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Or . . . How do I expect to land a high-paying job when most IT work will be performed in India?

Or . . . How do I expect to land a high-paying job when most IT work will be performed in India?. F. Edwin Harbach Partner, Accenture October 3, 2003. History. The year 2000 situation artificially increased demand for IT services in the late 1990s. Fix to legacy systems

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Or . . . How do I expect to land a high-paying job when most IT work will be performed in India?

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  1. Or . . . • How do I expect to land a high-paying job when most IT work will be performed in India? F. Edwin Harbach Partner, Accenture October 3, 2003

  2. History • The year 2000 situation artificially increased demand for IT services in the late 1990s. • Fix to legacy systems • Accelerate replacement of legacy systems to avoid date issues

  3. History • The dot.com phenomenon increased IT expenditures.

  4. History • The robust economy further increased demand.

  5. Phase I 1985-95 Phase II 1995-00 Negligible App development & Maintenance Staff Aug., Onsite Large # of startups < US $5 million Large Fortune 100 Lower costs Under $1 billion + E-biz, ERP, Y2K Staff Aug., Onsite Big 5 increase share and SME growth = US $5 million Large Fortune 500 +Quality, productivity History • The offshore movement was still in its infancy. Period Size of Industry Service Line Delivery Model Industry Structure Peak Contract Size Customer Profile Industry value to customers Source: NASSCOM

  6. History • This “perfect storm” resulted in a seller’s market for IT professionals. • Multiple job offers for new graduates • Signing bonus the norm ($5K - $10K) • Escalating salaries • Tuition reimbursements/relocation bonus • Focus on workplace incentives • Concierge programs, casual dress, pool tables at work, bring your pet to the office, etc.

  7. Current Reality • Most of the factors driving IT demand in the late 1990s are gone . . . or significantly reduced.

  8. Current Reality • In retrospect, Y2K seemed “much ado about nothing”. Y2K

  9. Current Reality • The dot.com craze has moderated.

  10. Current Reality The US and several major global economies are in a recession. Source: OECD August 2003

  11. Current Reality • Labor arbitrage is significantly impacting service industries, including IT. Source: NASSCOM

  12. Current Reality • India is particularly attractive due to many reasons: • Enormous English speaking labor base • India can turnaround work while US businesses are closed at night • Cost advantages relative to other countries • Attractive career path for skilled workers • Experience and exposure to US business culture • Regulatory support Source: PayScale Inc.; the Paaras Group (Extracts From Time, 4 August 2003)

  13. Current Situation • An estimated 3.3 million jobs will move to offshore by 2015. Source: Forrester Research. Nov 2002.

  14. Looking Forward • We will not return to the good old days. • Economy may recover but labor arbitrage is here to stay.

  15. Options • Assuming I don’t decide to exit the IT field, how can I improve my chances of having a rewarding career? • Don’t Panic – there will always be a need for technology expertise in the US • Expand your capability beyond the common, repeatable technology skills • Combine technology with other subjects (i.e., business, chemistry, biology, education)

  16. Options • Assuming I don’t decide to exit the IT field, how can I improve my chances of having a rewarding career? 4. Develop specialized skills (i.e., Security, R&D) • Learn how to sell! Most IT work continues to be sold in onshore locations (software, hardware, consulting, BPO, BTO, etc.) • Consider positions with the US Government

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