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Companies More Likely To Outsource Than Train IT Employees

snydeq writes "IT pros feeling the pressure to boost tech skills should expect little support from their current employers, according to a recent report on IT skills. '9 in 10 business managers see gaps in workers' skill sets, yet organizations are more likely to outsource a task or hire someone new than invest in training an existing staff. Perhaps worse, a significant amount of training received by IT doesn't translate to skills they actually use on the job.'"

36 of 235 comments (clear)

  1. This just in! by girlintraining · · Score: 3, Insightful
    This just in: Companies in a recessionary economy are cheap.

    Guys, seriously. Nobody wants to spend money on an employee they aren't likely to have around in a year or two anyway; and even if they did, it's easier just to phone HR and say "Hey, I need a dozen people with xyzzy skill." "derp derp derp" "Okay then! I'll see them on monday." The idea of the company taking care of you died in about, er... the 1950s. Deal with it.

    --
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    1. Re:This just in! by aergern · · Score: 5, Informative

      I've been at this long enough that I know it matters NOT what the economy is like whether they do this or not. It's about time we stop blaming the economy for things. This crap happens in the best of times and the worst. It's because sales, marketing and other non-tech people (who are usually in charge of the purse) see no real value in tech people unless shit is broken. They see IT/Eng folks as a dime a dozen that are easily replaced by some outsourced solution. WHICH the later regret in most cases.

      So don't act like this is a new thing. It isn't.

      --
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    2. Re:This just in! by Beelzebud · · Score: 4, Insightful

      Actually the idea that a company should be loyal to its employees started to die about 20 years ago, thanks to useful idiots like yourself that argue in favor of lowering the value of labor, and giving companies a pass on not being responsible citizens.

    3. Re:This just in! by cpu6502 · · Score: 5, Insightful

      Yes even in the booming 90s companies kept demanding more Visas so they could hire outside help, rather use existing unemployed U.S. engineers.

      I've been a contractor 10+ years now because they'd rather hire temps than permanents. Also there's an age bias towards younger workers (under 40) who have no family and don't mind working unpaid overtime.

         

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    4. Re:This just in! by couchslug · · Score: 4, Insightful

      It doesn't matter what you do. There is no profit incentive to "loyalty" in many jobs. Your labor is worth what someone will pay you for it.

      --
      "This post is an artistic work of fiction and falsehood. Only a fool would take anything posted here as fact."
    5. Re:This just in! by Phrogman · · Score: 3, Interesting

      Of course a company who offered me training that improved my skillset could keep me as an employee pretty easily - just offer me more money since I am now worth more money. Smart companies would give me some incentive to stay.
      Most companies seem to rely on finding people who are stupid/desperate enough to take the more qualified position at a pay rate that is lower than it deserves.
      There used to be a solution to this: unions. But those are dying out under continuous pressure from Big Business/Right Wing politicians (same thing). Unions of course did themselves no favors by demanding ridiculous requests at the height of their power.
      The Right is winning and employees are mostly disposable and easily replaced these days. This is good for the rich and bad for the rest of the nation.
      I would like to see a complete end to visas for importing foreigners to do local jobs - then companies might be forced to hire people and train them to do their jobs the way things used to be done.

      --
      "The first time I got drunk, I got married. The second time I bought a chimpanzee, after that I stayed sober" Arian Seid
    6. Re:This just in! by jc42 · · Score: 2

      The situation with respect to training has been deteriorating for many years and there's one underlying reason. Employees have a habit of taking the training, then moving elsewhere to a better paid job, because they can.

      And because the employees understand quite well that their employer has no loyalty to them. This is especially true in the IT world, where once a project is nearing completion (as if that ever actually happens ;-), managers don't see any more need for those geeky IT types, and lay them off. This is a great way to make sure that your employees have no loyalty to the company, and just go with whoever pays them well for an interesting next project.

      And, of course, it's usually the most talented/smartest employees who jump ship first, both because they can and because they know that the managers of the current company don't particularly like them. The ones left behind are the ones who couldn't find a new job.

      It's an old, old story. You'd think that management experts would have solutions to it after all these centuries. And actually, they do, but short-term profit trumps the long-term benefits of having a team that know each other and can work together effectively.

