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No Shortageof Talent: How the Global Market is Producing the STEM Skills needed for Growth
No Shortageof Talent: How the Global Market is Producing the STEM Skills needed for Growth
No Shortageof Talent: How the Global Market is Producing the STEM Skills needed for Growth
No Shortageof Talent: How the Global Market is Producing the STEM Skills needed for Growth
No Shortageof Talent: How the Global Market is Producing the STEM Skills needed for Growth
No Shortageof Talent: How the Global Market is Producing the STEM Skills needed for Growth
No Shortageof Talent: How the Global Market is Producing the STEM Skills needed for Growth
No Shortageof Talent: How the Global Market is Producing the STEM Skills needed for Growth
No Shortageof Talent: How the Global Market is Producing the STEM Skills needed for Growth
No Shortageof Talent: How the Global Market is Producing the STEM Skills needed for Growth
No Shortageof Talent: How the Global Market is Producing the STEM Skills needed for Growth
No Shortageof Talent: How the Global Market is Producing the STEM Skills needed for Growth
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No Shortageof Talent: How the Global Market is Producing the STEM Skills needed for Growth

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Science, Technology, Engineering & Math Skills are in demand but the issue is location mismatch

Science, Technology, Engineering & Math Skills are in demand but the issue is location mismatch

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  • 1. No Shortage of Talent:How the Global Market is Producingthe STEM Skills Needed for GrowthBy Elizabeth Craig, Robert J. Thomas, Charlene Hou and Smriti MathurSeptember 2011 Research Report
  • 2. No Shortage of Talent: How the Global Market is Producing the STEM Skills Needed for GrowthThe talent power needed for global economic growthcomes from men and women armed with STEMskills – advanced knowledge of science, technology,engineering and mathematics. Many experts haveraised the alarm to highlight looming shortages of suchtalent, raising the possibility of a diminished capacityfor innovation and slower growth. But Accentureresearch shows that the supply of STEM talent isgrowing rapidly. The key is learning how to find it.Scientists, technologists, engineers, managers believe that they won’t be Instead, the problem is one of locationmathematicians: these are the high-end able to find enough trained people to mismatch: talented people areknowledge workers who turn the meet their needs.3 available but not always in the placeswheel of the global economy. where they are needed. For example,Collectively, they share at least one Consider that India produces one there may be a shortage of chemicalthing in common, the STEM skills that of the largest pools of engineers engineers in Germany but a large andare critical to economic growth. How each year, but software association growing supply in China. What wecritical? As the authors of a recent NASSCOM says that only 25 percent are witnessing is the emergence ofreport put it: “Just as we would be of them are readily employable.4 a truly global labor market for STEMunable to expand industry if we lacked In the UK, two-thirds of senior talent – but one that lacks essentialthe natural resource materials to build executives from science, high-tech and mechanisms for matching demandthe factories (e.g., cement), or energy IT firms say they can’t find the STEM and supply of critical skills acrossto power the plants, we cannot expand talent that they need.5 And in the US, geographic boundaries.our technology economy without the concerns about the country’s ability toneeded human resources, in this case “sustain its scientific and technological Location mismatch will forcehigh-quality STEM graduates.”1 leadership” prompted a group of 15 individual companies to venture prominent business organizations to well beyond their traditional huntingMany business leaders fear shortages join together with the goal of doubling grounds – and the cost of search canof STEM talent in the coming years. the number of science, technology, be quite high. Gaps in labor marketFor example, countless studies contend engineering and mathematics institutions will make it difficult forthat the lack of people with the graduates with bachelor’s degrees even well-heeled companies to findright skills could hold back economic by 2015.6 and keep STEM talent. For thosegrowth, especially in developed reasons, we believe that there is aeconomies.2 And surveys show that However, our research suggests that real opportunity for new “labor the problem is not one of shortages. market intermediaries” (LMIs) to intercede in global labor markets.2 | Accenture Institute for High Performance | Copyright © 2011 Accenture. All rights reserved.
