWF Team

Non-Technical Skills Critical in-house Critical in-house Sought in new hires Sought in new hires SourcedSourced

Project Management Skills

Project Leadership

Project Planning/Budgeting/Scheduling Project Integration/Program Management Project Risk Management

Problem/Opportunity Skills

Company Specific Knowledge Functional Area Process Knowledge Industry Knowledge Business Process Design/Re-engineering Change Management/Organizational Readiness

Relationship Skills

User Relationship Management Communications Negotiation Managing Stakeholder Expectations

© ITWF Team

Technical Skills Critical in-house Critical in-house Sought in new Sought in new hires hires

SourcedSourced

Foundational Skills

Programming Entry LevelEntry Level System Testing Entry LevelEntry Level Desktop Support/Helpdesk Entry LevelEntry Level Database Design/Management Entry LevelEntry Level Operating Systems Entry LevelEntry Level Voice/Data Telecommunications Entry LevelEntry Level

Operational Skills

Operations Service Hosting Continuity/Disaster Recovery Mainframe/Legacy

Essential Skills

Systems Analysis Systems Design IT Architecture/Standards

© ITWF Team

Technical SkillsFoundational Skills

Programming

System Testing

Desktop Support/Helpdesk

Database Design/Management

Operating Systems

Voice/Data Telecommunications

Operational Skills

Operations

Service Hosting

Continuity/Disaster Recovery

Mainframe/Legacy

Essential Skills

Systems Analysis

Systems Design

IT Architecture/Standards

Non-Technical SkillsProject Management Skills

Project Leadership

Project Planning/Budgeting/Scheduling

Project Integration/Program Management

Project Risk Management

Problem/Opportunity Skills

Company Specific Knowledge

Functional Area Process Knowledge

Industry Knowledge

Business Process Design/Re-engineering

Change Management/Organizational Readiness

Relationship Skills

User Relationship Management

Communications

Negotiation

Managing Stakeholder Expectations

© ITWF Team

IT Professionals Require a Requisite Set of SkillsIT Professionals Require a Requisite Set of Skills

All six categories are important to an IT

professional’s success

Professionals may choose to focus on a

particular category or group of categories

Need some competency in all six if they are

to grow in their career

Skills categories are interdependent

Not mutually exclusive or exhaustive

© ITWF Team

Missing Entry Level SkillsMissing Entry Level Skills



NegotiationNegotiation





User Relationship User Relationship ManagementManagement


Process KnowledgeProcess Knowledge

Managing Stakeholder Managing Stakeholder ExpectationsExpectations

5 are business domain4 are project mgmt

© ITWF Team

24IBM “Skills for the 21st Century”

© ITWF Team

Implications for Curriculum and HiringImplications for Curriculum and Hiring Marketplace – both clients and providers – demanding new

patterns of capabilities Universities should respond with curriculum adjustments

T-shaped people – 2 versions Deep technical and broad client-facing skills (Developers and

Specialists)

Deep client-facing skills and broad technical ones (Analysts and

Managers)

Need for client-facing skills is increasing especially in high

wage areas Project management

Communication

Business domain

© ITWF Team

How should firms respond?How should firms respond?

Clarify career paths for IT Clarify career paths for IT professionalsprofessionals

© ITWF Team

Overall Employment - 2Q2008Overall Employment - 2Q2008 Yearly

Occupation Employed Increase

Computer/IS Managers 488,000 9.9% Computer Scientists/Systems Analysts 848,500 13.4% Computer Programmers 528,300 -3.6% Computer Software Engineers 969,500 9.9% Computer Support Specialists 385,500 15.9% Database Administrators 98,000 -3.9%Network/Systems Administrators 230,800 21.4% Network Systems/DC Analysts 407,300 9.3%

Source: BLS, Eric Chabrow, CIO Insight

© ITWF Team

How Are Career Paths Defined for our young How Are Career Paths Defined for our young professionals?professionals?

A plethora of pathsTechnical

Computer science Systems Development Infrastructure Help Desk

Managerial Project Management Systems Analysis Requirements Analysis

Confusion!

© ITWF Team

What Education is Valuable in the Entry-Level What Education is Valuable in the Entry-Level Hiring Process?Hiring Process?

Computer Science undergraduate degreeIT undergraduate degreeMath undergraduate degreeMusicLiberal Arts…

More confusion!

© ITWF Team

What is the purpose of a career path?What is the purpose of a career path?

Laying out a logical progression for increasing

skills that are valuable to the organization

Providing growth opportunities for individuals

Making career opportunities visible to

employees

Why is this an issue in IT?

© ITWF Team

How should firms respond?How should firms respond?Define career paths for ITDefine career paths for IT

Create alternate career paths Entry Points examples

QA/Testing entry point for analysts Help Desk/Operations entry point for managers Programmers entry point for developers

Job rotation through functional areas

Recruit from multiple degreesRecruit from multiple degrees CS predominance is not warranted given skills mixBusiness school IS/IT degrees provide the T-shaped person

skills

© ITWF Team

Future Directions and IssuesFuture Directions and IssuesContinue data collection on a regular

basis to establish longitudinal data set

Examine the impact of the financial crisis

Work with industry to design career

pathsInclude salary implicationsMap with expectations of Generation ZAnticipate retention issues

© ITWF Team

What is the Future for the IT Professional?What is the Future for the IT Professional?

Globally Integrated Organizations

The T-Shaped Person – both versions

IT is still viable & valuable option for

careers

© ITWF Team

Christine Bullen, Stevens Institute of TechnologyKeith Frampton, The Marlo Group

Kevin Gallagher, Northern Kentucky UniversityTim Goles, Texas A&M International University

Steven Hawks, University of Wisconsin - ParksideKate Kaiser, Marquette University

Judith Simon, University of MemphisCynthia Beath, University of Texas - Austin

Documents

IT Workforce: Balancing Client and Provider Needs