GLOBAL TREND REPORT IT DATA APPLICATIONS H2 JUL-DEC
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1 GLOBAL TREND REPORT IT DATA APPLICATIONS 014 H2 JUL-DEC
2 ACTIVITY PICKING UP GLOBALLY In line with our commitment to keep professionals working in IT Data Applications functions up to date with employment and recruitment trends, in May 2014 Morgan McKinley conducted an international survey of its consultants in six markets. We have seen activity picking up in recent months although the story differs significantly from region to region: In China, Hong Kong, Ireland and the United Kingdom demand for talent has increased significantly In Japan growth in employment has been hampered by the lack of local talent In Singapore the market is more depressed, mainly as a result of offshoring Data management is a growth area in most countries There is growing demand for data analytics specialists, in particular in the United Kingdom Candidates with specific experience in SAP and Oracle are in demand in most countries In China we have also seen growing demand for candidates with experience in SalesForce In Ireland there are many opportunities for specialists in Microsoft and IBM software Technical skills, no matter how well-developed, will not necessarily be sufficient to land you the job of your dreams. Soft skills, fluency in a foreign language or an analytical mind-set may be equally important qualities QUICK LINKS CHINA... 2 HONG KONG... 3 IRELAND...4 JAPAN... 5 SINGAPORE... 6 UK
3 Chinese organisations are putting more emphasis on soft skills. CHINA UPSURGE IN DEMAND FOR ANALYTICS, BI AND DATA MANAGEMENT SPECIALISTS With the economy improving and many companies going through organisational changes and introducing new applications and technologies, the recruitment market in IT Data Applications has picked up recently in China. Organisations are actively seeking new headcount with a focus on analytics, business intelligence and data management and roles such as consultant, analyst, architect, data manager as well as senior managers (Director or Associate Vice President level). There is an especially high level of demand for candidates with skills and experience in SalesForce, comments Vicky Wang, Manager, IT recruitment at our Shanghai City office. In addition, many hiring organisations are currently integrating traditional ERP with their e-commerce platform. There is currently insufficient local talent to meet the upsurge in demand, so organisations may need to look further afield, typically to North America, Australia and other APAC locations. Candidates who have a university degree in computer sciences, fluency in a second language, experience specific to an ERP suite such as SAP or Oracle, or a grounding in statistical analysis are especially well placed to find an exciting opportunity. At the same time, Chinese organisations are putting more emphasis on soft skills such as communication as well as fluency in a foreign language, says Wang. Salaries are likely to increase in line with market trends, i.e. between 20 and 30%. 2
4 Hiring organisations are often on the lookout for individuals who can demonstrate a strong analytical mind-set. HONG KONG MANY ROLES ARE BECOMING MORE HYBRID We have seen a sustained upsurge in the demand for new and replacement permanent headcount as well as contract hires in Hong Kong as companies reorganise and introduce new applications and technologies. In addition, the economic upswing is stimulating demand for IT talent, which is in short supply in some areas. We have been surprised by the ever-increasing number of roles being posted for data management specialists in particular, right across the board in Financial Services and Commerce & Industry alike comments Ivan Lam, Manager, Morgan McKinley Hong Kong. There are also many openings for super users, consultants, system architects and analysts, especially those with experience in ERP suites such as SAP and Oracle or statistics and analytics. My advice to job seekers is to build up their knowledge of data mining and analytics from as many sources as possible. While it is not always possible for a developer to gain direct on-the-job experience of data analysis, hiring organisations are often on the lookout for individuals who can demonstrate a strong analytical mind-set as well as outstanding soft skills, says Lam. Roles are becoming more hybrid with managers putting greater emphasis on the ability to communicate effectively with the business, alongside technical capability. The shortage of talent is forcing companies to be more flexible. It is also leading many to look abroad, in particular to the United Kingdom, the Indian subcontinent, China and other APAC locations. Candidates who are looking to move into IT Data Applications should nevertheless be equally flexible, and that includes being realistic about salary increments. The competition from overseas candidates is very keen in this area, says Lam. The close of year increment is likely to be in the order of 5-10% but employees with in-demand technical skills such as ERP and PoS are in a strong bargaining position. 3
5 Data Applications has become one of the biggest growth areas in IT. IRELAND STIFF COMPETITION FOR TOP TALENT AS ECONOMY IMPROVES The implementation of new applications and technologies as well as organisational change is driving demand for new headcount in Ireland as the economy improves. Analytics, data management and business intelligence are the main growth areas, with a focus on Microsoft and IBM software suites and roles such as consultant, architect, analyst and data manager. We are also seeing a considerable number of new senior appointments, at Director and Assistant Vice President level. Data Applications has become one of the biggest growth areas in IT in recent times, says Ger Knowles, Associate Director of Information Technology and Services recruitment at Morgan McKinley Ireland. This has led to a skills shortage, with many organisations looking to the UK and continental Europe for new talent. We are helping potential candidates with a programme of regular events including classroom training for up-skilling, says Knowles. But for the foreseeable future organisations will face stiff competition for top talent. Fluency in a foreign language is an increasingly valuable asset, while the emphasis on analytics and BI is increasing the demand for candidates with a background in statistics. Salaries are likely to increase above the rate of inflation in areas where there is a skills shortage. 4