  • 3. No Shortage of Talent: How the Global Market is Producing the STEM Skills Needed for GrowthExplosive demand Figure 1: Projected growth in the size of the US labor force 2008 – 2018 (percentage increase in employment)for STEM skills Employment in STEM occupations is projected to growWith global economic growth expected almost two times faster than the average for all occupations.to be driven by the life sciences,alternative energy, aging populationsand consumption in emerging markets, All Occupations 10%the demand for STEM talent is set toexplode in the next decade.7 In the All STEM Occupations 19%United States alone, employmentin STEM occupations is projected to Life Scientists 27%grow almost twice as fast between2008 and 2018 than employment in Computer and Mathematical 22%other occupations. (See Figure 1.) Thesize of India’s tech sector will grow Physical Scientists 15%more than sixfold in seven years.8 TheSouth Korean government is pumping Engineers 11%$200 billion into a new green smart 0 5 10 15 20 25 30grid project that is expected to create500,000 tech jobs.9 In the UK, experts Percent Changeforecast an 80 percent increase Source: US Bureau of Labor Statistics, Employment Projections, 2010, as reported in Atkinson and Mayo, 2010. 14in demand for biological sciencegraduates and a 49 percent increase indemand for mathematical science and analysts and software engineers. There utilities industry, which is scramblingcomputing graduates between 2007 is also swelling demand for STEM skills to find enough electrical engineers justand 2017.10 in nascent industries like business to meet increasing demands for power, analytics services, a market that has never mind to invent, design andCompanies that rely on STEM skills are seen remarkable growth in the past operate clean energy and smart gridalready in a frenzied grab for talent. three years and will exceed $53 billion technologies.16 The utilities’ andIn the United States, tech companies globally by 2013.13 insurance companies’ main competitionlike Facebook, Amazon, Cognizant for STEM graduates? The more alluringand Apple will need to fill upwards High-tech companies are not the only technology companies like Apple,of 650,000 new jobs by 2018 to meet ones in search of STEM skills – though Samsung and Twitter – not to mentiontheir growth projections. Two-thirds they may have the advantage of a others such as Zynga, Solar Winds andof the new hires will be STEM talent.11 more modern image. Many of the Riverbed Technologies that are onlyGoogle already announced it would skills needed by flourishing Internet now in their infancy.17“aggressively recruit” more than 6,200 companies are also coveted byworkers in 2011 – mostly computer established financial services, utilitiesengineers.12 In China, companies such and chemical companies like Johnas Baidu, Alibaba and Renren are Hancock, AES, and Dow. For example,swallowing up programmers, systems in the insurance industry employers are searching for math, finance, physics and engineering graduates who can do sophisticated predictive analytics and comprehensive risk modeling.15 The same is true for the3 | Accenture Institute for High Performance | Copyright © 2011 Accenture. All rights reserved.
  • 4. No Shortage of Talent: How the Global Market is Producing the STEM Skills Needed for Growth"My biggest talent imperative today andgoing forward is to ensure that our skills aresourced globally and not just locally. Theright talent could be anywhere in the world."— Rohit Tandon, Worldwide head of analytics for HPTo complicate things further, have been positioning themselves todeveloped market companies may compete in the much more profitableincreasingly find themselves in direct prescription or patent drug business.competition with emerging marketcompanies for the same STEM talent. Second, economic growth in developingTwo factors are important here. First, economies inspires entrepreneurshipshifts in the global economy have led and creates new professionalmany emerging market companies to opportunities. Evidence of this can bethink seriously about moving into found in the returning diasporas: themore profitable segments of the increased number of Indian, Chinesemarket by competing on product and Koreans who went abroad forfeatures rather than on labor-cost education but have returned home todifferentials. Pharmaceuticals in India work.18 Even if the highly skilled areare a case in point: for many years inclined to move, national governmentsglobal majors like Pfizer and GSK may impose limits on their mobilitysourced their products from generics or create incentives (such as havemanufacturers in India, but lately been initiated in Malaysia) to keepthe latter (for example, Dr. Reddy) them inside their borders.19 Developed market countries that rely heavily on high-skill foreign STEM talent – the US awards more than 50 percent of engineering and computer science doctorates to foreign students—may find it more difficult to attract the world’s best and brightest STEM talent.4 | Accenture Institute for High Performance | Copyright © 2011 Accenture. All rights reserved.
