Enable: From start-up to the cloud The battle for the enterprise mobility throne Why SEO is more than just content A SMARTER guide to good requirements The Australian LNG skill shortage Hong Kong offce opens + Interpro Energy launch s we move toward the middle of 2014 these are the trends weve no- ticed across the industry: An increasing demand for niche skills. The biggest trend we have seen is the increased need for professionals with niche skills. The most in-demand for 2014 are: Software as a service (Saas) Platform as a Service (PaaS) Digital talent with creative and mobile experience Web development; particu- larly HTML5, CSS, CQ5 and various content management systems (CMS) SAP particularly ISU and BI modules Salesforce development, con- fguration and customisation skills Experience across regulatory and privacy act changes in the banking & fnance sector Large IT projects are moving quicker than last year. With many large IT projects com- mencing or soon to commence, there has been a faster decision making process than in previous years. More opportunities in private sector. In comparison to the pub- lic sector, private industries are producing contract opportunities more consistently. Enterprise size clients outsourc- ing. Unsurprisingly, the trend to outsource skills continues amongst large businesses. The large consultancies and systems integrators, on the other hand, are actively hiring locally. Contractor rates remain steady. With the exception of some downward pressure around Pro- ject and Change Management, contractor rates have overall been considerably steady. With the rapid change in the IT industry, many contractors have been scoping their value in the market without actively looking for a new opportunity. Were commit- ted to provide you with the best service so please get in touch with your account manager for a health check of your current contract situ- ation. Kind Regards, Bruce Hara 2 interpro.com.au Bruce Hara, National Sales Director A Insights interpro.com.au 3 05 06 10 12 14 16 18 20 22 News Joshua Bateson: On Enable The growth pains of enterprise cloud computing Why theres more to SEO than just content Managing the Australian LNG skill shortage The battle for the enterprise mobility throne Why projects need good requirements Hong Kong housing and constructing forecast will see labour shortage Net Promoter Score In the frst quarter of 2014, Interpro launched a new offce in Hong Kong. The team of fve are head- ed by Alan Main, who will be leading Interpro into the Asia market. Interpro Asia will be servicing the IT, Sales & Marketing, Property & Construction, and In- surance sectors. Client and partner focus: Enable We spoke with Joshua Bate- son, the Practice Director of En- able Professional Services. We discussed the changing scope of IT strategies within businesses and how Enable are supporting businesses navigate their cloud roadmap. You can read our conversation with Joshua on page 6. Projects & business analysis Lead Business Analyst, Ken Shome, provided his insight at an exclusive roundtable session hosted in our Melbourne offce in May. The discussion focused on writing good requirement; identifying one of the corner- stones of a good business an- alyst. You can read a discussion post by Ken on page 18. Interpro Digital The digital team at Interpro have been growing in the frst half of 2014, with spe- cialised digital consultants now based in all of our Aus- tralian offces. Chris Wilson provides an insight into the SEO and content marketing scene on page 12. Interpro Energy Interpro Energy has been launched to service the Oil and Gas industry across the Asia-Pacifc region. The new business is part of In- terpros growth into new re- gions and markets. Divisional Manger, Colin Chappelow, discusses on page 14 the evolving Aus- tralian LNG market www.interpro.com.au 5 Interpro news New staff Stevyn Monaghan Chris Wilson Elliott Young Peter Thomson Ian Dunsdon Andy Thompson Dianne Dagher Linda Stephens Emily Haydon 6 interpro.com.au ith a firm belief in aligning IT and company strategy, Joshua Bateson discusses delivering cloud soft- ware solutions with the end user in mind. Tell us how you came to join Enable? Ive always wanted to be involved in a start-up and when the opportunity was presented which aligned with my vision of a consulting company the decision in the end wasnt too difficult. I started my career in soft- ware consulting before mov- ing into solutions architecture and during that time I realised that being purely focussed on technology wasnt my passion; it was leveraging my capabil- ity to analyse situations, elicit requirements and guide teams to deliver to those require- ments, using technology as the catalyst. So what sets Enables busi- ness model apart? Its a good question, in the 3 or 4 months since we started, Enable has evolved. Initially Bruce Hara [Enable Regional Director] and I thought we would be a Business and IT consulting company but we needed to differentiate. From the conversations we Joshua Bateson On Enable W Joshua discusses the challenges that come with IT projects and how Enable are helping organisations traverse their own cloud roadmaps. Joshua Bateson is the Practice Directorof Enable Professional Services, the start-up delivering digital and cloud software consultancy services. Bruce Hara (Sales Director) and Joshua Bateson (Practice Head) interpro.com.au 7 were having we realised that not many organisations are purchasing commercial off-the- shelf software anymore, for a variety