      --
      Those who do study history are doomed to stand helplessly by while everyone else repeats it.
    7. Re:This just in! by Charliemopps · · Score: 3, Insightful

      I'd argue that "WHICH the later regret in most cases." They rarely regret it. If they want some big project, done in-house... their co-workers in IS will tell them... it's a dumb idea. They'll clearly make a better product more in-line with what they "need" than what they "want" But... then again, that's not what they want is it? An out-sourced company comes in and builds them exactly what they ask for... to the letter... and leaves. Then, when that sucks, the people that hired them can blame the nameless outsourced company and declare all the problems their having someone elses fault. If they had done it in-house... that blame game would come to a quick end when a knowledgeable IS staff is sitting there ready to defend themselves.

      I maintain a DB and recently had our marketing department get sent to me to quote syncing this DB with some software they have. They had apparently gotten quotes from outside vendors and the VPs caught wind of the price tag and said "No way in hell" So I meet with these people with the novel question of: "What is this software? What does it do? Who is maintaining it? Because it sure as hell isn't IS." It ended up that the director of marketing was the "Technical lead" for the product. So I asked her what kind of backend DB it used... what API did it have... did we have a support contract with the vendor... She had no idea. In fact, they weren't sure where their contract was. I got the joy of asking her if we were pirating the software. "Whats that mean?" It was a rather hilarious meeting.

    8. Re:This just in! by aergern · · Score: 4, Insightful

      Then they shouldn't should whine when no one can afford what they product. It's a self fulfilling prophecy. Which is why the banks should have never been bailed out and the auto industry should never had bailouts or loans. If we are in a true capitalist society .. and these "corporations" make bad decisions .. fuck them .. let them die and new companies take their place. Why should society prop them up if as an entity they care about nothing but profits. *shrug*

      --
      Tell me what you believe...I'll tell you what you should see.
    9. Re:This just in! by hot+soldering+iron · · Score: 4, Informative

      After I had been at my first tech job for a couple of years, I pointed out an interesting fact to a senior tech. An old phone listing I had received when I first got there had numerous people that had come and gone in the last two years, and the company liked to tell us that it had invested about $20,000 in training each of us before we had become profitable for them. It was to motivate us to work hard, I guess. Taking their talking point, I figured $20,000 for each person on the list that had left the company, and another $20,000 for the people that had replaced them.

      This company had an effective policy of screwing their employees, and replacing them with new kids. When the senior tech decided it was his turn to go, his exit interview was with senior management, and he took the employee phone list. He informed them that over the last two years that they had thrown away $1.8 million by letting their techs walk out the door. Their jaws hit the floor. Apparently none of them had ever considered that money invested in "people" had real value.

      The story ended happily though... the idiot senior management were all let go by the bank when the company went into receivership, and the new management has actually started building employee morale. I think that they're from Canada. Go Canucks!

      --
      When you want something built, come see me. If you want correct grammar and spelling, get a F*ing liberal arts student.
    10. Re:This just in! by lgw · · Score: 3, Insightful

      So, serious question: why aren't you a shareholder then? Anyone with a professional salary can join the 1% with 20 or so years of savings, if that's a priority.

      Ultimately the purpose of a producer is to produce a product that people want, at a price that people want to pay, not to give you a job. As technology marches on it takes fewer and fewr jobs to produce any given thing (that's basically the definition of technology). And yet standards of living are vastly higher than 150 years ago - because, of course, technology makes products cheaper.

      The world won't be arranged for your convenience - you have to actually do work that people want done, after all - so either compete in a global market, or do service work that can't be outsourced. To repeat the GPP - deal with it.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    11. Re:This just in! by Azghoul · · Score: 3, Insightful

      Hate to break it to you, but 'unions' are not the solution any more. If they were, they wouldn't be dying off. There's a reason, and it's not because we're all too stupid to realize how great they are.

    12. Re:This just in! by Maxo-Texas · · Score: 2

      Not really...

      In fact, if you saved $3,000 each and every month for 20 years and got an annual 4.75% tax free or after tax return, you'd end up with 1,165,520 dollars

      This will produce between 30,000 (low risk) and 60,000 (high risk) and 80,000+ (very high risk).

      Meanwhile,
      http://www.ctj.org/html/gwb0602.htm
      top 1% Average income $1,495,000 per year

      I.e., they earn more in ONE year than you can save in 20 years with a good return in the stock market on a professional salary.

      20 years of savings(with good returns) will currently produce about 2% to 6% of what they make each year.

      This wasn't true in the 1970's. The difference between the top 1% and the rest of society was much less extreme back then. It started under Reagan (who I voted for) as the top 1% benefited out of proportion from the tax cuts. Their total tax rate has dropped from 28% to 18%. The total tax rate on the middle class is higher (about 28%).

