Business Analyst: The Most Important IT Role

Friday, June 11, 2010 by Aaron Whittenberger
Now didn’t I say that Business Analysis has far reaching impact on the organization?  A new Forrester research report supports my claim as it ranks Business Analyst #1 of the 13 Most Important IT Roles.

The age of IT specialization has been replaced by an emphasis on skills that can translate across the enterprise. According to Forrester, this shift can be traced to a number of emerging trends:

* Maturing technologies such as software-as-a-service and business intelligence are changing IT skills requirements;

* The growing array of outsourcing options have altered in-house staffing priorities, with more specialized skills increasingly likely to be outsourced; and

* The continued search for cost-reduction opportunities has changed how IT decisions are made.

With those trends in mind, here is Forrester’s list of the 13 Most Important IT Roles, based on the percentage of IT executives who believe each role is growing in importance.

#1 – Business Analyst – 70%

Talk about holding all the cards: Not only do these IT pros know the business, they also have their fingers on all the insight.  As the saying goes, knowledge is power.

#2 and #3 – Architecture and IT Strategy/Planning – 66%

As IT has evolved into an increasingly important part of business, both of these roles have become critical in ensuring that every department has the infrastructure and tools that it needs.

#4 – Project Management – 65%

What business doesn’t need people who can mange multiple personalities, master numerous business processes, understand different aspects of the business and make sure things get done?

#5 – Security – 62%

With the onslaught of breaches and identity theft that constantly filters through the headlines, not to mention the growing mandates for better access controls, is there really an explanation needed here?

#6 – Service Management – 60%

The whole thing about the customer applies here to, as managing IT from the customer’s perspective has become de rigueur.

#7 – Client Relationship Management – 56%

We’re in the age of customer service, and anyone who’s mastered the art of managing CRM environments is worth their weight in gold.

#8 and #9 – Business Continuity and IT Financial Management – 55%

With companies paranoid about their systems surviving natural and man-made disasters, and cost-effective IT spending more important that ever, it’s no wonder these roles are on the rise.

#10 – Portfolio Management – 50%

This is a growing area driven by the desire to demystify the measurement of the impact of IT investments.

#11 – Asset Management – 34%

Like other spin-offs from more general business roles, this is another specialized function better outsourced.

#12 – IT Research – 30%

Research? That’s what consultants are for.

#13 – Human Resources (within IT) – 20%

HR for IT is an increasingly unnecessary luxury in an increasingly self-service environment.

Take a closer look at that list and you will notice Business Analysis has been ranked #1, #2, #3 and #10.

Youtube Versus Viacom

Wednesday, June 2, 2010 by Matt Warman

For those of you not following geek things, there is a lawsuit going on between Youtube (owned by Google), and Viacom (CBS, Daily Show, Colbert Report). Viacom is angry that some of their content was posted on Youtube. Apparently, there was 63,000 separate items on Youtube that were copyrighted by Viacom. Viacom has been supported with a “Friend of the Court” brief by NBC, BMI, and ASCAP (Basically the RIAA). Google has similar briefs by EBay, Facebook, Amazon, and Yahoo. How does this court case affect me as an application development person? Well, it could determine your web application development. There are many interesting issues here: fair use, piracy, site owner responsibility. The key issue here is for the very soul of the Internet. As you probably know, the Internet was created to share information amongst researchers around the globe. This communications device allows us to share voice, text, audio, and video. This makes it easy to share ideas, even if those ideas weren’t ours. A part of that communication is the same kind “water cooler” talk that everybody has done for years. “Did you see what that talk show guy said last night”? The only difference is now you can post it. This song expresses how I feel, and I have added some pictures to show how it has affected my life.
The media outlets want the site owners to control the content on their site. They claim that Youtube is a content provider, and thus are “stealing” their content for gain. This would be analogous to suing the U.S. mail for getting a threatening letter. We have fair use,  so any signal sent through the airwaves is free for anyone take and use. This meant that anyone who broadcasted, the content could be consumed by anyone. The content providers made money by placing advertisements in the content. Since that time, content providers have been using congress to side step these boundaries by changing the length of copyright, putting "digital" rights on formerly analog content, and pushing for laws that allow content to be controlled by the provider. The large media companies ignored the Internet because there wasn’t any correlation to their business. When companies like Google started to compete for the same advertising dollars, the large media outlets saw the Internet as a threat to their business model, and are now looking to destroy it.
No one is trying to deny content providers money. It was agreed long ago that your work was yours, but eventually it would be owned by the public. That changed when media companies are entirely built upon their own content (just look Mickey Mouse at Disney). Do people take content that doesn’t belong to them? Yes. Are people just posting items broadcasted to make their point, or to inform? Yes. We have to decide as a society whether the Internet is place to allow copyrighted material as a form of communication. NBC found it distasteful that their shows were on Youtube. That’s why they created Hulu.