of reasons. Companies are looking for viable options and cloud provides that. Thats where Enable comes in. Were passionate about providing a pragmatic approach to lever- age cloud software and plat- forms to automate business process, its about transform- ing the way an organisation delivers service both internal- ly and externally to clients across all areas of the organ- isation. We have created a portfolio of services tailored to where we see the industry driving toward and so our market differentiator is digital and cloud software services. Were certified partners with two of the biggest players in that field [Sales force and Service Now] and that allows us to rapidly deliver best of breed solutions And where do you see these businesses cloud roadmaps heading? There are a lot of facets to cloud and it means a lot of dif- ferent things to a lot of differ- ent people. I truly believe, with the right Platform as a Service (PaaS) and associated digi- tal services, an organisation can meet one hundred percent of their business application needs and that is a fantastic position to be in, but it is a matter of whether that is a pragmatic, appropriate, and cost effective approach based on your business model. Taking that pragmatic approach is part of Enables and by extension your approach. Where does this methodology stem from for you? Ive seen a lot of time and money invested in projects for IT; to integrate systems, con- solidate data, virtualise infra- structure or streamline pro- cess, with no value realisation or correlation to the broader organisation. Because of this I think a lot of organisations are quite wary of the value and services their IT department provide. If youre pragmatic you can understand how IT can be lev- eraged to deliver value to the core business functions. Im a big advocate for aligning IT Not many organisa- tions are purchasing commercial off-the- shelf software any- more, for a variety of reasons. Companies are looking for viable options and cloud provides that interpro.com.au 9 and IT strategy with organi- sational strategy. There needs to be an intrinsic link between the two and we are gradual- ly seeing the trend of IT and business departments starting to talk to each other again. That relationship is maturing and we feel weve got a part to play in it. When youre working with clients, how does your back- ground help you? Being able to understand both sides of that relationship between IT and the business is important to get the most value realisation. Part of my career has been process consulting in the ITIL framework, a best practice framework for IT departments to effectively define and deliver their services. Ive worked with a lot of senior managers in that space, CIOs especially. We now apply similar concepts in a broader context; similar prin- cipals can be applied to ser- vice management. This allows organisational departments to work with IT and leverage tech- nology to improve end client service delivery. Do you think the focus on end users happen enough in the industry? I think over the last 12-18 months there has been a piv- otal shift in focus on service delivery for external clients as well as internal business clients of IT services, and this will expand to internal business cli- ents of other internal services Large enterprises are starting to understand that they need to be dealing with their clients on the clients terms rather than their own. Its about commu- nicating with clients how they want to be engaged and con- tinue the same conversations across a variety of mediums and at a convenient time for them. So back to Enable, how are you helping businesses iden- tify these opportunities as the industry changes? The key is to look at what the end users want; what kind of experience does your organi- sation want to provide them? The person out there on the street who is looking to buy a new mobile phone, the internal user requesting to know their annual leave balance or has an issue with printing; how does your organisation want to interact with them? How will they interact to fulfil their request? And how do the con- sumers want to then connect with all the other end users regarding their request? That is whats going to drive how technology evolves. People will come up with new, great, exciting, smart ways to evolve the client expe- rience and I think thats whats really exciting not the tech- nology itself, its all about what the technology enables. Large enterprises are starting to under- stand that they need to be dealing with their clients on the clients terms rather than their own. Its about communi- cating with clients how they want to be engaged and contin- ue the same conver- sations across a vari- ety of mediums and at a convenient time for them. 10 www.interpro.com.au loud computing is in an awkward growth phase. Businesses have been excited by the potential for a few years now, but were at a stage where using cloud computing as an end-to-end enterprise solution is still quite young. Lower costs, ease-of-use and regular updates have been major selling points from basic data storage to complicated enterprise resource planning (ERP) software. However, as more businesses have dipped into these services, a different picture formed. Forrester claims theyre see- ing more interest in cloud- based ERP solutions than ever before, but current trends and the types of questions being asked lend themselves more to SaaS ERP add-ons. Businesses are not comfortable enough just yet with cloud services to