6 Demand is currently being driven by offshoring. JAPAN LACK OF SUITABLY QUALIFIED LOCAL TALENT There are no major surprises to report on the recruitment market for IT Data Applications professionals in Japan. ERP (especially SAP and Oracle) is the main application area where talent is in demand, particularly for business analyst roles. Demand for talent is currently being driven by off-shoring, as companies focus on moving technical resources out of Japan and using on-shore analysts to act as links between the two, says Karim Hakam, Associate Director at Morgan McKinley s Tokyo office. As in other disciplines, so too in IT Data Applications: the problem for hiring organisations in Japan is the lack of suitably qualified local talent and the requirement for any candidates from abroad to have native or even advanced fluency in Japanese. The main sources of overseas talent are North America, the United Kingdom and other APAC locations. Japanese nationals residing overseas who are considering a return will therefore often find good openings. However, candidates must be able to demonstrate strong technical skills and ideally should have relevant experience in the areas mentioned above. Overall salaries will remain steady in Some organisations may increase salaries in line with market trends to attract the best talent in areas where there is a skills shortage. 5
7 Hiring organisations must be prepared to make some sensible compromises. SINGAPORE OFFSHORING TREND IS DEPRESSING DEMAND At the moment the number of organisations scaling back on IT Data Applications recruitment outnumber those who are expanding. Though there are pockets of intense activity here and there new projects are scarce, comments Gurj Sandhu, Associate Director at Morgan McKinley Singapore. Talent supply currently exceeds demand as roles are being shifted to lower cost countries such as India, China and Eastern Europe. Offshoring is the number one reason for the current downturn in recruitment activity, says Sandhu. There are opportunities in business intelligence, CRM and ERP applications but appointments tend to be contract and interim hires, and we have noticed a growing tendency to replace experienced roles with more junior ones. Given the oversupply of talent, hiring organisations have grown increasingly specific in their requirements, and candidates who do not fully meet them are rarely given an opportunity. My advice to clients is to be prepared to make some sensible compromises as this will significantly cut recruitment lead times and therefore, quite often, time to market on projects, says Sandhu. And my advice to job seekers is to deepen your specialist skill set and be focused. If there is a recognised qualification in your area of expertise then go for it. Keeping up to date with the latest version of a technology is also very important. Morgan McKinley offers free IKM testing to candidates who are unsure about their future career paths and this can help them to find the right role. In the current climate we will not see any significant overall change to salaries, though hiring managers may need to improve offers when recruiting into roles requiring niche skills that are in short supply. In some IT Data Applications areas salaries will decrease. 6
8 An advanced qualification proves the ability to think independently and creatively. UNITED KINGDOM. HIGH DEMAND FOR YOUNG, WELL-QUALIFIED TALENT In recent months we have seen a growing appetite among hi-tech start-ups and consultancies for talent to support data science and analytical applications. Candidates with PhDs and Master s degrees in relevant research areas, particularly in mathematics, computer science and statistical analysis are in high demand. The basic salaries on offer are attractive even for applicants with limited experience if they can demonstrate the ability to get stuck into analytical, data management and business intelligence applications quickly, comments Cem Baris, Associate Director Technology at Morgan McKinley. What is valued above all is an analytical mind-set. An advanced qualification proves the ability to think independently and creatively, as well as technical know-how, and this is what is required in applications such as analytical CRM. Many companies in both Financial Services and Commerce & Industry are currently developing such applications on platforms such as SAP, Oracle, Microsoft, SalesForce, IBM and NetSuite. Organisational change and globalisation of functions are also driving demand. We are serving an ever-broadening client base as organisations seek to gain a better understanding of their customers, suppliers and business model through data applications, says Baris. There is a talent shortage so there is something of a scramble to get the best young people, including recent graduates, whereas candidates who have years of experience in older technologies are finding it more difficult, says Baris. Though many candidates are getting proactive in seeking new employers, in many cases the shortage of local talent means UK-based organisations are looking abroad, chiefly to continental Europe and North America. Over the next year, employers will have to move fast to secure the best people before they are snapped up by the competition, adds Baris. Roles that are being posted include super users, junior consultants, system architects, analysts and data managers. Although the market is improving, the demand is focused on inexperienced and young talent which means salaries are not increasing, though exceptional candidates may secure a premium. 7
9 GLOBAL TREND REPORT IT DATA APPLICATIONS A MORGAN McKINLEY GROUP COMPANY
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