What do you want the Internet to be, a free (as in liberty) communication device, or a pay-per-view broadcast medium?

 

IT Governance Needs to Change to Gain a Competitive Advantage

Friday, May 7, 2010 by Aaron Whittenberger
Futurists have been fore-telling the look of the business enterprise and the IT Department for years.  The latest version from the Corporate Executive Board state that we are in for rapid, radical change.  It fore-tells that the IT Department in 5 years will bear little resemblance to the IT Department of today.  As business users become more tech savvy, the business units will absorb a lot of today’s IT functions.  Along with continued IT outsourcing, they predict that only 25% of today's IT professionals will still be in IT in 5 years.

The CTO blog does not forecast such a dismal future for the IT professional, but it also acknowledges the need for better alignment with business strategic goals and faster IT solutions delivery.

Whereas, I will not completely buy in to the idea that 75% of today’s IT professionals will not be working in IT in 5 years or that change will be so rapid or radical.  It is increasingly apparent that change in IT solution delivery is necessary, and that is where I suggest that business organizations start; in particular IT Governance. 

I hope to see today’s IT Governance Committee, which approve and prioritize IT business solutions projects, replaced with a Business Improvement Project Review Board who approve and prioritize all business improvement projects.  This new Governance Body will consider all business improvement projects; those with business solutions and those with IT solutions.  As I mentioned a few weeks ago this new board needs to better track all projects and continue to give its support to all projects at every stage of the project.  Once the cost of the project outweigh the benefits, or other external forces make continuance of the project unwise, the project can be stopped and decrease the expense to the organization.

Along with that we will see the idea of a Project Management Office (PMO) replaced with a Business Improvement Office (BIO).  The BIO will be staffed with people with business backgrounds and those with IT backgrounds; however, cross-training and best practices will require all members of the BIO to look for the best solution, considering both business and IT solutions, to meet the needs of the business.  The BIO will take over the project management, business analysis and quality assurance aspects of a project. 

Continued competitive pressures will force the BIO to change its practices in order to achieve faster solution delivery.  Some will embrace the Agile methodology; others will develop some hybrid methodology taking parts from both the Agile and Waterfall methodologies.  However they achieve it, continued pressures for competitive advantage will require continual improvement in the methodology to push for faster and faster delivery while not sacrificing quality.

Many references now forecast a change to IT Departments and IT staffing as we know it today.  It will be interesting to see the changes as they come about and see which forecast was most correct.

Homeshoring, the new trend in IT Outsourcing!

Tuesday, March 16, 2010 by Aaron Whittenberger
According to an InfoWorld article this month, the U.S. IT market has added 25,000 jobs in the first two months of 2010.  This is the largest month-to-month gain in IT staffing jobs in the U.S. since 2008 according to U.S. Labor Department statistics.

A contributing factor to that increase may be a new trend in the IT Outsourcing called “Homeshoring” or “Onshoring”.  This is an alternative to offshoring your IT outsourcing by placing it in low-cost, non-urban U.S. areas.  Monty Hamilton, CEO of Rural Sourcing Inc., recently spoke at the 2010 Outsourcing World Summit, where the idea of homeshoring was well received.

As salaries in India increase because of past American offshoring IT strategies, rural America becomes more competitive.  This along with the other benefits, such as culture and the favorable time zone, may spark an increase in the coming years to homeshoring. 

Mr. Hamilton notes that Small to Mid-sized Businesses (SMB) are first to realize the benefits of homeshoring.  He also makes note that a few jobs may still be lower cost as offshore, such as moving stack A to stack B.  However, when it comes to IT staffing, enterprise application development and IT strategy consulting, homeshoring is the growing trend.

