Confluence 2013
Accelerating Global
Innovation
6th March 2013
Hyatt Regency Santa Clara, CA
Zinnov LLC
No Part of this report may be quoted, circulated or reproduced for distribution without prior written approval from Zinnov.
Talent Outlook 2013 – Key Findings Of Zinnov’s Survey
January 2013
3 Total number of organizations participating in the survey = 40 Source : Zinnov Talent Neuron Location and Skills Survey Q42012
Organization Profile By Global Headcount
2%
2%
5% 5%
7%
7%
12%
21%
40%
Program Manager
Product Management
HR- Talent Acquisition
Consulting
Operations
Engineering
HR- Compensation
HR- Business Partner
HR-Generalists
3% 13%
63%
20% 0-100
101-1000
1001-10,000
More than 10,000
Organization Profile By Headquarter Location
5% 5% 5%
5%
75%
5% Japan
Ireland
France
UK
USA
Singapore
Organization Profile By Revenue (Million USD)
35%
15% 21%
29%
0-500
501-1000
1001-5000
5001 and above
11%
6%
9%
17%
29%
29%
Others
Internet
Storage
Telecom & Networking
Software
Semiconductors
Respondent Profile By Roles
Organization Profile By Verticals
HR and Technology Professionals from global Hi-Tech companies participated in the survey conducted by Zinnov
Key themes that emerged from the survey
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2013 Is Going To Be The Year Of Skill And Talent Reconciliation
Growth In Low Cost Countries Led By China & India Is Expected To
Remain Constant
Skills Are Evolving And
New Age Skills That Did Not
Exist A Decade Back Are In
Demand
The Role Of HR In Organizations Will Become More Strategic
• Organizations are looking to expand/grow within US
• Focus on Tier 2 locations in the US is expected to increase in 2013
• Hiring for undertaking innovation related activities will be primarily in the US
• Marginal growth in China & India primarily due to cost and access to talent
• Operations in China is not on the priority list for most companies
• Organizations believe that 25% of their current talent will become redundant in next 3- 5 years
• User Experience, Analytics and Mobility are the top skills that companies require in the near future
• In 2013, there will be an increased focus on HR Analytics, Skill Set Assessment and Training
• Niche Skills Hiring is a key challenge for most organizations
Total number of organizations participating in the survey = 40 Source : Zinnov Talent Neuron Location and Skills Survey Q42012
1 2
4 3
Silicon Valley & other US Cities will be the primary innovation hubs for a majority of the companies followed by India and EMEA
5 Note: * An organization can expect innovation across multiple regions, hence total proportions is more than 100% Source : Zinnov Talent Neuron Location and Skills Survey Q42012
• In the coming years, Seattle, Maryland, Dallas, Boston are expected to emerge as innovation hubs
• India is expected to account for only 15 percent of the innovation/ innovation related activities • Brazil, Argentina, Costa Rica and Chile are expected to be the top innovation locations in the Latin
America region
7%
21%
26%
30%
36%
43%
50%
71%
Africa
APAC
Latim America
China
EMEA
India
Other USA cities
Silicon Valley
36%
18% 15%
10%
8%
8% 5%
1% Silicon Valley
Other USA cities
India
EMEA
China
Latin America
APAC
Africa
What percentage of your company’s innovation will come from the following regions in 2013?
70% of the organizations indicated that Silicon Valley will be their center of innovation in 2013
1
Over 54% of Innovation from US
6
About 75% of the companies indicated that they plan to increase their headcount across centers located in the US; outside of the US, India and Africa are the preferred locations
• Companies continue to focus on growth in Silicon Valley -
• 80 percent of the respondents indicated that their organization’s headcount is expected to increase the most in Silicon Valley compared to other locations
• 70 percent of the respondents expect their
organization’s headcount to increase in other US Cities
• The number of organizations with centers in Africa and Latin America is less. However, the expected increase in the headcount in these geographies is higher compared to China and APAC region
• China is the least preferred location for talent growth
By what percentage do you expect to increase headcount in the following regions in 2013?