move something so compre- hensive offsite. Gartner cites a 15.8 per- cent increase in the industry over the past year, but its not coming anywhere close to early estimates. Excitement ran high for an easy-to-update ERP offering high cost effec- tiveness, speed and function- ality. Unfortunately, downtime problems have left some CIOs uneasy. Downtime and lost data If Internet giant Amazon can let their customers including; Netflix, Pinterest and Instagram down time and again, is there any hope for reliable service? Experts say its time to accept downtime as a necessary evil and put steps in place to ready customers for the inevitable. A reasonable system for cov- ering lost time and data needs to be in place for these tasks to ever migrate. Currently, cloud providers dont offer insurance for lost data and few regu- larly credit back hours lost to downed servers or provide free retrieval assistance. Hidden costs and expensive extras While Microsoft has begun to fight cost concerns, Gartner research director, Sharon Mertz, was able to identi- fy several nuisance charges involved in cloud-based pro- cesses, included simple cloud- based add-ons to on-site pro- grams. Thats unfortunate as Forrester showed this was an area of keen interest. Of the 15 percent of compa- nies planning to adopt the service in 2013, roughly two-thirds intended it only for add-on purposes. As support for an on-site busi- The growth pains of enterprise cloud computing C Sophia Marek, Senior Account Manager Lower costs, ease- of-use and regular updates have been major selling points from basic data stor- age to complicated enterprise resource planning(ERP) soft- ware. interpro.com.au 11 ness solution, cloud can be quite convenient. Mertz warns against frivolous fees, Unless the SaaS solution is strictly a one-off purchase. While add- on subscription-based plans allow businesses to invest in the services they need as they need them, hesitation ripples through industries as CIOs also struggle with concerns regarding security and scal- ability. One major player looking to solve these problems is Microsoft with the software giant now the second larg- est cloud provider, behind Amazon. With all five major cloud services achieving year- on-year growth, the growing market will become more com- petitive. Executive Vice President of Microsoft Business Solutions, Kirill Tatarinov, certainly believes Dynamics is the answer. In a recent interview with Diginomica, Tatarinov claimed that the 2015 release of Dynamics AX will be the first end-to-end public cloud solution. "Point me at a serious orga- nization that runs end-to-end ERP in the cloud. NetSuite is not at scale; none of these guys are at scale." Its a bold statement but it may be exactly what the cloud computing market needs for CIOs to adopt complete cloud solutions. Sophia is a Senior Account Manager with over 15 years expe- rience placing DBA/ BI/DWH professionals across small to large enterprise clients. Sophia is part of the Melbourne team of our global Enterprise Applications division. Visit interpro.com.au to learn more. 12 interpro.com.au s search engine algo- rithms evolve, digital marketers and content strategists continue to fine tune their approach to craft content for optimal search placement. Recent updates to Googles search algorithm such as Panda, Penguin, and Hummingbird have left many to rethink their strategies. While content may be king, theres more to the story when it comes to SEO. Effective SEO to support quality content Sound and appropriate SEO techniques paired with quality content are the key to an effec- tive content marketing strategy. The former helps drive traffic through search rankings; guid- ing readers to the content that is relevant to them. Whereas before, techniques such as key- word stuffing, duplicated con- tent, and invisible text were effective ways to increase search rankingsthese days such prac- tices will drop a sites posi- tioning, and in some extreme cases even result in a site being banned from search results. SEO-friendly page structure Search algorithms do not favour sites that are poorly struc- tured. Steps should be taken to ensure that web pages on your site are technically sound from an indexing perspective. URLs should be SEO friendly for example, the URL www.exam- ple.com/how-to-buy-teakettles is optimally matched with a page about buying teakettles. Images should also be named according, with an emphasis on being as descriptive as possible for example, red-mid-cen- tury-teakettle.jpg should be used in place of teakettle.jpg. Furthermore, properly utilise image ALT tags to follow suit. In the previous example, a proper ALT tag would be ALT=Red mid-century teakettle. Internal linking Internal linking is important to improving a sites SEO, as it Why theres more to SEO than just content A Chris Wilson, Digital Consultant Social, Search, & Content interpro.com.au 13 builds internal page credibility. For internal links links that con- nect pages in your site togeth- er try to use the destination pages keyword phrase in the linked text to the greatest extent possible. For example, if a link is targeting a destination page that discusses ways to improve SEO, the linked text should read How to improve SEO. External linking External or outbound linking is important, as Google also ranks a web pages reputation based on the credible sources it links to (and links to it). By provid- ing quality external links, when appropriate, your content not only provides source citation, but also gives