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The Flight of the Skilled Class
The US is leading the push for the assessment of soft skills, although this area is still not as common as hard skills testing
Anuradha Kher
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Nothing is predictable, and change is constant. Which probably explains why statistics are not always in black and white. A glaring example is India’s rise in IT, and its apparent threat to America. A recent report by Brainbench, a skills measurement and certifications company, proves that on the one hand, India is catching up with the US steadily; and on the other hand, definitely not at the pace you think it is.

The report says the US still leads in as many as 24 of the 30 IT skill areas it tracked. And India is leading in the other six-four of them in Java-reinforcing the country’s reputation as the Java country. India also closely followed the US at no. 2 in 19 of the 24 categories where the US topped. No other country topped in any skills category. India showed a 300 percent rise in certifications.

There is Something About the East

This much, however, is predictable and just reinforces what everybody already knew. The story lies in the third spot. It is not Ireland, Canada, or Western Europe. The Russian Federation makes a strong claim for the undisputed no. 3 in IT skills. It tops India in four skills categories at no. 2 and comes third after India in 21 categories. Though, unlike the US and India, the gap between India and Russia is often huge in terms of the actual number of certifications. Ukraine, another CIS state, also manages to feature in the top five countries in as many as 24 skill categories and Romania follows closely. Bulgaria, Latvia, and Belarus also show up.

Brainbench found that slightly more than half of individuals passed Brainbench certification assessments, suggesting that these assessments do provide a significant way to identify individuals with competency in specific areas of knowledge.

GLOBAL TOP TEN
2003 2005
1. U.S. 1. U.S.
2. India 2. India
3. Russian Federation 3. Russian Federation
4. Canada 4. Romania
5. UK 5. Ukraine
6. Romania 6. Canada
7. Australia 7. UK
8. Ukraine 8. Bulgaria
9. Pakistan 9. Philippines
10. Bulgaria 10. Latvia

Some Other Key Findings

  • Eastern Europe, specifically the Russian Federation, has a significant and growing body of competent IT talent.
  • Canada has a large body of competent IT talent and is a leader in customer support
  • IT competence in Western Europe and Southeast Asia are also on the rise.
  • Within the US there is no one state that accounts for the majority of certifications; however, the South has seen more certifications than any other region.
  • The US is a leader in security-based certifications.
  • Certifications for Microsoft software represent a majority of all certifications awarded; however, certifications for open-source operating systems (i.e. Linux) have begun to overtake those for Windows.
  • The US is leading the push for the assessment of soft skills, although this area is still not as common as hard skills testing.
  • Functions besides IT (i.e. Healthcare) are being outsourced.

Apart from providing valuable understanding of the current distribution and impact of global skill levels, the report also provides insight into the impact this data could have on the future of our global economy.

The following points provide forecast regarding what the future may hold:

Assessment increases

To demonstrate their competency and value, organizations will emphasize on the use of assessment tools.

Outsourcing second wave

Large increases in the demand for technology skills relative to available supply and wage differentials between developed and developing nations will continue to drive outsourcing.

Skills driving local economic growth

High skill levels within a specific nation do not necessarily exist solely to serve the US. Competency in a specific country or region will be increasingly significant in helping these nations develop their own businesses and an economy that will be less dependent on direct payment for outsourced IT services.

Niche skill development

Options for the outsourcing of jobs will continue to grow and organizations will be increasingly able to match specific needs to areas with a high level of skill in meeting these needs. This will serve to create local niche economies, which will continue to be leveraged by organizations in other geographies.

TOP IT SKILLS
 
Database Development
and Administration

1. RDBMS Concepts
2. Oracle PL/SQL
3. SQL (ANSI) Fundamentals
4. SQL (ANSI)
5. MS SQL Server 2000 Programming

Programming and Development
1. C++
2. Java 2 Fundamentals
3. C++ Fundamentals
4. C
5. C#

Systems and Network Administration
1. Network Concepts
2. Linux Administration (General)
3. Unix Administration (General)
4. Internet Security
5. MS Windows Server 2003 Administration
Technical Support
1. MS Windows XP Desktop Administration
2. Computer Technical Support
3. Technical Help Desk
4. Computer Electronics
5. Network Technical Support

Telecommunication
1. Cisco Network Support
2. Telecommunications Industry Knowledge
3. LAN/WAN Communications
4. IP Routing and Switching
5. WAN Technologies

Web Development
1. ASP.net
2. HTML 4.0
3. PHP 4
4. Java Server Pages (JSP 1.2)
5. Web Design Concepts
 
TCP (TIOBE Programming Community) Index, 2004: Top 10 Programming Language

Outsourcing benefits

While the US may continue to see more technology jobs moving to other parts of the world, this may not necessarily have a detrimental impact on the US economy or the number of available jobs in the US. Other nations will eventually outsource some jobs to the US and cost savings for outsourcing jobs will allow for increased business expansion and stimulation of investment in the US economy.

Process driven RoI

Technology and process will be developed which will provide the ability to link skill levels directly to business results allowing evaluation of the ROI associated with outsourcing choices related to various labor pools.

If one thing is clear from these rankings, it’s that we really have a global technology community. Some of the most complex and valuable workplace skills are available not only in Nebraska, but also Nigeria. As an employer, where can you look for fresh talent and ideas? Nearly anywhere. The proliferation of high-level skills around the world – and the commensurate availability of jobs – is often discussed in the alarming context of job losses in the US. As with electronics, shoes, and automobile manufacturing, opportunities for certain skill sets seem to be evaporating on these shores.

The Conference Board study13 notes that as the number of high school and college graduates selecting high technology careers does not grow, and work visas are limited for immigrants wanting to come to the US to work, the US simply won’t be able to meet demand for IT employees. A similar situation exists in the United Kingdom, according to the same report.

With a truly global skills market growing everyday, the following trends are likely to continue according to the study:

1. More jobs outsourced in general. In the US, outsourcing work in general, and offshoring in particular, appears to be growing, not slowing.

2. Wage gaps will shrink as the eastern bloc and Asia prosper. It will be interesting to see how the situation in India turns out. Increasing wages and inflation (14 per cent in 2003), skill shortages, and a new corporate tax structure are driving up costs.

3. Green Acres (rural, suburban, and hinterlands) is the place to be. High technology has always loved the hinterlands. But simple cost comparisons with the rest of the world, and low-cost communication options, point towards even less skill growth in cities and even more exploitation of low-rent rural and southern suburban locations.

4. Skills flow in all directions. Entrepreneurialism, as well as local labor pools, will continue to influence the proliferation of high technology skills around the globe.

5. Skills will “find their proper place”. As learning and increased education emerges in other parts of the globe, increased prosperity leads to inflation, and disappearing pricing advantages. In this way, offshore firms will have to demonstrate value beyond mere cost savings.

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