Skill capacity planning and transformation scheduling of IT workforce under stochastic learning and turnover

Chouhan, M and Goyal, M (2010) Skill capacity planning and transformation scheduling of IT workforce under stochastic learning and turnover. In: 49th IEEE Conference on Decision and Control (CDC), 15-17 Dec. 2010, USA.

Full text not available from this repository. (Request a copy)


Most IT service providers rely on myopic hiring strategies to meet immediate demand resulting in both demand gap and agent glut over time. We show that the provider may have an incentive to reject demand, even when it has sufficient skilled service agents to meet the demand, if it perceives value in inducing agents into learning. This would enable the skill supply to align quickly to the changing demand and thus earn future profits at the cost of immediate revenues. We consider a skill capacity planning problem while minimizing a sum of skill demand-supply gap over a finite planning horizon. We develop a discrete time Markov decision process framework and design optimal demand admission control, hiring and skill transformation strategies under stochastic rate of turnover and skill learning. We develop a piece-wise linear demand admission and hiring control rule. We show that there are states where it is optimal to reject a part of the demand and induce agents into skill learning. An efficient computational algorithm is designed to evaluate the control policies.

ISB Creiators:
ISB Creators
Goyal, M
Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Admission Control; Capacity planning; Computational algorithm; Control policy; Control rules; Discrete-time Markov decision process; Finite planning horizon; IT service providers; IT Workforce; Piecewise linear; Service agents; Stochastic learning; Supply gap
Subjects: Operations Management
Depositing User: LRC ISB
Date Deposited: 12 Nov 2014 12:56
Last Modified: 13 Nov 2014 05:58
Publisher URL:
Related URLs:

Actions (login required)

View Item View Item
Statistics for DESI ePrint 227 Statistics for this ePrint Item