viewers a mechanism to find out more information via external sources. Search index- ing emulates this user behaviour by crawling each page and following outbound links to pro- duce better search results. Its a bit like the old mantra: You are the company you keep. For this reason, outbound links on sites are one of the many factors that are analysed to derive their position in search engine results. Its important to note that prop- er editorial balance must still be exercised when using external links, as an overabundance of external links does not help rank- ing in and of itself. A pages SEO can be improved through external/outbound links only if they are high-quality, credible, and work to expand on or pro- vide additional, relevant infor- mation. Keywords still matter In the current state of the web, keywords are still important, but require a different approach to be used effectively. It makes sense to use the tools that Google pro- vides in this endeavour name- ly, Google AdWords Keyword Planner, to identify issues, topics, and questions that are import- ant to readers. This will help in generating content ideas around keywords, as well as give esti- mates regarding how much traf- fic can be generated via these keywords. When possible, key- word phrases should be used in place of single keywords; by using phrases, you increase your odds of ranking. Once the rele- vant keywords have been iden- tified, they can be used to build useful and engaging content. Long-tail keywords Consider using long-tail key- words, or keywords that are less common but more specif- ic for example, how to buy a teakettle versus teakettle. The former is ideal because it uses less common keywords, and therefore has less competi- tion in ranking when compared with the latter. Once the desired long-tail keywords have been identified, new content can be created or existing content can be optimised around them. Keep in mind that the purpose of using keywords to generate content is to provide your target audience with information they lack and/ or to solve important problems for them. Proper SEO techniques will continue to help sites generate relevant traffic by supporting useful, engaging content. As search engines evolve in their ability to return accurate search results to users, content market- ers can employ the above tactics to reach the appropriate audi- ences and ultimately, meet their business objectives be it lead generation or ad revenue. Chris has a genuine passion for the digital industry, specialising in SEO, content and so- cial media recruitment. Based in Sydney, he is part of our growing In- terpro Digital team. Discover more at interprodigital.com.au 14 interpro.com.au ustralia is poised to surpass Qatar in 2020 as the worlds largest liquefied nat- ural gas (LNG) exporter, up from the number five spot it currently occupies, by tri- pling the amount of LNG exported annually. There are high stakes for the country; this major expansion of LNG exports will transform the economy of Australia and the lives of its citizens. Challenges This unprecedented growth is being driven certainly by the large natural gas reserves in Australia, but also by Australian law and a great demand for fuel in Asia. Australia allows unrestricted exports and full international oil company access. With this unrestricted access and close geographical location, it has further fuelled the building frenzy and major expansion of the LNG industry in Australia. Managing the Australian LNG skill shortage A Colin Chappelow, Divisional Manager Oil and Gas at Interpro Energy interpro.com.au 15 Currently, Australia has approximately AU$250 bil- lion worth of projects in the LNG sector underway and three plants, two in Western Australia and one in Northern Territory, which are in produc- tion. Further, another seven plants are in various stages of construction involving global firms like Chevron, Inpex and Royal Dutch Shell; a great number of employees are needed to both complete the construction of these projects and to operate the plants. A disconnect exists because of skills capability differences; there are needs for labour, from blue collar workers up to the management level, with technical specialists in oil and gas processing, safety and maintenance in particularly high demand, as are drillers, chemical, petroleum and gas plant operators. In December 2013, the Australian Workforce and Productivity Agency (AWPA) published a report that states oil and gas jobs in the country will jump from under 39,000 to 61,000 by 2018, an increase of 63 percent. With an already low (below six percent in most areas) unemployment rate in Australia, the industry is scram- bling to ensure they have enough skilled workers to satisfy needs. Solutions In the short term, companies have been solving immediate issues by throwing money at the worker shortage problem; poaching employees from other companies and offering inflated salaries. Additionally, recruitment agencies have been working hard to find A recent downturn in the Australia mining industry has been turned into a positive, as many of the skilled workers in that sector are now freed up to work in the Oil and Gas Industry qualified talent and fill cru- cial roles. Obviously, these are self-limiting solutions; the qualified employee pool is too small. Luckily, some more long-term solutions are in the works, and being implemented to some degree. Enticing Australian citizens to return home is one tactic; businesses are actively reach- ing out to those workers