November 21, 2011 Workforce 0 Comments

Mainframe Skills Shortages Expose Rising Costs and Increased Business Risks According to Compuware Research Study

Compuware today released the results of an independent research study of mainframe usage – and the business risks and costs of a retiring mainframe workforce. Some 520 CIOs in large enterprise organizations with over 1,000 employees were surveyed for the study, including 100 CIOs each in the U.S., UK, France and Germany along with 30 CIOs each in Italy, Benelux, Japan and Australia.

Given the world relies on mainframe to support numerous business critical applications — and any disruption to these machines can lead to massive financial losses — it’s no surprise that CIOs are worried about what’s been cleverly coined as “mainframe brain-drain.”  In fact, 71 percent stated they are concerned that the looming skills shortage will hurt their business.

Specifically, CIOs are concerned that developer shortages will result in increased application risk (58 percent), reduced productivity (58 percent) and more project overruns (53 percent).

Following are some other interesting study findings:

  • One minute of mainframe outage can cost nearly $14,000 in lost revenue for the average enterprise;
  • Nearly half (43 percent) of mainframe OpEx goes toward developer salaries;
  • 79 percent of CIOs confirm that mainframe outages pose a significant business risk;
  • 78 percent say the mainframe will remain a key business asset over the next decade;
  • 70 percent of CIOs agree that mainframe cost cutting will expose more risks than rewards.

It’s Compuware’s belief that about 40 percent of the mainframe workforce worldwide will retire in the next five years. As such, our mainframe development team is keenly focused on  creating new tools to ensure the productivity of the next generation of developers, while lowering companies’ operating costs by improving the performance of mainframe applications. Look for enhancements to our evolutionary Workbench in the coming weeks.

In the meantime, what are your thoughts on the research? Do you agree/disagree – we’d love to hear your thoughts!

For more information on the study, view the news release and survey highlights and market specific statistics.