Is there still life in the IT
career?
It is a miracle that curiosity survives formal education
Reality is merely an illusion, albeit a very persistent one
Acknowledgements
Society for Information Management
Research Team
Dr. Kate Kaiser, Marquette University, Research
Leader
Microsoft Corporation
Betsy Steele
Forrester Research
Today’s agenda…..
Dispel a few myths about IT opportunities
Describe the changing skill set landscape
Work habits of the next generation
Trends in US Enrollment / Degrees
Growth of Internet drove this increase Growth of PC
drove this increase
Reasons for low enrollments
End of Y2K dot-com bust
Press magnified impact of
offshoring
Post 9/11 less foreign
student visas
Data only on Computer
Science degrees...data not available for other IT-related majors
Low enrollment reversing
Myth 1
Reality
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 1990 1993 1996 1999 2002 2005* IT job market strong
70,000 tech jobs on
Dice.com
Significant increase from
2002
Companies increased IT
staff budget since 2003
(Gartner)
Tech grads strongest job
market since 2001 (TechWeb)
Year Employment (millions)
•2005 Data is through 3/05.
•Source: BLS. Industry employment includes manufacturing (computers, storage devices, peripherals), software, Internet related (ISPs, search portals), data processing, computer design, computer programming, computer systems design, computer facilities management, and other comptuer-related services.
Myth 2
There will be no IT jobs when I
graduate.
Reality
Job Type
Expected Growth through 2012 Computer Engineers 36%+
MIS/CIS/Info Sciences &
Systems 36%+
Computer and Info Sys Mgrs 36%+
Technical Support Specialist 21-35% Teaching (Preschool - 12) 21-35% Management Consulting 21-35% Human Resource Specialist 21-35% Nursing (Registered Nurse) 21-35%
Computer Programmer 10-20% Accounting (Private) 10-20% Sociology* 10-20% Political Science* 10-20% Electrical Engineering 3-9% Mechanical Engineering 3-9% Chemical Engineering 0-2% Help Desk Support N/A Marketing N/A Four of fastest growing US jobs 2002-2012 for bachelors degree to be IT-related
Myth 3
IT salaries are low due to
cheaper overseas labor
Reality – IT Salaries are Relatively High
Salary Range (000)
Source: US Bureau of Labor Statistics, Occupational Outlook Handbook, 2005. Notes:
Higher salaries are reflective of experience, education level, training, and certifications. *Sociology and Political Science are median salary levels.
0 50 100 150 200
Sociology* Help Desk Support Technical Support Specialist Teaching (Preschool - 12) Nursing (Registered Nurse) Marketing Accounting (Private) Political Science* Computer Programmer Mechanical Engineering Computer Engineers Electrical Engineering MIS/CIS/Info Sciences & Systems Chemical Engineering Management Consulting Human Resource Specialist Computer and Info Sys Mgrs
Myth 4
All IT-Related Jobs Are Getting
Sourced Offshore
Reality –
Some
Jobs Will Go Overseas
Commodity jobs (e.g. some programming,
help desk) sourced overseas but highly
skilled jobs and jobs relating to company’s core competencies or products will stay
Jobs requiring close business/customer
Overseas Reality – Not So Simple
Security issues
Theft of code
Theft of sensitive data
Hard to conduct background
checks in India
Potential political instability
and terrorist activities
Potential problems with local
officials
Indian labor market is volatile
Salaries rising 12-15% Turnover rate is 15-20%
Hidden costs (CIO Magazine)
Vendor selection
Initial migration / transition Layoffs
Cultural barriers
Ramping up operations Managing contract and
relationship
Loss of control
Lower paid, non-core jobs are those going
overseas
0 20000 40000 60000 80000 100000 120000 140000 160000 Sociology*
Help Desk Support Technical Support Specialist Teaching (Preschool - 12) Nursing (Reigstered Nurse) Marketing Accounting (Private) Political Science* Computer Programmer Mechanical Engineering Computer Engineers Electrical Engineering MIS/CIS/Info Sciences & Systems Chemcial Engineering Management Consulting Human Resource Specialist Computer and Info Sys Mgrs
Note that while some computer programming is being offshored, core integration and testing functions remain onshore. * Sociology and Political Science are median salary levels.
