Cisco takes on the talent shortage

The current IT worker shortage is viewed as an industry problem, but Cisco Systems doesn't think so.

The company, based in San Jose, Calif., declared the IT worker shortage to be its No. 1 prohibitor to growth. Cisco's goal of becoming a $50 billion company by 2010 will be unattainable if the skills shortage is not addressed. The company has developed a pilot program starting in the U.S. market under the guidance of Celia Harper-Guerra, who will hold the title of senior director of worldwide channels. Harper-Guerra is a former human resources executive with 15 years experience at Cisco.

According to Edison Peres, the vice-president of worldwide channels, Cisco would be unable to maintain its level of growth (20 percent) without talented people to support it.

"We could be in a place if we do not deal with it proactively where we possible will be hampered. If you do not have the people you will not see the growth," Peres said.

Since the vast majority of Cisco's business is indirect, solving the IT shortage in the channel community is an important part of its talent initiative.

Peres said Cisco's partner community is currently made up of 220,000 total individuals of which 57,000 are certified. This community does not include Linksys or Scientific Atlanta partners.

"We looked at this and with some simple arithmetic you say if you want to grow to $50 billion by 2010, which is 20 percent, with some productivity gains you would need to double the amount of people to get to the $50 billion," Peres said.

He believes Cisco and its channel would need a total of 410,000 IT workers of which 95,000 or more hold at least one certification.

Under this talent initiative, Cisco anticipates that some of the shortage will be made up by people being more productive.

Peres said that productivity gains will solve 50 percent of the problem. For example, the quote builder software program has been able to reduce the time channel partners need to properly prepare quotes from two days to 30 minutes. "That is an example of a productivity gain," he said.

Harper-Guerra said today's talent shortage is a result of declining enrollment in schools. She believes parents are not encouraging children to get into the IT industry as a career because of the dot-com bubble.

Another reason is that primary and secondary school teachers are unable to communicate the opportunities available in IT.

Compounding the problem are baby boomers who are exiting the marketplace. "This is where the gap is," she said.

The gap used to be closed by talented people coming from India and Russia, but because those two economies have greatly improved over the past few years that talent pool is staying put, she said.

"Talent can now make choices," she added.

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