Technology at the forefront in Haiti

Friday, January 22, 2010 by Aaron Whittenberger
As you watch the enormous humanitarian relief effort going on in Haiti on the evening news this week, following the devastating 7.0 earthquake that hit that country on January 12th, you can probably imagine the technology and IT infrastructure that the U.S. Department of Defense and other agencies has put into place to assist in that relief effort.   Read more about it here. The Haiti government turned over the operation of the one runway airport at Port-au-Prince, the nation’s capital, to the U.S. military.  An acknowledgement of the U.S. military’s prowess in logistics and technology.  For a few days as the relief effort ramped up news reports of delays at the airport were heard, but as that relief effort got organized those reports of delays ceased even with the amount of aide and volunteers flowing into the country were increasing.

What is not reported on the evening news is how an army of geek volunteers from the private sector is supporting that relief effort.  Leading the way are organizations like CrisisCommons, Ushaahidi, the International Community of Crisis Mappers and InSTEDD, according to an InformationWeek artical.  Application software development gets into the mix, undertaking such tasks as developing ways to help locate U.S. citizens and provide information online about Haiti and how to donate money, developing a timeline of events and a wiki of information online, a GPS-compatible street map of Haiti, an English to Creole dictionary for IPhones and Android mobile devices, and a system to use Twitter messages to ask for or offer assistance to those in need.  "We've been working a lot at Sunlight Labs to get application software developers to organize and work together in volunteer communities.  Developers may not be competent with a saw, but are starting to realize they have a skill they can contribute," says Clay Johnston, director of Sunlight Labs.  "The tools are available, and methodologies like agile project management have been popularized that can facilitate this."

In light of the reports of the failings of the coordination of relief efforts following Hurricane Katrina and the reports of the relief effort in Haiti, it is clear that it is IT solutions that have been put into place to better support humanitarian relief efforts worldwide and that technological advances has clearly moved into the 21st century in support of those efforts.

Is IT Qualified To Satisfy The Business?

Monday, November 9, 2009 by Aaron Whittenberger

“IT executives increasingly implement marketing initiatives to improve the communications with their business customers. But these efforts often focus solely on the brand aspects of the services under the IT’s control without understanding the business’ perception of IT. To maximize the success, IT must add business satisfaction assessments to its tool kit. Understanding business satisfaction requires qualitative and quantitative data that capture customer expectations and perceptions through different types of interactions such as interviews, panels, focus groups, complaint systems, and surveys. This report provides best-practice recommendations, survey templates, and questions to guide IT executives through the deployment of a business satisfaction assessment. It applies Forrester’s deep expertise in external customer satisfaction to the interface between business customers and their internal IT suppliers.” says a new Forrester report.

I have served on countless business application development teams within several organizations in the Southwest Ohio and Cincinnati Information Technology community, one thing I can say is that most IT organizations do not gauge business satisfaction with IT business solutions.  I have served in only a couple of organizations where the business serves on the IT governance committee.  An organization does not have to be “big” to have an IT governance committee.  No matter what the size of the organization decisions are made as to priorities in IT work.  IT governance does not have to be a long drawn out process or take great time commitment from the business or IT executives, but business involvement in IT governance goes a long way in gaining business buy-in as you roll out the IT business solutions to the business.

Involvement in IT governance is just one way that many organizations in the Greater Cincinnati area can improve the IT-business relationship.  The Forrester report goes into ways to solicit and gauge business satisfaction with IT business solutions.  Doing so should affect decisions concerning not only IT business solution delivery but also IT Infrastructure and IT outsourcing initiatives.

 

Takin’ the Basset Hound to the Farm (Part One)

Tuesday, October 20, 2009 by Jeff Welsh

Seems like it has been a while since I have had a chance to do a post.  For the last 3 weeks things have been absolutely crazy in our IT consulting world, but in a good way.  We had a chance to go to the Techserve Alliance national conference in Las Vegas.  I have heard all the jokes, including the one about it staying in Vegas.   We did learn that just because you are pre-checked with the airline, does not mean that your bags are.   We got our bags checked with literally a minute to spare and fortunately all made it back to Cincinnati.

Upon return, we signed a support contract for a new customer.  They trust us enough to outsource their entire IT applications support to us.  We have a real life example of an IT Strategy that was discussed at the conference (See #3).  Not only was IT strategy discussed but business strategy as well.  Here are some highlights:

1. Market Differentiation - customers have lots of choices, how will you stand out?

2. Improve Systems and methodology for delivering service- excellence, efficiency, depth of service.

3. Outsource what you can-eliminate the busy work that does not add strategic value.

4. Deal with the economy being slow to recover till 2012, spend your money wisely, hire wisely, fire quickly, and refine what is working, stop what is not.           

