Demographic "Time Bomb" in Wait for Information Technolgy Businesses

Len Rust of the Rust Report draws attention to a recent report by research firm Ovum suggesting that IT shops are facing a demographic time bomb. According to Tom Kucharvy, the author of the report--"North America's IT staffing 'time bomb': managing the demographic shift" (September 2007; available from Ovum):

North American IT shops may well be facing a staffing perfect storm. Two big challenges are certain--a mass retirement of baby boomers that promises to deplete staff and starve many companies of critical skills, and a shortage of replacements due to a smaller crop of college graduates and a dramatic decline in students majoring in and planning to enter IT-related fields.

Rust writes that "As older workers exit, along with them go technological skills, industry and company knowledge, and seasoned judgment, including how to weigh the many factors that go into decision-making." However, a cultural divide will be created as yung people entering the workforce can be expected to embrace future advances without any reserve or difficulty, while "mature workers are unlikely to have the same readiness."

Meanwile, according to the Ovum report:

There are a number of steps that companies can take now to address current requirements and many others that corporations, in partnership with government organizations and educational institutions, must take to pre-empt even greater challenges in the future. The first step, however, is to do something that only a small percentage of US corporations have done--acknowledge the nature and extent of the problem and the need to address it.

Source: Rust Report Age gap strikes IT (October 26, 2007)

Korea: China and Japan Compete for IT Workers To Replace Aging Workers

Korea, which is having its own aging problems, is losing a significant number of workers to non-Korean employers overseas due to job shortages, according to DongA.com. Moreover, Korean companies are not making enough systematic efforts to retain workers.

China is eying Korea’s high-tech workforce who they think will boost its industrial growth. Grappling with an aging population, Japan is looking for workers who will help relieve itself of the burden of workforce shortages.
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Japan is luring more Korean workers to enhance its IT competitiveness and resolve its workforce shortages problem caused by aging. Indeed, the Japanese government and businesses are making hard efforts to recruit Korean and Chinese IT workers under the second-phase “e-Japan” project whose main objective is Japan’s comeback as an IT powerhouse.

Source: DongA.com "China, Japan Inc. Recruiting Koreans" (December 23, 2006)

Generational Differences: Younger Workers Desire New Technologies

At the Federal Computer Week’s Government CIO Summit in San Diego, agencies were told that, as the federal government reaches out to young workers, they will have to adopt new technologies, such as instant messaging, and recognize their innovative uses in the workplace. As Matthew Weigelt writes, the "government’s workforce is aging and the majority is nearing retirement age," and in the years since they arrived in public service, technologies have progressed rapidly.

Cora Carmody, SAIC's executive chief information officer, said young employees often are taking a technological step backward when entering the workplace. They expect to find wireless devices in businesses, when some companies may not have them.

As another speaker said, agencies must consider how to make the most of those new technologies. "As the workforce grows younger, the employees will come in with the expectatiom of having familiar tools available." This is a very powerful statement and should serve as a wake-up call to those living in the dark ages, refusing to believe that even micro niches such as mortgages has modern agencies such as Motley Fool Mortgages nowadays.

Source: Federal Computer Week "Young workforce will affect technology in workplace" (November 7, 2006)