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Creating an IT Talent Pool in Unlikely Places... Rural America
- 3. IMPACT Speaker Michael Winwood CEO Optomi Professional Services
- 4. Creating an IT Talent Pool in Unlikely Places... Rural America “In the Middle of Every Difficulty Lies Opportunity.” - Albert Einstein Michael Winwood, CEO, Optomi Professional Services
- 5. THE U.S. TECH TALENT SHORTAGE DILEMMA - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Jan00 May00 Sep00 Jan01 May01 Sep01 Jan02 May02 Sep02 Jan03 May03 Sep03 Jan04 May04 Sep04 Jan05 May05 Sep05 Jan06 May06 Sep06 Jan07 May07 Sep07 Jan08 May08 Sep08 Jan09 May09 Sep09 Jan10 May10 Sep10 Jan11 May11 Sep11 Jan12 May12 Sep12 Jan13 May13 Sep13 Jan14 May14 Sep14 Jan15 May15 Sep15 Jan16 May16 Sep16 Jan17 May17 Sep17 Jan18 May18 Sep18 The 1st Slowdown Created by Talent Supply Recession of 2001 & Y2K Hangover Mar – Nov 2001 GDP -0.3% IT Employment -8% The Great Recession Dec 2007-Jun 2009 GDP -5.1% IT Employment -7%
- 6. TH E U .S. TEC H TALEN T SH ORTAGE D ILEMMA • 500,000 open information technology jobs in the U.S right now* • Anticipated to grow to 1 million+ more IT jobs than applicants by 2020* • 65,000 IT Graduates • 13% of openings can be filled by those via our universities • “Full Employment” in the high-end IT skillsets * Code.org based on estimates from the US Bureau of Labor Statistics **
- 7. CREATING NEW TECH TALENT. IDENTIFYING TOP TECH TALENT RURAL ITO, BPO & SUPPORT SERVICES HEALTH IT THE OPS STORY – WHAT, HOW & WHY? • Addressing the ITTalent Shortage Head-on • Bringing Jobs Back toAmerica • Positively Impacting RuralCommunities • Creating NewCareers • Veterans • Women InTechnology • Underemployed • Disrupting Multiple Industries • Offshore Outsourcing • IT Staffing • Giving Back • Feeding Food-Insecure Children WHAT? HOW? WHY?
- 8. IDENTIFYING A CITY TO CREATE 300+ JOBS Why Brewton, Alabama? • Committed City and State • Relatively Educated Population • Over 100,000Working Age Individuals Within a 1 hour Commute • Little Competition in IT or Advancing Careers • LargeVeteran Population
- 9. CITY AND STATE COMMITTMENT
- 10. Out with the new… In with the old
- 11. AMERICAN MADE – BUILDING A NEW TECH WORKFORCE
- 13. ITO BPO SUPPORT Application Dev Break/Fix Mobile Dev PMO Services Lift/Replace QA - Technical Industry Tasks Data Services Lead Generation QA - User Tier 1 Helpdesk Tier 2 Helpdesk Call Center Solutions Business Intelligence Data Reporting Services Knowledge Management SOC/NOC SERVICES & SKILLS
- 14. COMMUNITY IMPACT Beyond Brewton…. • 1 New Rural Location Planned Every Year • 300 New IT Jobs in Each Location • COMMITTED TO ADDRESSING OUR IT TALENT SHORTAGE & IMPACTING RURAL AMERICA
Notas do Editor
- HELLO - Good afternoon ladies and gentlemen INTRO & HUMOR - My name is Michael Winwood and I excited to have this coveted spot between you and happy hour WHY - I’ve been invited today to discuss our industry’s tech talent shortage but more importantly, some unique opportunities that our firm OPS (Optomi Professional Services) is creating to address this challenge
- MY CAREER - I’ve spent most of my 25 year career in IT services internationally both is Europe and the US after starting my career as a highly mediocre software engineer. FINDING TECH TALENT - More specifically, I have dedicated much of my career to finding great tech talent LOOKING BACK TO GO FORWARD - In the spirit of sometimes looking backward to look forward, I asked Mark and the TechServe team how far back they could go with their IT employment index – thanks guys! HUMOR - Hardly made me feel like a spring chicken when I realized I’ve been doing this 6 years longer than they’ve been keeping records 90s ANY Y2K - 1990 – Humor on 90s - Needless to say, the 90’s was a strong IT employment growth decade and culminated in Y2K and the first major supply challenge OFFSHORE TALENT - Traveled to Philippines and Europe, hired over 1,000 mainframe (Cobol, CICS, DB2) and Client/Server programmers (Visual Basic, PowerBuilder, etc.) DEMAND HAS HISTORICALLY DETERMINED GROWTH - We were all put in the penalty box after Y2K, but there has been steady increase outside of the couple of recessions SUPPLY TAKING OVER - Over last 2-3 years, we began to notice a change……..
