Tech Talent: Top Markets, Characteristics and Cost Implications

June 23rd, 2015 | Posted by Sarah Jones in Guest Blogs - (Comments Off on Tech Talent: Top Markets, Characteristics and Cost Implications)

This week on NVTC’s blog, Ryan Miller of NVTC member company CBRE highlights CBRE’s in-depth analysis of the Country’s Top 50 Markets for tech talent, “Scoring Tech Talent,” and what it means for companies regionally and nationally as strategic decisions are made on how and where to grow. 


Technological advancements continue to overwrite the previous file for how to operate in our personal and professional lives.  To keep up with the rapid pace of change today, companies spanning the spectrum of all industries are making investments to insure that their people, processes and products align with these advancements in an effort to establish and maintain a competitive advantage.

These investments start with “people,” as all innovation emanates from human  creativity, knowledge and expertise.  Accordingly, companies will make a concerted effort to expand in markets where there is the highest concentration of tech talent, and do so in a fashion that caters to the needs and aspirations of the workforce.  Understanding those demographics and the underlying fundamentals of where the tech talent clusters are located – such as market rents, labor costs, infrastructure and cost of living – allows for the development of much more informed hiring, acquisition and overall capital investment and deployment strategies.

In order to more fully understand the fundamentals of the top tech talent markets, CBRE performed a detailed study of metropolitan areas throughout  the United States and has answered some key  questions about tech talent, such as:  What is tech talent?  What do tech talent markets look like?  Why does tech talent cluster?  How does tech talent impact commercial real estate?  The end result is a comprehensive report that lists the top 50 markets throughout the U.S. based upon a multi-dimensional index and provides companies with information to make informed real estate decisions.

The following provides a glimpse into the characteristics that define the components of a top tech talent market:

  • A high degree of education attainment:  nearly 75% of the top 50 markets have an education attainment rate greater than the U.S. average
  • The abundance of Millennials:  those markets with the greatest concentration of millennials and millennial growth.
  • Tech Talent Clustering:  firms located in tech talent clusters have a greater labor pool and benefit from the inherent knowledge transfer within those markets.  This leads to more collaboration, sharing of resources and – in turn – innovation.

TechTalentLaborBreakdown-Large&SmallMarkets2

The connection between tech market characteristics and a company’s real estate strategy is significant.  Specific submarkets, or even specific areas of submarkets, might be significantly more desirable and drive rental rates considerably higher than comparable buildings in the same general area.  This dynamic, combined with labor costs, provides a meaningful perspective into a company’s potential expenses in a top tech talent market.

For example, in the Northern Virginia market, the tech talent has clustered in the Dulles Corridor, and specifically in the Reston Town Center, due to the abundance of amenities, proximity to densely developed housing, a well-designed transportation infrastructure and the existence of other large companies with a significant focus on technology.  Accordingly, rental rates in this subset of the market are markedly higher than comparable buildings that sit just outside of the Reston Town Center boundary.

Building a real estate strategy around tech talent hot spots could prove very successful for companies desiring to attract and retain the best talent that the country has to offer.  With the proper analysis, guidance and diligence, the opportunity to create a distinct competitive advantage could be just around the corner.

To read the comprehensive report, please click here.


Ryan Miller is a member of the CBRE’s Occupier Advisory and Transaction Services Group in the McLean, VA office, where he and his team introduce best-in-class resources and processes to support their clients’ corporate objectives through customized real estate strategies, both regionally and nationally.  Ryan can be contacted at ryan.miller@cbre.com, and you can learn more about the company at:  www.cbre.com .

 

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The SBA Gets Down to (Small) Business: Part 1 of Venable’s 5-Part Series on the SBA’s Proposed Rules to Implement the 2013 NDAA

February 24th, 2015 | Posted by Sarah Jones in Guest Blogs | Uncategorized - (Comments Off on The SBA Gets Down to (Small) Business: Part 1 of Venable’s 5-Part Series on the SBA’s Proposed Rules to Implement the 2013 NDAA)

This week on NVTC’s blog, member company Venable shares “The Limitation on Subcontracting and Small Business Subcontracting Plans,”part 1 of their five part series on the SBA’s Proposed Rules to Implement the 2013 NDAA. 