      Total tax rate includes both federal income taxes plus fixed federal, state, and local taxes (sales tax, gasoline tax, cell phone tax, property tax, etc.). The fixed taxes comprise over 20% of the bottom quintiles earnings, 15% of the middle quintiles earnings, and under .5% of the top 1%'s earnings.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    13. Re:This just in! by sir-gold · · Score: 2

      spoken like a true 1-percenter: "if you don't like being a slave, get some slaves of your own" You need to solve the problem, not become part of the problem. We can't ALL be self-employed, there are very few business that can be operated by a single person with no employees. (there are other business types beyond plumbing and tax accounting after all). For example, any restaurant more complicated than a coffee house or greasy spoon is going to need at least 1 waitress, because you can't wait tables, and run the register, and cook the food, all at the same time (and especially not for the 70 hours a week that many restaurants are open)

    14. Re:This just in! by BVis · · Score: 2

      Don't forget how the ass-backwards health care paradigm in this country forces people to keep working for someone else in a big company because they can't afford the non-subsidized cost of health insurance.

      Once we separate health care from employment, you'll see a wave of innovation and independent thinking that will revolutionize the economy. But we won't see that until we realize that the money our employers spend on health care (mine currently spends about $1000/month on mine) could be instead used to ensure every man woman and child in the country had access to high-quality health care.

      But we can't do that, because then taxes would go up. So we have the current (broken) system and people effectively stuck in their jobs because their kids might get sick someday.

      --
      Never underestimate the power of stupid people in large groups.
  2. A sign of buisness culture failure by Anonymous Coward · · Score: 5, Insightful

    A manager is insulated from the real costs of hiring a new employee, whereas costs for training for an existing employee show up nice and neatly on his budget.
    Why? HR. HR ensures it's own existence by hiding the costs of new hires. Managers are happy to take advantage of this.

    1. Re:A sign of buisness culture failure by Nidi62 · · Score: 4, Insightful

      Take this a step further, and you reach the situation I'm currently in. It is virtually impossible to find entry level jobs right now. Every place I have looked is only looking for experienced workers for jobs that are little more than entry level. They don't want to make the effort to train a new hire, they want someone who is already trained. These days companies do not want to invest in their employees at all. They look only to the short term and not the long term. They don't want employees at all. They want mercenaries that they can hire to do a job and drop and hire new ones whenever they want.

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
  3. No training?! by WTFmonkey · · Score: 5, Funny

    But I've received online security training by IT, ethics training by legal, harassment training by HR, business development training by BD, health training by our new insurance provider, all delivered by automated Flash apps voiced by a kindly sounding lady, after which *I had to get 80% on a 5-question multiple-choice test* to get my printable Certificate of Compliance! I have a hard time remembering which side of this keybored thingy to bang on sometimes, but by God I know company policies!

  4. The summary touches on the problem by Sepultura · · Score: 2

    In my experience, the summary touches on the chief cause of this problem: If an organization can't train in-house then they have to look to 3rd parties to provide the training, and all too often those 3rd parties lack the skills and/or knowledge to effectively educate the employees in anything practical. And in most cases they're never held to account for their lack.

    So at that point it simply becomes cheaper to outsource the job to someone who has to get the job done in order to be paid, rather than pay employees to learn worthless skills.

  5. Easy by Ryanrule · · Score: 2

    Make execs hold 20 year stock, instead of the year or 2 bs.

  6. I've never had any company training by CubicleZombie · · Score: 2

    Part of the job is learning it on your own, volunteering for new things, and sometimes exaggerating your experience to get into new technologies. No company has ever spent a dime on my training, yet I've managed to build a killer resume just by never ever saying "No" to anything.

    I'm working in a Java shop and the PHB sent out a group email looking for volunteers with .NET experience. My coworkers are exceptionally good at Java and I know they'd figure out C# over a weekend, but nobody volunteered! Except me. I got a 12 week gig (with paid overtime!) and all the latest Microsoft buzzwords to add to my resume.

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    :wq
  7. Experience is valued. Training is not. by erice · · Score: 2

    If they train an existing employee that only get someone who "knows" the material. If they outsource or hire someone new that can get someone who actually done it before. As anyone who has tried to get hired on the strength of a newly learned skill can tell you, companies only value skills that have already been applied at other companies.