- CURRENT & FUTURE - So, over the last 3 years, our concern has increased and looking at current and future projections does nothing to alleviate that concern OPEN POSITIONS & GRADUATES - When you look at the number of current IT open positions, we are simply not generating enough IT graduates to keep up with demand HIGH END DEMAND - Demand for Cybersecurity, Cloud, AI, Data experts and Software Developers continues to be most concerning supply IMMIGRATION - visas are not the solution they used to be CONCLUSION - Our conclusion is there needs to be additional feeder systems into IT careers in the US……..
- OPS - So how is OPS evolving to deal with the supply challenge? SIMON SINEK - For those that have heard of Simon Sinek’s What, How, Why or Start with the Why approach, we very much subscribe to his philosophy THE WHAT – explain brands – What We Do Optomi, established in 2012 – high end IT skills HealthIT – focused practice – 17% CAGR 16-24 – Digital Health $152B by 24 Provalus – started in 2016 a whole new dimension creating new wave of IT talent in rural America Identifying high aptitude individuals – underemployed, veterans Train – intense practice 13 week coding bootcamps Hired in graduation THE HOW – Our differentiators Identify Top Tech Talent Skill set focused Recruiting methodology to identify passive talent Leading technology to identify and present talent Consultant Care Create New Tech Talent in Rural America, which does 2 things… Enables us to compete with offshore outsourcing Career opportunities with Optomi THE WHY is the mission, it is the heart of what makes a company special, it’s what gets your teams fired up and believe me, when you’re asking your team to take a leap of faith and go build a team of new tech talent in rural America, you better have a WHY!!
- FIRST, LOCATION - So how do you go about building this tech talent pool in rural America. First, identify a location 100 LOCATIONS - We looked at over 100 locations before picking Brewton, AL CRITERIA - What you need…. Committed city and state – I’ll explain more on the next slide Educated population – only district in the state with a private funded public school system. Those families also fund 2-year college scholarships for anyone who graduates with a B+ average. The college system is also ameniable to collaboration on future IT cariculum. 100,000 working age individuals within a 1 hour commute Little competition for IT or advancing careers Veteran population – Alabama has on of the largest veteran populations per capita of any state (over 400,000) and Pensacola is one of the largest navy bases in the country. This aligns with our long term of 40% of our Provalus employees being veterans.
- PROUD CITY - The city needs to be proud of their heritage and willing to take risks for their future, easy to say, not so easy to find. As I mentioned, we looked at over 100 cities and kissed a lot of frogs MAYOR - The mayor needs to be forward thinking, often times with a business background STATE - The state needs to be passionate about driving new professional careers OPENING CEREMONY - We had 300 locals and state officials at the groundbreaking ceremony, including Governor Kay Ivey.