The current limitation on subcontracting rule, or the “50 percent rule,” requires small business prime contractors on set-aside services contracts to incur no less than 50 percent of the cost of performance for labor. A similar methodology applies to materials and construction contracting. To implement requirements of the 2013 NDAA, the SBA proposes to alter the rule as follows:
No more than 50 percent of the amount paid by the government to the prime may be paid to firms, at any tier, that are not similarly situated, and in addition

  • Any work that a similarly situated entity subcontractor further subcontracts to an entity that is not similarly situated will count toward the 50 percent subcontract amount.
  • A similar 50 percent limitation applies to the amount paid by the government for supply contracts; a 15 percent limitation is applied to the amount paid by the government for construction contracts.

Accordingly, under the new rule a small business prime is barred from subcontracting more than 50 percent of the amount paid by the government under the prime contract, unless a subcontract is to a similarly situated entity, i.e., a subcontractor with the same small business program status as the prime contractor. Thus, a HUBZone small business prime contractor can subcontract to another HUBZone small business subcontractor without it counting toward the 50 percent limitation. That HUBZone small business prime contractor, however, will have to count a subcontract to a woman-owned small business toward the 50 percent limitation, because it is not a similarly situated entity.

The SBA has gone a step further from Congress. The 2013 NDAA focused only on prime contractor restrictions. This limitation, however, could allow a similarly situated subcontractor – to which the 50 percent limitation does not count – to further subcontract some or all of the value of its contract to a large business. Thus, on a $100,000 set-aside, a HUBZone small business prime contractor could subcontract $75,000 of the amount paid by the government to another HUBZone small business. That subcontractor, in turn, could subcontract some – or all – of its subcontract to a large business. The SBA proposes to block that loophole by imposing limitations to contractors at any tier, and specifies that subcontracts to entities that are not similarly situated will count toward the rule’s limitations. This would bar the HUBZone small business subcontractor in the example above from subcontracting too much work to a large business subcontractor.

The wording of the proposed new rules also would dramatically simplify the methodology for determining how the percentage of subcontracting is calculated. For both services and supplies, the percentage is calculated simply as a percentage of the amount paid by the government to the prime. This is a substantial change from the current calculation methodology, as services contractors who have spent time and effort determining the “cost of contract performance incurred for personnel” will attest.

The SBA has proposed significant penalties for small business prime contractors that misrepresent compliance with the rule. Those penalties include imprisonment for up to 10 years, and a fine that is the greater of $500,000 or the dollar amount spent in excess of the permitted levels for subcontracting.

The Bottom Line: What You Should Know

Under the SBA’s proposed rule, small business primes must be vigilant in tracking the amount of work subcontracted throughout their subcontracting chain, particularly the work subcontracted by similarly situated entities. Failure to keep track of subcontracting could result in the contracting team exceeding the 50 percent limitation on subcontracting without the prime contractor’s knowledge, and risk an accusation that the prime misrepresented compliance with the rule.

Small Business Subcontracting Plan Requirements

The SBA proposes to toughen up requirements pertaining to small business subcontracting plans, which could have significant consequences for large business prime contractors.

  • Reporting Fraudulent Activity or Bad Faith: The SBA proposes to allow small business concerns and commercial market representatives (CMRs) to report fraudulent activity or bad faith behavior by large business prime contractors with respect to their subcontracting plans. Reports would be made to the SBA’s Area Office where the firm is headquartered.
  • Strengthening Corrective Action Plans: Large business prime contractors failing to provide a written corrective action plan after receiving a marginal or unsatisfactory rating for their subcontracting plans will be subject to material breach of contract, which will be considered in the contractor’s past performance evaluation.
  • Data Collection and Reporting: The SBA proposes to require agencies to collect, report, and review data on the extent to which each contractor meets its goals and objectives as set out in subcontracting plans.

