CIS 310 Management Information Systems The IT Workforce

1. CIS 310 Management Information SystemsThe IT Workforce

2. Everyone’s an IT Worker • Computing is ubiquitous. • Every job will require some use or understanding of computers. • The key to success will be in understanding: • what you need • how to get it • how to intelligently interpret the results • It’s a complex world of data and most people do not understand it.

3. IT Workforce • .Bomb (2002) – IT stocks plummeted and there were lots of IT layoffs. • Outsourcing (2004) – Panic that all IT jobs would be overseas. (Help desk and programming) • Great recession (2009) – Sub-prime Mortgage Crisis. IT jobs are a little more resilient than others.

4. Technology as Job Killer • Banks – How many tellers do you need to run a bank? • “Facebook, LinkedIn and Twitter together have less than 6,500 employees.” (Forbes, 2013) • Fears of technology and job loss have existed for years. People have a reason to worry. • However, tech is a job engine too. Many jobs exists that we didn’t have before.

5. Technology as a Job Creator • Cool ‘Tech’ Jobs, 5 Fast Growing Careers that Pay Well, David Schepp, AOL, 6/1/12. • Social Media Manager - $68,500, 56% more listings for this job title than last year. • Data Scientist - $78,500, 82% growth in job listings • Mobile App Developer - - $88,000, 60% growth in job listings • Cloud Architect - $100,000, 92% growth in job listings • Search Engine Specialist – $65,000, 15%

6. Skills to Help Future Workers Administrative Assistant needed for busy Midtown office. Hours are Monday through Friday, nine to five. Job duties include: filing, copying, answering phones, sending e-mails, greeting clients, scheduling appointments. Previous experience in an office setting preferred, but will train the right candidate. This is a full-time position with health benefits. Please e-mail résumé if interested. Compensation: $12-$13 per hour. • Network • LinkedIn • Professional Organizations • Personal Contacts • Keep Learning/ Be Flexible • Embrace New Technology • Work on Verbal and Written Communication

7. End • Who it the best teacher you’ll ever have? • How do you stay current in your field? • Does doing an internship help with you with finding a job? You are. You have access to many resources and you should keep learning new things. Professional meetings, trade magazines, on the job training (OJT). Of course. It does look good on your resume. Also, an estimated 69% of companies hire their interns.

8. CIS 310 Management Information SystemsSourcing

9. The Ginea Pig Diaries, A.J. Jacobs • “My Outsourced Life” • eMail • Fighting with the wife • Bedtime stories • People seeking publishing opportunities

10. Outsourcing • Outsourcing: When a company hires out work that they would normally do themselves. • Multinationals are not traditional outsourcers. • Apple’s manufacturing is outsourced to China.

11. Types of Sourcing • In-sourcing – work done ‘in-house’ by the company itself. • Out-sourcing – hiring a company external to yours to perform the development or service • Off shoring • On Shore - in your own country • Near Shore – close to your country • Far Shore – far away

12. SourcingLine.com (Top Outsourcing Countries)

13. When to Outsource or Offshore • Cost savings. • Need for an expertise that you don’t have - accessible, trained labor force that you don’t have – shorter time to market. • Free up resources internally, focus on key business area and outsource other things. • Tax Avoidance • Firms get a tax credit for taxes they pay in other countries • Tax rates in other countries are lower (Ireland is 12.5% compared to US 39.5%) (eHow, Roberts)

14. What to Outsource or Offshore • Call Center • Data Entry • Software Development • Engineering Services • Healthcare Services • Financial Services • Research and Analysis

15. Outsourcing Decision Matrix Low High Form a Strategic Alliance Retain Strategic Importance Eliminate Outsource Low High Contribution to Operational Performance

16. Problems with Outsourcing • Contract management • Switching costs • Not supported by insourced employees • Less control over quality • Communication • Complexity = Longer Delivery Times • Threat to competitive advantage • Loss of confidentiality

17. Counterwave Outsourcing • Counterwave-Outsourcing - Bring back work that you had previously outsourced • Supply chains were too complex to unbundle. • Advancements in tech eliminated need for outsourced jobs. • Dissatisfaction with quality, communication. • Deloitte Consulting survey (2005) – ¼ of the firms with outsourcing strategies reversed. The Economist, 1/19/13

18. Green Sourcing • Green sourcing reduces these costs by emphasizing local sources for products. • Sustainable procurement & Sustainable supply chain. Using local goods to reduce need for shipping and delivery. • Cloud Computing can be green sourcing. • Creates positive reputation for business.

19. End • What country has the highest rating as an outsourcing supplier? • Name 3 reasons to adopt an outsourcing strategy. • What is the primary reason you might not outsource? India at 7.1. Indonesia is the second country at 6.7. Cost savings, gaining expertise, flexibility. Loss of strategic advantage.

20. References • Joel Kotkin, The New Places that America’s Tech Future is Taking Place, Forbes, 1/10/2013. • David Schepp, Cool ‘Tech’ Jobs, 5 Fast Growing Careers that Pay Well, AOL, 6/1/12. • Eric Auld, Craigslist Experiment, 7/23/12. • AJ Jacobs, The Guinea Pig Diaries, Simon & Schuster, 2009. • Top Outsourcing Countries, SourcingLIne.com, 7/20/12. • Edward Yourdon, Death March, Pearson, 2004. • Wikipedia, Offshoring. • The Economist, Here, there and everywhere, 1/19/13 • Roberts, David, The Tax Benefits of Oursourcing. • Joe Christensen, et al., A Practical Guide to Green Sourcing, Deloitte, 11/2008.