Going further together IMPLICATIONS OF OFFSHORING FOR THE ICS DISCIPLINES Elizabeth Sparrow Chair, BCS Working Party on Offshoring and author A Guide to

going further together

IMPLICATIONS OF OFFSHORING FOR THE ICS DISCIPLINES

Elizabeth SparrowChair, BCS Working Party on Offshoringand author A Guide to Global Sourcing

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

Definitions

In-house

Outsource

Offshore

NearshoreOffshore

Nearshore

Sourcing models

Service Responsibility Delivery Model

Retained in-house IT departments

Acquisitions

Organic growth

Shared Shared services

Joint ventures

Alliances

Transferred to external service provider

Outsourcing service suppliers


Definitions






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

Global sourcing examples

Thames Water outsourced to WiproTesco’s own centre in BangaloreBritannia Airways hybrid model with LogicaCMGDHL’s centre in PragueColgate-Palmolive used EPAM developers in Russia and BelarusShell’s centre in Malaysia and outsourcing to Indian suppliers

Global trade in IT services

Major traders in computer and information services, 2000 and 2003Source: World Trade Organization, 2005

Jobs exported through offshoring

Total number of jobs exported (offshore outsourcing and offshore subsidiaries), 2002–2004

Source: Rosenthal, 2005


Definitions






Our competitive strengths

Unless we understand our achievements and abilities we may underestimate global competition and miss out on opportunities in the future

Strengths Weaknesses

Opportunities Threats

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

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

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


Definitions






A new career model for a new era

Business skills development

Programme management experience

‘Soft’ skills training

Supplier management, negotiation and relationship development

Specialist technical training

Foundation IT training

IT professionals embedded in business areas

Project and programme management

IT strategy managers

IT service and contract management

Technical specialists

IT occupation changes

Old 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

New attitudes

Salaries closer to rates for other professional rolesAll IT professionals expect to develop interpersonal and technical skillsIT careers are for those who love to find out how technology can help othersIT is seen as a fully integrated part of the businessIT people regularly move into and out of other business functions gaining a rounded experience

Developing tomorrow’s IT professionals

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:

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


Definitions






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


18403

2185624019

27177

2270219852

15357 14708

0

5000

10000

15000

20000

25000

30000

1998 1999 2000 2001 2002 2003 2004 2005

Applications to undergraduate courses in core computing disciplines: UK home students only

Source: www.ucas.ac.uk


Projected changes in the population of 18-20 year oldsSource: Higher Education Demand, 2015-16, HEPI

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


Joined-up thinking:

Schools Universities Employers

Government funding incentives

Computer Faculty and Business School


Computer Science

or

IT?


Undergraduate or postgraduate?

STEM subject or business management?

Improving public perception and understanding


Definitions






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

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

Documents

Going further together IMPLICATIONS OF OFFSHORING FOR THE ICS DISCIPLINES Elizabeth Sparrow Chair, BCS Working Party on Offshoring and author A Guide to