This proposed rule, coupled with the recent rule allowing small business subcontractors to communicate directly with contracting officers about a lack of payment, will affect how large business prime contractors and their small business subcontractors interact. Failure by a large business prime contractor to reconsider a strained relationship with a small business subcontractor could lead to an allegation of fraudulent activity or bad faith with respect to small business subcontracting plan compliance. This proposal by the SBA leaves no recourse for the prime contractor to respond to allegations of fraudulent activity or bad faith, which could have significant adverse effects for contractors.

The Bottom Line: What You Should Know

Under the SBA’s proposed rule, large businesses must be aware of increasing scrutiny about small business subcontracting. The SBA’s proposed rule does not specify that any of the data collected on its subcontracting plan will be limited. Therefore, representations as to plan compliance under one contract must be consistent with plan compliance under another contract, or a large business prime runs the risk of allegations of making false statements to its agency customers.

Submitting Comments

Contractors wishing to submit comments on these proposed rules can do so through regulations.gov by searching for RIN: 3245-AG58. Comments are due by February 27, 2015.


Continue following Venable’s Small Business Series for additional analysis and take-aways from the SBA’s proposed rule implementing the 2013 NDAA. If you have any questions about how these proposed rules could affect your business, please contact any of Venable’s authors: Keir Bancroft, Paul Debolt, Dismas Locaria, Rob Burton, Rebecca Pearson, James Boland, Nathaniel Canfield, or Anna Pulliam.

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Information Stewardship: Our Role in the 21st Century

February 23rd, 2015 | Posted by Sarah Jones in Guest Blogs - (Comments Off on Information Stewardship: Our Role in the 21st Century)
Today on NVTC’s blog, guest blogger Sean Tibbetts of member company Cyber Timez Inc. discusses our roles as information stewards of the 21st century and our responsibility to ensure that data is used efficiently, accurately, positively and safely.

With Great Power Comes Great Responsibility

Sean Tibbett

Sean Tibbetts

Information Technology has become a pervasive force at all levels of organizations whether their focus is government, business, recreation, education or a combination of them all. Device convergence has resulted in the technology utopian goal of constantly connected devices in the hands of data consumers providing access to information that has never been easier. The phrase “with great power comes great responsibility” has never been more true than in our modern, connected culture. Information is power and the more information for which we are responsible the more power we directly or indirectly inherit. As the Information Stewards of the 21st century it is our primary responsibility to ensure this data is used efficiently and accurately for the betterment of those who both give and receive the information we provide while avoiding causing harm to those that provide that data to us.

Data Driven Decision Making

Data driven decision making is key to the success or failure of any technology connected effort. The Internet may be the greatest tool ever released on mankind for “leveling the playing field” when it comes to access to pertinent data for decision making processes. Organizations from a one man jack-of-all-trades to companies employing tens of thousands of people all require access to data to determine which efforts are working well versus areas needing further scrutiny. As we review the type and content of the data they need it becomes clear that the requirements of any organization regardless of size tend to be the same: accurate data resulting in actionable information. Most organizations recognize that they need access to information about the client base they serve. This information can be categorized into three repeatable, programmable and usable data silos resulting in tools better enabling decision makers to reach organizationally positive conclusions.

Usage Data

The first and probably most obvious data silo is usage data. Whether tracking website views or app taps every organization needs to know how their information is accessed and used. Usage data may be as simple as how many times a page was loaded to a more complex model of how many times a page was loaded by operating system and browser sorted by time on site from specific referrers. Suddenly determining what should be “above the fold” on that simple web page isn’t so simple. Luckily for technology solutions of any size there are a myriad of tools available both free and for a fee that provide this type information in multiple forms from simple graphs to complex data slices represented with exportable pivot tables. Using this data to help guide our decision making process ensures users get the information they need.

