IT Talent Shortage : What does it mean to you?
The topic of talent management, resource management is perhaps as old as that of the software services industry; after all services – architecture, design and development of systems, and managing the processes - are rendered by people. So, what’s new about the debate over ‘shortage’ of skilled software professionals in the offshoring space?
Not much really. However, if you read the business press or even commentary by bloggers and analysts, you may get the impression that there is a ‘new’ crisis brewing in the services sector.
For instance, Vinnie Mirchandani blogs So, I am reading Consulting Magazine and I see TCS, the largest Indian vendor, plans to hire 30,000 associates a year, most straight from universities. The other larger Indian firms have similar models. . . . Indeed with India having one of the youngest work forces in the world, the opportunity is even greater. But high Indian staff turnover is also the result of that model.
It is amusing to read his blog, equating the hiring and mentoring fresh recruits at services firms to a "Day Care" model; to which, Sadagopan responds and argues that the investments in training that Indian firms are making are impressive. (I will not highlight Infosys’ world-class training and internship programs here as the point is moot.)
However, a point that both Vinnie and Sadagopan seem to agree on is the need for service firms to build a “middle layer” more aggressively, a topic that my colleague Richa also blogged about a while ago.
Another theme that surfaces in such discussions of skill shortage is about location: Will India continue to retain its edge in Offshoring [eg: a recent article in Computerworld: IT Execs Look Beyond India for Possible Offshore Sites]. Though it is a perennially interesting topic that generates animated response (for and against) in the media and among consultants, the real answer would require a crystal ball, which most of us don’t possess.
In my mind, there are two dimensions to the challenge: challenge faced by service delivery firms and challenges of enterprises that contract with such service delivery firms, many in the offshoring space.
Hiring and retaining talented professionals is an edge that every software service company aspires to. Managers and executives at service firms live with the challenge of talent shortage, hiring, training, mentoring and retaining technologists.
But what do the talent management challenges of software service firms translate to for offshoring enterprises? Not much; or at least it should not really matter much…. Why? Because the clients who sign on service delivery firms expect that they will have access to talented professionals when they need them, where they need them….and that’s why they have sourced to their vendors/partners in the first place.
Case in point, you sign up with Infosys, the Program Managers, Project managers and leaders will work with you to ensure that you get the right technology solutions to your business problems. Where they go for talent that will ‘work’ on your projects can, and should probably be transparent to you; right?
Comments
Mohan, thanks for linking to my blog. But a bright young recruit, even after going through your great training, will be clueless on configuring SAP's warehouse module, or being able to support an Oracle accounts payable issue or the nuances of a custom built insurance client. Sure they can code in Java or ABAP/4 but they do not often have the business construct. Clients want both.
I started my career with PwC and hated the 2 years I had to do in the audit group before I could move to the systems consulting group. But that audit experience gave me a much more grounded view of business processes and how technology supports/enhances it. Or some industry experience prior to getting into systems integration or outsourcing. That is something the Andersen model started with, then they moved to hiring straight out of college and putting folks through tech training, like Indian firms do now.
There is 2-3-4 year maturation process that cannot be taught, and with the high staff turnover at the bottom of the pyramid cannot be easily replaced, unless you hire more experienced staff. As I said in response to sadagopan, some clients want SLA based results, other want specific teams. But either way it is tough to hide the masses of staff without the business maturity. A handful, yes, but not 60, 70, 80% of the team...
Posted by: vinnie mirchandani | April 4, 2007 02:25 PM
Vinnie,
You do make an interesting point. I agree that many clients do want – and pay for -- analysts and techies with the right blend of business and technical acumen. One can’t really argue with the fact that there is something to be said about a few grey hair; and the experience that comes with it.
But there again, given the dynamics of (global) demand for IT talent, with a corresponding shortage, one has to look for creative ways to bridge the gap. As Sadagopan mentions, training-and-mentoring is just one of the strategic tools available to managers and executives.
Posted by: Mohan | April 4, 2007 11:20 PM
Mohan, would love to hear how/why training-and-mentoring can be a creative way to bridge the gap?
Posted by: Padmanabha Rao | September 9, 2007 06:03 PM
Padmanabha,
Thanks for the tip.
On the face of it mentoring is a great topic, and Infosys too adopts formal and informal mentoring programs. Similarly, the importance of peer group inputs (mentoring?) cannot be underestimated too.
I will muse on the topic and will post on it soon.
- Mohan
Posted by: Mohan | September 14, 2007 01:25 PM