If you read the headlines lately, scores of articles have come out about an IT shortage not only in the US, but in the UK and Australia. Headlines over the past months have included, "Staffing and skill crisis the top concern for CEOs and CIOs", "Not enough IT workers on staff, survey finds", and , "Shortage of IT Workers and Talent Driving Offshoring".

The headlines are not just hype. Several surveys, including one commissioned by the IT Governance Institute, provide data that backs up these findings. Given the issues, companies are looking at alternatives to fill the void. Immigration and education are both being talked about as possible solutions to the problem. While skill shortages are an issue, competition and the loss of US profit are just as critical, though not publicized.

It is time for us to be realists. We have to look at both the short and long term issues and start to move forward toward a solution. Education, both of current employees as well as upcoming students is critical; but the timeline is long. We need to start taking action now for the long term, but we cannot ignore where we are today in the short term.

No silver bullet exists to solve the immediate problem. The key for US companies to overcome the challenge is to use the same ingredients that made us the early leader in the technology field. The ingredients of the solution are a combination of vision, innovation, and leadership.

One thing is certain; we cannot afford to sit back if we plan to be leaders in technology in the future. Not only is there a skill shortage, but the competition is at our door step. An article was published in the March 6, 2008 edition of Business Week with the title, "Guess Who’s Getting the Most Work Visas". The results in this report should send up a red flag to those who wish to see the US continue to lead in technology.

According to the Business Week article, the top 4 largest approved petitions for H-1B workers in the US are India based companies. Take a step back and think about that for a moment. The largest technology companies asking to bring workers into the US to fill shortages in skills in the US are not US companies. Workers are being brought to the US from India to do work for Indian companies that have contracted by US companies to fill US skill shortages. That means the work and the profits are going outside of the US.

It is time for us to realize that we are part of a global economy. We have IT needs, and may not have the resources to fill them. However, instead of outsourcing the work, giving up both the job and the profits, we need to become a player in the global market and hit the competition head on.

Instead of giving up leadership and control, we need to not only address the long term strategies, but take action in the short term. We can acquire the skills we need and still be in front. You may be asking yourself, how? The answer is to leverage the offshore resources that are available, but in a model that allows us to maintain leadership and control.

Many people confuse the terms outsource and offshore. They are not the same. When you outsource you are giving your work to another entity. Offshore is a location.

One fundamental business principle needs to be kept in mind. Never outsource your core competency. If you find a partner that has your core competencies, that partner can very easily become your competitor. If you don’t think that can happen, I would ask you to study the Business Week article on H1B’s. It is far too easy for these partners to gain entry to your customers and then take over the relationship. It is happening now.

The short term answers to the challenge can be seen in what large multi-national companies like IBM are now doing. They are filling skill shortages with offshore resources (in countries such as India, China, Brazil, and others), but they employ the resources. This model keeps work and profits with US companies, helping to maintain and build the tax base we need to fund future strategies.

Critics might say, "But IBM, is a large company. That strategy only works for large companies. What about the small or medium sized US companies?" With the changes that have taken place in technology, the same strategy and model is available to small and medium sized companies as well.

Many are unaware of the fact that these strategies and models are available to US companies. Furthermore, they are unaware these models can be provided through other US companies. Models exist that can drastically reduce the bureaucratic, cultural and labor risk associated with these strategies, with the result being low risk expansion opportunities and control.

The answers are available. We, as a country, need to wake up now and start to take action on both the short and long term strategies. If we do, we can retain - and even grow our leadership in the IT space.