5. Build Alliances with like minded providers in different industries and sell collaboratively to serve the customers' need.

My favorite of these five is number four.  Said another way, its takin’ the basset hound to the farm.  I’ll expand more on that in my next post.


 

IT Outsourcing in for some big changes

Tuesday, October 6, 2009 by Aaron Whittenberger
A new report from Gartner Research Firm

IT Outsourcing is not going away anytime soon, but a new report from Gartner Research states that the market is in for some big changes.  The report predicts that one in four business-process outsourcing firms will disappear within the next three years.

The article in InformationWeek gives advice to CIOs who wish to initiate a new IT Outsourcing contract on warning signs to look for in your prospective BPO partner that would indicate this firm may not be able to fulfill any new contract:

1.    Are they losing money?
2.    Are they winning new business?
3.    The loss of marquee clients.
4.    Poor capitalization is impeding growth.
5.    Toxic exposure to tainted financial firms.
6.    Lock down your exit strategies.

In another article in EconomicTimes I read that IBM will goble up half of India’s IT outsourcing business in 2010. 

This is not to suggest that the offshore IT outsourcing business is coming home.  IBM’s business is international.  With IBM awarding one-half to 1 billion dollar contracts, many India firms will not be able to compete in delivering hardware, software, IT consulting services and integrated business solutions.  IBM is one reason that 25% of IT BPO firms will meet their demise within the next three years.

Take a Team Approach to IT attacks

Tuesday, September 8, 2009 by Aaron Whittenberger
You more than likely already know you need the best security possible to prevent an attack. You also need IT infrastructure and IT staffing in place to respond to an attack if one happens.

Incidence response should be one of the most important items on your IT security agenda. Your company must be prepared to respond to an incident once it occurs and quite possibly to stop the next one.

As of late, disgruntled employees violate internal policies or misuse system access for their own monetary gain or for revenge on employers due to mergers, outsourcing of business or IT jobs or employee lay offs.  Internal threats are as real as external threats.

IT experts say that security professionals with the right skills can help lower the number of and potential for incidents at any organization with their responses.

An article in this week's GovInfoSecurity.com outlines the experts you will need:
  • Network security specialist: A person familiar with intrusion detection systems.
  • Penetration testers: Someone who can assess a system's potential vulnerabilities.
  • Incident handlers: People who understand attack methodology and can apply critical thinking skills to respond to incidents.
  • Forensics Analyst: The person who looks for evidence after an attack.
  • Research Analyst: The person to keep abreast technological advances in incident response activities.
  • Team Leader: Leads the team through crises and communicates to the business incident activities and cost to the business.
The article also outlines a typical methodology the team should follow to respond to all types of attacks:
  • Preparation and Training: for both prevention and incident response.
  • Identification: fast identification of an occurring attack and its impact on the IT infrastructure can help in minimizing the duration and cost of clean-up.
  • Containment: Once an attack has been identified, steps must be taken to minimize the effects of the attack.
  • Recovery and Analysis: The recovery period allows analysis and lessons learned of What happened? Why did it happened? Was the response effective?
Is your IT infrastructure safe from internal and external attacks?  The proper IT infrastructure safeguards and IT staffing with proper security skills can help ensure your organization's security.

Are IT Jobs on the Rebound?

Sunday, August 30, 2009 by Aaron Whittenberger
A Network World article reports that the U.S. gained 7,400 IT jobs in August.  Gaining back what was lost the month before and following five months of losses of IT jobs in the U.S.  Hopefully this is the first signs of the U.S. coming out of the recession that has gripped the country.

Adding to the good news for IT Services Companies in Cincinnati, across Ohio and the country; as well as application development personnel is news from the U.S. Citizenship and Immigration Services that demand for H-1B Visas are on the decline.  They expect the entire 85,000 visas to be given out this year, just not as quickly and with the same frenzy as in the past few years.  FierceCIO continues to state that ‘employers are putting a greater emphasis on hiring American workers, buying American goods and abandoning offshore outsourcing’.  Where I do not believe this to be the general direction of employers in America, some smaller employers may have taken this direction but large firms continue their offshore IT outsourcing plans.

