The Next Generation IT Workforce

1. The Next Generation IT Workforce Dr. Andrew R. Walker Director, EXP Content September 17, 2007

2. Key Issues • Demand for IT talent continues to escalate inside and outside of the traditional IT department • The supply of “qualified” candidates is shrinking as retirement is draining IT staffs and less students study computer sciences • Who are the next generation of IT workers? • How do you attract a new generation of qualified workers? What is the best way to train and motivate staff to take on new skills and challenges? • What roles can e-learning and distance education play?

3. Key Issue #1 • Demand for IT talent continues to escalate inside and outside of the traditional IT department • The supply of “qualified” candidates is shrinking as retirement is draining IT staffs and less students study computer sciences • Who are the next generation of IT workers? • How do you attract a new generation of qualified workers? What is the best way to train and motivate staff to take on new skills and challenges? • What roles can e-learning and distance education play?

4. Demand issues: IT Managers Have Less Control Over Their Workforce VIRTUAL TEAMS GLOBALIZATION BROADER SKILL SETS MULTIPLE REPORTING LINES MULTIPLE SOURCING

5. Focus: Business Processes Expanding Business skills IT Focuses on Breadth and Depth of Skills Focus: Relationship Management Expanding Behavioral skills Flow of IT Professionals Mission critical ESP Technical skills Technical skills Focus: Exceptional competitive advantage through internal technology

6. Direct Resource Control Owner of Technology Order Taker Troubleshooter Implementer of Technology Plan 21st Century Information Technology: Traditional Information Technology: Focus on information + business value Focus on service delivery + improvementprojects Demand: Refocusing the Role of IT New Role Attributes • Managing Outputs • Partner in Information Mgmt. • Innovator of Business Solutions • Broker of Technology Service • Strategic Business Partner

7. 29% 62% 58% 57% 54% 50% 71% 50% 46% 43% 42% 38% IS has the right skills to meet business needs IS has the funds it needs IS has the flexibility it needs IT service levels meet business expectations The business uses IT for competitive advantage The CIO is a player in business strategy Demand: IT Professionals must build core skills, strategy and flexibility IT’s performance and business role 100% 80% 60% Percent of Reponses 40% 20% 0% % Agree % Disagree Source: Creating Enterprise Leverage: The 2007 CIO Agenda (January 2007)

8. Demand: A More Business Oriented Skills Mix Survey Question: To be successful in 2006 and in 2009, I will need the following distribution of skills in my IS organization. 45% 2006 2009 40% 38% 35% 30% 30% Percent of IT workforce 25% 24% 20% 22% 21% 19% 17% 15% 14% 10% 5% 8% 7% Technology and Infrastructure Services Process Design and Management Information Design and Management Relationship and Sourcing Management Other Source: 2006 Gartner EXP CIO Survey

9. Key Issue #2 • Demand for IT talent continues to escalate inside and outside of the traditional IT department • The supply of “qualified” candidates is shrinking as retirement is draining IT staffs and less students study computer sciences • Who are the next generation of IT workers? • How do you attract a new generation of qualified workers? What is the best way to train and motivate staff to take on new skills and challenges? • What roles can e-learning and distance education play?

10. Supply: Generational changes BABY BOOMER EXITS BABY BOOMER EMPTY NESTERS GENERATION X: FAMILY COMMITMENTS GENERATION Y: DIGITAL NATIVES

11. Workforce Supply: The Changing State of the Workforce • By 2010, 60 percent of the people in (2005) traditional IT will have shifted into business-facing roles or into business roles around information, process and relationships, many no longer being part of anything called the IT organization. • Business IT professionals will apply their IT experience to new areas of expertise in business roles, projects and services. • More business oriented, applying a broad and deep technical skill combination to deliver business solutions. (Source: D. Morello)

12. Demand Impacts Supply: IT Restructuring From Pyramid to Diamond StrategicLeadership OperationsLeadership Aligns Business/IT Strategies Business Partnership Business Utility Core Activities Transactional Work Lack of entry opportunities The IT Diamond Traditional IT Pyramid

13. Key Issue #3 • Demand for IT talent continues to escalate inside and outside of the traditional IT department • The supply of “qualified” candidates is shrinking as retirement is draining IT staffs and less students study computer sciences • Who are the next generation of IT workers? • How do you attract a new generation of qualified workers? What is the best way to train and motivate staff to take on new skills and challenges? • What roles can e-learning and distance education play?

