GLOBAL TREND REPORT IT PROJECT MANAGEMENT OFFICE 2015 OUTLOOK

Transcription

1 GLOBAL TREND REPORT IT PROJECT MANAGEMENT OFFICE OUTLOOK

2 A FAST-CHANGING GLOBAL RECRUITMENT MARKET REQUIRING TOUGH CHOICES In line with our commitment to keep professionals working in the IT Project Management Office discipline up to date with employment and recruitment trends, in the last quarter of 2014 Morgan McKinley conducted an international survey of its consultants in seven markets. Globally it is a rather mixed picture but there are common trends including the increasing popularity of the Agile methodology and many projects in the compliance, data and digital areas. In many markets professionals are facing often difficult choices, in particular whether to choose a contract, fixed term or permanent role, and what type of qualifications and experience will best help them to move forward. We provide a few pointers in this report, but this is a very fast-moving environment and you are well advised to speak directly to a Morgan McKinley IT PMO specialist, many of whom are quoted in this document. QUICK LINKS AUSTRALIA... 2 MAINLAND CHINA...4 HONG KONG... 6 IRELAND... 7 JAPAN...8 SINGAPORE UNITED KINGDOM In Australia there is a preference for contract hires. Employers that are looking for top talent to fill FTE roles need to act quickly In Mainland China professionals let go by large employers face a challenging time In Hong Kong the contract market is especially buoyant IT PMO professionals face tough times in Japan There are excellent opportunities in the digital and mobile, IT security and GRC domains in Singapore Data-driven projects and programmes are hot in the United Kingdom Recruitment budgets are increasing in Ireland and there is strong demand for business analysts 1

3 You have to act quickly to secure the right talent. AUSTRALIA AGILE PROJECTS ON THE INCREASE Good candidates are not on the market for long so it was great to see the speed at which many organisations made hiring decisions over the past few months. You have to act quickly to secure the right talent, says Oliver Harper, IT Projects & Transformation Consultant at Morgan McKinley s Sydney office. We have seen definite signs of improvement in the IT PMO recruitment market recently, with the implementation of new systems and solutions and organisational changes combining with increased hiring budgets to drive the trend. However, the emphasis is on contract and interim hires rather than full-time headcount. Digital, mobile and data analytics projects are the main growth areas. There is inadequate local talent supply to meet the demand so many organisations are looking further afield, mainly to the United Kingdom, mainland Europe and North America to fill the gaps. In recent months the roles most in demand have included business analyst (for both applications and infrastructure projects), change project manager, digital project manager, infrastructure project manager and IT project manager. More and more organisations in Australia are moving project delivery to the Agile framework. There are lots of opportunities out there at the moment and my advice to anyone trying to get ahead in IT PMO is to network, create and maintain a strong online and social media presence to identify potential new roles, advises Harper. Hiring organisations likewise need to do a good job of selling the role and the company in this environment. Companies may find that they need to be flexible as this is a rapidly developing skills market and the best candidates will not always tick all of the boxes. What s important is to find IT PMO professionals who demonstrate the maturity to understand the overall business objectives and help drive the strategy. 2

4 SALARIES & BENEFITS There will be continuing demand for contract staff and rates are likely to increase for the foreseeable future. 3

5 The market is currently highly competitive. MAINLAND CHINA PREFERENCE FOR CANDIDATES WHO HAVE WORKED WITH INNOVATORS Overall the situation has not changed dramatically in the IT PMO recruitment market in Mainland China, although many professionals at IT giants such as IBM have lost their jobs recently because of company restructures. It is difficult for these individuals to find new jobs as they have enjoyed a relatively comfortable working environment and the market is currently highly competitive, says Vicky Wang, Manager, Information Technology at Morgan McKinley s Shanghai office. Hiring organisations currently prefer candidates who have worked on projects with start-ups and fast-growing internet companies. The big growth areas are mobile and digital, with skills in digital design especially highly valued. A further hot topic in China is IT security. Over the next year we therefore expect to see more IT PMO professionals seeking to switch from more traditional IT roles, for example on operational and ERP projects, to digital and internet. Of course, the pendulum may swing back, eventually, says Wang. The shift is likely to see people getting more proactive in seeking new employers and our outlook is generally optimistic. 4

6 SALARIES & BENEFITS Pay increases will be meagre in traditional IT roles but candidates moving into digital and mobile roles can expect pay hikes in the order of 20 to 30%. 5

7 Focus on relevant business domains and in particular, compliance. HONG KONG BUOYANT CONTRACT MARKET We have seen little change in the IT PMO market in the second half of 2014 and expect that it will become more competitive over the next 12 months. The number of permanent headcount hires is likely to fall as recruitment budgets are static or declining, though many of the hiring organisations we work with say that they would be keen to secure talents on a one or two-year contract basis to start with. Things are likely to pick up in the second half of Organisational change is the number one driver of recruitment, followed by new ERP and other implementations, many of them around compliance issues. We have seen an increasing number of PMO positions that require a strong understanding of regional as well as local regulatory requirements, comments Ivan Lam, Associate Director, Technology & Project Management Recruitment at Morgan McKinley s Hong Kong office. Companies are therefore willing to look abroad where necessary, usually to the United Kingdom, Australia and other APAC locations. Consequently Lam has two pieces of advice for IT PMO candidates. First, if you are looking for a change of direction or a more challenging role, it is a good idea to consider contracting, at least for the time being. Second, focus as much on the relevant business domains and in particular the regulatory environment as you do on technical know-how and pure project management skills. SALARIES & BENEFITS We are unlikely to see any significant change over the next 12 months. 6

