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Networking Skills in Latin America

Results Presentation prepared for:

Cisco Networking Academy

January 2013

3-13 © IDC Visit us at IDC.com and follow us on Twi5er: @IDC

Project Overview: Objectives

•  To demonstrate the networking skills gap for eight specified countries within Latin America, and across Latin America in aggregate. •  Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, Peru, Venezuela

•  To identify variations between Network skills demand in Essential and Emerging Technologies. •  Essential: Routing, Switching, Wireless, VOIP, Security Skills •  Emerging: UC, Video, Cloud, Mobile, Data Center Virtualization

•  Ultimately, to illustrate the impact that future demand for networking skills will have on the current need for increased essential skills development.

2


Project Overview: Approach

•  IDC utilized numerous sources to estimate the skills gap in Latin America. •  IDC forecasts •  Demand-side interviews – Nearly 800 (encompassing multiple

size & vertical industry segments) •  Publically available metrics – GDP, labor statistics, etc. •  Supply-side interviews – to validate assumptions and provide an

additional checkpoint.

•  IDC constructed a highly detailed model that relied on multiple inputs to estimate the supply and demand for various levels of networking skills in eight key countries in Latin America.

3


Networking Skills’ Gap Analysis: Fast Facts

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2011 2015

Skill

s G

ap Emerging

Essential

Supply of essential networking skills

must be sufficient to fill both the current demand, and also

account for matriculation of staff to roles that require

emerging networking skills.

!

139,800 Total

296,200 Total

4


5

Overview of Total Network Skills Demand in 2015 by Country

0 5

10 15 20 25 30 35 40 45 50

% Skills Gap in 2015


0100,000200,000300,000400,000500,000600,000700,000800,000900,000

2011 2012 2013 2014 2015

(Tot

al N

etw

orki

ng S

kills

)

Gap Supply

6

Total Networking Skills Gap

Supply and Demand Gap range is 27% to 35% for 2011 to 2015 respectively. Impact:

•  Greater risk in adoption •  Greater use of

consultants •  Higher cost of staff •  Slower adoption of

technologies

Demand

Supply

Overall: Gap is Growing between “Supply” and “Demand”


7

Network Skill Supply/Gap by Segment

Gap

- 100,000 200,000 300,000 400,000 500,000 600,000

2011 2012 2013 2014 2015

Supply Gap

Essential Networking Skills Emerging Networking Skills

-

100,000

200,000

300,000

400,000

2011 2012 2013 2014 2015

Supply Gap

- 200,000 400,000 600,000 800,000

1,000,000

2011 2012 2013 2014 2015

Supply Gap

Total Networking Skills


Technology Growth: New Solutions Driving Investments

8

•  In 2012, the ICT industry's shift to its third major platform of growth — built on mobile, cloud, social, and Big Data technologies — has accelerated, forcing the industry's leaders to make bold investments and fateful decisions. •  "Mobility wins" will be the top theme of the year as mobile devices out ship PCs by more than 2 to 1 and generate more revenue than PCs for the first time. •  Big Data will join mobile and cloud as the next "must have" competency as the volume of digital content grows.

Source: IDC Latin America Unified Communications Tracker, Cloud Solutions and Enterprise Mobility – 2012

8%

34%

77%

9%

14%

CAGR ‘12-’15

*Data comes from IDC’s internal quarterly tracking

New Networking Solutions Revenue Growth $M (2011-2015)*

$M $-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2011 2012 2013 2014 2015

Data Center- Virtualization technologies

Mobility technologies

Cloud Computing technologies

Video technologies

Unified Communications technologies


9

QUESTION: Are you expecting to need new or extra skills in the following areas in the next 12-24 months?

Factors Impacting Skill Demand: Horizontal and Cross-technology Skills

Base= All respondents N=767

Source: Networking Skills in Latin America – IDC 2012

85%

80%

73%

87%

82%

73%

80%

78%

81%

80%

65% 70% 75% 80% 85% 90%

General networking skills (maintenance & operations)

PC hardware and software skills

Network design and architecture

Security skills

Wireless network skills

IP telephony and IP network skills (VoIP)

Data center networking skills

Understanding how applications, such as unified messaging and video conferencing

can impact business

Cross technology skills (i.e. multiple technology skills in same person)

Understand how the network can enable and impact business

Essential Technologies

Emerging Technologies

Cross Technologies


10

Factors Impacting Skill Demand: Perceived Value of Certifications has Grown

QUESTION: Do you believe that it will become more valuable for you in the future for people in your organization with networking skills to have professional certification? [SINGLE SELECT]

Base=All Respondents N=767

Source: Networking Skills in Latin America – IDC 2012

58%

31%

7%

3%

1%

0% 20% 40% 60% 80%

Very Important

Important

Neither Important nor Unimportant

Slightly important

Not at all important

For IT professionals, certification is an important motivational factor.

In the realm of new technologies and the growing adoption of outsourced network services, professional certifications have become very valuable across all verticals. Especially of note are: Financial, Government, Health, Education, Travel/Transport/Distribution, as well as Telecom.


-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2011 2012 2013 2014 2015

Total Networking Skills Growth in Latin America, (2011-2015)

Demand Supply

Skills Demand Growth - Overall Networking: Networking Skills Outpace Technology Growth

11 Source: Networking Skills in Latin America – IDC 2012

The evolution of technology necessitates more essential skills to address additional demand for skills to support emerging technologies – particularly in security and data center technologies. Growth skill gap means there will be 2 unfilled positions for each employed professional in security and data center technologies by 2015

0

100,000

200,000

300,000

400,000

2012 2013 2014 2015

174,866

296,163

Total Networking Skills Gap 2012-2015


Skill Demand Growth – Essential Networking: Security Skills Fuel Growth


For professionals with a base level of networking skills, IDC projects that in 2012, 68% will add security skills, 22% will add wireless, and 10% will add VOIP technologies skills.

-

100,000

200,000

300,000

400,000

500,000

600,000

2011 2012 2013 2014 2015

Essential Networking Skills Gap in Latin America, (2011-2015)

Demand Supply

Essential Skills Gap 2012-2015

-

50,000

100,000

150,000

2012 2013 2014 2015

91,958

129,107


Skill Demand Growth – Emerging: New Technologies Drive the Skills Growth

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2011 2012 2013 2014 2015

Emerging Networking Skills Gap in Latin America (2011-2015)

Demand Supply


IDC anticipates that staff with essential networking skills will be called upon to augment their skill set to support emerging technologies. The rapid adoption of new technologies will place increasingly greater demand on companies to find staff with the skills necessary to extract the maximum value from technology investments.

-

50,000

100,000

150,000

200,000

2012 2013 2014 2015

82,908

167,056

Emerging Skills Gap 2012-2015