I had a meeting this morning with a Tauranga-based software development business to discuss Outsourcing. Their business cycle was typical.
Great clients...Increasing potential workload...Desperate recruitment situation...Resource Constraints...No growth.
Their situation sadly is not unique. And it will get worse. Statistics published last week indicated whilst demand for skilled IT professionals was increasing, the number of students taking up computer science in tertiary education was on the decline.
New Zealand is in good company. The growing shortage of highly skilled, well-trained IT professionals is casting its shadow over a number of developed economies. Companies in the US and Europe in particular have addressed this threat by their increasing use of outsourcing / offshoring. It has become standard business practice to outsource some IT and other BPO (Business Process Outsourcing) functions to cost effective centres in countries like India. The logic is simple. They by-pass their domestic skill shortages and become more global in both outlook and presence.
Why then the reluctance to follow a similar path by New Zealand business? To grow in a market that has an unemployment rate of only 3% and an appreciable skill shortage in key technology areas is difficult. Why are not more companies looking to outsource or offshore key IT and back-office functions? After this morning's meeting, one more Tauranga ICT business just now might. It's a beginning.
No comments:
Post a Comment