in the oil and gas sector that are natives of Australia or that were educated in Australia to gauge their interest in return- ing home. Companies are also using very targeted immi- gration to fill critical needs with highly skilled workers to a much smaller extent. The above solutions involve stretching the already thin qual- ified workforce in the industry worldwide; more proactive solutions are needed for the long haul. Partnerships between the LNG industry and educational institutions in Australia aim to train workers for careers in the sector. A recent downturn in the Australia mining industry has been turned into a positive, as many of the skilled workers in that sector are now freed up to work in the Oil and Gas Industry, alleviating some of the demand over the short term as well. Solving the LNG employee shortages in Australia is cru- cial to growing it into a global powerhouse; combining edu- cation and hands-on training, highly targeted immigration and great retention initiatives should resolve the issues if the indus- try, government and educational institutions remain committed. Colin manages the Oil and Gas business at Interpro Energy. With over 8 years con- struction and resources recruitment experience, Colin is relied upon by clients and candidates as the go-to person when looking for great talent or making the next move. Learn more about our Oil and Gas division at interproenergy.com 16 interpro.com.au s the number of active mobile devices con- tinues to grow, rul- ing the enterprise app experience is decisive for the major enterprise software giants. Salesforce may current- ly be the best solution, with the Salesforce1 platform, but SAP and Microsoft are snapping at its heels with their mobile strategies. Mobile first, consumer grade This concept, which was adopted by SAP in early 2012 in response to the changing dynamics of the enterprise CRM market, has been the driving force behind most of the compa- nys efforts in the last few years. Underlying this concept was the recognition that mobile growth would continue at an acceler- ated pace among enterprise customers, and hence, the need to create mobile-first app experi- ences with consumer grade UX and design. Indeed, in a 2012 VentureBeat interview, then SAP mobile chief, Sanjay Poonen himself said that mobility is going to become increasingly mainstream in the enterprise. To bring this concept to fru- ition, SAP has spent the last few years building a platform for creating and distribut- ing mobile business applica- tions (quite like Salesforces Salesforce1 platform). SAPs plans have been rather ambi- tious; the company famously declared that it wants to get more than 1 billion people using its apps by 2015. To give you an idea of how out- rageous this sounds, consid- er that Apple sold its 700 millionth iOS device only in September 2013. At the core of this strategy is the idea of building an Apple- like app store for business users (or, as Poonen put it, we seek to be the Apple of enter- prise mobility). Developers can leverage SAPs platforms, such as the HANA cloud, to build interconnected as well as standalone apps. Going further, it is not unfore- seeable to imagine develop- ers leveraging SAP solutions to create consumer-orient- ed apps which the custom- er, not the enterprise, will pay for. For instance, SAP recently launched a consumer focused fashion app called My Runway that helps users organise their wardrobes, fol- low brands and get style rec- ommendations. This is all part of the growing race to dominate the enter- prise app space. The launch of Salesforce1 is recognition of the changing realities of the way business is done. Built from the ground-up to be mobile first, Salesforce1 rein- forces Salesforces current lead in the mobility space. Building on a customer support and marketing service, Salesforce has the potential to target a far broader audience than its major competitors. SAPs mobile strategy, while ambitious, has suffered from poor communication and slow developer uptake. According to one survey, 57% of users felt SAPs road map for its mobile strategy was unclear. Microsofts mobile strategy for its Dynamics CRM, on the other hand, has been affect- ed by the Redmond compa- The battle for the enterprise mobility throne A Germaine Symons, Senior Consultant Salesforce Recruitment & Team Lead of Specialist IT Verticals Germaine is a Senior Consultant specialising in Salesforce recruitment. He has a proven track record in placing Salesforce and Microsoft Dynamics pro- fessionals across various industries. Learn more about our Salesforce opportunities and our Enterprise Appli- cations division by visiting i nt erpro.com.au/ent er- prise-apps interpro.com.au 17 nys focus on the Windows Phone/RT platforms, which has come at the cost of develop- ment on the more established iOS and Android platforms. Although Microsoft vowed that it would have multi-platform, multi-device mobile support way back in 2012, it wasnt until late 2013 that the com- pany released Dynamics CRM apps for Android and iOS. In the meantime, third-party devel- opers providing subscription services, like Resco, have cor- nered the market with robust clients for Dynamics CRM. However, over the last six months, Microsoft has shown a stronger inclination to support non-Windows mobile platforms. The recent launch of Office for iOS (which was originally green lit by Ballmer) is a step in that direction. While Microsoft has insisted that it wants to support all platforms, the Office for iOS