- FUN BI-PRODUCT - This is one of the fun bi-products of what we are trying to accomplish INITIAL NEW BUILDING - In our negotiations with the city and state, it was agreed that together we would build a new 30,000 square foot campus just outside the city and you can see the architectural mock-ups here on the left FOCUS ON MAING STREET - As we got to spend more time in the city, we asked what was going on with many of the buildings right on main street VACANT/DISREPAIR - Most were vacant, some were in disrepair AGREED TO 15 ADJACENT - We have agreed to take over 15 adjacent buildings on main street, renovate and combine them into our new corporate headquarters for Provalus
- RUBBER MEETS THE ROAD - This is where the rubber meets the road CORP RECRUITING - We have a corporate recruiting team that is generating interest at a grass root level in the community, social media, etc. TESTING PROCESS - Heavy behavioral interviewing and aptitude screening up front. Wonderlic and Computer Programmer Aptitude Battery (CPAB), specifically designed to determine an individuals aptitude success as a computer programmer or systems analyst – verbal meaning, abstract reasoning, number ability and diagramming BOOT CAMP - 13 week Boot camp - .Net and Java – intense – weekly tests. Culminates in Pinnacle project GRADUATES are offered a position on the team GRAD RATIO - 10 graduate for every 200 applicants – 5% hit rate ONGOING - Major culture of ongoing learning, mentorship, continuing education, small but regular incremental career growth steps
- PHOTOS - This is a couple of photos of our growing team of employees who have graduated and are now working with our national client base. SURPRISED BY 3 THINGS - When I look back over the last two years and building this business from the ground up, I have been surprised by 3 things. NOT SURPRISED - I was not surprised by the aptitude or ability, I had always sensed there was a pool of underemployed talent that could do so much more. I was surprised by: APPRECIATIVENESS DEDICATION & WORK ETHIC An example….One of our first employees was working the overnight shift at Walmart during bootcamp to make ends meet. In between bootcamp and his night shift, he slept 3 hours. During his graduation project, he put in for a leave of absence to ensure he succeeded with Provalus! WHERE WE UNCOVER TALENT… One of our most talented employees couldn’t pay a speeding ticket fine and was informed by a court clerk in Jackson, AL who had seen our news story on Channel 15 about Provalus hiring 300 people. He got in his car and came to interview. He scored the highest CPAB score to date and is now over a year into his new career as a software developer.
- COMPETE AGAINST OFFSHORE - Compete against traditional offshore outsourcing firms, bring jobs back to the US in the process 200 HAVE ALREADY BROUGHT BACK - Over 200 of fortune 1000 have brought back services onshore COSTS CLOSING - Closing cost differences and TCO OTHER REASONS FOR ONSHORING - Trend of onshore extension - Improved quality, data security, enhanced privacy, increase scalability and agility, cultural alignment and market aptitude CAREER PATH - Careers typically start in service desk, QA and testing and evolve into application support and ultimately application development
- CHALLENGES - Clearly, like any business, this is not without it’s challenges IMPACT OVERCOMES ROLLER-COASTER - When we’re going through the day-to-day entrepreneurial roller coaster ride of establishing and growing this business, it is the impact that we are making that keeps us motivated and fired up $18M IMPACT - We have estimated that when we reach our goal of 300 new employees in a city, it will have an approximately $18-20million annual impact on that community. ALREADY SEEING IN BREWTON - We are already seeing this in Brewton with the need for more housing for our young professionals, new retail businesses, even hotels MAIN STREET - The impact on the main street of Brewton is very real as we renovate 15 adjacent buildings GROWTH PLANS - And, this is the first of many. Over the next 5 years, we plan to open 1 new rural location every year and commit to 300 new IT jobs in each market. We are currently already looking in Texas. MATH GENIUS - You don’t have to be a math genius to see that this impact starts to add up ALONE NO, TOGETHER YES - Clearly, we alone at OPS are not going to solve the tech talent shortage, but as an industry, if we work together on new solutions, we can create opportunity in the midst of these supply challenges.
- Thank you ladies and gentlemen for your time today.