Location Data

The second largest data silo used for decision making tends to be based on location data. Location data can vary from where a user is standing in a store aisle using Bluetooth beacons to an approximation of what country they are in based on IP address. Understanding where a user is physically combined with the how they use your tool provides greater insight into what type of data should be delivered to them at the appropriate place. If we know the country in which the user is in then our information needs to be translated to the appropriate language with useful local references. While using location data can be extremely valuable for technologies such as push notifications for sales at a nearby retail outlet, technologists also need to always keep in mind the privacy concerns and rights of their users. Using location and usage data together help guide our decision making process to ensure users get information they need in the place they need it most.

User Demographics

The third, and likely most valuable, data silo is user demographic information. Demographics can be as simple as knowing a user’s gender or as complex as gender based purchasing decisions sliced by median income in a given zip code. User demographics are a powerful decision making tool, but must be managed efficiently. While combining web search histories with current location data and gender information to push advertisements for certain products may be a good thing; it could also be very damaging if a child is using the device and suddenly gets an advertisement for lingerie because they walked past the ladies section of the store. Understanding the demographics of whom the current user is is critical and key to any information presentation model. Using demographic, location and usage data together help guide our decision making process to ensure the right users get the right information in the right place.

Conclusion

All of this data collection leads us to one conclusion: accurate data is absolutely necessary for decision making. We stand on the greatness built by the generations before us. They gave us the Internet, TCP/IP stack and the World Wide Web to gather and exchange information. As the Information Stewards of the 21st century it is our job to ensure that these tools are used to provide the best user experience possible by combining the most accurate data available in a manner that results in the ultimate goal of all data collection: actionable information. Technologists today should have their own Hippocratic Oath and take it to heart: I will collect and provide data for the good of my users according to my ability and my judgment and never do harm to anyone.


About the Author
Sean Tibbetts is the CEO and co-founder of Cyber Timez Inc. His information technology career spans over 20 years beginning as an owner/operator of a classic dial-up bulletin board system and as a contributor to multiple open source projects in the early nineties. He has participated on and led teams to design, develop and implement case management systems, the world’s fastest OCR and data entry engines and health care data mining systems. His current focus is on mobile technologies with a strong focus on wearable devices and the Internet of Things.

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Your Network Is Secure, But Are Employees Exposing Data?

October 30th, 2014 | Posted by Sarah Jones in Guest Blogs | Uncategorized - (Comments Off on Your Network Is Secure, But Are Employees Exposing Data?)

NVTC is inviting members and industry leaders to serve as guest bloggers, sharing insights and information on trends or business issues relevant to other members. This week, David K. Shepherd of LMI shares six strategies for reducing loss from data breaches. Check out previous blogs from LMI on a business-driven approach to IT decision-making and three business-friendly strategies to increase the value of enterprise architecture.


David Shepherd

David Shepherd, senior consultant and member of the Systems Development Group at LMI.

It’s no secret that data breaches are on the rise. These security rifts cost U.S. organizations an average of $195 per protected personal data record lost or stolen, with total costs averaging more than $5.8 million per organization breached. What may be surprising is that well-intentioned employees could be putting your data at risk..

How? To meet deadlines and collaboration requirements, employees skirt security rules protecting confidential documents by using personal email addresses and free file sharing services. Focused on completing tasks, they are unaware of the risks.

MeriTalk research shows that nearly 50 percent of federal agency security breaches are caused by security noncompliance. Forrester data reveals that the top reason for breaches (36 percent of companies surveyed) is inadvertent use of data without clear knowledge of polices. The problem is exacerbated by the proliferation of mobile devices that connect to cellular and Wi-Fi networks and upload data to the cloud.

