concurrent session: riding the it staffing · march 18‐21, 2014 | hilton san diego bayfront labor...
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March 18‐21, 2014 | Hilton San Diego Bayfront
Concurrent Session: Strategy & OpportunitiesRiding the IT Staffing Growth Wave
Moderator: Sona Sharma, Senior Research Analyst,Staffing Industry Analysts
Panelists: Mahfuz Ahmed, CEO, Digital Intelligence Systems LLC Tiffany Crenshaw, President & CEO, Intellect Resources Inc. Kevin Horner, President & CEO, Mastech Inc. Gary Zander, President, Project One Inc.
THUR, MAR 20 11:45 AM AQUA CD
Sponsored by:
March 18‐21, 2014 | Hilton San Diego Bayfront
Market Size for IT StaffingU.S. Temp. Staffing Revenue‐ IT (1997‐2014P)
Source: Staffing Industry Analysts, © Crain Communications 2013
14.5
17.819.8
21.5
18.7
14.814.315.8
17.419.0
20.519.8
15.817.9
20.622.7
24.225.9
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013P
2014P
March 18‐21, 2014 | Hilton San Diego Bayfront
Growth Trends in IT StaffingChange in U.S. IT staffing market size, 1998‐2014
7% 7% 7%
‐9%‐3%
4%
14%
7%3%
‐4%‐8%
‐25%
19%13%
8% 5%
23%
11%9%
‐13%
‐21%
‐4%
11% 10% 10% 8%
‐4%
‐20%
13% 15%10%
7% 7%
Source: Staffing Industry Analysts, © Crain Communications 2014
March 18‐21, 2014 | Hilton San Diego Bayfront
IT Employment Growth Outpacing National Employment Growth
‐5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Total Employment IT Employment
Source: Staffing Industry Analysts, © Crain Communications 2014
March 18‐21, 2014 | Hilton San Diego Bayfront
Employment Growth Steady In Industries That Purchase IT Staffing
Source: Staffing Industry Analysts, © Crain Communications 2014
‐5%
‐4%
‐3%
‐2%
‐1%
0%
1%
2%
3%
2007 2008 2009 2010 2011 2012 2013
Weighted average year‐over‐year change in employment for industries served by IT staffing
‐8%
‐6%
‐4%
‐2%
0%
2%
4%
6%
2007 2008 2009 2010 2011 2012 2013
Tech/Telecom Energy/Chemical
Financial Services Government
March 18‐21, 2014 | Hilton San Diego Bayfront
Labor Supply for IT Professionals Remains Tight
U.S. Computer Sience Degrees Awarded: Actual and Projected, 1996‐2017*
0
5,000
10,000
15,000
20,000
25,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
1966 1976 1986 1996 2006 2016
Num
ber o
f Und
ergraduates w
ith Declared CS/CE
Majors, Adjusted Fo
rward 4 Acad
emic Years
Num
ber o
f CS Und
ergrad
Degrees Awarded in U.S.
Computer Science Undergraduate Degrees Awarded
Source: Staffing Industry Analysts, © Crain Communications 2014
March 18‐21, 2014 | Hilton San Diego Bayfront
Unemployment Trends For IT‐Related Occupations
(A) Median
4Q11‐3Q12
(B) Median
4Q12‐3Q13Difference (A vs B)
Employment (3Q13) (x1,000)
Computer and mathematical occupations 3.9% 3.5% ‐0.4% 3,949Software developers, applications and systems software 3.1% 2.3% ‐0.7% 1,088
Computer systems analysts 3.4% 3.5% 0.0% 559
Computer support specialists 6.7% 5.7% ‐1.0% 520
Computer programmers 4.0% 4.6% 0.6% 516Network and computer systems administrators 5.1% 2.5% ‐2.0% 203
Web developers 4.0% 2.7% ‐0.5% 192
Computer network architects 1.7% 1.8% 0.1% 127
Operations research analysts 1.8% 2.8% ‐0.8% 119
Database administrators 4.2% 3.2% ‐1.4% 101
Unemployment Rates by Occupation (%)
Source: Staffing Industry Analysts and U.S. Bureau of Labor Statistics
March 18‐21, 2014 | Hilton San Diego Bayfront©2013 by Crain Communications Inc. All rights reserved.