14. Workforce Supply:Selecting from Four Employment Models Typicallyversatilists andgeneralists Typicallyspecialists Limited engagement Model Advantage Breadth of Experience Exposure to Ideas Disadvantage No Sense of Home End Result Not Seen Outsourcing Model Advantage Deepening Experience Process, Industry Focus Disadvantage Boredom Lack of Opportunity MultipleEmployers Traditional Model Advantage Specialization Consistency of Practice Disadvantage Limited Experience Little Exposure to Ideas Cross-boundary Model Advantage Versatility Learning Breadth of Experience Disadvantage Lack of Focus OneEmployer Typicallyversatilists andgeneralists Typicallyspecialists andsome generalists One Assignment Multiple Assignments Adapted from: Morello, D., The IT Professional Outlook: Where Will We Go From Here? September 2005

15. Workforce Supply: Generalist, Specialist, Versatilist, Organizational Entrepreneur OrganizationalEntrepreneur Innovation Specialist Versatilist Initiative Depthof Skill Industry, Process Assignments, Roles Business Know-how Generalist Aptitude Scope of Roles and Assignments Adapted from: Morello, D., The IT Professional Outlook: Where Will We Go From Here? September 2005

16. Workforce Supply: Comparison of IT Professional Types

17. Key Issue #4 • Demand for IT talent continues to escalate inside and outside of the traditional IT department • The supply of “qualified” candidates is shrinking as retirement is draining IT staffs and less students study computer sciences • Who are the next generation of IT workers? • How do you attract a new generation of qualified workers? What is the best way to train and motivate staff to take on new skills and challenges? • What roles can e-learning and distance education play?

18. Intern programs Professional institutions Business staff Branding Alumni Advertise and search Business and technology colleges Create multiple external hiring channels

19. Use individually designed contractor relationships to retain Baby Boomers Adapted from: Melymuka, K. interviews Robert Morison, “Workforce Crisis,” Computer World, July 3, 2006

20. Applications development Juniordeveloper Developer Seniordeveloper Developmentconsultant Project management Projectleader Projectmanager Senior projectmanager Programmanager Applications development Leadership Juniordeveloper Developer Seniordeveloper Developmentconsultant Team lead Project management Projectleader Projectmanager Senior projectmanager Programmanager Project lead Individual Contributor Create a multi-generational pipeline through career development Job rotations Job families Applications development Sr. Programmer Programmer Programmer Team lead Project management Program manager Project manager 2 Project Manager 1 Project manager1 Leadership development Career paths

21. Level 4 Level 3 Level 2 Level 1 Create career paths that integrate multiple generations across the IT functions Job family career path structure Program manager Vendor manager 1 Business relationship manager 1 Project manager 2 Project manager 1 Contract manager 2 Contract manager 1 Business analyst 3 Business analyst 2 Business analyst 1 Project coordinator Contract administrator

22. Identify strategies for improving multi-generational retention and integration

23. Key Issue #5 • Demand for IT talent continues to escalate inside and outside of the traditional IT department • The supply of “qualified” candidates is shrinking as retirement is draining IT staffs and less students study computer sciences • Who are the next generation of IT workers? • How do you attract a new generation of qualified workers? What is the best way to train and motivate staff to take on new skills and challenges? • What roles can e-learning and distance education play?

24. Solutions: Develop and Retain Business-Focused IT Professionals Other* Stretch Assignments Action Learning Teams Re-skilling 6% 9% 29% 11% 21% 24% Training and e-learning programs Job Rotations/Promotions *Other includes mentoring, tuition reimbursed education and distance learning Source: Based on a review of 30 Gartner EXP case interviews in 2006

25. Thank you