4%
4%
5%
5%
9%
13%
18%
30%
0% 20% 40%
China
APAC
EMEA
Africa
Latin America
India
Other USA cities
Silicon Valley
Total number of organizations participating in the survey = 40 Source : Zinnov Talent Neuron Location and Skills Survey Q42012
2
Total number of organizations participating in the survey = 40 Source : Zinnov Talent Neuron Location and Skills Survey Q42012
53%
47%
Organizations Expecting aSkill Set Change in theFuture
Organizations Unsure ofSkill-Set Requirement inthe Future
2
4
5
11
18
75-100%
25-50%
50-75%
Not Sure
0-25%
Number ofOrganizations
What percentage of your future skills will differ from your current skills?
Exp
ecte
d C
han
ge in
Ski
ll-Se
t R
equ
irem
ent
Organizations future talent requirement to be different from current requirement
• Most organizations expect the key skill sets to differ by 25% in near the future
• Training, Focused Hiring, Workforce Planning, Skill-Set Measurement, Performance Monitoring are some of the areas that need to be strengthened within organizations in order to prepare for changing skill-set requirement
In the next 3-4 years, 40% of the organizations believe that about 1/4th of their current skill inventory will become redundant
3
7
Note: Analytics includes Big Data, Predictive Modeling, HR Analytics Source : Zinnov Talent Neuron Location and Skills Survey Q42012, Zinnov Talent Neuron Database
Engineering, Analytics, Mobility and Cloud are the top skills that companies require in the near future. In addition, companies are also emphasizing on developing soft skills
Skill Set 8 to 10 Years ago 2013
User Experience Design
Data Scientists
Mobile Application Development
Cloud Computing
Non Ex I stent
Extremely Low
Legend
Very High
Organizations believe that understanding skillbase/inventory of their talent is the key to the future
3
8
Note: Analytics includes Big Data, Predictive Modeling, HR Analytics Source : Zinnov Talent Neuron Location and Skills Survey Q42012, Zinnov Talent Neuron Database
Engineering, Analytics, Mobility and Cloud are the top skills that companies require in the near future. In addition, companies are also emphasizing on developing soft skills
50%
40%
32%
24%
17%
7%
20%
0%
20%
40%
60%
Platform EngineeringTechnologies
Analytics Mobility Cloud Computing Migration to NewTechnologies
Desktop/Servervirtualization
Others Skills
What will be the top 3 required skills in the near future for your organization?
Perc
enta
ge o
f C
om
pan
ies
• Attracting and retaining PhD holders in areas such as hardware design, statistics, automation is a key
challenge for organizations
• In the near future, organizations are expected to increase their focus on soft skill development across levels and functions. These skill sets include Leadership Development, Coordination, Communication, Customer Services, etc.
• About 24 percent of the companies indicated that Migration to New Technologies and Desktop/Server Virtualization are the key skills required in the near future
3
9
10 *Workforce Planning: Understanding staffing trends, resource allocation, forecasting etc, ~Skill-Set Assessment: Performance assessment, productivity measurement Source : Zinnov Talent Neuron Location and Skills Survey Q42012
Key Focus Areas for HR Departments in 2013
14%
14%
19%
20%
21%
21%
50%
High Volume Staffing
Workforce Planning*
Talent Retention
HR Analytics
Training
Skill Set Assessment~
Niche Skill Hiring
• Hiring for niche skills and skill set assessment continue to remain the key challenges for most organizations
• Over 50% of the organizations lack dedicated statistical or data analytics teams across HR departments.
• Dedicated statistical teams within HR departments can help in reducing various challenges across Skill-Set Assessment, Large Volume Data Analysis and Workforce Planning
• Over 50% of the organizations lack dedicated or shared teams that can undertake research on existing and potential future locations for the company
The survey indicates that hiring people with Niche Skills, Skill Set Assessment and HR Analytics will be the key focus areas for HR Departments in 2013
Per
cen
tage
of
Res
po
nd
ents
4
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