So does all this mean that better times are in store for IT business solutions professionals in America?  I remain pessimistically optimistic.

Favorite Fun Geek site?

Friday, April 10, 2009 by Matt Warman

With the economic news being what it is and it being Friday, I decided to lighten it up a bit. We application development types are known for our twisted, not-so-mainstream places on the Internet. Back in the day there was "Foamy the Squirrel" (not for work consumption), and "Homestar Runner". YouTube has somewhat replaced the flash sites for interesting content, with "Chad Vader", "Ask A Ninja", and "Harry Potter Puppet Pals". My new favorite on YouTube is "B&J Supers Squad". It shot as a PSA with guys dressed up as Batman and the Joker performing tasks like how to properly ride a bike and lifting heavy objects. For application development types who are NOT squeamish, I recommend "Klaus the Forklift Driver" on YouTube. It’s in German with English subtitles. It is both disturbing and very funny. So I showed you mine, what crazy clip, flash site, or Geek underground item do you have for me?

This Is Your Opportunity

Friday, February 6, 2009 by Michael Kiffmeyer

I read today that unemployment has risen to 7.6%.  Yes, its official – we are in a recession.  However, that does not mean there isn’t opportunity because there is.  If everyone believed everything the press is saying our economy does not have a chance and the United States is going to cease to exist.

I also read today that the U.S. government is going to re-visit its parameters for H-1B Visas because they are being used by recruiting body shops rather than giving foreign nationals the real opportunity that they seek.  This means that application developers and specialist are going to be able to make up ground that they have lost to foreign nationals in the past.

My suggestion is for developers to increase their skill-set now before the economy begins to get worse.  Information technology consulting has never been a steady business it always has had peaks and valleys.  When the economy is good projects are plentiful.  When it starts to decline projects usually come to a grinding halt.  But is you have multiple skills it decrease your odds of becoming a statistic.

Organizations try to do more and more internally rather than outsource it when the economy begins to falter.  The more skills a person has the better chances one has to stay employed.  This holds true for IT staffing, development and consulting.  Additionally, when a developer or infrastructure architect can show an organization how to safe time, investment and people through the implementation of their solution they will endear themselves to that particular organization.

Good information technology strategy can more than pay for itself in this economy.  Organizations everywhere are dependent on technology and they need processes to become dynamically automated so they can accomplish more with less while the move towards models of efficiency that will contribute to the productivity of the organization.

Make it your mission to learn more applications and methodologies that can greatly increase the productivity of any company.  To do this is to build value for the organization and you by ensuring there will always be a job for those that are willing to innovate and create a better way.  

This is your opportunity.  Make it happen!

 

Talent Challenges

Thursday, January 29, 2009 by Michael Kiffmeyer

There is trouble in the near future for talent needs and it is coming in various flavors:
 

  • According to the Bureau of Labor statistics, in 2010 over 10M jobs in the United States will go unfilled – in 2022 it will be 30M jobs
  • College graduation rates are down to 54% and 75% of new jobs will require a college degree
  • Making the wild assumption that Baby Boomers (44 – 62 years old) will leave the workforce when they are retirement eligible (is that at 55 or 65?) – there isn’t enough Gen X (28 – 43 years old) to replace them (78M Boomers versus 40M Gen Xers). Gen Y (7 – 27 years old) is big (70M), but still lacks the experience (hello…most haven’t even graduated) to make an immediate impact
  • The average time in a company for Gen X is four years; for Gen Y it’s more like two and while the Boomers have been pretty loyal in the past, but the technology market hasn’t exactly rewarded them for that loyalty.
  • According to an AARP survey of Boomers - 31% of mature workers became responsible for a dependent parent; 23% had an adult child move back home; and 16% were providing child care or day care for grandchild.  50 to 80 hour work weeks, while tolerated by Boomers and some Gen Xers, won’t be tolerated by Gen Y and won’t be of interest to Boomers as they ‘mature’ in their careers and many take on the care of family members. So, since everyone knows that a 40 hour work week for technology professionals is a joke – who’s going to be doing all the work?

Well, I was thinking there are a couple of answers here but those answers will involve a major paradigm shift in the way we think about our workforce today. 