Skills in Demand
Among buyers whoprimarily bought…
…these were their biggest challenges
Information technology
Java (8), SAP (5), mobile/app development (4), business intelligence (3), business analysts/experience (5), IT security (6), TIBCO (2), SharePoint, .NET, gaming, data integration, EHR, ERP, LISA QA, guidewire, AS400, Python, Ruby on Rails, Groovy/Grails, Oracle, telecom, UI/UX
Source: Staffing Industry Analysts, © Crain Communications 2014
March 18‐21, 2014 | Hilton San Diego Bayfront
Staffing Segment Revenue Growth (2014‐2022)
27%
29%
32%
42%
42%
42%
45%
48%
51%
56%
0% 10% 20% 30% 40% 50% 60%
Legal
Office/Clerical
Clinical/Scientific
Engineering/Design
Industrial
Finance/Accounting
Marketing/Creative
Education/Library
Information Technology
Healthcare
Long‐Term Outlook for IT Staffing
Source: Staffing Industry Analysts, © Crain Communications 2014
March 18‐21, 2014 | Hilton San Diego Bayfront
So, How Are You Riding This Wave?
March 18‐21, 2014 | Hilton San Diego Bayfront
Digital Intelligence Systems LLC $320 million global IT staffing firm; ranked No. 27 on SIA’s 2013 Fastest‐
Growing Staffing Firms list
Point of differentiation: ERP and custom application upgrades
Secret sauce: ‐‐ Focus on the business side‐‐ Educating clients on the value proposition‐‐ Sales accountability
Key opportunities‐‐ Bundling staffing in SOW format with PM oversight ‐‐ Have a managed services offering
Key challenges‐‐ Finding the right sales talent ‐‐MSP/VMS
March 18‐21, 2014 | Hilton San Diego Bayfront
Ranked No. 1 on SIA’s 2013 Fastest‐Growing Staffing Firms list with 126% growth from 2008‐2012
Point of differentiation: Focus on Health Information Technology
Secret sauce: Four different models to serve customers‐‐ Traditional direct hire‐‐ Deliverables‐based consulting‐‐ Staff augmentation‐‐ Out‐of‐the‐box creative services
Key opportunities & challenges‐‐ Opportunities: Big data and a blossoming international market‐‐ Challenges: Recruiting qualified candidates
March 18‐21, 2014 | Hilton San Diego Bayfront
$100 million plus publicly traded IT staffing firm growing at 2.5x the industry growth rate.
Point of differentiation: Recruiting centric business model; Trusted talent partner delivering the right talent at the speed of our customers’ business.
Secret sauce: ‐‐ High‐volume, low cost centralized model‐‐ Financial strength and transparency‐‐ Up to 4x as many recruiters as our peers building and maintaining relationships
Key opportunities and challenges:‐‐WE LOVE MSP
March 18‐21, 2014 | Hilton San Diego Bayfront
25 year‐old privately held IT staffing firm
Point of differentiation: Specialization in digital media & entertainment
Secret sauce: ‐‐ Focus on highly skilled/high margin business‐‐ Emphasis on high performance recruiting & quality candidates‐‐ Serve as a source of industry/market information‐‐ Create “ambassadors” for Project One – candidates & clients‐‐ Service national clients sans multiple offices nationwide
Key opportunities and challenges‐‐ Opportunities: Expand into business & creative; new client growth‐‐ Challenges: Internal hiring & continued margin pressures
March 18‐21, 2014 | Hilton San Diego Bayfront©2013 by Crain Communications Inc. All rights reserved.
What’s Driving Growth?
March 18‐21, 2014 | Hilton San Diego Bayfront