The theme of IT Skills shortage is becoming a truly global one, in a recent IDC Teleconference titled "IDC Predictions:European Services, 2007" by Marianne Kolding & Mette Ahorlu, there were 10 predictions made, listed below:

1.Services industrialization gains traction
2.Midsized deals are competitive hotspots
3.IT skills shortage will intensify
4.Value not cost will define the outsourcing business model
5.Offshore/nearshore comes of age: global sourcing is a given
6.Convergence tops the infrastructure agenda
7.Germany focal point for acquisitions in pan-European strategies
8.SOA adoption accelerates
9.Green computing gains wider acceptance and becomes a services opportunity
10.Enterprise risk management will drive new consulting growth

Lets focus on two points - 3 & 5, IDC predicts a skills shortage specifically in the high growth areas of SAP & SOA etc, customers will look at service providers to help them, but service providers also will be faced with this issue. Leading to the further strenghtening of the Global Sourcing model, also you can see end user organisations & service providers alike invest in talent retention and employee benefit programs.

On the global sourcing front nearshore providers are continuing to grow, offshore organisations are looking at acquiring consulting companies onsite to give them the required local presence /access, some are also investing in nearshore centers.

Source: 1

Prashanth Rai