Baby Boomers are learning very quickly that retirement will have to be postponed because of our current economic conditions.  This wealth of knowledge can be instrumental in assisting those organizations that are struggling with Information Technology Staffing because these folks are going to be around a little longer than they planned!
 
Information technology departments will have to create a hybrid workforce model that will be made up of Baby Boomers, Gen Xers and Gen Yers.  Still another approach is to work closer with IT outsourcing partners to ensure you have the talent that you need.  My organization, STAR BASE, Inc. makes finding superior IT talent for IT jobs a fulltime pursuit.

Finally, another emerging model that will be downsized IT department with only mission critical personnel and several part-timers that will be used from time-to-time.  This model will be subsidized from time-to-time by outsourced to information technology staffing partners that can assist in bridging the gap.

 

Suggestions for CIOs in a Downturn

Thursday, January 29, 2009 by Michael Kiffmeyer

cutsThe global economy is tanking, layoffs are everywhere but organizations need to remain positive and work through these difficult times.  Information technology is no exception to this statement.  Often times when companies decide to cut budgets the information technology department is a prime target to be cut.

So, what can a prudent CIO do to address budget cuts while still operating his/her organization at a competitive advantage?   Here are some suggestions that may help:

  • Ratios - Look at your ratio of onsite permanent IT employees.  Perhaps you could reduce the number of permanent employees to only those that are essential to the mission.  Outsourcing the rest of the work to a local firm often times is far more cost effective than permanent employees.
  • Time-to-Market – If products and applications can be delivered faster, though a combination of in house personnel and outsourced talent then companies will reap the benefits sooner.  Work closer with your outsourcing partners to save time, investment and even the dreaded budgets cuts.
  • Revisit your Processes – By working closely with your outsourcing partner.  If your team can find how to deliver applications an automated process with fewer touches and less defects there will be less time and money spent on re-works.  IT departments must leverage knowledge, experience and tools to gain a competitive advantage while decreasing cost.
  • Productivity Improvements – Your internal and your external outsourcing IT partner must embrace being able to accomplish more in less time and at a lower investment.  The true business value of IT will be felt across the enterprise.
  • Negotiate Your Rates – Any true business partner or business technology consulting firm, will be open to rate reductions if you are willing to negotiate a long term partnership.  Dedicated consultants are looking for long-term business partnerships.  If you are willing to commit to a set amount of hours they will br eilling to negotiate rates with you.


Application development outsourcing and IT staffing outsourcing can have many benefits in these times of economic challenge.  Your organization still needs to operate on a day-to-day basis.  Re-think your approach for the mutual benefit of your organization and your outsourcing partner.
 

Golf is not a critical IT skill

Wednesday, November 26, 2008 by Aaron Whittenberger
It is a long-held, widely-accepted point of business 'wisdom' that the tees, fairways and greens of the golf course are a great place for business networking, relationship Golfersbuilding and career advancement.  Hey, I subscribe to that body of thought.  A few years back I was with a company that held an annual summer picnic and prior to the picnic was a golf outing for those that wished to participate.  The CEO, Sales Executives and almost all the management staff went every year on the golf outing.  Knowing that was the place to be, I took up the game of golf.  The following year there I was on the fairways with the best and brightest of our company.

However, according to the “CIO Magazine Golf Networking Survey” conducted earlier this year not everyone sees it that way.  Of 394 IT professional respondents, 55 percent say that golf has helped advance their career and 45 percent say that it has not.  Maybe those 45 percent are playing it wrong, don’t have a low enough score or are golfing with the wrong people?  Seriously, it could be any one or none of those reasons, but the one thing the survey does prove is that hitting the greens does not guarantee instant success.

One piece of advice that I will give is that if you do not enjoy the game, don’t frustrate yourself.  There are other ways to do business networking, everything from the traditional professional organizations to the new ways of keeping in touch.  I myself am a long time member of the Tri-State Midrange User Group (TSMUG) of the Southwest Ohio Information Technology Community and with my newly achieved CBAP® certification I am a member of The International Institute of Business Analysis (IIBA®), of which there is a Cincinnati chapter.  I have and will regularly attend meetings and events of these organizations for both the knowledge and networking value of their programs.

One method of networking that has propped up here in the past few years and is gaining wide acceptance in the business community is on-line networking via social media, such as LinkedIn, Twitter and Facebook.  New on-line business communities are popping up all the time with a new groove on things.  If this is your cup of tea, find one that suites your needs and join in.