  • 5. No Shortage of Talent: How the Global Market is Producing the STEM Skills Needed for GrowthBooming supply of Figure 2: Share of STEM talent: Emerging and developed economiesSTEM skills The three largest emerging economies already produce more STEM talent than three of the world’s largest developed economies, claiming a higher percentageDespite general recognition of global every year.growth in demand, it’s highly unlikelythat universities in developed economies Developed economies Emerging economies (US, UK, Japan) (Brazil, China, India)will be able to simply turn up the dialand produce more STEM graduates 7in the next decade. Consider that 6the US graduated 88,000 visual and 88% 87%performance arts majors in 2008 but 5 87% 86%only 69,000 engineers.20 The number 86% 85% Millionsof STEM graduates in the US would 4 85%need to increase by 20 to 30 percent 3between 2006 and 2016 to meet thecountry’s projected growth in science 2and engineering employment alone.21That would require a collective effort 1on par with the one fueled by the 15% 15% 14% 14% 13% 13% 12%space race between the United States 2009 2010 2011 2012 2013 2014 2015and the Soviet Union in the late 1950s Source: Accenture Institute for High Performance analysis.and early 1960s. And as many haveobserved, it would also require consid-erable innovation in STEM education Figure 3: STEM degrees as a percentage of all degrees (2011)and training – a challenge that someinstitutions are trying to meet. (See In China, more than 40 percent of all degrees awarded are STEM degrees. In the“Higher education: Producing US, just one in eight is a STEM degree.‘business-ready’ STEM talent.”) 50%The STEM talent situation looks verydifferent when we take a global view.China, India and Brazil are producingmore and more of the world’s STEM 40% 41%graduates. (See Figure 2.) In China,41 percent of all new universitydegrees awarded are in science and 30%engineering.24 Comparable figures are13 percent in the US, and 22 percent 26%in the UK.25 (See Figure 3.) 20% 22%The emerging market economies 18%are accelerating their production ofSTEM graduates much faster than 10% 14% 13%the US and other developed coun-tries. According to our projections,the number of engineering degrees 0awarded in China will grow from China% India UK Japan Brazil US Source: Accenture Institute for High Performance analysis5 | Accenture Institute for High Performance | Copyright © 2011 Accenture. All rights reserved.
  • 6. No Shortage of Talent: How the Global Market is Producing the STEM Skills Needed for GrowthHigher education: Producing Today there are more than 230 PSM or more job offers. Over 90 percent“business ready” STEM talent programs at 110 institutions in the were placed in jobs by graduation United States. Total enrollments are for the fourth straight year despite aOne way to quickly produce more still relatively small, however, with lagging economy. Given its success,business-ready STEM talent is through about 2,600 students enrolled per year.23 the Institute is doubling the size of theinnovation in education. In the 1990s, program from 40 to 80 studentsa new credential was introduced in Entirely new courses of study can also in 2012.the US higher education system: the help fill market needs for STEM talent.Professional Science Master’s degree, At North Carolina State University Clearly, these new types of programsor PSM. These degree programs in Raleigh, students can complete a and courses of study are only makingintegrate science courses with business Master’s of Science in Analytics at small dents in the talent-supplycourses at about a 70 percent-30 the Institute for Advanced Analytics. problem so far. Over time, however,percent ratio. An umbrella organization Founded in 2007, the Institute was such innovations could do muchfor PSM programs characterizes them designed to equip students with the more to fill the global need for STEMas “science plus” and notes that they quantitative analysis and team-based graduates who are also ready toemphasize writing and communications, decision-making skills increasingly step into business roles.and generally require students to needed in the business world. Employercomplete a team project as well as a demand for the Institute’s graduates“real world” internship at a business has risen every single year. Students inor in the public sector.22 the class of 2011 secured an average of 14 job interviews, and more than 70 percent of the class received two2.6 million in 2010 to 3.6 million in Figure 4: Technical/associate, graduate, post-graduate and doctoral STEM2015.26 (See Figure 4.) Chinese and degrees (in millions), 2010 and 2015Indian universities may not all be ofcomparable quality to each other, let China and India lead the way.alone to top universities in developedcountries, but they still graduate most 4.0 2015of the world’s STEM talent. 2010Brazil has seen a tenfold increase in 3.5 0.94the number of PhD degrees awarded inthe last two decades.27 The country’s 3.0new engineering graduates, thoughdwarfed in numbers by India and 2.5 2.63China, will grow 68% between 2009and 2015, with the number of new 2.0PhDs estimated to more than doublein that time (to 8,800, as comparedto 9,933 in the US).28 In fact, by our 1.5 0.37estimates, Brazil will produce morePhD engineers than the US by 2016. 1.0 1.19Of course, there are persistent debates 0.5 0.04about how many STEM graduates from 0.42 0.06universities in developing countries 0.01 -0.01 0.0 0.15 0.16 0.11are actually qualified for employmentwith domestic firms, let alone global China India US Brazil UK Japan Source: Accenture Institute for High Performance analysis6 | Accenture Institute for High Performance | Copyright © 2011 Accenture. All rights reserved.