Why do users bypass security? They take these risks to complete tasks within tight deadlines. They recognize this isn’t the “right” way to share documents, but feel they have no other options. Common complaints:

“Due to mail server size limitations, I cannot send a large file to my client.”

“Neither my client nor my company has a file-sharing tool.”

Balancing data protection and productivity

Increasing the number of security rules will not decrease employee data losses. The following six recommendations can help organizations balance the need for data protection, policy clarity, and productivity.

1) Understand employee needs when setting security policies

Engage users so you understand their day-to-day work and why they bypass security. Anonymous surveys and best practice initiatives are helpful tools. Consider granting amnesty to ensure you fully understand the problem. If your employees are using Dropbox, Box, or Google Docs, they are saying they need better storage and collaboration tools.

2) Conduct consistent, regular staff training at all levels

PricewaterhouseCoopers research reveals that most businesses invest only up to $400 per employee per year on cybersecurity training. The big exception is financial institutions, which typically spend $2,500 per employee each year. Employee training must be ongoing and pervasive—not an annual ritual. It must also include executives who are more likely to have data on multiple devices.

3) Provide a secure, flexible, and easy-to-use file-sharing tool

Employees started using cloud storage because providers offered free services with easy-to-use interfaces. These companies also offer enterprise versions, which include customizable interfaces, meet government security standards, and may even be branded with your organizational identity. Nearly all providers offer trials.

4) Deal with mobility

Organizations need to update mobile device policies to address both organization- and employee-owned devices. Solutions need to protect organization data while meeting security and employee usability needs.

5) Invest in effective prevention

Be proactive. Prior to a damaging event, security budgets are slim. After a breach, organizations can’t spend money fast enough. An event’s root cause is often due to problems with an organization’s processes. Hastily spending money on new tools won’t necessarily fix the root cause.

6) Consider suggesting tools, even if you can’t endorse their use

If an organization can’t provide a file-sharing tool, consider suggesting employees use a particular service. Wouldn’t it be better to monitor a single service closely, rather than attempting to monitor them all? If a bad breach occurs, the organization could immediately inform users and take corrective actions.

Our pristine networks are vulnerable to dedicated employees who are trying to do great work and meet impossible deadlines. If we don’t provide secure, capable tools, they will find another way. We can continue to fight against them, or we can investigate their needs, accept the challenges, and work to meet those needs while still ensuring security.


David K. Shepherd is a senior consultant in LMI’s Systems Development Group and has 25 years of experience as an information technology (IT) service management and security professional. He has designed, developed, managed, and maintained enterprise quality websites and applications for federal clients. He also advises clients on IT infrastructure issues, effective use of tools and techniques, and security engineering. He can be reached at dshepherd@lmi.org.

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Notes from the Silicon Valley Cybersecurity Summit: Part 2

September 30th, 2014 | Posted by Sarah Jones in Guest Blogs - (Comments Off on Notes from the Silicon Valley Cybersecurity Summit: Part 2)

NVTC is inviting members to serve as guest bloggers, sharing insights and information on trends or business issues relevant to other members. Kathy Stershic of member company Dialog Research & Communications shares her insights below.


While the policy panel discussion at the summer’s Silicon Valley Cyber Security Summit pointed out the many challenges of governments trying to deal with the cyber threat, the second ‘Next Generation’ panel was all about the shortage of qualified talent to deal with the problem.

The good news – cyber presents a great career opportunity! As in, the industry needs lots of help. Now. The not so good news is that 40 percent of open IT security jobs in 2015 will be vacant. There simply aren’t enough qualified people to fill them. Technologies such as new threat intelligence and attack remediation products will continue to advance. That will help automate intervention, but there is still a need for people to skillfully apply them, and for others to create them in the first place in the face of a never-ending game of new threats. One speaker said that, as of only a couple of years ago, a new malware was detected every 15 seconds. Now two new malwares are detected every one second! The speakers expected that pace to accelerate exponentially.

