7 fat years: where will we get our IT people?

A new research from Forrester says that a new cycle of ‘7 fat years’ starts in 2010. (http://www.forrester.com/ER/Press/Release/0,1769,1317,00.html) Some details from the research:

After a dismal performance in 2009, the technology sector will see a recovery in 2010 as businesses and governments in the US and around the world begin spending again on information technology, according to a new report by Forrester Research, Inc. After declining 8.2 percent in 2009, US IT spending will grow 6.6 percent in 2010 to $568 billion. Global IT spending, which dropped 8.9 percent last year, will rise 8.1 percent in 2010 to more than $1.6 trillion. Software and computer hardware will see the greatest growth, as Forrester forecasts a new multi-year cycle of technology investment growth and innovation defined by Smart Computing. “The technology downturn of 2008 and 2009 is unofficially over.”

Measured in US dollars, global purchases of computer equipment will be up 8.2 percent, communications equipment buying will rise by 7.6 percent, software spending will increase by 9.7 percent, purchases of IT consulting and systems integration services will grow by 6.8 percent, and IT outsourcing services will be 7.1 percent higher. On a regional basis, Europe will be the strongest performing region. Measured in US dollars, the strongest growth in 2010 will be in Western and Central Europe, where tech purchases will rise by 11.2 percent, boosted by the dollar’s decline against the euro.

In the past 2 cycles of economic upturn, the IT sector has always grown rapidly as IT has become a key to the success of any company. To develop and maintain all the IT systems needed to facilitate growth, smart, hardworking people are needed. In the past two decades, each upturn has brought big shortages in skilled IT-staff. Companies held interviews in the showroom, where future employees could directly chose their new car. Big rewards were given to people who referred new candidates to companies. Many other creative ideas have been launched to attract those smart IT people.

In 2007/2008, companies estimated that in the Netherlands alone we would have a shortage of 12.000 IT-people by 2012. Now the recession has probably brought some air into the labor market, but this is just temporary. In the coming 7 fat years we will face another problem. The baby-boom will retire. Europe will have the world’s biggest growth in IT according to Forrester, but Europe is also the continent where the population will turn ‘grey’. How do companies envision the solution to this?

From my own practice, I would say there is one way out: involve people from parts of the world where they are available. If companies don’t take steps today to get access to the global pool of talent, how will they get (enough of) the right people? I may have a blurred vision, but I envision companies all fishing from the same local labor market, trying to steal those smart IT brains from their competitors. Offshoring has been around for some time now. But even with the paths paved, companies are still not (preparing for) offshoring on a very big scale today. What is holding companies back from making that strategic decision on a big scale to tap into the global IT force? Why is it still not a ‘default habit’ to have (part of) your IT team offshore, even with these shortages ahead of us?

Bridge is a global IT powerhouse. Since 2010, we have one key service offering: dedicated teams. We build teams for our customers according to the profiles of the people required to deliver projects.

Measured in US dollars, global purchases of computer equipment will be up 8.2 percent, communications equipment buying will rise by 7.6 percent, software spending will increase by 9.7 percent, purchases of IT consulting and systems integration services will grow by 6.8 percent, and IT outsourcing services will be 7.1 percent higher. On a regional basis, Europe will be the strongest performing region. Measured in US dollars, the strongest growth in 2010 will be in Western and Central Europe, where tech purchases will rise by 11.2 percent, boosted by the dollar’s decline against the euro.

In the past 2 cycles of economic upturn, the IT sector has always grown rapidly as IT has become a key to the success of any company. To develop and maintain all the IT systems needed to facilitate growth, smart, hardworking people are needed. In the past two decades, each upturn has brought big shortages in skilled IT-staff. Companies held interviews in the showroom, where future employees could directly chose their new car. Big rewards were given to people who referred new candidates to companies. Many other creative ideas have been launched to attract those smart IT people.

In 2007/2008, companies estimated that in the Netherlands alone we would have a shortage of 12.000 IT-people by 2012. Now the recession has probably brought some air into the labor market, but this is just temporary. In the coming 7 fat years we will face another problem. The baby-boom will retire. Europe will have the world’s biggest growth in IT according to Forrester, but Europe is also the continent where the population will turn ‘grey’. How do companies envision the solution to this?

From my own practice, I would say there is one way out: involve people from parts of the world where they are available. If companies don’t take steps today to get access to the global pool of talent, how will they get (enough of) the right people? I may have a blurred vision, but I envision companies all fishing from the same local labor market, trying to steal those smart IT brains from their competitors. Offshoring has been around for some time now. But even with the paths paved, companies are still not (preparing for) offshoring on a very big scale today. What is holding companies back from making that strategic decision on a big scale to tap into the global IT force? Why is it still not a ‘default habit’ to have (part of) your IT team offshore, even with these shortages ahead of us?

Bridge is a global IT powerhouse. Since 2010, we have one key service offering: dedicated teams. We build teams for our customers according to the profiles of the people required to deliver projects.