CIS 310 Management Information Systems. The IT Workforce

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1 CIS 310 Management Information Systems The IT Workforce

2 Everyone s an IT Worker Computing is ubiquitous. Every job will require some use or understanding of computers. The key to success will be in understanding: what you need how to get it how to intelligently interpret the results It s a complex world of data and most people do not understand it.

3 IT Workforce.Bomb (2002) IT stocks plummeted and there were lots of IT layoffs. Outsourcing (2004) Panic that all IT jobs would be overseas. (Help desk and programming) Great recession (2009) Sub-prime Mortgage Crisis. IT jobs are a little more resilient than others.

4 Technology as Job Killer Banks How many tellers do you need to run a bank? Facebook, LinkedIn and Twitter together have less than 6,500 employees. (Forbes, 2013) Fears of technology and job loss have existed for years. People have a reason to worry. However, tech is a job engine too. Many jobs exists that we didn t have before.

5 Technology as a Job Creator Cool Tech Jobs, 5 Fast Growing Careers that Pay Well, David Schepp, AOL, 6/1/12. Social Media Manager - $68,500, 56% more listings for this job title than last year. Data Scientist - $78,500, 82% growth in job listings Mobile App Developer - - $88,000, 60% growth in job listings Cloud Architect - $100,000, 92% growth in job listings Search Engine Specialist $65,000, 15%

6 Skills to Help Future Workers Administrative Assistant needed for busy Midtown office. Hours are Monday through Friday, nine to five. Job duties include: filing, copying, answering phones, sending s, greeting clients, scheduling appointments. LinkedIn Previous experience in an office setting preferred, but will train the right candidate. This is a full-time Professional position with Organizations health benefits. Please résumé if interested. Compensation: $12-$13 per hour. Network Personal Contacts Keep Learning / Be Flexible Embrace New Technology Work on Verbal and Written Communication

7 End Who it the best teacher you ll ever have? You are. You have access to many resources and you should keep learning new things. How do you stay current in your field? Professional meetings, trade magazines, on the job training (OJT). Does doing an internship help with you with finding a job? Of course. It does look good on your resume. Also, an estimated 69% of companies hire their interns.

8 CIS 310 Management Information Systems Sourcing

9 The Ginea Pig Diaries, A.J. Jacobs My Outsourced Life Fighting with the wife Bedtime stories People seeking publishing opportunities

10 Outsourcing Outsourcing: When a company hires out work that they would normally do themselves. Multinationals are not traditional outsourcers. Apple s manufacturing is outsourced to China.

11 Types of Sourcing In-sourcing work done in-house by the company itself. Out-sourcing hiring a company external to yours to perform the development or service Off shoring On Shore - in your own country Near Shore close to your country Far Shore far away

12 SourcingLine.com (Top Outsourcing Countries)

13 When to Outsource or Offshore Cost savings. Need for an expertise that you don t have - accessible, trained labor force that you don t have shorter time to market. Free up resources internally, focus on key business area and outsource other things. Tax Avoidance Firms get a tax credit for taxes they pay in other countries Tax rates in other countries are lower (Ireland is 12.5% compared to US 39.5%) (ehow, Roberts)

14 What to Outsource or Offshore Call Center Data Entry Software Development Engineering Services Healthcare Services Financial Services Research and Analysis

15 Outsourcing Decision Matrix Strategic Importance Low High Form a Strategic Alliance Eliminate Retain Outsource Low High Contribution to Operational Performance

16 Problems with Outsourcing Contract management Switching costs Not supported by insourced employees Less control over quality Communication Complexity = Longer Delivery Times Threat to competitive advantage Loss of confidentiality

17 Counterwave Outsourcing Counterwave-Outsourcing - Bring back work that you had previously outsourced Supply chains were too complex to unbundle. Advancements in tech eliminated need for outsourced jobs. Dissatisfaction with quality, communication. Deloitte Consulting survey (2005) ¼ of the firms with outsourcing strategies reversed. The Economist, 1/19/13

18 Green Sourcing Green sourcing reduces these costs by emphasizing local sources for products. Sustainable procurement & Sustainable supply chain. Using local goods to reduce need for shipping and delivery. Cloud Computing can be green sourcing. Creates positive reputation for business.

19 End What country has the highest rating as an outsourcing supplier? India at 7.1. Indonesia is the second country at 6.7. Name 3 reasons to adopt an outsourcing strategy. Cost savings, gaining expertise, flexibility. What is the primary reason you might not outsource? Loss of strategic advantage.

20 References Joel Kotkin, The New Places that America s Tech Future is Taking Place, Forbes, 1/10/2013. David Schepp, Cool Tech Jobs, 5 Fast Growing Careers that Pay Well, AOL, 6/1/12. Eric Auld, Craigslist Experiment, 7/23/12. AJ Jacobs, The Guinea Pig Diaries, Simon & Schuster, Top Outsourcing Countries, SourcingLIne.com, 7/20/12. Edward Yourdon, Death March, Pearson, Wikipedia, Offshoring. The Economist, Here, there and everywhere, 1/19/13 Roberts, David, The Tax Benefits of Oursourcing. Joe Christensen, et al., A Practical Guide to Green Sourcing, Deloitte, 11/2008.

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