GLOBAL TREND REPORT IT PROJECT MANAGEMENT OFFICE H1 JAN-JUN

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1 GLOBAL TREND REPORT IT PROJECT MANAGEMENT OFFICE 014 H1 JAN-JUN

2 MOOD OF OPTIMISM In line with our commitment to keep professionals working in IT Project Management Office functions up to date with employment and recruitment trends, early in 2014 Morgan McKinley conducted an international survey of its consultants in six markets. The overall mood is one of optimism although there are contrasts as well as similarities across the regions: Overall the global market improved going into 2014 and we are optimistic for the rest of the year Experience on big projects is highly valued everywhere In this market a lot of roles are filled through referrals so networking pays off Globally we will see a moderate increase in salaries. Candidates with niche in-demand skills and experience will command higher rates In Australia we are seeing a pronounced upturn in the contract market China is increasingly recruiting from abroad In Ireland we are seeing a large number of projects outsourced to consultancies In Japan and the UK we are seeing more permanent hires, though the contract market is also buoyant Hiring organisations in Singapore set a very high value on formal qualifications In the UK we expect to see a rapid growth in data science and data analytics projects QUICK LINKS AUSTRALIA... 2 CHINA... 3 IRELAND...4 JAPAN... 5 SINGAPORE... 6 UNITED KINGDOM

3 Candidates should identify their strengths and build their personal networks. AUSTRALIA FOCUS ON CONTRACTING In Australia we have been struck by the increasing number of PMO professionals being recruited into contract roles compared with permanent. The contract market is certainly very buoyant and, despite budget constraints in some organisations, the recruitment market as a whole showed signs of improvement towards the end of 2013 and going into Organisational and IT projects are under way in a lot of companies, with a focus on digital and mobile technologies and increased uptake of data analytics. Plus of course there is a lot of activity in response to changing regulatory requirements and compliance issues. Preference is given to candidates who can demonstrate familiarity with and qualifications in IT project methodologies such as agile and scrum. There is currently sufficient local supply to meet demand and organisations will often seek to recruit externally in order to take advantage of the new ideas and experience that IT Project Management Office professionals bring, especially on contract. OUTLOOK There will be continuing high levels of competition for the best roles, so candidates are advised to think carefully about their next move and identify their strengths. Many good positions are filled through personal referrals so it is a good idea to build up your network and your personal brand, for example through LinkedIn communities. Hiring organisations will find it hard to secure the best talent for digital projects so they must be ready to sell the role and offer competitive remuneration. Contractor rates may increase in the second half of 2014 with increasing demand and following the new budget. Otherwise we do not envisage significant change. 2

4 A steady career path with clear visibility on career development is more important than high pay. CHINA DIGITAL AND ECOMMERCE PMO ROLES IN DEMAND We saw an improvement in the IT PMO recruitment market in China going into 2014, with organisations recruiting new headcount as the economic outlook was more positive. IT and organisational changes are driving growth in areas such as digital and ecommerce, data management and operational IT projects. We were particularly surprised by the growth of headcount in the banks at the end of the year, says our IT Desk Manager in China. There is currently inadequate local talent supply to meet this demand and organisations are looking to recruit candidates from the United States, Europe and other APAC countries to make up the shortfall. However, some organisations still have pay and recruitment freezes in place or are going through a period of retrenchment. The ideal candidate profile is a solid academic background, good project experience, fluency in Chinese and English and a key IT skill such as digital technologies, ERP or statistics/analytics. OUTLOOK We are optimistic about the Chinese market in IT PMO and expect to see many candidates coming forward in Many will be motivated by the prospect of higher pay, but we would advise them to think carefully. A steady career path is more important, and in the IT PMO discipline, high pay often comes with high expectations from the hiring side, which can be a source of risk. Digital and ecommerce roles are a good bet for career development as this trend will continue for the foreseeable future. Hiring organisations may find it difficult to identify the perfect candidate who combines in-depth technical knowledge with extensive project experience and language skills. Salaries will continue to rise at the current rate in 2014, which in China means 8-10%. In the financial services sector bonuses have been low for several years and we hope that this will change in

5 A surprising number of projects are being outsourced. IRELAND RISING RECRUITMENT BUDGETS The employment situation in IT Project Management Office (PMO) certainly improved over the past six months in Ireland, with recruitment budgets increasing in many organisations, but the focus was on contract and interim hires while many projects are being outsourced or offshored. The main growth areas were data management, analytics and customer experience. Business analysts are much in demand as are IT and infrastructure project managers, IT directors and systems analysts. Employers are looking for candidates who can demonstrate project experience and, in many cases, experience of specific ERP suites such as Oracle and SAP. We have been taken by surprise by the number of projects that are being outsourced to consultancies, reports one of our Irish recruitment consultants specialising in this space. OUTLOOK Our outlook for 2014 is optimistic. We ve already seen huge demand in the first quarter of 2014 and see no reason why this should not continue. Demand will be focused on data management, mobile and digital technologies and we expect to see a lot of candidates coming forward. Hiring organisations will be challenged to compete for talent. Our advice to professionals who want to land the best roles in this space is to get experience on large-scale projects, says our consultant. We expect salaries to increase in the course of 2014 and more generous bonus payments. 4