  • 7. No Shortage of Talent: How the Global Market is Producing the STEM Skills Needed for Growthmultinationals.29 Even if just one in our skills are sourced globally and not that the country is churning out newfive STEM graduates in China will be just locally. The right talent could be engineers. But actually reaching thosesuitable for global employment (that anywhere in the world.”33 people is extraordinarily difficult inis, approximately 720,000 would be practice without any “boots on thecandidates to work for multinationals), Of course, finding talent on a ground.” While it is possible to findChina is still producing more qualified global scale and then employing it STEM skills around the world, manySTEM talent than the US, which will productively is not a simple chore. The employers lack the competency toaward 460,000 science, technology, costs of searching for skills in a global search effectively in a globalengineering, and math degrees talent market can be prohibitive. And labor market.36in 2015.31 the risks associated with setting up outposts in countries with unsettled On the other hand, even whenGiven this growth in supply, an governing institutions will give even companies know where STEM skillsabsolute shortage in STEM talent the most adventurous executives a are available, accessing those skillsdoes not appear to exist. The real reason to pause. can be problematic. Individuals’problem for employers is a location preferences are an importantmismatch: talent may not reside constraint; some people won’t wantwhere it is needed. Accenture’s 2010 to move, for example. However, thereHigh Performance Workforce Study are also systemic barriers, such asrevealed that in companies where The real problem: government policies, employment andR&D is a critical workforce, 24 percent location mismatch immigration laws, and infrastructureof executives said that STEM skills inadequacies that render skills inwere located in countries other than remote locations inaccessible.those in which they are needed.32 Only Companies face twin challenges as21 percent said that the supply of they seek to source talent globally: The information and access problemsskilled talent they need is extremely an “information problem” in which are classic ones but they illustrate howsmall or non-existent. For employers they often lack the information about the local focus of most companiesrelying most on STEM talent, location where skills are located and an “access leads them to declare the existencemismatch is already a bigger problem problem” in which they may know of a shortage when labor supplies drythan shortage. And as companies where skills exist but have difficulty up in their home markets. And theyexpand their global footprint, getting access to it. illustrate the relative immaturity oflocation mismatch is likely to thinking and experience about globalbecome a problem for any company Many CEOs see the challenge of labor markets.37that relies on STEM talent. locating and forecasting talent availability in emerging markets as a Perhaps not surprisingly then,So, despite what we anticipate to be major hurdle to growth.34 For instance, most companies judge themselvesa growth in the supply of STEM skills the CEO of a large international ill-equipped to solve the locationglobally, the challenge for developed consumer goods company has said mismatch of talent demand andand emerging market companies alike that “finding the appropriate talent to supply on their own. For example, anwill be finding and gaining access take advantage of the growth prospects Accenture study featuring electronicsto talent that resides in different of emerging markets is one of the and high tech firms reveals thatcountries. Rohit Tandon, worldwide biggest challenges we face."35 The few – only 17 percent – feel theyhead of analytics for HP, notes that COO of a global airline echoed that are well-positioned to source talent“my biggest talent imperative today complaint to us when he said that the worldwide.38 The rest will struggle toand going forward is to ensure that lack of information about engineering find the STEM talent they need in their talent in key emerging-market cities home markets. made it difficult to forecast his company’s expansion to new growth centers with any level of confidence. A company seeking to open an office in Sao Paulo may know at a high level7 | Accenture Institute for High Performance | Copyright © 2011 Accenture. All rights reserved.
