The Information Technology Association of America, one of the leading associations of IT managers in the US, reports that more than 500 000 available jobs will not be filled this year because of a shortage of IT workers.
As a result of skills shortages, more companies are outsourcing their increasingly complex IT and e-business systems to companies that specialise in setting up and maintaining systems on their behalf.
In SA, the lack of appropriate IT skills is a very real problem, according to Mike Leeuwen, a director of PM Tech, the IT consulting, software development, systems implementation and support services group.
"While many people believe the IT skills shortage to be a South African phenomenon, it is actually a global problem," says Leeuwen. "Even in an economic climate that has seen many thousands of layoffs and the down-sizing of IT companies, there are still shortages."
Part of the problem is that the available workers do not have the proper skill sets, according to Leeuwen. Specifically, he mentions Oracle, SQL, Java and Windows NT experts.
"Many of the available workers are not trained, or are not trained in these proficiencies. Thus, while there may be bodies available, IT managers cannot find enough qualified talent to complete all of the projects scheduled," notes Leeuwen.
"There remains a significant gap between the available pool of skills and the needs of the IT department. Until that gap can be closed, outsourcing may be the best alternative for many companies that want to ramp up their IT projects.
"Many companies - particularly non-technology companies seeking to expand their IT capabilities - should be looking to outsource at least some of their project load. This may mean bringing in systems integrators and third-party services that can write applications and code on an outsourced basis."
Leeuwen says outsourcing also represents a very real opportunity for the application service provider (ASP) market.
"ASPs offer the ability to deliver tailored applications as subscription services, eliminating the need for highly skilled internal programming staff. With the proper services to back it up, an ASP today might rightly claim that its services are more advantageous than ever."
Systems integrators are also set to benefit, notes Leeuwen: "In the last few years, many of the largest integrators have become so enamoured with `big bang` projects, such as business process re-engineering, that they have neglected basic services, such as helping a company with a single programming project.
"As many companies shy away from huge, enterprise-wide IT efforts, outsourcing companies should look to provide smaller, quicker assistance with projects that can deliver a fast return on investment," he says.
Leeuwen offers advice to companies weighing up the advantages and disadvantages of the "do-it-yourself" route.
"The key issue is the cost," he stresses. "For example, many companies look at the hourly rates of an outsourcing vendor and come to the conclusion that they will spend less money by providing their own labour. This may be true in IT departments that already have the skills to undertake a particular project - but many projects require new skills and training that can be costly and time-consuming to obtain.
"In addition, many first-time projects result in errors and ongoing administrative issues that might not occur when implemented by an experienced team.
"Some companies evaluate only the cost of installation when evaluating an outsourcing project, but the highest costs often are associated with change management and troubleshooting that must take place after the new systems are in place," he adds. "These administrative costs may eventually exceed the cost savings achieved by using in-house staff during the implementation phase."
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