There are a growing number of formal university programs in this area, but I was very surprised to hear that only 12 percent of computer science majors are female, and that population has been steadily shrinking for two decades. A marginal percent of those study cyber. So we’ve got a challenge with public engagement in the issue, an inadequate talent pool, and almost half of the student population not thinking about the problem.

Of course not all software learning is in the classroom and talented hackers do emerge. That is why General Keith Alexander [former head of U.S. CyberCommand] went to least year’s Black Hat Conference – while unconventional, he knew this is a place to find badly needed talent. There are also several incubator initiatives like  Virginia’s Mach37, and many startups are trying to get off the ground.

Another challenge is that CEOs don’t fundamentally understand the complex cyber problem, so they delegate the task to the CIO. [This reminds me of similar dispositions toward Disaster Readiness and Business Continuity Planning pre-9/11]. Cyber threat is another form of business risk and should be planned for as such. One speaker mentioned that there is expert consensus, even from VCs who are scrupulous about how money is spent, that for a $100 million IT budget, 5-15 percent should be spent on security. While panelists noted cyber threat is a top discussion point for many corporate boards, there is uncertainty about what to actually do to prepare.

This is a tough issue all the way around. One speaker suggested repositioning the brand message to what regular folk will respond to – protecting our national treasures, homes and quality of life, critical infrastructure and national security. Nick Shevelyov, Chief Security Officer of Silicon Valley Bank, summarized the issue: ‘the technology that empowers us also imperils us.” I’m hoping more of us come to understand that and step up.


Contributed by Kathy Stershic, Principal Consultant, Dialog Research & Communications

kstershic@dialogrc.com

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Meaningful Measurement: The Impact of Social Media

January 7th, 2014 | Posted by Colby Cox in Social Media - (Comments Off on Meaningful Measurement: The Impact of Social Media)

It should come as no surprise that companies are working at feverous paces to gain a better understanding of the unstructured data that social media provides. Companies are searching for ways to measure and understand social habits of  fans and brand advocates along with a myriad of social activities to advance the company’s position. One of the best ways to do this is have a solid understanding of what you are measuring along with benchmarks to know you are advancing at a productive pace.

In conjunction with DC Week 2012, the NVTC Social Media Committee hosted an event focusing on; “Meaningful Measurement: The Impact of Social Media”. We were joined by speakers from comScoreR2integratedPew Research along with our event moderator Chris Abraham who shared with us some great statistics and insights we can all take advantage of.

Sara Goo (@sarakgoo) of Pew Research kicked off the event with a fantastic Prezi focused around the recent elections that highlighted some key statistics to keep in mind.

  • Who is using social media? – 69% of all American adults (doubled since 2008)
  • ‘Dual Screening’ – 11% of viewers of the 1st Presidential debate used both TV and a mobile device or computer.

Carmela Aquino (@caaquino) of comScore presented next and discussed how her company is going ‘beyond the like’ while providing some key Facebook statistics. Carmela mentioned that measuring your message is very important for direct fans, but don’t forget the impact that ‘like’ has on their friends.

  • 1 Facebook user can virally amplify your message to 80 friends.
  • 40% of Facebook time is on the newsfeed while only 12% is on the profile page.
  • 1 in 6 minutes is spent on a social network

Dave Taub (@davetaub), the co-founder of R2integrated, gave some fantastic advice when he said “Social is a behavior, not a channel.” When companies accept the fact that social interactions should not be viewed simply as another channel but as a chance to truly impact their customers, fans, etc., then they will truly understand the meaning of social media.

I leave you with two questions that came up during the Q&A portion of our discussion. We would love to hear your responses for future posts and a possible event discussion.

Do blogs still play an important role in social media?

Is ‘Behavioral Modeling’ the biggest need for brands to succeed in social media?

Check out some of the pics from today’s event on the NVTC Facebook Page.

– Colby Cox, Director of Sales & Business Development, RepEquity Inc.

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