InformationWeek
Defining The Business Value Of Technology
November 17, 1997
People Shortage
n one of those strange "good news, bad news" scenarios, the very success
of the IT industry-in which every company is beginning to realize the value of technology-is creating a shortage of qualified people to fill a plethora of open IS positions. "I don't see any relief coming soon unless there is a slowdown in Silicon Valley or a downturn in the economy in general," says Gary Walden, director of IS at Trimble Navigation Ltd., a navigational-equipment maker in Sunnyvale, Calif. Since Dec. 2, 1996, when this cover story was published, the situation has only gotten worse.
Demand is coming from a variety of sectors: networking, Oracle databases, Unix, Windows NT, PowerBuilder, SAP R/3, Baan financial applications, intranets, and the Internet. Exacerbating the problem is the fact that colleges are turning out fewer graduates with computer-related degrees. Geographic location can also add to the problem. Some companies, such as Wal-Mart Stores Inc. in Bentonville, Ark., are located in cities that offer few attractions for prospective employees. But companies in large cities face stif fer competition for talent. When, for instance, Kraft Foods Inc. closed an office in White Plains, N.Y., it had a difficult time getting its 150 IS staffers to move to a Chicago office; those employees had offers from other New York companies.
Some companies are fighting back. Federal Express has stepped up college recruitment at 40 campuses. Kraft offers students a sign-on bonus if they commit to the company before they graduate. Plenty of other companies are focusing on retaining their workers.
But despite their best efforts, the shortage continues. It will be the innovative companies that can avoid feeling the bite.
Story's author: Marianne Kolbasuk McGee
Read it on the Web at: techweb.cmp.com/iw/608/08casta.htm
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