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Top Myths about Future Employment in IT

Top Myths about Future Employment in IT. Why We are Here. The understanding of simple economic principles has sent a wake-up call to the current rank of IT executives and strategic suppliers. Demand and supply forecasts for the Information Technology labor force are out of balance!! .

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Top Myths about Future Employment in IT

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  1. Top Myths about Future Employment in IT

  2. Why We are Here The understanding of simple economic principles has sent a wake-up call to the current rank of IT executives and strategic suppliers. Demand and supply forecasts for the Information Technology labor force are out of balance!!

  3. The Demand Picture The Labor Dept. forecasts that “computer scientist'' jobs, which include programming, will increase by 40%, from 2.5 million in 2002 to 3.5 million in 2012.

  4. The Supply Colleges aren't keeping up with demand. A 2005 survey of freshmen showed that just 1.1% planned to major in computer science, down from 3.7% in 2000. Business Week

  5. Myth 1 There are no IT jobs.

  6. Reality 2006 Top “10” IT Management Concerns 1. IT And Business Alignment 2. Attracting, Developing and Retaining IT Professionals 3. Security and Privacy 4. IT Strategic Planning 5. Project Management Capability 6. Introducing Rapid Business Solutions 7. Speed and Agility 8. True Return on Individual IT Investments 9. Measuring The Value of IT Investments SIM 2006 Survey 10. IT Governance

  7. Forecast

  8. Myth 2 There will be no IT jobs when I graduate.

  9. Reality Four of the fastest growing occupations in the US between 2002 and 2012 for those with Bachelors Degrees will be IT-related. (BLS Occupational Handbook, 2004-05).

  10. Myth 3 IT Salaries are low due to cheaper overseas labor.

  11. Reality – IT Industry Salaries are Relatively High Salary Range (000) Source: US Bureau of Labor Statistics, Occupational Outlook Handbook, 2005

  12. Myth 4 All IT-Related Jobs Are Getting Sourced Offshore.

  13. Reality – Undergraduate Starting Salaries for IT-Related Fields are some of the Highest Reality – The Flow of Funds Percent of IT Budget Allocated For OffshoreOutsourcing 2006 Average

  14. Multiple hidden costs Initial Migration / Transition Layoffs Cultural Barriers Ramping-up Operations Managing the Contract and Relationship Loss of Control Intellectual Property Issues Reality – Not So Simple Security Issues • Theft of Intellectual Property • Theft of Sensitive Data • Background Checks • Political Instability • Terrorist Activities

  15. Some Jobs Will Go Overseas • Some basic jobs (e.g. some programming, help desk) may go overseas, but highly skilled jobs and jobs that relate to a company’s core competencies or products will stay. • Jobs that require close contact with the business will also stay. • The labor market in India is significantly tightening • Salaries are rising (12-15%/yr) • Quality technology grads are in increasingly short supply • Turnover grows as an issue (CIO Magazine)

  16. Myth 5 IT-Related Educational Degrees are Worth Less

  17. …Salaries May Go Even Higher If current trends continue (i.e. decreased enrollment, significant job growth), there will soon be a shortfall of adequately skilled IT labor. In addition, BLS data indicates that a minimum of 10% of existing US IT staffs who are baby-boomers will be retiring in the next 5-10 years. Both will add to the upward salary pressures.

  18. Built in Growth Potential • Employment of computer and information systems managers is expected to grow faster than the average for all occupations through the year 2014. Technological advancements will boost the employment of computer-related workers; as a result, the demand for managers to direct these workers also will increase. In addition, job openings will result from the need to replace managers who retire or move into other occupations. • Opportunities for obtaining a management position will be best for those with computer-related work experience; an MBA with technology as a core component; or a management information systems degree; and strong communication and administrative skills. • www.BLS.GOV August 4, 2006

  19. The Only Constant is Change IT Job Profile

  20. But the world is changing…. Information Technology will continue to play a key role. Research, suggest, however, that new skills are being sought by the business community. Those skills change the focus of the IT marketplace just a bit….for example:

  21. 1. Web Services 2. Business Intelligence 3. Security Technologies 4. Business Process Management 4. Customer Portals 6. System Integration Top 6 Application & Technology Developments 2006 SIM 2006 Survey

  22. Top 10 Important Skills Seeking in Entry Level Employees 2006 • Communication • Functional Area Knowledge • Systems Analysis • User Relationship Management • Systems Design • IT Architecture/Standards • Managing Expectations • Industry Knowledge • Business Process Design/Re-engineering • Project Plan/Budget/Schedule SIM 2006 Survey

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