Some experts refer to the millennials as those born between 1982 and 1995, while some extend the scope of this group to those born from 1977. But no matter the year of birth, millennials definitely refer to the largest age group that is about to take the workforce by storm and reshape hiring practices, employee management policies, and tech spending.

Millennials are the most digitally inclined and wired age group in history.  By the time they hit their teens (or tweens), the Internet had already become a way of making business while e-mail replaced the age-old letter writing as the primary form of personal and business correspondence.  The advent of cell phones and their increasing affordability allowed both millennials and their parents to stay in touch no matter where they are. When the digital age entered the Web 2.0 phase, millennials were at the forefront of social networking, content generation, and electronics and digital content purchases.

According to Forrester Research, 51 million European millennials are joining the workforce as the continent’s Baby Boomers exit from the labor market.  The United States has 80 million millennials who are either already in the labor force or are about to join it. Let us not even forget the hundreds of millions of Generation Y’ers (a term some refer to the millennials) from Asia and South America.

Having so many people at once who live and breathe digital poses a challenge to companies, especially those that rely on traditional ways of managing human resources based on the experiences from the Boomer age.  Consider, too, the changing corporate landscape that grew from on-shore outsourcing to “worldsourcing”.

But how do millennials affect businesses in terms of technology management and spending? A good place to start is the seminal document, The Cluetrain Manifesto, particularly theses 9 and 11:

“ 9. These networked conversations are enabling powerful new forms of social organization and knowledge exchange to emerge.
“11. People in networked markets have figured out that they get far better information and support from one another than from vendors. So much for corporate rhetoric about adding value to commoditized products.”

Because of their inclination for collaborative work, millennials actively participate in on-going online conversations, allowing them to establish relationships with colleagues, potential customers, and existing clients. The reverse may also be true, but they are the best sources of information about products and services of companies aside from the pre-approved marketing copies.

Another area where millennials affect tech management is in telecommuting or teleworking. Millennials’ “always on” lifestyle opens opportunities for companies to encourage greater productivity while lowering overhead costs. Flexible working hours enable both workers and companies to extend working hours, and in the case of those that have presence in various territories, cover different time zones.  On the other hand, one caveat of this phenomenon is that what companies gain from telework /flexiwork should be invested in IT security. (See our other blog stories for more about IT security.)

Companies have laid the platforms for mobile productivity via remote computing. But spending will continue to grow in the area of virtualization, covering video conferencing, VPN, and instant messaging, to name a few. Failing in these areas will be a source of frustration among millennials, particularly the most talented who are comfortable in working environments that allow for faster data access and migration, collaborative work and knowledge management, and flexible yet extended working schedules.