release shows that it is finally ready to put its money where its mouth is. This is good news for Dynamics customers. Enterprise customers have been hamstrung by the lack of a dedicated, MS-backed Dynamics mobile client, as well as the glaring absence of Office on Android and iOS. Given the changes in Microsofts mobile strategy under Nadella, there should be greater support for Dynamics CRM on both Android and iOS in the future. Indeed, Microsoft has shown far greater propensi- ty to undertake radical shifts under Nadella. For example, MS recently announced that it would make Windows free for all devices under 9 in screen-size an audacious change for a company that has traditionally licensed its software to device manufactur- ers. Microsoft is increasingly taking on the hues of a compa- ny that provides services, not just software. This means good news to enterprise customers as Microsoft would now more likely to provide better experi- ences across devices and plat- forms rather than prop up its own operating systems. At present, though, Salesforce appears to be leading the fray in the mobile space. Salesforce1 is a powerful, flexible platform, and the companys head start in the cloud space should give it a serious advantage over compet- itors in the short term. 18 interpro.com.au learly stated require- ments are one of the top reasons a proj- ect is successful. This places Business Analysts in the spotlight to successfully deliver a project. The Business Analysis pro- fession is growing. There is increasing industry recogni- tion of the importance of good Business Analysis and the necessity to attract more people into the profession. As the Business Analysis pro- fession evolves many organisa- tions are still trying to establish standards and competencies required of a Business Analyst (BA). Though organisations recognise the need for good requirements, the impact of poor requirements has not been incor- porated into business strategies enough to change behaviour. It is important for both BAs and businesses to continue improve the requirements elicitation pro- cess and the business analysis methodology. Recent surveys have shown that 50 to 70 percent of proj- ect failure is associated with poor requirements definition. Unsurprisingly, having clearly stated requirements is generally recognised as one of the top reasons a project is successful. This is why skilled BAs are rec- ognised as being fundamental to a successful project delivery. From a BA perspective, hav- ing solid business analysis fundamentals is not only the foundations of a skilled BA but essential to writing good requirements. Having coaching or mentor- ing is important for any BA to build the competency required to write SMARTER requirements: Specific Measureable Achievable Relevant Traceable Evaluate Review I, for one, would like to see BAs receive more recognition and financial reward for the important role they play in the success of a project. This will only happen if BAs invest in developing their business anal- ysis fundamentals to make the grade from an average BA to a truly skilled BA. The ability to write and recog- nise a good requirement can- not be overstated when you consider the consequences of poorly stated requirements. We cant expect anyone to know what a business needs if the requirements arent defined in clear, unambiguous and tangi- ble terms. Why projects need good requirements C Ken Shome, Business Analysis Intelligence The impact of poor requirements has not been incorpo- rated into business strategies enough to change behaviour. Ken Shome (CBAP) is a lead Business Analyst who recently led a workshop on writing good business requirements with Interpro. The article is an abridged version of his presenta- tion to a selection of Interpros clients and candidates. Learn more about our BA recruitment experience and Tech- nology division by visiting interpro.com.au/technology 20 interpro.com.au he housing market in Hong Kong is currently geared towards lower and middle-class, first- time homebuyers. Property developers are targeting this group for good reason, and that is economic incentive. The Hong Kong government is encouraging new home own- ership by exempting first-time homebuyers from government cooling measures. Land pricing may have seen a decrease but new property develop- ments, such as Lohas Park, will open up opportunities for the lower and middle class groups. Property developers are also doing their part by dropping their profit margins in order to offer homes at affordable rates, which are currently averaging HK$6 million. The problem is that it is get- ting more and more difficult for property developers to keep housing affordable. With ris- ing material costs and labour shortages the situation is not expected to get better over the next few years. There is, how- ever, one unexpected advan- tage to homeowners caused by the increasing construction costs, and that is an over sat- urated market. Because there are so many homes on the market right now, buyers can pass on one home, knowing there are plenty of other homes to make offers on. This one benefit is not likely to last long. However, as the US and British economy are recover- ing, the property values across Hong Kong are facing an over- stretched market. Property developers cannot be expected to take a loss, and with their already small profit margin, combined with increas- ing construction costs and inter- est rates, housing prices will inevitably rise over the next few years out of sheer busi- ness