  8. Outsource to Local IT Firms by Danzigism · · Score: 2

    If you run a small/medium business, it makes perfect sense to outsource your IT as long as you do it locally. Also, if you're an IT technician, then you need to start your own IT firm or work for an existing firm. Most small businesses don't need to hire an IT guy for $50,000+ a year just so he spends 8 hours trying to remove the malware from some unimportant employee's laptop. You can pay half the cost for a local IT company to proactively manage your network, provide remote and on-site support, and in-shop repair services. Not to mention, your IT firm can hire dozens of local IT techs and give job opportunities to many people. You make more money, and companies save money, and IT techs actually have the opportunity to grow and learn more about bettering the services they offer their clients. It just has do be done locally.

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    *plays the Apogee theme song music*
  9. Re:Not just training - College Hire Problem Too by CAIMLAS · · Score: 2

    Absolutely. It's almost impossible to get anything but a helpdesk or (if you're very lucky) an entry level programming job at a small organization anymore.

    And no, you can't "work your way up" to an administrator or "developer", unless it's truly a very small shop. There are no gradients, because everything between "able to speak english and put things under desks" or "someone who can speak english and debug things who won't progress" because everything between those and "senior admin" or "lead developer" have been outsourced.

    I exaggerate a bit, but good luck finding anything below a "5+ years of experience" position with a larger organization anymore.

    --
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  10. Re:"More likely" not what the article says by leenks · · Score: 3, Insightful

    Those generalisations work both ways: I wouldn't want most SQL developers to go near real programming languages. To be fair, I probably wouldn't want them to go near the SQL queries either, though.

  11. Re:Experience is valued. Training is not. by jfdavis668 · · Score: 2

    I have hired people like this, and found many of them less than desirable. I have hired people with anywhere from 3-10 years of experience in exactly what I am looking for. When they start working, I find their skill level much to be desired. They try to apply a method they used before, which is completely inappropriate for the situation at hand. I find them taking short cuts they think I won't notice. They argue with the standards we have in place, not because they point out why they are bad, but because they are too much work. Now, I have also hired great people this way. What I am really looking for is someone who works to understand the problem and can learn, research and develop a solution. Sometimes the guy right out of school is the best one for this. Other times it is someone we already have on hand who has no experience with what we are doing, but is very flexible and can learn quickly.

  12. Re:A sign of business culture failure by elrick_the_brave · · Score: 3, Insightful

    Try the opposite side of things. I am in what I thought is a good position. I am highly skilled both technically and in the soft skills. Yet all I see is hesitant businesses testing the waters. They pull the pin then pull back. Extremely frustrating. I would like to have a good full time job right now but the proper opportunity has not presented itself. It seems like barriers have been thrown up by business/HR to prevent normal discourse.

    True, companies are not mentoring like they used to. This meant a lot to the continuity of the professions. It was a method of giving back and to everyone else. Businesses which don't mentor or give back are just consuming resources. You have to be the judge of that opportunity. I pray I don't have to make that decision to work for a questionable company.

    I think businesses are way over thinking their various aspects. Too much analysis means over think. Over think gets you nowhere and wastes money.

    Good luck in your search. At some point, if you have the proper work ethic and attitude, your worth will be accepted with open arms.

    --
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  13. Existing employees are too busy for training by erice · · Score: 2

    If not, they would have been laid off!

  14. college / CS is not relevant to the job. by Joe_Dragon · · Score: 4, Interesting

    I think that the Traditional College system is not the best fit for lot’s of jobs and there are better ways to learn and to show that you have skills.

    Harvard Study: Too Much Emphasis On College Education?
    http://www.csmonitor.com/USA/Education/2011/0202/Does-everyone-need-a-college-degree-Maybe-not-says-Harvard-study [CC] [MD] [GC]

    http://hotair.com/archives/2011/02/02/harvard-study-hey-maybe-were-placing-too-much-emphasis-on-a-college-education/ [CC] [MD] [GC]
    “It would be fine if we had an alternative system [for students who don’t get college degrees], but we’re virtually unique among industrialized countries in terms of not having another system and relying so heavily on higher education,” says Robert Schwartz, who heads the Pathways to Prosperity project at Harvard’s Graduate School of Education.
    Emphasizing college as the only path may actually cause some students – who are bored in class but could enjoy learning that’s more entwined with the workplace – to drop out, he adds. “If the image [of college] is more years of just sitting in classrooms, that’s not very persuasive.”
    The United States can learn from other countries, particularly in northern Europe, Professor Schwartz says. In Austria, Denmark, Finland, Germany, the Netherlands, Norway, and Switzerland, for instance, between 40 and 70 percent of high-schoolers opt for programs that combine classroom and workplace learning, many of them involving apprenticeships. These pathways result in a “qualification” that has real currency in the labor market”