6 Many roles are filled through referrals so it pays to network. JAPAN DEMAND FOR CANDIDATES WITH LANGUAGE SKILLS In 2013 and going into 2014 we saw a lot of companies choosing to hire permanent staff as opposed to external consultants. The market showed signs of improvement, with returning economic confidence and increasing recruitment budgets. Nonetheless the contract market remains buoyant with lots of demand as more technical functions are being moved offshore. Compliance and regulatory issues were the main driver of demand, followed by globalisation of functions. Candidates with experience in operational and ERP systems, compliance projects and IT security are likely to find interesting new openings. OUTLOOK Our outlook for 2014 is optimistic. Hiring organisations will continue to experience difficulties finding candidates with fluency in Japanese and English together with the right skills set. In addition, they may also find it difficult to match the salary expectations of those who tick all the boxes. Salaries will stay high as in We do not foresee any major changes in performance-related pay. 5

7 It is vital to get a formal qualification. SINGAPORE A COMPETITIVE ENVIRONMENT Hiring organisations in Singapore set a very high value on formal project management qualifications such as PMP, Prince 2 and Certified Scrum Master. Candidates who combine this with a strong academic background and project experience will find good positions in an otherwise rather difficult market. Things did not improve noticeably in 2013 and hiring processes have been lengthy. Globalisation, new IT implementations and organisational changes are the main drivers of recruitment, which is mainly focused on replacement headcount. Significant growth areas include IT security, data management and operational/erp systems. Compliance is likely to figure as a key growth area in OUTLOOK Our outlook for 2014 is neutral. Candidates will find the market highly competitive while hiring organisations will continue to feel the pressure to contain costs and headcount. If you want to stay ahead, it will continue to be vitally important to keep up to date with formal qualifications in whatever methodology you practice, says one of our consultants. We don t expect to see any great changes in salary levels or benefits but candidates with niche in-demand skills, a strong project background and excellent communication skills will command high salaries. 6

8 This is without a doubt the best time we ve seen for technology professionals to consider a move. UNITED KINGDOM SIGNS OF GROWTH, ESPECIALLY IN DIGITAL AND ANALYTICS There were clear signs of improvement in the IT Project Management Office recruitment market in the UK in 2013 and early 2014, with a focus on new headcount as companies geared up for an expected economic upswing with new IT projects. The contract market is also buoyant although, surprisingly, it is growing more slowly than the permanent market. Organisational change and the need to address compliance and regulatory issues drove further demand, with a focus on mobile and digital technologies, user experience, data management, analytics and IT security. Roles that were particularly prominent included business analyst, digital project manager and e-commerce manager. 7

9 OUTLOOK Over the next year we expect to see more candidates coming forward in the IT PMO space. Things are especially buoyant in the London permanent market. This is without a doubt the best time we ve seen for technology professionals to consider a move, says our Associate Director, Technology Recruitment. In addition to a very favourable climate in financial services, there is lots of demand coming from SMEs and start-ups. Those who combine project experience, particularly in digital design, with an MBA or similar postgraduate qualification will be well placed to find opportunities. Postgraduate students with a strong statistical background are also in demand as there is an increasing need for dynamic young talent to lead or support analytics projects. We expect data science and data analytics to be one of the biggest growth areas towards the back end of 2014 and into This trend is already in motion, with some exciting data analytics companies springing up in and around Cambridge and Oxford, but we will see more uplift. In general, IT PMO professionals will work even more closely with key business functions in The skill in greatest demand at the moment is, without doubt, Python. Hadoop, UX and data architecture skills are also in demand across the country. We advise candidates to focus on medium to long-term moves. Look for exciting projects that use the latest technology rather than the highest day rate or salary. The most valuable skills and technology experience to have in one or two years time may not necessarily be the highest paid roles today, so it is essential to have foresight and interpret market trends, advises our Associate Director for Technology Recruitment. As confidence returns to the market and bright candidates come forward, hiring organisations will find that they have more options. However, they should be aware that competitors are likely to make counter-offers for the best candidates. Base salaries should increase by 5-10% in We do not foresee any major changes in bonus and benefits structures. 8

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

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