CIO magazine also has advice for business networking.  Whichever method you choose to expand your horizons, increase your influence and boost your career one thing is clear; in these economic times it would be a mistake not to invest some time and resources into this area.  With Business IT Outsourcing and other influences that are reducing the number of Cincinnati IT jobs and IT jobs available across America, your social networking skills and efforts may mean the difference between whether you are employed or in the unemployment lines.

Predictions for 2009

Friday, November 21, 2008 by Michael Kiffmeyer

Many organizations that are a part of IT outsourcing and business transformation outsourcing (BTO) are slightly concerned about the economy in 2009.  However, IT outsourcing was important before Bear Stearns, Lehman Brothers, Freddie and Fannie, AIG, and the big three automotive manufacturers. These events have underscored the importance of outsourcing because companies believe that transformational outsourcing can help them to service the economic downturn.

According to the International Outsourcing Forum (IOF), "the global outsourcing and off shoring market is expected to grow from approximately $10bn today, to between $50bn and $60bn by 2009". This dramatic market growth will create an additional three million jobs worldwide by 2009. While one million jobs are likely to remain ‘near shore’, the remaining two million will be relocated based on the price performance of location."

I believe here in the United States that when it comes to technology and the value it can bring, organizations realize that it is a vital lifeline for their very existence.  More and more organizations are also coming to the realization that they do not have to do everything internally but can partner with the right trusted technology consultant to handle many of their IT needs.  The economic downturn events of the past couple of months have made organizations come to terms with their vulnerability and question what they will need to survive in the coming years.

IT Outsourcing will remain a viable business in the year 2009.  As companies seek to reduce payroll while increasing productivity there is going to be a need for IT talent.  Where will organizations look for this talent?  The answer is quite simply where ever they have to.  More organizations are going to increase their working relationships with those trusted partners that can help manage their risks and provide IT talent on demand.

I predict that IT outsourcing and technology consulting will have a “busy year” next year for three reasons:

1. The slowdown in the world economy
2. The Presidential election is over and some level of stability will occur
3. Organizations realize that technology can make a huge difference in productivity and profitability and will seek out trusted advisors to assist them in making a difference

Those are my thoughts, what say you?

Can Anything Remain Stable?

Wednesday, November 19, 2008 by Michael Kiffmeyer
The short answer to that question is no.  Technology, like anything else happens in spurts and goes through trends.  The Outsourcing of IT is no exception.  For all of those organizations that thought they had an “IT Strategy” they quickly learned that the strategy is only as good as the business model that it supports.
Outsourcing IT is no exception to this rule. 

For the past several years organizations have learned that outsourcing may not be the ultimate answer because “the playing-field” has changed and organizations need to adapt.  In this period of downturn, the outsourcing of IT to foreign countries is no longer the bargain it once appeared to be.  Since the U.S. dollar has been devalued it has had a direct effect on the pricing that organizations receive from off-shore countries.

I wrote yesterday in my blog, “Outsourcing and IT” that in India, a country that supplies and services a good portion of the U.S. outsourcing needs is starting to use third and fourth tiered personnel to supply services.  The glaring problem with this is that it suggests that organizational projects can be put in jeopardy by continuing the same practices with less than qualified people.  This costs a company time and investment leaving an organization questioning, “where is my competitive advantage?”

Insourcing is not something you hear about every day, and yet, it appears that the brunt of the American Corporation Outsourcing has tapered off and is on the decline, along with the US Dollar. Insourcing is when companies decide that they can afford to do the same jobs that they sent to other countries, in-house or thru local subsidiaries and technology consulting firms.

In the practice of information technology I would suggest that we have been hit hard by outsourcing and it has lead to massive lay-offs.  Now some of those jobs are coming back or so we think.  I believe there is a balance that can be struck.  Companies may not be able to build massive IT departments like they once had, that is not cost effective, but they can partner with technology consulting firms to assist them when they need IT staffing talent or when they need IT expertise or mentoring from  time-to-time.  My organization STAR BASE actually has a program called "CIO Assist" which is a way to provide any organization with the IT expertise they need on a short-term basis

So, to answer the original question, “Can anything remain Stable?”  The answer is no, but in this case, a combination of insourcing/outsourcing does just the opposite for the US Economy, it helps lower the trade deficit, provides more jobs for Americans and it means a more streamline process. Perhaps this is a start in helping to repair the economic downturn in this country. This pleases me as I hope it does my readers.  Blog on!