8 Business analysts are in particularly strong demand. IRELAND RECRUITMENT BUDGETS INCREASING In Ireland the IT PMO market continued to improve in the second half of 2014, with recruitment budgets increasing and new IT projects under way, often in response to organisational changes. Currently the hottest topics in IT PMO are analytics, compliance and customer experience, says Gerard Knowles, Associate Director, IT, at Morgan McKinley s Dublin office. Business analysts with experience in applications and development fields are in particularly strong demand. Analytics is likely to remain a focus in 2015, but we also expect to see more opportunities in data management. One factor depressing an otherwise buoyant market is lengthy hiring processes, with companies often missing out on top talent to counter offers. Candidates who have solid project experience under their belts, ideally from different industries, are the ones who are most likely to be snapped up quickly. However, there is quite a lot of competition out there. For hiring organisations, the main challenge will be to meet IT PMO professionals rising salary expectations. SALARIES & BENEFITS Salaries will increase but not in line with many candidates expectations. The market is improving but there is still an adequate supply of local talent. 7

9 Many companies are focusing on core activities and outsourcing IT functions. JAPAN OFFSHORING AND RELIANCE ON CONSULTANCIES DEPRESSING DEMAND In our H report we expressed optimism that the IT PMO recruitment market would improve going through Unfortunately, this has not proved to be the case and we have seen no discernible change, with the focus on replacement headcount and few new roles being created. Those that are being created tend to be for compliance, IT security and customer/user experience projects. IT PMO is not hot at the moment in Japan, says Karim Hakam, Operations Director at Morgan McKinley s Tokyo office. Cost savings including pay freezes and recruitment freezes and consolidation of functions are contributing to a depressed market. Many companies are focusing on core activities and outsourcing IT functions. Companies are not recruiting for senior positions, preferring to rely on external consultants and auditors. The contract market is also in decline. It is difficult to judge how things will progress in the months ahead. There are signs that potential candidates may get more active in seeking new employers but opportunities will be scarce. My advice to IT PMO professionals is to focus on domain-specific industry skills, for example in banking and insurance. The outlook is better for candidates with language skills but they are thin on the ground, says Hakam. PMP is the most useful qualification. 8

10 SALARIES & BENEFITS We foresee no changes to salaries over the next year. 9

11 IT PMO professionals need to network as this tends to reduce the time required to search for a new role. SINGAPORE MORE DIGITAL, REGULATORY & COMPLIANCE AND IT SECURITY PROJECTS We have seen a contraction within the IT PMO market in Singapore in 2014, in direct consequence of many of the largest financial services institutions offshoring their development and testing teams to hubs in Eastern Europe, India and China. That said, many companies have kept a reasonably large PMO workforce to oversee APAC projects based in Singapore. The largest growth areas have been digital, regulatory and compliance and IT security. With a heavily regulated financial services industry in Singapore there is always demand for specialists who can drive, enhance or implement technology solutions to meet regulatory and compliance requirements. Digital is a growth area with excellent opportunities but there is a skills shortage. In Singapore there is a lack of strong project or programme managers with digital domain backgrounds, comments Gurj Sandhu, Associate Director, IT at Morgan McKinley. This is proving an attractive opportunity for suitably qualified candidates from Europe, Australia, the Indian sub-continent and America, he adds. The contract market has been relatively buoyant, especially in financial services. With shrinking recruitment budgets in many companies and difficulties in securing additional FTE headcount, contracting is an option for candidates who are flexible and looking to broaden their experience. Candidates with a university degree or HND in computer sciences, and ideally an MBA or similar post-graduate qualification, together with PMP certification, are well placed to secure a contract or full time role. IT PMO professionals are usually very open to explore new opportunities and keep abreast of what is happening in the market. If a new role or project strikes a chord, candidates will come forward, says Sandhu. My advice to ambitious IT PMO professionals is to network as this tends to reduce the time required to search for a new role if you decide to move. This is vital at a time of limited market growth. Hiring organisations often look for off the shelf candidates who can perform a set role and this inhibits the hiring of talented individuals who perhaps do not tick every box. Hiring organisations are likely to face further limitations on budgets going into 2015 and are often reluctant to relocate people from abroad. This will make it difficult to entice strong candidates to move as salary expectations are growing. 10

12 SALARIES & BENEFITS Overall salaries are unlikely to grow in generic IT PMO roles. In the digital and mobile environments, IT security and GRC domains salaries will continue to rise steadily. 11

13 Competition is pretty stiff, and hiring processes can be lengthy. UNITED KINGDOM UPSURGE IN DEMAND FOR DATA-DRIVEN PROJECTS In H we reported good times for professionals working in the IT PMO discipline and the situation remains optimistic, though the pace of improvement has not accelerated in the second half of the year. New IT implementations and organisational change have been the main drivers of recruitment, but we are now witnessing a talent shortage in some areas. We have seen a surprising upsurge in demand for data-driven programme and project managers, particularly in financial services and consulting, says Cem Baris, Associate Director, Technology, at Morgan McKinley s London office. IT security and compliance projects are also figuring high in current priorities. My advice to people trying to get ahead in the IT PMO discipline is therefore to focus on data-rich companies and projects. Competition is pretty stiff, and hiring processes can be lengthy, so to land your dream job, you have to be very confident at interview and explain clearly the budgets, resources and change that you have personally driven in your career. We do not envisage any major changes to the market going into 2015 except to say that analytics projects are likely to drive more recruitment. SALARIES & BENEFITS We do not anticipate notable increases other than for headhunted professionals in financial services data projects and within new teams at the larger consultancies, especially the Big 4. 12

14 GLOBAL TREND REPORT IT PROJECT MANAGEMENT OFFICE A MORGAN McKINLEY GROUP COMPANY