  • 8. No Shortage of Talent: How the Global Market is Producing the STEM Skills Needed for GrowthConnecting talent That leaves most companies today forced to buy STEM skills on the open him hire 20 or 30 PhDs. But, with a prize offered in that amount, “you’resupply and demand: market – a task already fraught with going to get a lot more than 20 information and access challenges that people participating.”42The new will become increasingly difficult asintermediaries more employers join the hunt in what’s arguably a “massive, messy, moving” Another new intermediary is YourEncore, which focuses onWhat can companies do to secure global talent market.39 engaging a growing segment ofthe STEM skills they need? Companies experienced talent: retirees.have a few basic strategies for In the short run, there is a real YourEncore maintains a network ofacquiring skills: build them internally opportunity for new intermediaries “Experts” – retired scientists andthrough investments in training to intercede in the labor market and engineers – who are called on to workand development; buy them on the improve employers’ ability to find on projects at more than 50 companies,external labor market (this could, at and access STEM talent wherever it such as P&G, Eli Lilly, and Generaltimes, involve “borrowing” skills from is available. In some cases, these Mills. One YourEncore Expert, a retiredother firms by means of alliance or labor market intermediaries will chemical engineer who had spent 35joint venture); or substitute for them be entirely new entities; others, years specializing in color for Kodak,with technology or work simplification. however, will be new combinations helped a consumer-products client of familiar organizations. solve a color challenge with a newSubstitution is difficult because the hair-care product.43flexibility, creativity and judgment that Companies have long relied onmakes STEM talent so productive is labor market intermediaries such More and more, innovative interme-impossible to program into software. In as staffing agencies and online job diaries like Kaggle and YourEncorethe long run, it is possible to imagine boards to help them find employees.40 are helping employers find the talentmore STEM skills being simplified – in However, over the past decade, they need, especially STEM talent. In amuch the same way that analytical several new types of intermediaries world of mismatch between supply andskills have been programmed into have emerged. demand, labor market intermediariesadvanced diagnostic equipment in the will be an essential component of thepharmaceuticals business. But that is An example is Kaggle, an online most successful companies’ globalin a very long run. platform to which companies post sourcing strategies. data sets and problems to beTo date, companies have largely analyzed and answered by Kaggle’sfocused on “build” or “buy” solutions, global community of more thanbut neither solution is particularly 10,000 scientists.41 Founded insatisfying. With the extended period 2010 in Australia, Kaggle draws inof learning and preparation needed scientists from quantitative fieldsto acquire advanced STEM skills, such as computer science, statistics,it would simply take too long for econometrics, maths and physics,companies to build advanced STEM and from over 100 countries and 200skills internally. universities. The Heritage Provider Network, a California physicians group, has partnered with Kaggle to offer a $3 million prize to the contestant who creates the algorithm that best predicts which patients are likely to be hospitalized in the coming year; the aim is to help Heritage offer preventive care. An executive with the physician’s group notes that $3 million might let8 | Accenture Institute for High Performance | Copyright © 2011 Accenture. All rights reserved.