Salary Range (000)
Myth 5
IT-Related Educational
Degrees Are Worth Less
Reality – Undergraduate Starting Salaries
IT-Related Fields - Some of the Highest
0 10000 20000 30000 40000 50000 60000
Help Desk Support Sociology* Teaching (Preschool - 12) Political Science* Marketing Human Resource Specialist Nursing (Registered Nurse) Accounting (Private) Computer Programmer MIS/CIS/Info Sciences & Systems Mechanical Engineering Electrical Engineering Technical Support Specialist Computer Engineers Chemical Engineering
Current trends (i.e. low enrollment, significant
job growth) predict shortfall of adequately
skilled IT labor
BLS data - 11% of US IT staff (390,000 of
3.55 million) baby boomers due to retire in 10
years
Both will add to the upward salary pressuresupward salary pressures
CAGR of IT salaries 1999-2006 was
5.3-5.4%
And…
And a few more items of note…..
Quality graduates in India are in increasingly short
supply
Indian firms now look to Eastern Europe and China for
resources
Language issues still exist with different world
geographies
Birthrates across the globe are going down
Other “technical” disciplines face the same issues, so
competition will be strong
For the federal government, whose ability to go overseas
Men occasionally stumble on the truth, but most of them pick themselves up and hurry off as if nothing had happened.
But the IT world is changing….
Computer science skills will always be
needed, but
Research suggests that business is
emphasizing other skills….it’s not your father’s IT!!
Those skills change the focus of the IT
Top Ten Critical Skills to Keep In House 2005
-SIM Advocacy IT Workforce
0% 20% 40% 60% 80% Proje ct P lan/ Bdg t/Sch Fu nct/P roce ss K nowl edge Comp any Know ledg e BP Des ign /R e-eng ine erin g Sy stem s A nalys is Ind ustry Kno wle dge Proje ct Le ader ship Proj ect R isk M ngt Sy ste ms Des ign Chan ge M gm t
Project Management Business Domain Technical
% of R e s ponde nt s
Top Emerging Skills to Keep In House in 2008
-SIM Advocacy IT Workforce
0% 5% 10% 15% 20% 25% Fun ct/P roc Kno wle dge BP Des ign/ R e-engi neer ing Indu stry Kno wle dge Com pany Kno wle dge IT G over nanc e Man agin g 3P Ps IT A rchi tect ure/ Stan dard s Sec urity Use r Rel atio nshi p M gm t Cha nge Man agem ent Mgi ng S tkhl d Ex pect atio ns Com mun icat ion Sou rcin g St rate gy
Project Mgm t Bus Dom ain Technical Sourcing IT Adm in
% of R e s ponde nt s
Top Ten Entry Level Skills and Capabilities
-SIM Advocacy IT Workforce
0% 10% 20% 30% 40% 50% Prog ram ming Sys tem s A nalysi s Syst em s Te stin g Syste ms Des ign Comm unica tion Tele com m/V oice Help De sk IT Ar chite ct/S tand ards Data B ase De sign
Technical Business Domain
% of R e s ponde nt s
Top Ten Mid-Level Skills and Capabilities
-SIM Advocacy IT Workforce
0% 10% 20% 30% 40% 50% 60% Proj ect P lan/ Bud get/S ched Proj ect L eade rshi p Proj ect Ris k Ma nage ment Syst ems Ana lysi s Use r Rel atio nshi p Ma nage ment Syst ems Des ign Neg otia tion Indu stry Kno wle dge Func tion/ Pro c Kn owle dge Proj ect I nteg ratio n/P rogr am Mg mt
Project Management Business Domain Technical
% of R e s p onde nt s
Today’s Multigenerational Workforce
The Veterans…..1922-1945
…………company loyalty
The Baby Boomers….1946-1964
…………financial success
Generation X….1965-1979
…………strongly independent
Millenials…1980-2005
…………personalized work
Millenials have unique characteristics……
and present unique employment challenges
Technology is an integral part of life
Global view/global connections
Materialistic, entrepreneurial, innovative
Frustrated by bureaucracy
Team oriented, supportive work culture
Commitment-based rather than time-based
Easily bored
Can be impatient, skeptical and
over-confident
What does our industry need to do?
Evangelize! Partner!! Get involved!!!
SIM Programs
Future Potential in IT Guiding Potential in IT
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Mentoring
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