necessity. To get a better understanding of what the next few years holds for the Hong Kong housing market, we must take a look at what is going on with material costs and labour availability. Material costs Construction growth around the world, including places like Hong Kong, China and New York have created a shortage in material costs, which has in turn increased the prices of materials. Take steel for exam- Hong Kong housing and constructing forecast will see labour shortage T Virginia Ho, Practice Head Property & Construction ple. Over the next few years, steel prices are expected to increase 2.2 percent. Steel is used in construction to make machinery, fencing, nails and other tools and equipment. There is no viable replacement for steel when manufacturing these items, meaning that home sales prices over the next few years will reflect these extra costs. Labour shortage The increase in construction in Hong and China has created a labour shortage. There amount of construction projects far out- weigh the workforce. Demand for construction labourers, espe- cially skilled labourers, has increased by approximately 25 percent since 2011. Because construction workers are in such high demand, they are able to demand a higher price and are going where the biggest pay- check is offered. Hong Kong is particularly suffering from this increased demand, because many construction workers are traveling to China to work on larger projects that are demand- ing higher wages. The small group of construction workers that remain in Hong Kong are holding out for jobs with the highest bid, which is creating a bidding war between property developers. In the end, these increased costs will be trans- ferred to the home buyer. The future Over the next few years, as interest rates and construction costs rise, housing prices will increase and become unafford- able to many, resulting in a drop in new home sales. In response to the drop in home sales, developers will reduce the rate of new home construc- tion. This drop in construction rates will inevitably make the market more affordable again, because with construction rates decreased, the shortage of building materials will go away and the prices will drop. The same goes for construction workers. They will no longer be in such high demand, meaning they wont be able to ask for such high wages. The bottom line is that we must wait for the market prices to become too high before construction will slow, making home prices affordable once again. Virginia is our Property & Construction Practice Head. Based in Hong Kong, she has a proven track record in providing recruitment solutions to her clients in the Asia region from mid to top-level management. Find out more about our services in the Asia region by visiting interproasia.com 22 interpro.com.au Interpro is using the Net Promoter Score to measure the satisfaction and loyalty of our customer relationships. Interpros NPS = 6.38 A score above 0 is considered positive, with average results falling between 5 and 10. Companies with the most effcient growth receive a score above 50. This is where we would like Interpro to be. The NPS is a customer loyalty metric. Using a 0-10 scale, it is calculated on the basis of classifying customers as promoters, passives or detractors. Interpreting the results
8.51% 3.19% 0.00% 2.13% 2.13% 11.70% 3.19% 9.57% 22.34% 15.96% 21.28% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% How likely are you to recommend Interpro to a friend or colleague? We have expertise in your marketplace Were specialist recruiters and always have been. Each of our consultants is a specialist in a particular market niche and has deep experience recruiting for the roles within that area of expertise. We leverage cutting-edge technology As a niche recruiter we rec- ognisedthe need for the right tools. We built our own propri- etary global database which now integrates with our wider online social and professional networks. But we dont take our track record for granted Were a knowledge business, and its our people that make the difference. We dont take our capability for granted: were constantly looking for new tal- ent for our own business, and we set the bar very high. Weve got excellent talent networks Over 80% of professionals arent actively looking. Our networks across the areas we specialise in means we reach the people other people cant, particularly the top talent. Were great at this stuff Weve placed thousands of people across Australia, Asia, the UK and Europe. You can be confdent that weve done this before and well. interpro.com.au 23 Interpro is a specialist recruitment consultancy with offces in Australia, Europe and Asia. We have a 20-year heritage in technology recruitment and expanding capability in energy and resources. Visit our website to discover your next job, read our latest insights and meet our team: interpro.com.au Were on: interpro.com.au Level 10, 447 Kent Street Sydney, NSW, 2000 Australia Email: sydney@interpro.com.au Phone: +61 (2) 9283 3555 Level 22, 600 Bourke Street Melbourne, VIC, 3000 Australia Email: melbourne@interpro.com.au Phone: +61 (3) 9600 0059 Level 14, 10 Market Street Brisbane, QLD, 4000 Australia Email: brisbane@interpro.com.au Phone: +61 (7) 3220 3693 Level 10, Central Building 1-3 Pedder Street, Central Hong Kong Email: info@interproasia.com Phone: +852 2522 0233 34 Lime Street London, EC3M 7AT United Kingdom Email: profle@interproeurope.com Phone: +44 (0) 20 3544 50203 Sydney Melbourne Brisbane Hong Kong London