Outsourcing and IT

Tuesday, November 18, 2008 by Michael Kiffmeyer

The recent economic challenges that the United States and the rest of the world is facing has effected more than the loss of jobs.  Organizations that were dependent on Indian community out sourcing are now faced with a new dilemma, inferior talent.

About 60% of India’s IT outsourcing business comes from the United States and 40% of the work is in the banking, insurance and financial service sectors.  To ensure that they can maintain or at least keep pace with the downturn, these firms are taking steps to protect themselves from the problem.  One of the first steps they are taking comes in the form of reduced hiring of entry-level engineers and looking at second-tier cities with lower labor costs.  The Washington Post recently published an article on the effects of the economic downturn and the steps that the Indian community it taking to combat the downturn.

The outsourcing of IT has been driven by the insatiable appetite of the United States that will continue to drive the practice in hopes of reducing headcount.  A word of caution would be advisable for the future.  If outsourcing means getting second and third-tier resources what will that do for an organization that is seeking a competitive advantage?  Clearly it will be hard to justify the economic benefits of untested staffers.

My organization, STAR BASE Consulting, Inc., tests and pre-screens every candidate that we place.  We believe that a poor candidate is a reflection on our firm.  My suggestion is that regardless of which firm your organization uses to produce IT staffing, do not choose a firm that does not test and who does not pre-screen.  In this day and age of identity theft it appears easy for a person to represent themselves as someone they are not. 

Do you want to risk the success of your projects and the reputation of your IT department to an organization that promises more with less?


 

Higher level IT outsourcing?

Wednesday, November 5, 2008 by Matt Warman

In a recent Computerworld article, there were plans by ACS, an IT outsourcing services firm, of starting off shoring business analysts and project managers. While I believe that many enterprises might want to remove them for cost savings, these people represent your core business. They are the balance of your business and technical expertise. They translate your business plans to your IT development team members, and answers questions form both IT and the business units. If your BAs and PMs can be replaced, then the best cost savings would be from CEOs. On average, they make 435 dollars per hour more than the average worker.

Outsourcing does make sense when clear specifications are in place and clear expectations are set. These processes are typically managed by your business analysts and project managers. If they are replaced, who is looking after your best interest? If you are going to replace your IT development team, at least look at consulting firms like STAR BASE Inc. We have the business and technical acumen to handle your project, we are price competitive, and we are local. Additionally, the new president is looking to curb off shoring. You might want to help your business, bottom line and support your local area.

IT Job Tips for Tough Economic Times

Wednesday, October 29, 2008 by Aaron Whittenberger
If a dwindling 401k and questionable job security keep you awake at night, you're not alone. Experts are offering IT solutions professionals' advice on how to handle these tough times and remain employed. By updating your skills, taking on new responsibilities, and working to become indispensable to your employer, you can ensure security.

"As any company looks to control costs, they look to IT people to become a jack of all trades in some respects," John Estes, vice president with IT staffing firm Robert Half Technology told CIO.com. "No one in IT can truly be that, but more companies are looking to staff to have broader, more diverse skill sets."

This coincides with what Michael writes, “Clients seek out individuals with multiple skill-sets that can multi-task, change and adapt as technology or market needs dictate,” in his blog.

The Computer Technology Industry Association (CompTIA) reports that it has seen an uptake in certifications training, which indicates that IT solutions professionals see the need to update their skills to remain competitive. "Historically, we see that certification volumes rise when the economy is somewhat sluggish, and that is indicative of less jobs and more competition in the market," says Kyle Gingrich of CompTIA.

As you know I am all for obtaining IT certification and increasing your skill set.  You can take on more responsibility and/or lead projects with real ROI to work toward becoming indispensable to your employer, but let’s face facts folks—true job security is an illusion.  To be IT outsourcing proof and have absolute job security, you have to own the company.  In one of my former lives I worked for a CFO whose father-in-law owned the company.  Not long after I left the company I heard that the CFO was hitting the unemployment lines.  So as one who has been around the block a few times, who has had the economy knock his feet out from under him and who has personally been downsized and outsourced—job security is an illusion; even if your title is CIO.  Stay tuned!