DATA Inc's 2013 IT Industry Survey Webinar

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DATA Inc. USA

72 Summit Avenue

Montvale, NJ 07645

(201) 802-9800

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DATA Inc. USA

72 Summit Avenue

Montvale, NJ 07645

(201) 802-9800

www.datainc.biz

Find us on…

January 8, 2014

WebinarState of the IT Industry

DATA Inc’s 2013 / 2014 IT Industry Survey

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Webinar Key Points

• Send your question to user ID “Data Inc.”

• Email your questions to info@dataincusa.com

Questions will be read off and answered in the order in which they are received.

Two ways to ask your questions

3

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Want a copy?

• Full report will be available at the end of the webinar

• Today’s webinar recording will be posted at www.youtube.com/datainctech

• PowerPoint will be posted at

www.slideshare.net/datainc

4

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In this presentation

About Us

Information about

the organization

and panelists

Introduction

Executive

Summary and

Methodology

Results

Survey Results,

Comparison and

Discussions

Conclusion

Final Summary

and Audience

Questions

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DATA Inc. USA

72 Summit Avenue

Montvale, NJ 07645

(201) 802-9800

www.datainc.biz

Find us on…

About DATA Inc.

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About Us

• International Presence

– United States

– United Kingdom

– Switzerland

– India

• Multi-year client relationships in:

– Banking

– Automotive

– Pharmaceutical

– Logistics / Transportation

– State and Local Governments

• Certifications

– ISO 9001:2008

– CMMI Level 3

• Partnerships

– IBM

– Microsoft

– Oracle

• 600-700 technologists out of delivery centers

– United States

– United Kingdom

– India

• IT Services

– Application Development & Maintenance

– Staffing

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Recognition

• Featured in leading industry publications

• Speakers at top industry events

• Awarded the highest partner and industry honors

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Client Achievements• Presented with the Merrill Lynch Global Sourcing and Procurement Services

Preferred IT “Resourcing Vendor of the Year” Award – Preferred Vendor since 1989

• One of the two vendors selected, after vendor consolidation, to provide T&M services Globally to a large Swiss Bank– Preferred Vendor since 1990

• One of the two vendors selected, after vendor consolidation, to provide T&M services to a Depository Corporation– Preferred Vendor since 1984

• Declared as a top-ranked vendor at large Investment Bank– Preferred Vendor since 1996

• Declared as a top-ranked vendor at a large Supply Chain company– Preferred Vendor since 1995

• Long-term vendor at an Automotive Manufacturer– Preferred Vendor since 2001

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Partial List of Clients

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Today’s Panelists

Conrad Leao

Vice President of Operations

Susan Leicht

Senior Account Executive

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Ashis Bhisey

Vice President of Technology

Arun Verma

President and CEO

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DATA Inc. USA

72 Summit Avenue

Montvale, NJ 07645

(201) 802-9800

www.datainc.biz

Find us on…

Executive Summary and Methodology

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Executive Summary

• Increased optimism among business professionals on the state of the economy / IT industry

• Consensus is, IT Industry remains strong, and will continue to be strong.

• Environmental Concerns loom:

– Evolving rules and regulations

– Government Indecision

– Increased Competition

13

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Outreach

• Direct Email Marketing – Internal / External

• Website Advertising

• Events

• Social Media – Direct and Passive

• Other

14

Options Percent

Email Notice 52%

Social Media / Networking 33%

Website / Career Portal / Internet Search 11%

Other 3%

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Location

15

82%

1%

17%North America (US, Canada)

Europe, Middle East, Africa (United Kingdom,Switzerland, France, Kenya)

Asia / Pacific (China, India, etc)

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Job Title

16

39%

6%24%

10%

12%

10%

Developer / Programmer / Analyst

Infrastructure / Sofrware Admin, Support andMaintenance

Project Coordinator / Manager / Director /Program Manager

Executive Management (CEO, CFO, CIO, Pres,VP, etc.)

Business Stakeholder (Accounting,Administrative, VMO, Recruiters, etc.)

Other (please specify)

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Education

17

7%

3%

38%

28%

24%

Some college but no degree

Associate degree

Bachelor degree

Graduate degree

Post Graduate

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Certifications

18

Certifications Possessed

One

Certification More Than One

Microsoft based certification 35% 3%

Project Management Certification (PMP, etc.) 21% 2%

Oracle / Sun Legacy Certification 11% 1%

IBM Certification 9% 1%

ITIL Certification 7% 2%

Other 19% N/A

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Company Size

19

22.3%

37.0%

40.8%Small Business

Mid-Sized Business

Large Business

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Industry Classification

Classifications are not based on NAICS or SIC codes, but on a general classification following client verticals

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Industry Classification

%

Breakdown

Financial Services 26%

Technology (Software Development) 17%

Technology (Staffing / Consulting) 16%

Manufacturing / Supply Chain and Transportation (incl. auto. and tech) 10%

Education 7%

Government / Not for Profit (Public Sector / Contractor) 5%

Technology (Software Products) 5%

Pharmaceutical / Life Sciences (incl. healthcare) 3%

Retail 2%

Other 9%

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DATA Inc. USA

72 Summit Avenue

Montvale, NJ 07645

(201) 802-9800

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Results

Spending – 2013 vs. 2014

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Actual IT Spend for 2013

• 81% responded ‘actual’ IT spending increased.

