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NPA Conference Manila 131108

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Presentation made for NPA members -Global IT market:opportunities for AsiaPac

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NPA Conference Manila 131108

  1. 1. ASIA CONFERENCE MANILA, PHILIPPINES Asia Talent Market Updates - IT Industry AK Menon Options Executive Search India
  2. 2. <ul><li>IT Industry/ Definition </li></ul><ul><li>Evolution of IT Industry </li></ul><ul><li>Changing role of IT in Business </li></ul><ul><li>Factors affecting industry growth </li></ul><ul><li>Emerging Trends </li></ul><ul><li>Role of Recruiters </li></ul>
  3. 3. Information technology refers to both the hardware and software that are used to Create, store, retrieve, and manipulate information
  4. 4. Evolution of IT Industry 60’s & 70’s – the Mainframe 80’s – the Desktop PC 90’s – Internet and Accelerated use of Computers 1998 – Y2K, boom in Telecom and dotcom start-ups – Offshoring begins 2001 – US Recession and increased Outsourcing
  5. 5. Role of IT in Business Automation of Specific functions Manufacturing Resource Planning Enterprise Resource Planning CRM/ EDI/ SCM
  6. 6. IT helps Business be AGILE!
  7. 7. Factors affecting industry growth <ul><li>1 . Globalisation and Internet liberate R&D </li></ul><ul><li>2. Market forces as enablers of industry competitiveness </li></ul><ul><li>3. Competitive broadband markets </li></ul><ul><li>4. The brain drain of IT talent </li></ul>
  8. 8. Factors affecting industry growth <ul><li>Globalisation and Internet liberate R&D </li></ul><ul><li>Source;Dr. Robert D. Atkinson,President,Information Technology and </li></ul><ul><li>Innovation Foundation-U.S. House of Representatives,October 4, 2007 </li></ul><ul><li>a) US Slides from the “Most preferred R&D destination” to being 17 th among top 30 </li></ul><ul><li>Nations </li></ul><ul><li>b) fewer individuals choosing science, technology, engineering and math (STEM) </li></ul><ul><li>careers </li></ul>
  9. 9. <ul><li>2. Market forces as enablers of industry competitiveness </li></ul><ul><li>Source: The Economist Intelligence Unit’s 2008 IT competitiveness survey </li></ul><ul><li>Six factors work together to create a sound environment for the IT sector. </li></ul><ul><li>ample supply of skills; </li></ul><ul><li>an innovation-friendly culture; </li></ul><ul><li>world-class technology infrastructure; </li></ul><ul><li>a robust legal regime that protects intellectual property such as patents and copyrights; </li></ul><ul><li>an open, competitive economy; and </li></ul><ul><li>government leadership that strikes the right balance between promoting technology and allowing market forces to work. </li></ul><ul><li>Four Asia Pacific economies – Taiwan, Australia, South Korea and Singapore – are ranked among the top 10 in the world in information technology (IT) industry competitiveness, </li></ul>Factors affecting industry growth
  10. 10. 3. Competitive broadband markets help cultivate strong IT sectors . Fast, reliable and secure Internet access, The high-quality networks and telecom liberalization spur IT outsourcing industries in countries eg., South Africa, Bulgaria, Ukraine and Vietnam 4. The brain drain of IT talent from emerging markets shows signs of slowing or reversing, as training opportunities expand in markets and IT professionals return home to work in established technology firms and start-ups. Factors affecting industry growth
  11. 11. Emerging Trends <ul><li>Increasing influence of AsiaPac Nations in IT Industry </li></ul><ul><li>Source: The Economist Intelligence Unit’s 2008 IT competitiveness survey </li></ul><ul><li>2. Gartner says IT spending to slow in 2009, but continued growth reflects critical role of technology to Business Performance  </li></ul><ul><li>3. Convergence of Technologies and their integration will ensure </li></ul><ul><li>premium on IT professionals with project management skills, people </li></ul><ul><li>management skills, and real-world problem-solving skills and experience. </li></ul><ul><li>4. Increased use of outsourcing and contract workers with less and less value on purely technology-related certifications and more value on experience and business acumen. </li></ul>2 Taiwan 7 Australia 8 South Korea 9 Singapore 12 Japan 21 Hong Kong 36 Malaysia  42 Thailand 47 Philippines 48 India 50 China 58 Indonesia
  12. 12. Role of Recruiters <ul><li>Companies are expanding their research centers in other parts of the world where there is a surplus of engineers.  Recruiting practices are changing with more emphasis of hiring foreign talent/ returning natives .  </li></ul><ul><li>Investing in people is mission-critical for domestic IT industries. Sourcing talent—particularly employees armed with “soft” management and analytical skills—will be among the toughest challenges IT producers will face in the coming years. </li></ul><ul><li>Need to be conscious about changing demographics and social attitudes of the younger generation. Focus on improved networking skills both online and offline to seek and counsel “passive job seekers” </li></ul><ul><li>Relationship management vs transaction management. Encourage candidates to take responsibility for their own career development. </li></ul><ul><li>  NPA Network Orchestration –the way forward! </li></ul>