Winning the IT talent war: information technology is rebounding and increasing the competition for the best resources.

The glut of technology talent is rapidly dwindling with staffs and salaries rising again. Information technology has clearly become a global talent pool with the growing use of offshore and onshore outsourcing for commodity work, as well as the use of consultants for higher-end specialized work. The recent IT downturn and growing use of outsourcing and offshoring has created high stress for IT staffs and reduced their status in the organization. The IT function has generally become more decentralized as staffs become part of business units, resulting in further business alignment, but less IT function integration and collaboration. Business managers have also become more technology savvy, which has further reduced the mystique of the IT staff.

Despite this backdrop, there has been an increased need for organizations to hire well-rounded IT professionals with experience and expertise to effectively implement delayed technology initiatives. There are also new important technology initiatives requiring investment, such as supporting Sarbanes-Oxley requirements. As a result, key technology talent currently in demand includes Web security, wireless and Web infrastructure, data mining and warehousing, enterprise integration and resource planning. Outsourced technology vendor management has also become a critical and sought after skill. Therefore, organizations are seeking to realign their technology staff capabilities with the new realities and growing business needs.

Current staffs are being redeployed when possible to fill these gaps, but key needs that require external sourcing for many organizations remain. While there are still unemployed technology people available, the best tend to still be employed at other organizations. In order to address those needs, organizations need to first identify their IT capability needs and then determine where needed technology capabilities are going to come from and how organizations can best source them. It's also important to address why the best talent would be attracted to your firm after the downturn and diminished status of IT. There needs to be an IT recruitment strategy to obtain the best resources to fit IT and business requirements.

Many firms have significantly reduced their recruitment staffs and have increasingly been using job boards, employee referrals and their own career Web sites to source candidates during the IT hiring trough. Others have sparingly used a broad number of search firms on a contingent basis to send them candidates with a focus primarily on search cost as candidates were plentiful.

That situation has changed, however, and it's likely to become more competitive as a shrinking IT talent pool is becoming more in demand. The keys to success in winning the upcoming war for technology talent start with creating a strategic approach and an environment that provides both a challenge in their work content and stability in their employment. IT managers and staff are seeking more career development opportunities within their existing or new organizations rather than only compensation gains.

Retaining an organization's current top talent is a critical component as surveys have indicated that more than 25% of technology staffs are currently dissatisfied and interested in seeking other opportunities, which are increasingly becoming available. It is also important to establish an attractive "employment brand" in the technology community to attract the right individuals. The "employment brand" involves the strengths of the overall organization, IT department and the particular job role. Ensuring that your technology leadership team is top quality in terms of technical capabilities, strategy alignment and organizational development is essential for long-term success. The best talent is attracted to strong leadership and a dynamic organizational environment.

Finally, partnering with an experienced, quality recruiting organization is essential to establish a collaborative relationship to ensure aligned objectives, risk sharing and dedication to delivering the best talent in a cost effective and timely manner. Many organizations also are using and evaluating outsourcing the recruitment function to gain professional recruiters and best practice processes on a cost effective and integrated basis.

Attracting and retaining critical technology capabilities is a critical component for business success throughout the business cycle. Winning the upcoming war for technology talent requires a strategic talent sourcing and development plan rather than just reacting to recruitment cycles and short-term hiring needs. It's also important to establish a close recruiting alliance as a key resource and partner in this ongoing battle.

Steven Landberg is a managing director And senior vice president of InSearch Worldwide Corp. in Stamford, Conn. He can be reached at [e-mail].