  • 9. No Shortage of Talent: How the Global Market is Producing the STEM Skills Needed for GrowthLooking ahead: countries. The industries – banking, insurance, communications technology, Some, like the US, the UK and Japan, are likely to face a shortfall in theA research plan oil and gas, pharmaceuticals and domestic supply of analytical talent. analytics services – are all major users Others, like China, India, and BrazilThe Accenture Institute for High of analytical talent. The countries are likely to become net exporters ofPerformance has embarked on a study – US, UK, Japan, Singapore, China, analytical talent – unless, of course,of demand-supply mismatch and India and Brazil – represent a mix of their own indigenous demand exceedsnew labor market intermediaries in developed and developing economies local supply. For each country, we willthe global market for STEM talent. and, more important, each is both a describe the landscape of talent creationThe intent of this investigation is producer and a consumer of and assess the major institutions thatnot simply to document the problem analytical talent. produce analytical talent.of location mismatch or to explainhow labor market intermediaries may We are collecting new data in Matching mechanisms. Once webring about a better match between four ways: have completed the analysis ofdemand and supply. It is to show how supply and demand, we will examinethe use of widely scattered data and Talent supply mapping on a global alternative strategies that companies,new analytical techniques can help scale. We are examining current governments and social-sectoremployers and policymakers supplies of two analytical talent pools organizations can use to resolve theunderstand how and where to find, in each of the seven target countries. location mismatch in the market foraccess and develop essential talent. First, we are tracking the analytical analytical talent, with a particular talent already present in the six focus on understanding the role ofGiven the wide variety of occupations industries in each country. Second, we new labor market intermediaries. Thisand skills that fall under the STEM are tracking the fresh talent coming assessment will provide a dramaticallycategory and the scarcity of data that out of universities with bachelor’s, new look at the STEM skill situation onwould allow for meaningful comparisons master’s and PhD degrees in math, a global scale.on a global scale, we narrowed our statistics, operations research andempirical investigation to a slice of the other quantitative fields. We then use Whatever their form and function,STEM talent pool: analytical talent. By economic forecasts and data from institutions that aid individualanalytical talent, we mean people who employers and universities to employers and job seekers in findinguse statistics, rigorous quantitative estimate the supply of and demand a match of appropriate skills andanalysis and information-modeling for analytical talent over the next five talent are poised to become importanttechniques to shape and make years in each country and industry. players in global labor markets in thebusiness decisions.44 Because math next decade. For individual firms andplays a “rapidly increasing role as a Industry case studies. Company global economic growth alike, theiruniversal language for science,” people records, interviews with labor market role in resolving the location mismatchwith advanced quantitative skills experts, and secondary sources will of STEM talent will be critical.participate in perhaps the closest thing help us ground the investigation in anto a truly global labor market.45 industry and individual enterprise context. Our industry-specificWe are collecting previously unavailable approach will add unique perspectivesdata in order to test our hypothesis on the exact nature of the talentabout the existence of a “location mismatch as well as provide insightsmismatch” in the market for analytical for firms that want to know what kindtalent in six industries and seven of analytical talent they need and where supplies are located. Country analyses. Each country offers a different vantage point on the supply of and demand for analytical talent.9 | Accenture Institute for High Performance | Copyright © 2011 Accenture. All rights reserved.
  • 10. No Shortage of Talent: How the Global Market is Producing the STEM Skills Needed for GrowthAbout the authors Robert J. Thomas (robert.j.thomas@ accenture.com) is the executiveElizabeth Craig (elizabeth.craig@ director of the Accenture Institute foraccenture.com) is a research fellow High Performance. He is the author orat the Accenture Institute for High co-author of seven books on leadershipPerformance. She is the author, with and organizational change, includingPeter Cheese and Robert J. Thomas, Crucibles of Leadership: How toof The Talent Powered Organization: Learn from Experience to Be a GreatStrategies for Globalization, Talent Leader (Harvard Business Press, 2007);Management and High Performance The Talent Powered Organization,(Kogan Page, 2007). Her work has also (Kogan Page, 2007); and Thebeen published in the Wall Street Organizational Networks FieldbookJournal, Strategy & Leadership, Talent (Jossey-Bass, 2010). He holds a PhDManagement, Strategic HR Review from Northwestern University.and elsewhere. She holds a PhD fromthe University of Pennsylvania. Charlene Hou (charlene.hou@ accenture.com) is an analyst with the Accenture Institute for High Performance. Smriti Mathur (smriti.mathur@ accenture.com) is a senior analyst with the Accenture Institute for High Performance.10 | Accenture Institute for High Performance | Copyright © 2011 Accenture. All rights reserved.