• 60% in govt / not for profit said IT spend increased

22

81%

19%

Increased this year

Decreased this year

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IT Projects Awarded vs. Won

23

62%

64%

66%

68%

70%

72%

74%

2013 2012

73%

69%

67%

74%

Corporate IT IT Services Company

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Value of IT Projects

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Value of largest IT Project awarded or won in 2013 Percent

$1-$499k 30%

$500k-$999k 7%

$1M-$4.99M 15%

$5M-$24.99M 11%

$25M-$49.99M 8%

$50M-$99.99M 8%

over $100M 21%

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Off-Shore Resource Utilization

• Over 50% of survey respondents indicated that they have not utilized ‘off-shore’ resources

• In 2014, 37% would utilize off-shore

25

46%

54%

Yes

No

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Predicted IT Spend in 2014

• Confidence – 95% of survey respondents said spending would ‘increase’ or ‘stay the same’

26

70%5%

25% Increasing

Decreasing

Staying thesame

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DATA Inc. USA

72 Summit Avenue

Montvale, NJ 07645

(201) 802-9800

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Results

Investments in 2013 vs. 2014

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0%

10%

20%

30%

40%

50%

60%

70%

Application Development

Mainfram

e M

igration, Re-engineering, etc

Application Testing and Quality Assurance

ERP Solutions

Support Services

E-Learning

Project M

anag

ement So

lutions

Staffin

g

Service Oriented Architecture

Infrastructure

Mobile Apps

Mobile Testing

66%

35%

61%

50%

53%

41%

43%

50%

45%

56%

52% 45%65%

44%

61%

50% 48%

44%

51% 53%

55%

46%

55% 52%

Investments in 2013 versus Anticipated Investments in 2014

Reported Investment in 2013 Anticipated Investment in 2014

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Summary of Results

• Across the board increases in investment priorities from 2012

• Infrastructure investments were predicted to decline in 2013, but did not – Remained a high priority

• Custom Applications were the top priority – 66% ranked Application Development as top priority

• Mobile App Development beat expectations from the previous year – 44%

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DATA Inc. USA

72 Summit Avenue

Montvale, NJ 07645

(201) 802-9800

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Results

Challenges, Qualifications and Overall Satisfaction

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Results

31

53%

30%

44%

32%36%

43%

0%

10%

20%

30%

40%

50%

60%

Cost

Adap

tation

Support and M

aintenan

ce

Overruns (Scope an

d Cost Creep

)

Lack of exp

erts available

Lack of resources available

Challenges in researching, investing and implenting solutions

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Summary of Results

• 53% ranked cost as a top factor

• Support and Maintenance ranked a top challenge again.

• Shift in other challenges

– More survey respondents answered lack of resources and experts were increasing challenges over the previous year.

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0%

10%

20%

30%

40%

50%

60%

Cost Ben

efit

Experience and Exp

ertise

Product / Solutions Offering

Minority / Small / Disad

vantaged

Business Status

Development Certificatins (CMMI, ISO, etc.)

Partnership Certifications (M

icrosoft, IBM, etc.)

Global Cap

abilities (O

n Site, Off Site, O

ff Shore)

7% 3% 5%

32%

24%

24%

22%

45% 40% 53%

58%

56%

60%

48%

47%

57%

41%

10%

20%

17%

31%

Evaluation and Selection Factors for IT Vendors

Weak Strong Strongest

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Summary of Results

• Experience and Expertise ranked as top factor again

– 57% of respondents ranked it as the strongest factor for evaluation

• Stronger emphasis on Minority / Disadvantage Business status

– 58% of respondents ranked this as a strong factor for evaluation

– Note: - 23% of respondents claim their organization has a Minority and / or Diversity Business Program

34

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IT Vendor Satisfaction

35

9%

66%

25%

Least Satisfied

Satisfied

Very Satisfied

• Satisfaction is on the decline. Shifted from ‘very satisfied’ to ‘satisfied’ over the past years survey.

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DATA Inc. USA

72 Summit Avenue

Montvale, NJ 07645

(201) 802-9800

www.datainc.biz

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Results

Employment

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Employment Status

37

89%

11%

Yes

No

Employed

Unemployed

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Summary of Results

• 89% of survey respondents reported being ‘employed’

– 90% of respondents have completed at least a Bachelors Degree program

• Out of 11% who are currently unemployed, 23% have stated that they have been unemployed for 0-3 months

– 60% of those unemployed have been so for 6 or more months.

38

Period of Unemployment % Breakdown

0-3 months 23%

3-6 months 17%

6-12 months 17%

12-24 months 9%

24+ months 34%

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Onlin

e C

are

er

Bo

ard

s (

Mo

nste

r, D

ice

, etc

)

Faceb

ook

Lin

ked

In

Tw

itte

r

De

part

ment

of L

abo

r (D

OL

) R

esourc

es

Re

ferr

als

Job F

airs

Job G

rou

ps

90%

27%

71%

12% 16%

51%

25%

26%

Job Searches - Career Portals

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DATA Inc. USA

72 Summit Avenue

Montvale, NJ 07645

(201) 802-9800

www.datainc.biz

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Conclusion

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Conclusion

• IT Industry continues to grow as a whole

• Broad factors such as the government shutdown might have had an adverse effect within the IT field…but, individuals continue to be bullish

• Lack of resources and experts might hinder the growth

…but the IT Software and Services industry continues to demonstrate resilience, and will continue to do so

41

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Thank you

Questions?

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DATA Inc. USA

72 Summit Avenue

Montvale, NJ 07645

(201) 802-9800

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Download the full survey report at

www.datainc.biz/survey2013