It Staffing Information Technology (It)

It Staffing

Information Technology (it) industry has been making great strides in the last few years. The number of professionals working in these industries has increased by leaps and bounds. Also, the overall contribution of it to the national economy has increased. Both these factors make it a very lucrative and attractive industry to work.

Despite this attractiveness, there a lot of key trends that are having a major impact in the staffing needs and policies of the it industry. Some of the key trends are explained below:

Outsourcing

Outsourcing is a major trend in this industry. Many jobs are being moved to off-shore locations like India and China because of the cost-effectiveness. According to a survey by Information Technology Association of America (ITAA), the wages in these locations can be just 10% of what it costs in the U.S. (Aviation Week and Space Technology, 2003). This difference can be a huge saving in terms of operational costs for the companies and it also leads to a better allocation and efficiency of available resources.

"IT outsourcing can reduce non-it operating costs (i.e., total operating costs less it expenditures) for the following reasons. First, using the higher quality it services, firms can improve their operational efficiencies in areas outside the it function that use digitized business processes enabled by it, which will be manifested in reduction of operating costs. Second, by outsourcing such traditional it services as application development and maintenance, firms can free up their it resources, especially their it staff, and reallocate them to more strategic activities that can increase firms' ability to compete and achieve operational efficiencies. Finally, it outsourcing can also help increase efficiency by providing new capabilities and bringing about fundamental transformations in customer organizations." (Han & Mithas, 2009. p.1-2). These are the reasons many it companies prefer to move their jobs to off-shore locations.

Supply-demand gap

Another major trend in it industry is the mismatch between demand and supply. The first reason for this problem is the evolving nature of technology. A technology that is popular today can become out-dated in a few months or years and so the it companies must start looking for professionals who are proficient in the new technology. From the individual's point-of-view, this requires constant learning and updating and so many people steer away from this industry. "In the U.S., the number of students choosing computing science as a major between 2000 and 2004 declined by 60%. With respect to demand, an additional 1.5 million jobs will become available in computing in the U.S. By 2012." (McKeen, Smith & Jin, 2009;p.2). Another reason is the demographics; more people are aging and they are less suitable to meet the needs of the it industry.

In the light of these challenges, a company has to take many measures to be successful.

Overcoming these challenges

A national it staffing company must have a skills map or template, as a first step, to meet their changing needs. This map will give them a clear idea of their present and future needs and they can look for qualified candidates to fill these positions. This will help them to be prepared for the future and this will also given them an edge over their competitors.

The next strategy that the company must adopt is to make this industry more attractive to people in North America. This can include a mix of good remuneration, growth and work environment. Also, the company must be prepared to invest money in training some of its existing employees to meet the future technology needs of the company. Above everything, the company must to everything possible to retain its best talent. Despite these measures, the company must always be prepared to meet challenges in terms of its staffing needs. A back-up talent is a good way to smoothly manage their attrition problems.