  • 11. No Shortage of Talent: How the Global Market is Producing the STEM Skills Needed for GrowthNotes 15 Anthony O’Donnel, “Demand for Sophisticated Wadhwa, Ben Rissing, and Ryan Ong, “Getting the Risk Management Capabilities Increasing,” Insurance Numbers Right: International Engineering Education & Technology, April 15 2010. See http://www. in the United States, China, and India,” Journal of1 Robert D. Atkinson and Merrilea Mayo, “Refueling insurancetech.com/security/224400279?pgno=1. Engineering Education, 2008. the U.S. Innovation Economy: Fresh Approaches to The UK Chartered Insurance Institute’s survey of 30 D. Farrell, M. Laboissière, J. Rosenfeld, S. Stürze Science, Technology, Engineering and Mathematics university students revealed that only 1 percent and F. Umezawa, “The emerging global labor market: (STEM) Education,” The Information Technology & were interested in working in insurance after Part II—the supply of offshore talent,” McKinsey Innovation Foundation, December 2010. graduation, compared with 15 percent who were Global Institute, 2005.2 Examples: The National Academies Press, Rising interested in finance and banking and 22 percent 31 Estimated based on educations statistics in the Above the Gathering Storm: Energizing and likely headed into professional services. See The three countries: People’s Republic of China Ministry Employing America for a Brighter Economic Future, Chartered Insurance Institute, “Insuring a better of Education (MOE), 2009; National Center for 2007; Atkinson and Mayo, “Refueling the U.S. future: how to attract the best students into Education Statistics (NCES), 2008; Higher Education Innovation Economy”; Confederation of British insurance,” June 22, 2010. See http://www.cii.co.uk/ Statistics Agency (HESA) 2010. Industry and Education Development International, downloaddata/Insuring_a_better_future.pdf. 32 Contrast that with the numbers for other work Building for Growth: Business Priorities for 16 Accenture, “Talent management at peak capacity: forces: sales (9%), manufacturing (16%), and Education and Skills – Education and Skills Survey The utilities industry’s challenge and the way finance (14%). 2011; Manpower Group, Talent Shortage 2011 forward to achieve high performance,” 2008. 33 Interview with Arnab Chakraborty and Rohit Tandon Survey Results. 17 John Ray, “Fastest Growing Tech—Q1 Update,” on April 25, 2011.3 Confederation of British Industry and Education Forbes.com, April 6, 2011. See http://blogs.forbes. 34 “Growth reimagined: Prospects in emerging markets Development International, Building for Growth. See com/johnray/2011/04/06/fast-start-for-fast-tech- drive CEO confidence.” PwC 14th Annual Global www.cbi.org.uk. in-the-first-quarter/. CEO Survey 2011. See also: Accenture, The Future4 NASSCOM, Up-skilling the Talent Pool, August 2010. 18 See “Thriving economy lures NRIs back to India,” The of Electronics and High Tech, Developing See www.nasscom.in/. Economic Times. http://economictimes.india international operating models for the next era of5 Confederation of British Industry, SET for Growth: times.com/returning-to-india/thriving-economy- competition, 2010. Business Priorities for Science, Engineering and lures-nris-back-to-india/articleshow/8112599. 35 “Growth reimagined: Prospects in emerging markets Technology, August 2010. cms?intenttarget=no. April 29, 2010. China Daily, drive CEO confidence.” PwC 14th Annual Global CEO6 US Chamber of Commerce, Tapping America’s “Overseas Chinese return for growing opportunities,” Survey 2011 Potential, July 2005. See http://www.tap2015.org/ May 13, 2011. Woo-sok Soh, “Korean Americans 36 Peter Cappelli, “Is There A Shortage of about/TAP_report2.pdf. rush to return home,” The Korea Daily, January 6, Information Technology Workers?” A Report to7 Accenture Institute for High Performance, New 2010. McKinsey and Company, June 2010. Waves of Growth, January 2011. 19 “Incentives for Malaysian Experts Abroad to Return 37 Ibid. See www.accenture.com. to Work in Malaysia,” Official Website of the 38 Accenture, The Future of Electronics and High Tech,8 Wadhwa Vivek, “The Future of Indian Ministry of Finance Malaysia,” March 31, 2010. See Developing international operating models for the Technology,” November 13, 2010. See http:// http://www.treasury.gov.my/. next era of competition, 2010. wadhwa.com/2010/11/13/the-future-of-indian- 20 National Center for Education Statistics. “Bachelors See www.accenture.com. technology/. degrees conferred by degree-granting institutions, 39 Daniel Pink, “The Talent Market,” Fast Company, July9 Tomoko A. Hosaka, “Japan looking to sell ‘smart’ by sex, race/ethnicity, and field of study: 2007-08.” 