    “It would be fine if we had an alternative system [for students who don’t get college degrees], but we’re virtually unique among industrialized countries in terms of not having another system and relying so heavily on higher education,” says Robert Schwartz, who heads the Pathways to Prosperity project at Harvard’s Graduate School of Education.
    Emphasizing college as the only path may actually cause some students – who are bored in class but could enjoy learning that’s more entwined with the workplace – to drop out, he adds. “If the image [of college] is more years of just sitting in classrooms, that’s not very persuasive.”
    The United States can learn from other countries, particularly in northern Europe, Professor Schwartz says. In Austria, Denmark, Finland, Germany, the Netherlands, Norway, and Switzerland, for instance, between 40 and 70 percent of high-schoolers opt for programs that combine classroom and workplace learning, many of them involving apprenticeships. These pathways result in a “qualification” that has real currency in the labor market”

  15. Re:Lazy employees are lazy by crgrace · · Score: 3, Insightful

    The issue isn't that companies have some sort of moral obligation to train their employees. They are free to train, outsource, hire, whatever.

    The point is that it usually ends up more expensive to not invest in your workforce. It's one of those save a penny today. lose a pound tomorrow.

  16. Re:Lazy employees are lazy by Grishnakh · · Score: 3, Insightful

    If you are not willing to move on and get another job, don't whine to everyone else about it.

    Non-compete clauses prevent that for many people. The system is rigged in favor of the employers.

  17. Re:Lazy employees are lazy by Grishnakh · · Score: 3, Insightful

    You can't get the skill on your own, because they want to hire someone with X years of experience. That means you need to have been working with that skill, professionally, for X years, to meet their requirement. So basically they want someone else to train you, or for you to train yourself and then work somewhere else at it for a while, and then get tired of your job there and quit so you can work for this new cheap-ass company.

    If they just wanted you to have the skill, without the "X years of experience" bit, that'd be one thing and perfectly understandable. But the fact that they want you to be experienced, meaning having worked somewhere else, means that they want someone who's already an expert at it, and don't want to get any of their existing employees up to speed on that skill. Then, when they can't find that expert-level person (because their salaries are too cheap, or they want you to move out to bumblefuck and then give you a shitty salary because "the cost of living is low!" (nevermind that you'll have to move cross-country if this doesn't job doesn't work out), then they run around bitching and complaining that there's not enough skilled workers out there and that the government needs to do something about it.

  18. Re:Lazy employees are lazy by drsmithy · · Score: 2

    I agree completely. That's why when my boss sends me travelling I insist on paying for the flights and hotels myself. They tried to give me a computer to use for work, but I wouldn't put up with that sort of nonsense and bought my own instead.

    Heck, I don't even turn on the lights in my office lest my kind and generous employer have to bear that expense in the course of my humble service to them.

  19. Re:Lazy employees are lazy by BVis · · Score: 2

    I'm curious, are you physically unable to use a period?

    --
    Never underestimate the power of stupid people in large groups.
  20. Places that use open source by SCHecklerX · · Score: 2

    This is why I prefer working at companies that use open source software for the core of their systems. You are able to teach yourself and stay up to date on what is going on, and maybe even give back. All of that documentation is out there just for you to learn. And you can set up any number of scenarios in your labs without having to buy licenses for things that likely won't work for you anyway. Let's not forget that we no longer have to deal with constant harrassment from sales droids, instead focusing on growing our own skillset while benefiting the company.

    'Training" is for "consultants" working for places like the DoD. I've never met a group more dedicated to striving for mediocrity, including government employees and contractors alike. Your value is seen as what you've been trained in. The majority of those folks simply don't know how to think, only how to regurgitate feature sets of commercial products that the government is overpaying for.

  21. Re:Lazy employees are lazy by sociocapitalist · · Score: 3, Insightful

    If you are not willing to move on and get another job, don't whine to everyone else about it.

    Non-compete clauses prevent that for many people who don't know that they're usually non-enforceable. The system is rigged in favor of the employers but people should find out what their options are regardless.

    FTFY

    --
    blindly antisocialist = antisocial