CIS 310 Management Information Systems. The IT Workforce

CIS 310 Management

Information Systems

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

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.

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

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

Skills to Help Future Workers

• Network

– LinkedIn

– Professional Organizations – Personal Contacts

• Keep Learning / Be Flexible • Embrace New Technology

• Work on Verbal and Written Communication

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.

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• 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.

CIS 310 Management

Information Systems

The Ginea Pig Diaries, A.J. Jacobs

• “My Outsourced Life” • eMail

• Fighting with the wife • Bedtime stories

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.

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

SourcingLine.com (Top

Outsourcing Countries)

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%

What to Outsource or Offshore

• Call Center • Data Entry • Software Development • Engineering Services • Healthcare Services • Financial Services

Outsourcing Decision Matrix

Form a Strategic Alliance Eliminate Outsource Retain

Contribution to Operational Performance

St ra teg ic Im por ta nc e Low High Lo w H igh

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

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.

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.

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• 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.

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,