1998. cities to the world,” Associated Press, October 7, See http://nces.ed.gov. 40 Chris Beener, Laura Leete, and Manuel Pastor. 2010. 21 Robert D. Atkinson and Merrilea Mayo, “Refueling Staircases or Treadmills? Labor Market10 Rob Wilson, “The Demand for STEM Graduates: the U.S. Innovation Economy: Fresh Approaches to Intermediaries and Economic Opportunity in a Some Benchmark Projections,” Warwick Institute for Science, Technology, Engineering and Mathematics Changing Economy. New York: Russell Sage Employment Research, January 2009. (STEM) Education,” The Information Technology & Foundation, 2007. Bernhardt et al, 2000. “Moving11 Bureau of Labor Statistics, U.S. Department of Labor, Innovation Foundation, December 2010. the Demand Side: Intermediaries in a Changing Career Guide to Industries, 2010-11 Edition, 22 See www.npmsa.org. Labor Market.” Computer Systems Design and Related Services. 23 Robert D. Atkinson and Merrilea Mayo, “Refueling 41 Jeremy Shapiro, “Interview with Kaggle.com,” April See http://www.bls.gov/oco/cg/cgs033.htm. the U.S. Innovation Economy: Fresh Approaches to 25, 2011. See http://iianalytics.com/2011/04/ Retrieved January 29, 2011. Science, Technology, Engineering and Mathematics interview-with-kaggle-com/.12 Associated Press, “Google to Hire More Than 6,200 (STEM) Education,” The Information Technology & 42 Jennifer Valentino-Devries, “May the Best Algorithm Workers This Year,” January 26, 2011. Innovation Foundation, December 2010 Win…” Wall Street Journal, March 16, 2011. See13 Accenture Analysis. Sources: IDC, Evalueserve, 24 Calculated based on education statistics published http://online.wsj.com/article/SB1000142405274870 Forrester Research. by the Ministry of Education of the People’s 4662604576202392747278936.html.14 Robert D. Atkinson and Merrilea Mayo, “Refueling Republic of China, 2009. 43 “Old heads, New ideas,” 100thoughts HSBC. http:// the U.S. Innovation Economy: Fresh Approaches to 25 Calculated based on education statistics in the two www.yourencore.com/about-yourencore/news/ Science, Technology, Engineering and Mathematics countries: National Center for Education Statistics HSBC-100-Thoughts.pdf. (STEM) Education,” The Information Technology & (NCES), 2008; Higher Education Statistics Agency 44 Thomas H. Davenport, Jeanne G. Harris, and Robert Innovation Foundation, December 2010. (HESA) 2010. Morison. Analytics at Work: Smarter Decisions, 26 Data for 2009 graduates is taken from the higher Better Results. Boston: Harvard Business Press, education statistics published by the Ministry of 2010; and Jeanne G. Harris, Elizabeth Craig and Education of the People’s Republic of China; see Henry Egan, 2010, “How successful organizations http://www.moe.edu.cn/. Forecasts for subsequent strategically manage their analytical talent”, years are estimated based on government expendi Strategy & Leadership, vol. 38 no. 3, pp 15-22. ture on education (historical and projected), popula 45 World Science Forum in Budapest (November 2009). tion growth rate in cohort group, changes in the gross enrolment ratio, and socio-economic indica tors such as urbanization, growth in real per capita income, and literacy rates. 27 “Go south, young scientist: An emerging power in research,” The Economist, January 6, 2011. 28 Accenture analysis. 29 For a review of this topic, see Gary Gereffi, Vivek11 | Accenture Institute for High Performance | Copyright © 2011 Accenture. All rights reserved.
  • 12. About Accenture About the Accenture Institute for High Performance Accenture is a global management consulting, technology services and The Accenture Institute for High outsourcing company. Committed Performance creates strategic insights to delivering innovation, Accenture into key management issues through collaborates with its clients to help original research and analysis. Its them become high-performance management researchers combine businesses and governments. With world-class reputations with Accenture’s deep industry and business process extensive consulting, technology and expertise, broad global resources and outsourcing experience to conduct a proven track record, Accenture can innovative research and analysis into mobilize the right people, skills and how organizations become and remain technologies to help clients improve high-performance businesses. their performance. With more than 215,000 people in 120 locations, the company generated net revenues of US$21.60 billion for the fiscal year ended Aug. 31, 2010. Its home page is www.accenture.com.Copyright © 2011 AccentureAll rights reserved.Accenture, its logo, and AccentureHigh Performance Delivered aretrademarks of Accenture.

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