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going further together

IMPLICATIONS OF OFFSHORING FOR THE ICS DISCIPLINES Elizabeth Sparrow Chair, BCS Working Party on Offshoring and author A Guide to Global Sourcing. going further together. Implications of offshoring. Definitions The global IT services market The UK’s competitive strengths

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going further together

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  1. IMPLICATIONS OF OFFSHORING FOR THE ICS DISCIPLINES Elizabeth Sparrow Chair, BCS Working Party on Offshoring and author A Guide to Global Sourcing going further together

  2. Implications of offshoring • Definitions • The global IT services market • The UK’s competitive strengths • Career development in the era of global sourcing • Challenges and issues • BCS offshoring publications

  3. Definitions Nearshore Offshore Offshore Nearshore Outsource In-house

  4. Sourcing models

  5. Implications of offshoring • Definitions • The global IT services market • The UK’s competitive strengths • Career development in the era of global sourcing • Challenges and issues • BCS offshoring publications

  6. Market growth • IDC says that global offshore IT services will continue to grow at a remarkable rate • TPI says that nearly half of new outsourcing deals involve some global service delivery • TPI finds that nearly half of the value of these new outsourcing contracts is moved offshore • IDC says that offshore suppliers have begun to pose a serious threat to incumbent service providers

  7. Global sourcing examples • Thames Water outsourced to Wipro • Tesco’s own centre in Bangalore • Britannia Airways hybrid model with LogicaCMG • DHL’s centre in Prague • Colgate-Palmolive used EPAM developers in Russia and Belarus • Shell’s centre in Malaysia and outsourcing to Indian suppliers

  8. Global trade in IT services Major traders in computer and information services, 2000 and 2003 Source: World Trade Organization, 2005

  9. Jobs exported through offshoring Total number of jobs exported (offshore outsourcing and offshore subsidiaries), 2002–2004 Source: Rosenthal, 2005

  10. Implications of offshoring • Definitions • The global IT services market • The UK’s competitive strengths • Career development in the era of global sourcing • Challenges and issues • BCS offshoring publications

  11. Our competitive strengths Unless we understand our achievements and abilities we may underestimate global competition and miss out on opportunities in the future

  12. SWOT analysis for Britain’s IT profession • Strengths • Software innovation and hardware pioneering developments • Experience in managing large, complex programmes • Good problem-solving and analytical skills in new areas of work and a culture that encourages creativity • Multicultural society and professionals drawn from different ethnic backgrounds • High standard of general education • Weaknesses • Professional training too focused on short term technical training • Many professionals lack formal accreditation and training • Lack of multilingual skills • Britain has traditionally had a low regard for technical and engineering education and skills • Threats • If low level work is moved offshore this leaves fewer opportunities for basic skills training • IT careers may be seen as offering poor prospects and may attract fewer good candidates • University research at limited locations means few graduates benefit • Opportunities • Business analysis and process re-engineering projects • Biotechnology and nanotechnology developments • Development and management of safety critical systems where low risk is paramount • Outsourcing advisory services

  13. Implications of offshoring • Definitions • The global IT services market • The UK’s competitive strengths • Career development in the era of global sourcing • Challenges and issues • BCS offshoring publications

  14. A new career model for a new era IT professionals embedded in business areas Business skills development Project and programme management Programme management experience Foundation IT training ‘Soft’ skills training IT strategy managers Supplier management, negotiation and relationship development IT service and contract management Specialist technical training Technical specialists

  15. IT occupation changes

  16. Developing tomorrow’s IT professionals Old attitudes New attitudes • Premium salaries are the norm • Soft skills are an optional extra for those interested in management • IT careers are for those who love technology • IT is separate from ‘the business’ • Sometimes business people move into IT but they don’t really understand technology • Salaries closer to rates for other professional roles • All IT professionals expect to develop interpersonal and technical skills • IT careers are for those who love to find out how technology can help others • IT is seen as a fully integrated part of the business • IT people regularly move into and out of other business functions gaining a rounded experience

  17. Helping yourself to a successful career • Invest in your long-term career • Monitor skills shortages and employment trends • Don’t get locked into a technical role that is eminently suitable for offshoring • Be aware of the business skills and domain knowledge you possess • Make use of training opportunities to broaden and deepen your skills • Adopt lifelong learning BCS Working Party on Offshoring tips:

  18. Gartner tips for IT professionals • Master the underlying principles • Be prepared to change your attitudes • Develop your interpersonal skills • Use opportunities to broaden your business knowledge • Become an agent of change, not a victim Source: Computing, June 2005

  19. Implications of offshoring • Definitions • The global IT services market • The UK’s competitive strengths • Career development in the era of global sourcing • Challenges and issues • BCS offshoring publications

  20. Recruiting tomorrow’s professionals • Higher Education Funding Council (HEFC) identified computing/IT as a strategic subject area of national importance • Forecasts by e-skills indicate that Britain’s IT workforce will need to grow substantially over the next decade to sustain the UK’s competitiveness • But applications to study computer science and IT at school and university are falling dramatically • HEFC asked the BCS to lead an initiative to increase the number of students studying computing/IT

  21. Recruiting tomorrow’s professionals Applications to undergraduate courses in core computing disciplines: UK home students only Source: www.ucas.ac.uk

  22. Recruiting tomorrow’s professionals Projected changes in the population of 18-20 year olds Source: Higher Education Demand, 2015-16, HEPI

  23. Schools survey quotations Quotations from focus groups and questionnaires… • ICT is a lot of work but it’s all repetitive… when they took the coursework out of maths loads more people started choosing it • ICT is not at all difficult but it’s very time consuming • ICT is a waste of a GCSE • I am not going to study Computing/ICT at university because the subject becomes mundane using standard software • ICT is really repetitive… it’s all spreadsheets • ICT is extremely boring and mundane • I did ICT and I never want to annotate another screen shot

  24. Challenges and issues Joined-up thinking: Schools  Universities  Employers Government funding incentives Computer Faculty and Business School

  25. Challenges and issues Computer Science or IT?

  26. Challenges and issues • Undergraduate or postgraduate? • STEM subject or business management? • Improving public perception and understanding

  27. Implications of offshoring • Definitions • The global IT services market • The UK’s competitive strengths • Career development in the era of global sourcing • Challenges and issues • BCS offshoring publications

  28. Offshoring publications • A Guide to Global Sourcing by Elizabeth Sparrow, 2005 • Offshoring: a challenge or opportunity for British IT professionals? BCS Working Party on Offshoring, 2004 • Embracing the Challenge, Exploiting the Opportunities: building a world class IT profession in the era of global sourcing BCS Working Party on Offshoring, May 2006

  29. Recent BCS press release BCS is warning that the shortage of computing/IT graduates could imperil long term success for Britain’s expanding IT economy “The future success of the British economy … will rely on the delivery of computer science graduates. The UK is not delivering these with the threat of a major skills gap opening in our thriving IT industry” David Clarke, BCS Chief Executive, Nov 2006

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