Trends within the ICT Industry

The retention of Information and Communication Technology (ICT) staff is a global issue faced by many organizations. This article will take a closer look at some of the reasons for this state of affairs and will reflect on some of the steps that are being taken to retain personnel with specialist ICT skills. In addition, the article will provide some insight on what pre-empted the move from generalization to specialization and will also review the emerging trend of outsourcing business to companies which offer processing services. The role of project managers within the ICT industry will also be covered, as will the emerging international trends and influences which are impacting on the ICT industry as a whole. The debate around whether ICT divisions are profit centers or merely an organizational overhead is continued in this article.

Retaining your ICT Staff
It is becoming increasingly difficult for ICT managers to find ways of retaining the services and expertise of skilled ICT resources. Skilled ICT personnel are the most mobile resources in the world. To illustrate the point - a CICS COBOL programmer who develops a transaction interface for a bank in Toronto, Canada could do exactly the same job for a bank in Sydney, Australia. In other words their specialised skills are globally transferable and ICT resources are often drawn by the lure of travel and the associated financial rewards of lucrative contracts.

Because of the scarcity of qualified resources and the general lack of experience and expertise in certain specialised fields, staff within the ICT sector can demand high salaries. This situation is compounded by the regular introduction of new technologies, particularly those that deliver significant benefits. Companies are forced to invest in these technologies in order to remain competitive. They are then faced with the dilemma of either training their staff on these technologies (extremely costly) and running the risk of losing these skills to competitors, or paying premium rates (also extremely costly) for qualified consultants and technicians. Other factors such as the need for continuity and the need for re-skilling add to this dilemma.

Of course, the converse situation can also apply. Many organizations are lumbered with staff they no longer wish to retain, and the unfortunate outcome is staff cut-backs and retrenchments.

This ongoing situation has forced organizations to review their method of retaining skilled, qualified personnel. Some examples of this include:

• Deferred bonus payments – this usually involves staff agreeing to remain within the organization’s employ for an extended time period, generally beyond the successful implementation of a project. A classic example of this is the Y2K conversion.
• Lengthening of notice periods – lengthier termination periods provide organizations with a longer lead time for sourcing suitable replacement personnel, and also discourages staff movement and resignations.
• Financial restraint clauses – financial conditions and restraints pertaining to staff joining competitive organizations are often included in letters of appointment.
• Flexible working hours – this gives staff the option to plan how to best utilise their working day, within a pre-defined set of core hours.